Other Legislation

Question 1

What % of the sale proceeds are withheld by the lawyer if the seller is a non-resident?

Answer 1

25% for tax purposes

Question 2

What must a non-resident seller show the lawyer before their sale proceeds are released

Answer 2

CRA clearance certificate

Question 3

Are residential properties exempt from GST?

Answer 3

Typically

Exceptions:

If substantial renovations have been made

If the residential area is a small portion of the land

Question 4

GST must be paid of what types of sales

Answer 4

Commercial

New build

Resale that was never occupied after purchasing from the builder

Apartment to condominium conversion

Substantially renovated residences

Corporate sales of vacant land

New Mobile home sales

Farmland - if residential area is a small section of the land

Question 5

What factors could turn a sale into a short sale

Answer 5

Mortgages

Loans

Property tax Arrears

GST

Liens

Legal fees

CRA 25%

Question 6

Dower Act: If the non-owner spouse never lived on the property, does the dower act apply?

Answer 6

Yes

This includes

Properties the couple once lived in but are now:

Rentals

Vacation homes

Recreational property

Question 7

Dower Act: Can a person have more than one homestead

Answer 7

Yes

Question 8

Dower Act: Does the dower act apply if there is another owner besides the non-owner spouse?

Answer 8

No.

Question 9

4 Steps to see if Dower Rights may apply

Answer 9

Was the owner married?

Were they legally married, or common law partners?

Has an official divorce judgement been granted?

If not officially divorced, has the owner or their spouse resided in the property since the time of their marriage?

Question 10

Dower Act: Does the Dower Act apply if the no-owner spouse has never lived in the property?

Answer 10

Yes

Question 11

Controlled land

Answer 11

Prime agricultural and recreational land located in Alberta

Controlled land is typically in rural areas without municipal ultilities

Land in cities, towns, villages, or summer villages is not controlled land.

Question 12

Maximum controlled land foreign owners can purchase

Answer 12

Two parcels of controlled land that are 20 acres or less in total

Question 13

Unit Factors in condo’s

Answer 13

Cumulative space divided by the arbitrary number of 10,000

Parking/storage spaces

Question 14

What is excluded from the ETA?

Answer 14

contracts that create or transfer interest in land

interests in mines and minerals

Question 15

Amount that constitutes a large cash transaction?

Answer 15

$10,000

Question 16

Test: In real estate, there are two federal tax legislations

Answer 16

Income Tax Act

Excise Tax Act

Question 17

Test: GST applies to certain real estate transactions, which types?

Answer 17

Commercial real estate sales

New build or home purchase from a builder

Substantially renovated residences

Farmland (if a residential building is only a small section of the land)

Question 18

Test: In which situations do Dower rights not apply

Answer 18

Properties used as rental properties where neither spouse has lived

If there is another owner on title, who is not the owner’s spouse

Commercial properties without a residential dwelling

If the spouse is on title

Question 19

Test: Two pieces of legislation through which Alberta ensures that certain types of land can only be owned by Canadian Citizens, permanent residents or Canadian-controlled corporations are

Answer 19

Agricultural and Recreational Land Ownership

Foreign Ownership of Land Regulations

Question 20

Test: Encumbrance

Answer 20

Restrictive covenants

Builder’s lien

Mortgage

Question 21

Test: ETA pertain to licensees mainly around

Answer 21

Electronic signatures

Question 22

Test: Are communications via text legally binding

Answer 22

No

Question 23

Test: Which documents can be used to verify an identity according to FINTRAC requirements

Answer 23

Non-expired government ID

Valid Canadian credit file

Passport

Question 24

Test: Correct way to verify for FINTRAC purposes the identity of a corporation

Answer 24

Confirm through a certificate of incorporation and a current search showing the corporate name, address and its directors

Question 25

Test: How long does RECA recommend real estate practitioners retain records for

Answer 25

10 years

Question 26

Test: What is Office of the information and Privacy Commissioner (OIPC)

Answer 26

An independent government body that oversees all privacy matters in Alberta

Question 27

Test: Must all electronic news subscription services have an unsubscribe button

Answer 27

Yes