Module 2

Question 1

Real Estate

Answer 1

Only the tangle elements of the property (the building)

Question 2

Improvements

Answer 2

Any structure other than the main property (shed, deck, etc.)

Question 3

Real Property

Answer 3

Tangible and intangible elements of the property (e.g. the building and the rights associated with ownership)

Question 4

Trade

Answer 4

REBBA term.
Disposition (selling) or acquisition (buying) or leasing of property.
Also includes advertising real estate for sale or negotiations.
Also includes if there is no sale of property but a business.

Question 5

Seller/vendor

Answer 5

Can be used interchangeably (the person who is selling property)
Under REBBA they use the term seller

Question 6

Buyer/purchaser

Answer 6

Used interchangeably, under REBBA it’s buyer.

Question 7

Lessor

Answer 7

Person who is leasing the property out aka landlord

Question 8

Lessee

Answer 8

Person who leases the property from the landlord aka tenant

Question 9

Representation (person is the brokerage ‘Client’)

Answer 9

Agency relationship.

REBBA and fiduciary responsibilities are placed on brokerage - must be loyal and protect seller/buyer interests

Question 10

Providing Services (person is the brokerage ‘Customer’)

Answer 10

Not the same level as Representation.
Must treat person with fairness, honesty, and integrity.
No fiduciary responsibilities (loyalty, confidentiality, or promoting best interest).

Question 11

Representation agreement

Answer 11

Agency relationship (party is a client).
Can be verbal or written, must be written at the earliest time, and before the offer is made. 
Working with seller = listing agreement
Working with buyer = buyer agreement
REBBA: provide signed copies to client immeditely after signing.

Question 12

Customer Service Agreement

Answer 12

Written or verbal agreement to have person as customer.
Reduce to written at earliest opportunity, provide immediately after signing.
Non-exclusive. No obligation to compensate brokerage.

Question 13

Agreement for purchase and sale

Answer 13

Used to negotiate terms between buyer and seller.
REBBA: Agreement for conveyance of interest.
Must be in writing and signed by both parties to be enforceable.
AKA ‘offer’

Question 14

Personal property

Answer 14

Consumer goods - basically everything other than the actual building. Moveable.

Question 15

Fixtures

Answer 15

Type of personal property.
Not moveable. Most often included in sale, unless explicitly outlined in the purchase agreement by seller and agreed to by buyer. E.g. curtain rod, built-in book case, light fixtures.

Question 16

Chattels

Answer 16

Type of personal property. Not included in agreement as part of sale unless explicitly agreed to. E.g. barbeque, curtains.

Question 17

Title

Answer 17

Legal ownership of land and associated rights.

Question 18

Chain of title

Answer 18

Series of transfers of title and other documents to prove ownership. Goes back to root of title.

Question 19

Encumberances

Answer 19

Outstanding claim or lien record against the property, or any legal right to use the property by another person who is not the owner.

Question 20

Deed

Answer 20

Document to prove transfer of the property ownership.

Term used in the Registry Act.

Question 21

Transfer

Answer 21

Same as deed, but term used in Land Registry Act. Used to show tranfer of ownership.

Question 22

Completion date

Answer 22

Date that the transfer of ownership is complete. AKA closing date.

Question 23

Mortgage

Answer 23

Claim or encumbrance on a property given by the owner to secure funding from the lender.
It is registered on the title in the applicable Land Registry Office.
Registry Act = mortgage
Land Titles Act = charge

Question 24

Lender

Answer 24

Person who is providing the money.
If title is registered under Registry Act = mortgagee
If title is registered under Land Title Act = chargee

Question 25

Borrower

Answer 25

Person who is giving the mortgage and receiving the financing.
If title is registered under Registry Act = Mortgagor
If title is regifered under Land Titles Act = Chargee

Question 26

Industrial - general purpose

Answer 26

features and facilities for a wide range of uses

Question 27

Industrial - special purpose

Answer 27

selected features that limit the use of the building

Question 28

Industrial - single purpose

Answer 28

only one intended purpose for the features, little to no use for anything else

Question 29

RECO

Answer 29

Real Estate Council of Ontario
Not for profit
Administers and enforces REBBA
Key focus is on consumer protection and public trust in real estate trade
Consists of 12 board members (9 elected members registered under REBBA, 3 non registered members appointed by Minister of Government and Consumer Services)

Question 30

CREA

Answer 30

Canadian Real Estate Association
Focuses on national and international representation
Owner of trademark REALTOR AND MLS
Operates Realtor.ca website

Question 31

OREA

Answer 31

Ontario Real Estate Association
Operates at provincial level
Maintains strong provincial lobbying voice
Offers savings program
Provides industry information to members

Question 32

TREB

Answer 32

Toronto Real Estate Board
Local/municipal level
Pay dues at local level, then you’re also a member of OREA and CREA
Access to MLS

Question 33

REIC

Answer 33

Real Estate Institute of Canada

Offers professional designations (FRI, CPM, CLO, ARM)

Question 34

CCIM

Answer 34

Certified Commercial Investment Member

Commercial and Investment real estate

Question 35

SIOR

Answer 35

Society of Industrial and Office REALTORS

Commercial and Industrial real estate