Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Real Estate Course 1 > Module 7 > Flashcards

Module 7 Flashcards

1
Q

DNCL

A

Do Not Call List.
Affects cold calls/telemarketer calls.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Penalty for calling someone on the DNCL list (individual and corporate)

A

Individual: $1,500
Corporate: $15,000

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Internal Do Not Call List

A

Brokerage needs to maintain an internal DNCL - place people on this list who receive calls but say they don’t want to receive any more calls.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

How long does someone stay on the internal DNCL

A

min. 3 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Business relationship with brokerage is established when:

A
  • consumer made an inquiry within last 6 months
  • purchased, leased, or rented property through brokerage in last 18 months
  • had written agreement with brokerage (e.g. representation or customer service agreement) in last 18 months
  • if they consented to being contacted (e.g. at an open house, sign a guest book and gave permission)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

DNCL residential vs commercial

A

Federal legislation in regards to the DNCL apples to residential consumers, not to business consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

CASL

A

Canada’s Anti-Spam Legislation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Why did the federal government introduce CASL

A

To protect Canadians from unsolicited commercial electronic messages (CEMs). Create relatively secure online environment for consumers.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What type of comms does CASL not apply to?

A

Twitter/FB wall posts
Websites/blogs
two-way voice communications
faxes/voice recordings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Fines for not adhering to CASL (individual and brokerage)

A

Individual: $1M
Brokerage: $10M

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What type of consent do you need to obtain to send CEM

A

Express or implied consent, written or oral.
Implied consent is based on a prior relationship with the recipient.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What identifying info do you need to include in the CEM

A

Your name
What business you rep (e.g. brokerage)
Your contact info (mailing address/phone number)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

3rd thing to include in CEM

A

Ability to withdraw consent (take action within 10 days)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

CEMs and opt in vs opt out

A

Cannot contain consent with a pre-checked box. It needs to be an opt-in mechanism, as opposed to opt-out.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Consent in the case of a referral

A

Consent from recipient is not required in the case of a referral if certain conditions are met:
- referral must be made by an individual who has an existing business/non-business relationship, family or personal relationship.
- include full name of person making the referral + statement that CEM is being sent because of said referral
- CEM must contain senders identification info + unsubscribe mechanism
CAN ONLY SEND ONE CEM.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Competition Act

A

Protects consumers by regulating selected business conduct through Canada.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Competition Act - Misleading advertising

A

Prohibits misleading advertising.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Competition Act - Conspiracies

A

Unlawful agreements between competitors to increase prices/manipulate markets. E.g. brokerages conspiring to charge same remuneration.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Competition Act - price maintenance

A

can’t influence prices upwards or discourage people who are offering lower prices.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Competitors Act - Big-rigging

A

Can’t submit bids either hi or low in order to influence the decisions. Or agree to submit pre-arranged bids.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

3 practices to ensure compliance with Competition Act

A
  1. don’t collude
  2. don’t discriminate
  3. don’t mislead
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Capital gains tax - when do you not have to pay it

A

If your property was your principal residence for every year you owned it, you don’t have to report the sale on your income tax return.
E.g. mom and dad’s house at 22 Helena - lived there the whole time, no capital gains tax.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Capital Gains - how it is taxed

A

50% of the net proceed is added to the income of the taxpayer and taxed at the appropriate rate.
ex. property bought for 200k, sold for 300k. Value increase = 100k. 50% of the 100k is added to the seller’s taxable income (50k)
e.g. cottage - not your principal residence, but didn’t buy it as an investment to sell.
- sale of property used as rental income
- sale of property inherited but not lived in by seller
- sale of commercial property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Business income - how is it taxed

A

Net income after deducted expenses is taxed.
ex. property bought for 200k, sold for 300k. Value increase = 100k. 100% of the 100k is added to the seller’s taxable income (100k).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Who is responsible for reporting the gain as business income or capital gain?

A

The taxpayer (CRA could challenge it).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Factors to determine if the gain is capital gain or business income

A
  1. intention - did they buy it as an investment (business income)
  2. relationship to the taxpayer’s business (salesperson buying and flipping a house = business income)
  3. frequency of transaction (more frequent = more likely to be business income)
  4. nature of transaction and assets
  5. objects of the corporation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Residency clause

A

There’s a residency clause in an Agreement of Purchase and Sale directed to non-resident sellers disposing of Canadian property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What’s the tax obligation on the buy if the seller is non-resident?

A

Buyer needs to make reasonable inquiry about seller’s residency status and take appropriate steps to protect thsemselevs.
- seller can pay tax liability in advance of sale, if they receive a certificate of compliance it’s all good.
- if they don’t receive this certificate, the buyer’s lawyer holds back 25% of sale price to have money to pay seller’s tax

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

EPA

A

Environmental Protection Act
Primary environmental legislation impacting the ownership and use of real property in Ontario

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Who do you inform if there is a contamination spill

A

Ministry of the Environment, Conservation and Parks + affected munucipality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Phase 1 of Environmental Site Assessment

A

Done by a certified site assessor.
Identify potential contamination.
- visits site, reviews docs, interviews people, reports findings.
NO: lab testing, sample gathering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Phase 2 of Environmental Site Assessment

A

Triggered by phase 1 if reason to believe there is contamination
Collects samples of soil and groundwater - determine if there is a contamination and to what extent.
NO: final conclusion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Phase 3 of Environmental Site Assessment

A

Development of remediation strategy and carries it out.
Report confirms if remediation was successful.
If remediation not possible, assessment report includes risk assessment and restrictions of site.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Greenbelt Act

A

Protects 1.8 million acres of environmentally sensitive land in the Golden Horseshoe
Determines where urbanization should NOT take place (along with Oak Ridges Moraine Conservation and Niagara Escarpment Plan)
Determining if a development is in the Greenbelt area is part of due diligence regarding material facts.

35
Q

Golden Horseshoe Growth Plan

A

where and how future urban structural growth should be accommodated and what must be protected for future generations.
based on Provincial Policy Statement

36
Q

Extirpated species

A

Exists somewhere in the world and at one time in Ontario but extinct in Ontario now

37
Q

Endangered species

A

exists in the wild in ON but facing extinction/extirpation

38
Q

Threatened species

A

exists in the wild in ON and not endangered, but steps need to be taken to address factors threatening it

39
Q

Special concern species

A

exists in ON, not endangered or threatened, but biological characteristics/identified threats may cause it to become threatened or endangered

40
Q

Plants/animals that are automatically protected from harm/harassment

A

Endangered, threatened, or extirpated

41
Q

Habitats that are protected

A

Endangered or threatened

42
Q

NRCan - Natural Resources Canada

A

Help Canadians take advantage of energy-efficient technology.
Administers the Energy Efficiency Act.

43
Q

What does Green building refer to

A

Construction techniques that promote energy efficiency, effective use of resources, durability, and sound environmental planning.

44
Q

LEED - Leadership inEnergy and Environmental Design

A

Independent rating system that benchmarks the design, construction, and functioning of green buildings. Provides homeowners tools to measure and improve energy efficiency.

45
Q

R-2000

A

Encourages energy-efficient and environmentally responsible home construction.
Technical performance standards exceeding energy efficiency requirements set out in the building code.

46
Q

EnerGuide

A

Mark of the Gov’t of Canada to rate and label consumer items based on energy efficiency.
Must be affixed to all appliances made in or imported into Canada - DOESN’T MEAN IT’S ENERGY EFFICIENT. Just has undergone federal standards testing. Identifies estimated energy use.

47
Q

EnerGuide for houses

A

Analyzes energy efficiency rating.
Administered by NRCan.
lower gigajoules = more energy efficient. 0 = best.
Label is affixed to electrical panel.

48
Q

ENERGY STAR Symbol

A

Identifies the most energy-efficient products.
New homes can qualify under ENERGY STAR if they meet technical specifications.

49
Q

EnerGuide for houses - 5 primary house components

A
  1. air tightness and thermal resistance
  2. heating system
  3. domestic water supply
  4. ventilation system
  5. permanent renewable energy equipment
50
Q

ONHWPA - Ontario New Home Warranties Plan Act

A

warranty coverage for new homes and condos in ON.

51
Q

Tarion

A

Not-for-profit corporation that administers the ONHWPA on behalf of the ON government.
Ensure homeowners receive the warranty coverage and that builders meet minimum service standards.

52
Q

HCRA - Home Construction Regulatory Authority

A

Regulator of new home builders. As of Feb 2021, responsible for home builder and vendor licensing, competency, complaints, and conduct.
Regulates New Home Constriction Licensing (builders/vendors of new homes must be registered)

53
Q

Total coverage available for homes/condo unit cap

A

300k

54
Q

max coverage for damages that involve environmentally harmful substanecs

A

15k

55
Q

max coverage involving septic systems

A

25k

56
Q

condo common elements max coverage

A

50k times the number of units to a max of 2.5M

57
Q

total coverage for a condo project (units and common elements combined)

A

50M

58
Q

Warranty coverage - 1 year

A

home is free of defects in construction and materials, fit to live in, meets ON Building Code, and has no major structural defects

59
Q

Warranty coverage - 2 years

A

water seepage
defects in materials and work, electrical, plumbing, heating
ontario building code in relation to health and safety
major structural defects

60
Q

Warranty coverage - 7 years

A

major structural defects - load-bearing, significantly affects the buyer’s use

61
Q

How to obtain warranty coverage details

A

Certificate of Completion and Possession sticker
Warranty certificate
Contact Tarion and HCRA

62
Q

What does the Ontario Building Code set out?

A

Minimum standards for building design and provisions regarding building safety, fire precaution, and structural integrity.

63
Q

What Authority administers the Ontario Building Code

A

The Building and Development Branch of the Ministry of Municipal Affairs and Housing.

64
Q

How often is the Ontario Building Code ammended?

A

Every 5 years.

65
Q

What kind of home projects require a building permit?

A
  • finishing a previously unfinished space
  • when dealing with the foundation
  • pool installation
  • decks (if over certain height)
  • any building construction that’s bigger than 10 square meters
  • garages
  • reno of building

KEY: does the work impact the structure of the building. Construction, alterations, additions, and changes.

66
Q

Fines for failing to obtain building permit

A

50k first offense
100k additional offenses

67
Q

What does the Ontario Fire Code require?

A
  • all buildings need smoke and CO alarms, and sprinklers. Fire doors need to be operational.
  • when possible, alarms should be connected to monitoring stations
  • fire extinguishers and hoses installed on every floor
  • fire prevention systems/equipment inspected regularly
68
Q

Ontario Fire Code vs Building Code - what’s the main difference?

A

Fire Code applies to existing buildings. It’s a maintenance doc to the Ontario Building Code.

The Building Code applies to the construction of new buildings and changes/alterations to existing buildings. It also includes fire requirements in regard to construction/renovations.

69
Q

Retrofit requirements of a single-family home with fuel burning aplpiances.

A
  1. smoke alarms outside of bedrooms AND on every level
  2. CO alarms outside of all sleeping areas
70
Q

Fire safety provisions all 2-unit residential properties need to have (x4)

A
  1. Containment - adequate separation between units to protect people in one unit from a fire occuring in the other unit
  2. means of egress - at least 2 ways to exit
  3. smoke (outside all sleeping areas AND on every level) and CO alarms (near all sleeping areas AND in the service room, if there is one)
  4. electrical safety - pass inspection by Electrical Safety Authority inspector (get certificate)
71
Q

Smoke and CO alarms - how are they charged

A

Permanently wired, battery operated, or plugged into an outlet.

72
Q

When does a landlord need to test the CO alarms (x4)

A

Annually
After every change in tenancy
After the battery is replaced
After any change to electrical circuit (if connected to electrical circuit)

73
Q

Whose jurisdiction does electrical work fall under?

A

The Electrical Safety Authority

74
Q

What is the purpose of the Electrical Safety Code?

A

It’s a technical document to ensure a house/building complies with all required safety standards.

75
Q

What is the certificate called when a property meets the requirements of the Ontario Electrical Safety Code?

A

Certificate of Acceptance

76
Q

When are electrical inspections required? (x5)

A
  • before a new service can be connected
  • after upgrades are done to electrical service
  • before a customer who has had their electronic service disconnected for 6 months can reconnect
  • before power can be reconnected after a fire
  • for obtaining insurance
77
Q

In terms of complying with the Ontario Electrical Safety Code, what’s a Notification of Work and when is it filed? Who files it?

A

A Notification of Work must be filed within 48 hours of the work being done.
It is filed by the person doing the work (the homeowner or the electrical contractor)

78
Q

Who is allowed to do electrical work?

A

Homeowner or licensed electrical contractor (no handymen or general contractors)

79
Q

Once the electrical work is done, what’s the next step?

A

Person who did the electrical work submits a request for inspection by an Electrical Safety Authority inspector.
If approved, receive a Certificate of Acceptance.

80
Q

With regards to electrical systems, what does the seller need to disclose?

A

Any known defects and the type of wiring.

81
Q

What is the TSSA (Technical Standards and Safety Authority) responsible for regulating

A

Aboveground fuel storage tanks.
All underground fuel storage tanks must be registered with TSSA.

82
Q

Who does the TSSA (Technical Standards and Safety Authority) report to?

A

The Ministry of Government and Consumer Services.

83
Q

Who is allowed to install/repair/remove an underground fuel storage tank.

A

A TSSA-registered contractor who is also certified as a Petroleum Equipment Mechanic 2.
This person also takes care of the fuel tank disposal.

Real Estate Course 1 (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions