LESSON 1 - Preface Intro to Real Estate Flashcards
- How land is owned in Canada - value is attached to land - participants in real estate and roles - Characteristics unique to real property - Structure of real estate in BC - differentiate b/t residential & incustrial, commercial and investment real estate markets
List the three caveats to their rights that fee simple owners are subject to
- the Crown’s right of expropriation and tax sale
- the Crown’s land use and building regulations
- other individuals’ common law rights
T/F?
Absolute ownership of Land exists in Canada
False
How is value attached to Land?
- demand for space, shelter and support of actitivites
- willingness to pay
- capitalized value
define capitalized value
Assessment of the value of an asset, based on the total income expected to be realized over its economic life span.
A ___________ is a person who is licensed under a provincial statute, to provide real estate services, to or on behalf of another, for or in expectation of remuneration
real estate representative
What are some of the tasks required of a real estate representative in regards to the purchase of real estate
Listing property for sale, conducting open houses, finding properties for clients, negotiating prices for the property, drafting contracts of purchase and sale, presenting offers and receiving deposits of money
Do real estate licensees sell interests in land?
No, they sell services to people who want to sell or buy interests in land.
A _________ determines the market value of a property based on its condition and the selling price of comparable properties that recently sold in the area.
real estate appraiser
What participant in the real estate market ensures the property value is assessed appropriately to the mortgage loan
Appraiser
A _______________ will conduct a comprehensive visual examination of a property’s overall structure, major systems, and components and provide a written report.
home and property inspector
What does a surveyor do?
determine the boundaries and other features of land in order to accurately describe what is owned on paper
What are the two key tasks a Real property assessor does
- determines the actual value of the assessed properties
- assigns each property to a property class
List the three Mortgage insurers in Canada
- Canada Mortgage and Housing Corporation(CMHC)
- Genworth Financial
- Canada Guaranty
What are the 4 significant characteristics of improved land?
- Immobility
- the durability of its improvements
- the invisibility of the services it provides
- divisibility of ownership it allows
___________ in respondible for the local nature of real property markets
Immobility
The immobility of real property means that land is subject to ___________, which are enjoyed or suffered by people other than those who produce them.
Externalities
The durability of Improved Land
2nd important characteristic of real estate is the indestructibility of space and the durability of structures.
Indivisibility of Services
Value of parcel of real estate depends on usefulness - based on land and improvements
Divisibility of Ownership
ownership of land can be divisible both physically and legally
There are two aspects to the organization of the real estate brokerage industry in BC, what are they?
- The organizational structure created by the statutory regulation of the industry
- the voluntary structure created by the variety of professional organizations that exist to fulfil objectives not addressed by government regulation
All statutory laws relating directly to land and the licensing of real estate brokerage personel are ______________
provincial
How many people are on the Real Estate Council?
16
How does one get to be on the Real Estate Council?
appointment by the Lieutenant Governor in Council
How does the Real Estate Services Act protect the public
- licensing agents
- mandatory insurance
BCREA
British Columbia Real Estate Association
REIBC
Real Estate Institute of British Columbia
The _______ & _________, who are responsible for the licensing of real estate service providers and the general protection of the public
Superintendent of Real Estate
Real Estate Council
The ___________ was created and charged with insuring licensees against liability for errors and omissions made during the course of their professional duties
Real Estate Errors and Omissions Insurance
The ___________ which promotes continuing education of its member real estate boards and the advancement of causes important to its members
BC Real Estate Association (BCREA)
What is the Real Estate Foundations mission
Is to use its resources for the benefit of British Columbians by supporting efforts that improve all aspects of land use and real estate practices.
How many people are on the Real Estate Foundation?
5 appointed members
The Board of Governors for the Real Estate Foundation have been appointed by whom?
BCREA = 1
RECBC = 1
REIBC = 1
Minister of Finance = 2
The ____________ is a national organization comprised of licensees and real estate boards across the country
Canadian Real Estate Association (CREA)
What is CREA’s primary mission?
To represent its members at the federal level of government and to act as a watchdog on national legislation pertaining to the real estate industry.
How does the CREA meet its objectives?
CREA developed its Code of Ethics and Standards of Business Practice to which all Realtors in Canada must adhere to a standard of practice that the public may reasonably expect
