Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate > Module 1 lesson 2 > Flashcards

Module 1 lesson 2 Flashcards

1
Q

Trade

A

A disposition or acquisition of or transaction in real estate by sale, purchase, agreement for purchase and sale, exchange, option, lease, rental, or otherwise and any offer or attempt to list real estate for the purpose of such a disposition, acquisition, or transaction, and any act, advertisement, conduct, or negotiation, directly or indirectly, in furtherance of any disposition, acquisition, transaction, offer, or attempt, and the verb “trade” has a corresponding
meaning.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Vendor

A

Same as seller

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Purchaser

A

same as buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Landlord

A

Also known as “lessor”. This is an individual who owns a house but rents it out.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Tenant

A

Also known as “lessee”. this is an individual who rents from a lessor/landlord.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Representation

A

The term representation implies an agency relationship has been established between two
parties. An agency relationship places both regulatory (REBBA) and fiduciary obligations on
the brokerage. Fiduciary obligations generally require the brokerage to be loyal, not disclose confidential information, and promote and protect the seller or the buyer’s best
interests.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Providing Services

A

A brokerage can provide services to a seller or a buyer rather than represent the party. Providing services does not place the same level of obligations on the brokerage as when representation has been established. A brokerage must treat the party with fairness, honesty, and integrity, and ensure any information provided is accurate. No fiduciary
obligations are owed when providing services, such as loyalty, confidentiality, or promoting their best interests.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Client

A

A client is represented by a brokerage and is owed loyalty, confidentiality, and many other obligations both under REBBA and the common law of agency. In REBBA, the term “client” is used, and a client can be a seller or a buyer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Customers

A

A customer is a person who is receiving services from a brokerage. A customer does not
receive the same level of service from a brokerage as a client does. A brokerage owes fewer duties and obligations to a customer, and the customer must clearly understand the brokerage is not representing them in a transaction. In REBBA, the term “customer” is
used, and a customer can be a seller or a buyer.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Who is the agent

A

The brokerage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Representation Agreement

A

A representation agreement is the term used when a brokerage represents a seller or a buyer as a client. An agency relationship can be created in a number of ways such as a written or a verbal agreement. However, the Code of Ethics requires that a registrant must reduce a verbal representation agreement with a seller or a buyer to writing at the earliest practical opportunity and before any offer is made, have it signed on behalf of the brokerage, and submit it to the seller or the buyer for signature.

When working with a seller, the document used as a representation agreement is also commonly referred to as a listing agreement. When working with a buyer, the document used is referred to as a buyer representation agreement.

REBBA requires a copy of the representation agreement be provided to the party
immediately after signing.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Customer service agreement

A

A customer service agreement is distinct from a representation agreement with a client
and can be non-exclusive. A non-exclusive agreement allows a party to obtain services from another brokerage with no obligation to compensate the brokerage who has the customer service agreement signed with them.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Agreement of purchase and sale

A

An agreement of purchase and sale is a document used to negotiate the terms of a sale between a seller and a buyer. Under REBBA, an agreement of purchase and sale is referred to as an agreement for the conveyance of an interest in real estate. Agreements
of purchase and sale must be in writing and signed by the parties to be enforceable; however, there is no standard form required to be used. Various agreements of purchase and sale are commonly used within the marketplace and can differ depending on the property type.

For example, some of the different agreements of purchase and sale can include:
• Residential property with a single-family dwelling
• Residential condominium
• Residential co-operative property
• Property located on a leased parcel of land
• Commercial property
• Commercial condominium
• Sale of a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Commission Agreements

A

Commission is paid to a brokerage as compensation for the service provided on the sale or lease of a property. Commission is paid once a transaction has been completed, and can be calculated in one of three ways:

  • A percentage of the sale or lease amount – for example, 4% of the sale price
  • An agreed amount – for example, $10,000
  • A combination of both – for example, 2.5% of the sale price and an additional $5,000

The commission agreed to by a seller or a buyer is typically set out in the representation agreement. In some instances, a brokerage will be required to document the agreed upon commission in a customer service agreement or other form of commission agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Real Property

A

This includes tangible and nontangible aspects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Personal Property

A

Moveable and is referred to as consumer goods. Examples are furniture, appliances, light fixtures and drapes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Fixtures

A

Fixtures are considered personal property. Fixtures are to remain upon sale of the property. Any fixtures that the seller wants to retain must be said within the agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Chattels

A

All chattels are excluded from purchase and sale. There will be scenarios where the buyer would like to include the fridge or stove, ect in the purchase and sale. All chattels that the buyer wants to include has to be in the purchase and sale agreement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Title

A

Title refers to the legal ownership of land- and with that ownership- legal rights. As a salesperson you will need to know who has “title” to the property, as this is the legal owner who has the authority to sell the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Title Search

A

Title searching refers to locating, organizing, and condensing pertinent facts about documents and other related materials registered on title. The typical search normally involves a lawyer or a title searcher on behalf of the lawyer.

Title information, once reviewed by legal counsel, leads to a conclusion as to whether the owner has good and marketable title – that is, the transfer of title can occur without any encumbrances affecting the buyer. A typical encumbrance would be the seller’s mortgage
registered on title. A title search would reveal this so the buyer’s lawyer can take appropriate steps to ensure the mortgage is discharged from the title.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Evidence of ownership

A

A document is used to show the transfer of ownership – also referred to as a transfer of title or a transfer of an interest in real property.

The term “deed” is used under the Registry Act to describe the document used. The term used when title is registered under the Land Titles Act is “transfer”.

In a Land Registry Office, the document used to transfer title is “Transfer/Deed of Land”

22
Q

Deed

A

the term “deed” is used under the registry act to describe the document used.

23
Q

Completion Date

A

The date where transfer of ownership is completed between the seller and the buyer is referred to as the “completion date”. This date is specified in an agreement of purchase and sale. The date is also commonly referred to as the “closing date”.

24
Q

Mortgage

A

A mortgage is a claim or encumbrance upon a
property given by the owner of the property to the
lender as security for money borrowed. A mortgage is
registered on title in the applicable Land Registry
Office, which provides assurance that the property is
used as security for the borrowed funds. This is
because the mortgage must be repaid in full when the
property is sold. Once repaid, a document is
registered on title that discharges the mortgage off
title.

25
Q

Lender

A

The term “mortgagee” is used to identify the lender
when title is registered under the Registry Act. The term “chargee” is used when title is registered under the Land Titles Act.

26
Q

Borrower

A

The term “mortgagor” is used to identify the borrower
when title is registered under the Registry Act. The term “chargor” is used when title is registered under the Land Titles Act.

As a mortgage is a claim on a property that is given by
the owner as security for the loan, a borrower “gives”
the mortgage, and the lender “gives” the financing.
Common reference is for a borrower to “get” a
mortgage from a lender, whereas it is really, the
borrower “gives” the mortgage.

27
Q

Detached

A

A detached structure typically refers to a building that is physically separated from any other building or structure, other than a garage that could be attached to the residential home. The structure is located on an individual lot with no other residential structures attached. This is commonly referred to as a stand-alone structure.

28
Q

Attached

A

An attached structure refers to a building where one or more walls are shared with at least one other structure.
Depending on the ownership, the structure could be located on an individual lot while still attached to another structure, or the structures could be attached and located on the same parcel of land, such as with a condominium.

29
Q

Bungalow

A

The bungalow has traditionally been a highly popular
housing style given the lack of stairs, with the primary
living area contained on one floor. Many older
neighbourhoods will feature an abundance of
bungalow style homes. Bungalows are particularly
popular with empty nesters (typically older couples
whose children have grown and left home).

The ranch style bungalow is distinguished from a
bungalow as this design offers more living space and
typically includes an attached garage.

30
Q

Bi-level/split entrance

A

The bi-level or split entrance bungalow makes more
effective use of the lower basement areas. The typical
design has the front door foyer located as a split level
between the upper main areas and the lower areas. As
such, the basement is raised above grade level when
compared to the traditional bungalow, allowing for
larger windows and greater sunlight, access, and
ventilation.

31
Q

One and one-half storey

A

Typically, in a one and one-half story home, about 60%
of the total living area is contained on the first floor.

This style is more cost-effective than the bungalow
because it provides more square footage on the same
building coverage (or foot print) on the land. The one
and one-half storey provides a high-pitched roof for
additional living area. Dormers (protrusions through
the roof for more living area) were added as the design
became more popular.

32
Q

Two-storey

A

The two-storey home has traditionally been a very
popular choice for building design. This plan provides
an attractive blend of large living area combined with a
separate level for sleeping areas. Unlike the one and
one-half storey, rooms on the upper level do not have
the angled ceilings on the upper level and can be very
spacious.

33
Q

Split level

A

Side-split – where the layout is left to right, and
back-split – there the layout is front to rear

Split level homes can involve three or more levels of
living area depending on the overall size required for
the structure. A three-level design will feature a lower
level family room, main level living room, dining room,
and kitchen, and an upper level for bedrooms and
main bathroom. Elaborate split-level homes can
typically involve as many as five levels.

34
Q

Semi detached

A

The semi-detached home is identified by one of the structure’s walls being attached to another structure. These units are sideby-side and located on separately deeded lots. A semidetached home provides many features associated with detached homes, including overall size and individual title to the land, while offering certain price advantages, particularly
for young families.

35
Q

Townhouses

A

The townhouse has also become a popular alternative, in which three or more units are joined together by party walls. Each town house unit typically contains a full basement, main level living area, and upper level for bedrooms.

36
Q

Linked Dwelling

A

The linked dwelling involves two or more single-family homes that are attached, however the placement of the attached portion of the home is not always evident. Many linked dwellings are attached below grade by a concrete wall. Others are attached above grade, typically using the garage walls as the attached portion. Due to the potential for a linked area not to be visible, additional due diligence is required to confirm this status. As a salesperson, one indication of a linked dwelling is the placement of the structure on the lot; it may appear closer to the property line than other homes in similar neighborhoods.

37
Q

Multi-unit residential dwelling

A

This structure type is characterized by more than one dwelling unit within a single building. A dwelling unit is generally described as a self-contained unit that contains, at a minimum, a kitchen, bathroom, and living area/sleeping facilities. Common multi-unit residential dwellings include a residential duplex, triplex, and fourplex.

38
Q

Office

A

Commercial office buildings can range from freestanding small offices and retail operations to low and high-rise office complexes.

39
Q

Retail

A

Retail commercial operations can include single, standalone buildings, groupings of retail stores on a downtown street, neighbourhood malls, and large indoor shopping centres that serve local and/or regional markets. Big box stores and outlet malls also make up the retail sector.

40
Q

Mixed-use

A

Many commercial buildings are classified as mixed-use, in which office, retail, and/or residential are combined in one complex.

A mixed-use development involves three or more
significant revenue-producing uses, including retail, office, residential, entertainment, and/or cultural. Each use must be viewed as stand-alone and not ancillary to another.

41
Q

Multi-unit

A

Multi-unit housing technically refers to any residential
structure that has more than one dwelling unit. However, the commercial multi-unit structure will include larger rental properties, which typically appeal to investors rather than an owner-occupied structure. These structures can include low density walk-up buildings, mid-rise buildings that contain up to 12 storeys, and high-rise buildings that are in excess of 12 storeys.

42
Q

Industrial

A

General purpose buildings that offer features and facilities for a wide range of operations.
• Special purpose buildings that offer selected features that limit the potential use, such as a manufacturing plant or a distribution centre with numerous loading docks. These buildings could be used for a limited number of alternative purposes.
• Single purpose buildings that are designed for a specific use with little or no potential for conversion to other purposes.

43
Q

Agricultural

A

Agri-business is a significant component in the
provincial economic picture. Large scale farm
operations require special purpose buildings for
livestock and crops. Ontario boasts a rich diversity in
crop production, ranging from cereal crops to tender
fruit, vegetable, and greenhouse/nursery crops, many
of which require highly specialized structures to store
and/or process.

44
Q

What does CREA do

A
  • national activities
  • international activities
  • Trademarks
45
Q

What does OREA do

A
  • vary in provinces
46
Q

Real estate Boards

A
  • MLS service

- various member services

47
Q

CREA’s mission statement

A

CREA’s mission statement outlines its primary purpose to represent and promote the interests of the members, enhance members’ professionalism and ability to succeed, and advocate policies that ensure real estate property rights and ownership.

48
Q

OREA’s role

A

OREA continually strives to improve the image of REALTORS® by enhancing educational and professional standards. The association also handles ethics and arbitration appeals involving board members, develops, publishes, and provides downloadable standard forms and clauses, and supports educational and charitable causes through the Ontario REALTORS Care® Foundation. OREA is also involved in providing advice and clarification on issues
concerning MLS® rules and regulations to their members. OREA also monitors provincial government legislation that affects real estate and provides a strong lobbying voice.

49
Q

REIC

A

Real estate institution of Canada,

REIC is a not-for-profit organization that provides advanced education and professional development within the Canadian real estate industry. REIC also offers a number of professional specialty designations such as:

• Fellow of the Real Estate Institute (FRI)
• Certified Property Manager (CPM)
• Certified Commercial Leasing Officer (CLO)
• Accredited Residential Manager (ARM)
These specialty designations are important as they give a
salesperson a higher degree of knowledge and additional accreditation

50
Q

CCIM

A

Certified Commercial Investment member

The Certified Commercial Investment (CCIM) Institute provides education programs and services for professionals in commercial and investment real estate, as well as allied industries. The institute awards the CCIM designation to individuals completing a series of graduate level courses based on advanced concepts and techniques in commercial real estate. Four core courses provide the fundamental skill sets required: financial analysis, market analysis, user decision
analysis, and investment analysis relating to commercial investment properties.

51
Q

SIOR

A

Society of industrial and office REALTORS

The Society of Industrial and Office REALTORS® (SIOR) is a leading international organization of commercial and industrial practitioners. The society is dedicated to the maintenance of high professional standards in the fields of industrial and office real estate

Real Estate (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions