module 3 & 4 Flashcards
what is a Fee simple estate?
Fee simple estate is the highest estate or absolute right in real property. The holder of such an estate has the most rights and fewest limitations, and can use, sell, lease, enter, or give away the property, or refrain from any of these rights.
This bundle of rights, known as ownership, is subject to restrictions imposed by the government.
what is a leasehold estate?
leasehold estate is an interest in land for a finite period of time (i.e. a week, a month, a year, 99 years, or any other specific period of time). In a leasehold estate, the person who is granted the leasehold is called the lessee or tenant, and the grantor of the leasehold estate is called the lessor or landlord.
In a leasehold estate, the tenant has only the right of possession and use but not ownership.
what is air rights?
relate to the rights to use space above the physical surface of the land.
Air rights are normally acquired to permit the construction of bridge approaches, piers, elevated streets and sidewalks, and in some cases, entire building structures.
For example, construction of a skyscraper or multi-level building above an existing use, such as a railroad, constitute air rights
what is Surface rights?
Surface rights refer to any right of land that is not mining rights.
surface rights holder is an individual who owns rights to land which do not include the mineral rights.
surface rights owner(s) of a piece of land can be identified by performing a title search at a land registry office.
what is Riparian rights?
Riparian rights are the rights allocated to owners of waterfront property and are associated with the property owner’s access to and use of water. As a salesperson, you will typically encounter riparian rights in the listing and selling of recreational properties.
what is Mineral rights?
Mineral rights involve the right to enter or use land for the purpose of removing minerals (such as gas, oil, gold, silver, and precious metals) on or beneath it.
As a salesperson, you will encounter properties in which mineral rights are sold or reserved by the Crown.
In this case, as a salesperson, you will have to refer the client to third-party service providers to obtain further legal advice.
what is Concurrent Ownership?
Concurrent ownership occurs when two or more persons hold ownership of a property simultaneously
Concurrent ownership interests normally fall into two primary categories : joint tenancy and tenancy in common.
what is Concurrent Ownership: Joint Tenancy?
Joint tenancy involves ownership of land by two or more persons with right of survivorship.
In joint tenancy, all the owners have an equal and undivided interest in the property.
*Title:
Each owner’s interest must be the same and must be created at the same time in the same document.
*Time:
The interests of all joint tenants must be created at the same time and for the same period.
*Possession:
Each owner must have an equal, undivided ownership in the property, and no one joint owner can have exclusive possession or ownership in all or part.
*Interest:
Each joint tenant must have an undivided share of the property at the same time as the other joint tenants and no joint tenant is entitled to any part of it to the exclusion of the other co-owners.
Example:
A couple purchased a home. On the closing date, both names appear on the property deed.
Their ownership of the property began at the same time and by the same document, they have an equal interest in the property, and both have equal possession of the property; hence all four unities have been satisfied.
If any of the four unities is missing, or ceases to exist during joint tenancy, then the owners will automatically become tenants in common.
what is Tenants in common?
Tenants in common involves ownership of land by two or more persons.
However, unlike joint tenancy, there is no right of survivorship and the interest of a deceased person does not pass to the survivor but is treated as an asset of the deceased’s estate.
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For example, two friends purchase a home as tenants in common, one owning a third and the other owning two thirds. Upon the death of one, because there is no right of survivorship in tenants in common, they are able to leave their interest in the property to their heirs in their will, as the property does not automatically transfer to the surviving tenant in common.
what is a A common elements condominium (CEC) ?
A common elements condominium (CEC) consists only of common elements such as roads, parking lots, common green space, or a community garden. There are no units, rather owners enjoy the common elements and jointly fund maintenance fee for the repair, maintenance, and replacement of any common element.
Each owner in a CEC has the ownership interest in their own property and an undivided interest in the common elements of the CEC
what is Co-operatives?
Co-operatives are another form of ownership. A co-operative is a joint ownership alternative in which a property is owned by a corporation, and members have an agreement to occupy a specific unit.
Co-ops are collectively owned and managed by the residents who own shares in a non-profit corporation.
A monthly maintenance fee covers the shareholder’s portion of the operating expenses and property taxes for the building and any mortgages that may exist.
what is Equity co-operative?
with share!
An equity co-operative is a corporation that owns the land and buildings with members as shareholders in the corporation. (occupancy agreement relating to a specific unit, usually accompanied by parking and locker.)
Condominiums are classified as real property and the owners own title to the unit. Co-ops are not considered real property. The corporation owns the property, and individuals purchase shares in the corporation and have exclusive use of a unit or apartment.
What is Non-profit co-operative?
without share!
A non-profit co-operative is without shares and its primary purpose is to provide housing for its members. The members have no ownership interest in the co-operative and simply pay rent to the corporation owner. ( There are a number of government and charitable agencies that provide non-profit co- operatives.) ( EX.government-assisted residential housing.)
What is Fractional Ownership?
Fractional ownership is ownership of a valuable asset where ownership of a property is shared with other individuals as tenants in common with usage rights allocated depending on the size of the fractional interest purchased.
(Ex. This type of ownership is becoming increasing popular with vacation properties.)
what is Co-Ownership?
Co-ownership applies to any situation in which two or more persons own property jointly, be it two individuals owning a home, four family members owning a recreational property, or 10 investors owning a plot of land. It is a tenant in common ownership alternative, in which the deed outlines the proportionate interest in property held by each owner. This interest does not need to be equally divided.
what is Ownership Alternatives: Land Lease?
A land lease is a lease involving the leasing of the land only. It gives the exclusive right to use the land for the time the lease is active. Terms vary but commonly range from 20 to 99 years. Land leases can be granted by both private sources and by the Crown.
Land leases offer the opportunity for consumers to own a home without the added cost of the land.
For example, there are more than 250 houses on the Toronto Islands (specifically, Ward’s Island) which are owned by the islanders. However, the land is leased from and owned by the City of Toronto.
what is Ownership Alternatives: Life Lease?
The person does not own a property but an “interest” in that property in exchange for a lump sum payment up-front.
The person also has to pay monthly maintenance fees that include a range of expenses, such as snow removal, landscaping, garbage disposal, repairs, building insurance, and possibly meals
Most life lease housing projects in Ontario are owned and operated by established non-profit and charitable organizations.
A life lease typically lasts until the end of the lease holder’s life or until the lease holder decides to move
what is Additional Property Types and Ownership Alternatives: Timeshare?
Timeshare is the division of property rights into fractional interests based on time. It has proven most popular in the sale of recreational properties
A time share contract gives you the right to use a property for a period of time.
Timeshares generally fall under two categories:
• Fee Ownership Interest
• Right to Use Interest
what is Fee ownership interest?
An interest in a deeded ownership gives the owner the right to use a specific unit for a specified time period
The deed allows the owner to use the property and the owner assumes responsibility for their proportionate share of the operating costs.
Ownership does not end after the specified time period each year, and ownership rights can be sold, gifted or included in a will.
what is Right-to-use interest?
A “right-to-use” timeshare is a lease-like agreement where the right-to-use expires after a specified time. There are no property ownership rights.
Rights of a Timeshare Owner in cancellation ?
Cancellation: cooling-off period:
A consumer may, without any reason, cancel a time share agreement at any time from the date of entering into the agreement until 10 days after receiving the written copy of the agreement.
• In addition to the right under subsection (1), a consumer may cancel a time share agreement within one year after the date of entering into the agreement if the consumer does not receive a copy of the agreement that meets the requirements under section 27. 2002, c. 30, Sched. A, s. 28 (2).
what is fee simple ownership?
If you have fee simple ownership, it means the property is yours to do with as you wish. Your only obligations are to obey the law (including zoning laws and building codes) and pay your taxes and debts.
What Is a Timeshare?
A timeshare is a shared ownership model of vacation real estate in which multiple purchasers own allotments of usage, typically in one-week increments, in the same property. The timeshare model can be applied to many different types of properties, such as vacation resorts, condominiums, apartments, and campgrounds.
Time-sharing is a form of fractional ownership, where buyers purchase the right to occupy a unit of real estate over specified periods. For example, purchasing one week of a timeshare means the buyer owns 1/52 of the unit. Buying one month equates to one-twelfth ownership. Time-sharing is popular within vacation locales.
what is a Mobile Home Parks?
Mobile home parks and rented mobile homes are covered by the provisions the Residential Tenancies Act, 2006.
A mobile home is a dwelling that is designed to be mobile and is being used as a permanent residence. A mobile home park is the land on which one or more occupied mobile homes are located and includes the rental units and the land, structures, services, and facilities of which the landlord retains possession and that are intended for the common use and enjoyment of the tenants of the landlord.
what is a Houseboats?
Generally speaking, there are two major types of houseboats:
• Residential: vessels that are perpetually harboured and thus static. These models typically resemble flatboats
or barges and come equipped with all the necessary conveniences. They cannot operate on water because
they lack any means of propulsion.
• Recreational: vessels that come equipped with residential furnishings and engines to propel them on water.
Although these models cannot be operated in the high or open seas, they are navigable in closed or protected bodies of water. A Marine Operator’s Permit would be required to operate this type of vessel on Ontario waterways.
what is an easement?
- An easement is a right enjoyed by one landowner over the land of another
- There are many types of easements, and issues related to easements frequently arise in the listing and selling of properties
- It does not grant ownership to any part of the land, only a right to use for that special purpose.
what are the Characteristics of Easements?
- Specific use: Easements must be granted for a clear and specific use. General use does not constitute an easement
- Dominant and servient tenements: A dominant tenement is defined as the estate or interest in land that derives benefit from an easement over a servient tenement.
- Two different parties: The dominant and servient tenement properties cannot be owned by the same person.
- Sole benefit: Easements must solely benefit the dominant tenement.
- Transferable: Easements run with the land. Therefore, once granted, the easement binds subsequent owners
- Adjoining and non-adjoining: The dominant and servient tenement do not have to be adjoining.
what is a dominant tenement?
A dominant tenement is the estate or interest in land that derives benefit from an easement over a servient tenement, as in a right-of-way. An easement must confer a benefit on the dominant tenement.
what is a servient tenement ?
The servient tenement involves land over which an easement exists in favour of a dominant tenement.
how is an easement created?
Express grant: An easement can be created whenever an owner decides to grant a privilege (a right-of-way or easement) in favour of another owner.
Prescription: An individual can obtain a right-of-way or easement by adverse possession, also known as by prescription or squatter’s rights. In certain circumstances if the usage of the right-of-way was open and continues for a specified period of time.
Implication: Under implication, easements are created to avoid detrimental effects or inconvenience to an adjoining property owner.
Statute:Section 21 of the Public Lands Act provides that the Minister may grant easements in or over public lands for any purpose.
can an Easement be Terminated?
1- Merge
2-Release
3-Ceasing of purpose
what are different type of easement ?
1-Right-of-way:A right-of-way is a frequently encountered form of easement that allows another person to travel or pass through another person’s land.
2-Party wall: Another common type of easement is party wall. Party wall easements are created when registered owners of adjoining parcels of land (for example, semi- detached houses in which each side has a separate title)
3-Mutual shared driveway: Another type of easement, commonly found in certain market areas, is a mutual shared driveway. This strip of land is shared by adjoining neighbours, is used as a joint driveway for both parties, and is created by an easement on each property.
what is a restrictive covenant ?
A restrictive covenant is a type of contractual arrangement that places restrictions on what the owner of the land can do with their property
A restrictive covenant is a legally binding obligation written into the deed of a property and is registered on title.
what is a encroachment?
An encroachment is a situation that arises when a property owner violates the property rights of their neighbour by building a structure wholly or partially on the neighbouring property.
Examples of encroachments include: sheds, driveways, garages, roof overhangs, eaves, retaining walls, or fences. Often times, the encroachment is unintentional as the owner is unaware of the property lines or has wrong information pertaining to the property lines.
what is Adverse Possession?
Adverse possession, or squatters’ rights occurs when an individual who is not the owner takes possession of the property, without the consent of the owner.
It is possible, under adverse possession, if certain conditions exist, for an occupier of land to extinguish the title of the owner and claim legal ownership of that land.
