Module 6 Flashcards
detached/semi-detached/row house
1 dwelling unit that has been subdivided w/ a secondary/accessory dwelling
Fire separation uses
fire resistant walls
bill that amends traditional zoning
bill 140
zoning may regulate (for multi unit)
density or unit size
OBC is updated every
5 yrs
heating systems for homes older than 5 years should have separate heating systems for
accessory apts
All electrical work requires a permit and inspection by the
ele. safety authority
issues permits for proposed con. or demolition
chief building official apt. by municipal council & building inspectors
smoke alarms may be battery operation in houses built before
1998
sprinkler systems are mandatory is if there are more than
3 stories
fire marshals must inspect
accessory dwelling units
necessary to obtain home insurance
inspection certificates (OBC/OFC)
covers damage to walls, flooring, fixtures, appliances, heating/cooling systems
basic home insurance policy
50% or all of income from an accessory dwelling is considered for
lenders
expenses/evidence of rent/vacanies/additional income (storage, parking) for an accessory dwelling
considered a requirement by lenders for financing
Extra income from renting an accessory dwelling is
taxable & subject to capital gains (landlord must report the rental income received)
Amount of information that should be obtained for investment props.
last 3 yrs
SPs can only enter a unit of the tenant between
8 am & 8 pm (give notice 24 hrs before)
Notice for a tenant to vacate
must be given 60 day prior & existing lease must be honoured until then
3 key documents to collect to document revenue
rent roll
income statements
lease
rent roll
confirmation of who is renting what unit, how much they pay
in addition to revenue documents a SP also needs a detailed list of
the operation expenses w/ supporting documents (prop tax, insurance, repairs/
maintenance )
Direct comparison approach: Compares the rooms in each prop instead of the whole unit
room mix
income approach
captialization of net revenue into value
captialization rate
rate of return of RE investment props. based on the income that it has/could generate
income multiplier approach
does not take into account expenses
Form required to terminate tenancy
landlord and tenant form n12 - notice to terminate the tenancy
Date of termination of tenancy must be
60 days after the date of the notice (if it is the end of their fixed term)
to immediately terminate a tenancy the landlord must
- make an app to the landlord tenant board
- provide form L2 to tenant/copy of notice to end tenancy (form n12)/certificate of service (tells LTB how notice was given
Apps to immediately terminate a tenancy must be no later
than 30 days after end date on form n12
confirmation of desposists in trust is important to know
what deposits have been paid and need to be transferred to the buyer
APS should be conditional on the buyer obtaining an inspection report of the prop and insure it in complaince with the
fire protection act and retro fit legislation
retro fit legislation to bring existing buildings to a resonable level of
life safety (electrical, fire systems)
if the rep and warranty survives and does not merge on completion it continues
indefinetly
no warranty re legality of rents confirms
unit #s, rent tenants pay and when the last last rent increase
to accept the counter offer the buyer must
- inital all changes
- complete & sign con. of acceptance
- complete & sign the acknowledgement
