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Humber Real Estate Course 3 > Module 4 > Flashcards

Module 4 Flashcards

1
Q

Infill lot

A

development occurs in a built-up neighbourhood

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2
Q

Provides additional housing stock by using existing services rather than developing vacant land

A

intensification

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3
Q

Permits required for urban lot w a structure

A

demolition and building permit

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4
Q

Does the prop have a sufficent frontage and area to be divided into more than 1 lot?

A

infill redevelopment and severance

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5
Q

covers construction, C.C.E, sub of matierals, deposit protection

A

provinical warranty

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6
Q

Homes covered under warranty program must be enrolled before

A

construction

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7
Q

Homes not covered under warranty program

A

previously occupied, built by owner & seasonal homes

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8
Q

Alterations, deletions or additions made by owner, normal wear and tear, material shrinkage

A

not covered by warranty program

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9
Q

Representation agreements must end

A

on a specific day

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10
Q

builders will use this to establish a listing price (buyer can negotiate additional upgrades @ time of offer)

A

Standard package of finishings

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11
Q

Speculative (Spec) Homes

A

properties where construction has begun without a buyer in mind

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12
Q

Only the foundation, framing, roof and window, no finishes has been constructed

A

partially constructed home

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13
Q

interior and exterior finishes have been completed but not all of the construction (last items-cabinets, bathroom fixtures, flooring)

A

mostly constructed home

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14
Q

Ontario new home warranty plan applies to deposits by protecting the buyer from

A

builder not completing due to bankruptcy, break

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15
Q

Ontario new home warranty plan coverage for deposits

A

sale price 600k = up to 60k

Sales price > 600k: 10% of sale + up to 100k

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16
Q

If the closing date is extended, terms of a mortgage commitment may not be

A

honoured because the commitment has expired

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17
Q

Standards and finishes sheet

A

used to market the development

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18
Q

If the builder is willing to pay remuneration, a SP will have to introduce & register

A

the buyer prior to or during the first visit to the new development

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19
Q

Salesperson should register their buyer w/ builder when they 1st visit the sales office or

A

builder will not pay comission

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20
Q

Construction loans are typically

A

short-term, high interest loans

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21
Q
  • Most common type of construction loan

- lender pays the builder “draws” at various phases (ranges from 3-5)

A

Progress Draw Mortgage

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22
Q

Take-out mortgage

A

once construction is completed and is verified by the appraiser this is organized

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23
Q

When acquisition and construction costs are rolled into a final mort. that has favourable interest rates and less risk for lender bc it is a finished product

A

Take-out mortgage

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24
Q

Deposits are higher than resale homes

A

homes purchased from plans

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25
Q

Lien claimant can only register a claim for the value

A

of services/materials supplied

26
Q

must be registered at LRO, be verified by affidavit

A

liens

27
Q

Must be registered within 50 days of specified events

A

lien

28
Q

Prevents transfer of ownership between seller or buyer unless specified amount is paid

A

lien

29
Q

Lien process gives trades people

A

added security of payment

30
Q

Individual lien

A

applies to persons providing services or materials (concerns 1 premises)

31
Q

general lien

A

when the work is conducted on several premises

32
Q

Each payer on a contract must retain a 10%

A

holdback of the price of services/materials under the contract until the period where liens have expired, satisfied or discharged

33
Q

Basic holdback

A

10% of the price of all services/materials

34
Q

Basic holdback is held until the

A

oppotunity for all liens to be claimed under the act has expired

35
Q

Finishing holdback

A

payer under the contract can retain a seperate holdback of 10% of the price of the remaining services or materials until all liens that may be claimed have been satisfied

36
Q

A lien is not effective until

A

the owner is notified

37
Q

Tarion coverages is broken down into

A

1,2, and 7 year segments

38
Q

Buyers of newly constructed homes have coverage relating to

A

deposits, delayed closing and substitutions

39
Q

Homes must be enrolled in Tarion

A

before construction

40
Q

(Tarion) SPs must asked builders for their

A

registration number and home’s enrolment number

41
Q

Warranty period begins at for new houses/condo common ele

A

date of possession/date of condo registration

42
Q

Forms used for warranty

A

30 day form (used after first 30 of posesssion) and year end form (outstanding warranty items), second year form, major structural defect form during 3rd year

43
Q
  • Requires home is free from defects in workmanship and materials
  • Home is fit for habitation, meets OBC
A

1 year warranty coverage

44
Q

Covers:

  • Water penetration (basement, foundation)
  • Defects in materials and work
  • Violation of OBC
A

Two year warranty

45
Q

Covers major structural damage and defects in work or materials that result in significant damage (failure of a load bearing wall)

A

7 year warranty

46
Q

Information of available warranty is found in

A

the certificate of posession and completion

47
Q

Condo common ele coverage is based on a formula of

A

50k x # of units (max of 2.5 mil)

48
Q

All warranties apply to a condo conversion project except for

A

1st year workmanship warranty on preexisting elements

49
Q

Builders can only subtitute items when they are of

A

equal or better quality

50
Q

Max warranted damage caused by environmentally harmful substances or hazards

A

$15k

51
Q

Max warranty coverage for septic systems

A

$25k

52
Q

Pre-delivery inspection

A

Builder & buyer tour the new house and list any defects in order to ensure they are repaired

53
Q

Purpose of a Pre-delivery inspection

A

Important step to obtaining certificate of completion and possession (indicates day warranty will begin)

54
Q

Provision must be included that every APS has this package delivered on or before date of PDI

A

Homeowner info package

55
Q

Homeowner info package details

A

buyer’s provincial warranty rights

56
Q

After PDI buyer and builder must

A

complete certificate of completion and possession/warranty certificate and PDI form

57
Q

For condo units PDIs are conducted a few days prior

A

to the date set for interim occupancy

58
Q

certificate of completion and possession signals start

A

of warranty protection

59
Q

Builder must submit the certificate of completion and possession

A

within 15 days of posession

60
Q

Builder will remove a warranty sticker from the

A

CCP and place it on the electrical panel

Humber Real Estate Course 3 (8 decks)

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