module 3

Question 1

Comparing Residential Structure Types- Detached structures

Answer 1

A detached structure is on an individual lot and is not
attached to any other building.

A single-family detached home ranks as one of the
most popular types of homes and is often preferred by
buyers who want more privacy and the ability to make
changes to their property without the input of a
neighbour.

Question 2

Attached structures: Townhouses

Answer 2

An attached structure has at least one or both of the
side walls, or the floor/ceiling components of a
structure, attached to another structure. These are
commonly referred to as townhouses and can be built
side-by-side or stacked.

Question 3

Semi-detached structures

Answer 3

A semi-detached structure has only one side wall that
is attached to another structure. The attached
dwellings are on separately deeded lots and are
divided vertically above ground by way of a party wall

Question 4

Link structures

Answer 4

A link structure is where two or more buildings are
attached either below ground with the foundation wall,
or above ground with a garage wall.

Link structures are
often characterized by their misleading appearance, as
some may appear to be detached from above ground.

Question 5

“dwelling unit.”

Answer 5

When discussing property types with a buyer, it should be determined whether the use of the structure should be
limited to a single-family dwelling, or if there is an interest in purchasing a multi-unit dwelling. To make this
distinction, it is important to understand what is considered a “dwelling unit.” A dwelling unit is described as a selfcontained housing unit with one or more habitable rooms containing at minimum a kitchen, bathroom facilities, and
an exit from the building.

Question 6

Bungalow

Answer 6

Bungalows are characterized by the primary living area
contained on one floor with few or no stairs.

Ranch Style:This variation of the bungalow
offers a larger overall size and typically features
an attached garage and a basement. Many of these homes contain approximately 2,000 square
feet of living area or more on one floor and are
normally oriented horizontally on a lot.

Bi-Level/Split Entrance: This variation of the
bungalow usually have a front entrance at the
split between the upper and lower levels. The
basement rests at a higher level above grade
than other bungalow types which allows for more
windows and greater sunlight in the basement
area. This has led to the basement area being
finished in a similar condition to the main floor,
rather than remaining unfinished.

Question 7

One-and-one-half storey

Answer 7

This style of dwelling contains approximately 60% of
the overall floor area on the main floor, and features a
high-pitched roof, which provides additional living
space on the second floor. The roof pitch results in
slanted ceilings on the upper level and reduced head
clearance. Some styles will include dormers (vertically
projecting windows) and may be referred to as a,
“Cape Cod” design, originally popular in the
northeastern United States

Question 8

Two-storey

Answer 8

his style of dwelling is characterized by a combination
of an expansive living area and a separate bedroom
area level. Two-storey dwellings differ from one-andone-half storeys, due to their lack of slanted ceilings on
the upper level. There are many variations of twostoreys, and they are popular in most major urban
areas.
Two-storey dwellings may be shown to prospective
buyers who desire a large space, such as families with
children. This style also appeals to those who prefer a
style that typically has bedrooms on a different level
from the rest of the living space.

Question 9

Split level

Answer 9

This type of dwelling can combine features of other
styles, ranging between the bungalow, split-entrance
bungalow, and the two-storey home. The ease with
which occupants can move from one area of their
home to another is a primary characteristic. Side and
back splits may have anywhere from three to five
levels and are characterized by several sets of stairs.

Question 10

Duplex

Answer 10

A duplex is described as a building divided into two
individual dwelling units. Each dwelling unit can be
accessed through its own private entrance or a shared
entryway. Duplexes can be divided horizontally, as in
the style of a two-storey, or vertically as in a bungalow.
Many duplex structures are converted from a singlefamily use to a multi-unit use.

A vertically-divided duplex should not to be mistaken
for a semi-detached structure, although the style of
each could be similar.

Question 11

Triplex

Answer 11

triplex is described as a building divided into three
individual dwelling units. Each dwelling can be
accessed through its own private entrance, a shared
entryway, or both. Triplexes are also divided
horizontally and/or vertically depending on the style of
the structure and many are converted from a singlefamily or other use to a multi-unit use.

Question 12

Fourplex

Answer 12

A fourplex is described as a building divided into four
individual dwelling units. Most fourplex structures
were purpose-built, containing a separate entry rather
than a shared entryway. Fourplexes are typically in the
style of a bungalow, one-and-one-half storey, or a twostorey dwelling that is divided vertically.

Question 13

Fee Simple Interest and Leasehold Interest

Answer 13

module 3- lesson 2 notion

Question 14

Fee Simple

Answer 14

Ownership for an indeterminate amount of time
● The highest form of ownership, with the most rights and the fewest limitations
● These rights are commonly referred to as the “bundle of rights”

Question 15

Leasehold

Answer 15

• Occupancy rights NOT ownership.
• Rights can or do last for a pre-determined amount of time.
• Fewer rights than fee simple (tenants do not have the right to sell or give away
the property, but may sublet, for instance, with express permission from their
landlord)

Question 16

The right to take property

Answer 16

Expropriation is the term that describes a government body exercising its right of eminent domain to take private
property from an owner for greater public use or benefit in exchange for a fair price at market value.

Question 17

Right to Regulate

Answer 17

It is the right of government to regulate property for the promotion of public safety, health, morals, and general
welfare. It is also referred to as police power. Zoning bylaws, building codes, traffic, and sanitary regulations are also
based on this right to regulate. Various federal and provincial statutes impact land ownership, such as land
planning.

Question 18

Right to Levy Taxes

Answer 18

Municipalities in Ontario generate revenue by charging taxes to owners based on their property’s value. The
requirement that property tax be paid is one of the basic limitations on ownership rights. In addition to the annual
taxes, a property may also have a special tax levy for local improvements

Question 19

Escheat

Answer 19

The Escheat Act, 2015 pertains to property of individuals who die intestate or without lawful heirs.

Question 20

Private Limitations

Answer 20

Private limitations are restrictions placed on a property by a landowner rather than by a government body. You’ll
learn about two common types of private limitations, restrictive covenants and easements. You will need to be
mindful that once granted, these private limitations “run with the land”, meaning they attach to the property title
and bind both current and subsequent owners.

Question 21

Restrictive

Answer 21

A restrictive covenant is a limitation placed on the use of property and is registered on title for that property. It is a
contract between two land owners, where one owner (the covenantee) acquires the right to restrain the other
owner (the covenantor) from putting the land to certain specific uses. A restrictive covenant remains in effect if
either property is sold.

Question 22

Easement

Answer 22

Like a restrictive covenant, a property easement is usually registered on title and “run with the land”. Exceptions are
statutory easements like utility agreements put in place to maintain and install wiring. An easement also binds
subsequent owners of the property, and therefore, should be disclosed to any prospective buyer.
Easement rights are granted by one property owner (the servient tenement) for the benefit of at least one other
property owner (the dominant tenement), usually allowing them special use of the granter’s land, such as a right of
way.

Question 23

concurrent ownership

Answer 23

occurs when two or more persons hold ownership of a

property simultaneously.

Question 24

Concurrent ownership interests normally fall into two primary categories, joint tenancy
and tenants in common

Answer 24

Joint tenancy: is a form of ownership in which each
owner has an equal and undivided interest in the
property. This form of ownership is commonly, but
not exclusively, found among married couples.

Tenants in common: This form of ownership is commonly found among
business partners or friends, but can also be within
married couples, especially when there is a difference
in the equity being brought into the purchase. With
tenants in common, there is only the unity of
possession required. **Tenants in common may hold
different interests and acquire those interests in
different ways at different time

Question 25

Concurrent

ownership

Answer 25

Concurrent ownership occurs when two or more people hold simultaneous
ownership in a property.

Question 26

Joint tenancy

Answer 26

Joint tenancy occurs when four criteria, known as unities, under concurrent
ownership exist:

• Unity of time
• Unity of interest
• Unity of possession
• Unity of title
Joint tenancy is distinguished by the right of survivorship.

Question 27

tenants in common

Answer 27

Tenants in common only requires the unity of possession and does not include the
right of survivorship. Tenants in common can have different interests in the
property and may acquire those interests in different ways at different times. In
most instances, it is the default form of concurrent ownership.
Sellers and buyers should be referred to a lawyer for advice and guidance regarding
concurrent ownership.

Question 28

Co-operatives

Answer 28

In a co-operative, a corporation owns the land and the building, including all the units. Each purchaser in a co-operative buys shares in the corporation as opposed to buying a specific unit. Purchasers in a co-operative do not own their units but are given the right to occupy them by the corporation. Thus, the legal interest of the co-operative dweller is that of a shareholder of the corporation that owns the property. This is why the co-operative dweller is often referred to as a tenant-shareholder. The legal interest of the tenant-shareholder is different from that of the condominium owner who has the greatest ownership right in his or her particular condominium unit, called a fee simple interest.

Question 29

Upper tier municipality

Answer 29

(region, county, or district)
Responsible for:
Preparation, adoption, and revision of the official plan, and the process of dividing
and developing land.

Question 30

Lower tier municipality

Answer 30

Responsible for:
Preparation, adoption, and revision of the official plan and the adoption of zoning
bylaws, interim control bylaws, and other bylaws.

Question 31

Single tier municipality

Answer 31

(district, county, region, township, city, or municipality)
Responsible for:
Assumption of all municipal responsibilities where a municipality does not form part
of an upper tier municipality.

Question 32

Municipal responsibilities impacting the listing and selling process

Answer 32

We will further discuss some municipal initiatives’
impact on real estate activities:
• Restrictions relating to the placement of signs,
notices, or advertising on property
• Establishing provisions regarding flood control
that affect properties in flood-prone areas
• Requiring property owners to meet various
standards in the control of noise, vibration,
odour, dust, and outdoor illumination (e.g.,
operation of commercial enterprises and noise
bylaws relating to residential uses)

Question 33

Spotlight on sign placement bylaws

Answer 33

Most municipalities have a sign bylaw that regulates
the size, message content, and location of signs on
property. As a general rule, no signs can be placed on
public lands without permission from the government
body. Municipal bylaws differentiate between
permanent signs (which require permits) and
temporary signs (which do not require permits)

Question 34

Spotlight on flood control provisions

Answer 34

Most municipalities have taken steps to prevent
flooding through infrastructure, such as dams and
storm sewers. Areas that are still considered floodprone are designated by municipalities in accordance
with the severity of their potential flooding. If there is
extreme risk of property damage or danger to human
life, municipalities can prohibit or limit land
development on a site. As a result, some residential
properties in flood plains have construction
restrictions placed on them (e.g., restrictions on having
furnaces in the basement, or basements may be
disallowed altogether).

Question 35

Spotlight on noise standards for property owners

Answer 35

Most municipalities that are in close proximity of an
airport or other source of noise pollution will restrict
the hours of operation if the noise cannot be
reasonably reduced or eliminated. In many cases, the
municipality will place a “noise caution” on the title of
affected properties so that anyone searching the title
will be aware that noise in the area may exceed the
municipality’s guidelines

Question 36

Municipal impact on salesperson activities: Noise example

Answer 36

Example:
A salesperson shows a property to a potential buyer
family. While standing in the driveway, they say that
they are in love with the house but are curious to know
more about the area. Being familiar with the
neighbourhood, the salesperson informs the buyers
that they should be aware of some noise disturbances
associated with overflying planes. As if on cue, a plane
on final approach flies right over the house, the sound
of which is quite disturbing! The family decides to look
at other properties

Question 37

Ontario heritage act

Answer 37

Under the Ontario Heritage Act, these properties receive protection if
listed on a municipality’s heritage register, and preserved by restricting changes that can be made to a designated
heritage property. As a salesperson, you will need to understand why and how a property is listed or designated,
how to customize your services for sellers and buyers, and meet your obligations in transactions involving a heritage
property.