part 3 unit 23; Residential real estate contracts Flashcards
exclusive seller rep agreement AKA
listing contract
Alberta has two brokerage models
common law
designated agency brokerage
A real estate proof must do what prior to listing a property?
Pull the title, because it provides the names of all the legal sellers, legal property info, caveats.
section 1 - the property
-describes the property
-municipal address and legal description
-includes price or GST
-possession date
section 2- agency relationship
-discloses establishing an exclusive agency relationship
-listing agreement is only valid with fixed start/end date
section 3 - brokerage responsibilities
-marketing property, seller starts informed, buyers are told about material latent defects, negotiate, holding money, presenting all offers after contract is accepted.
section 4- other services
installing a for-sale sign or lockbox on property can be listed here.
section 5 sellers responsibility
-provide RPR, Maintain insurance on property, inform brokerage on changes to property, ensure they have enough equity after paying all services to brokerage
section 6-seller warranties and rep
-seller has authority to sell the property and unattached goods.
-no one has legal right to any unattached/attached goods.
-no one has a third party right to the property
-seller is Canadian resident
section 7- dower consent
allows non-titled spouse to block the disposal of a property
If there’s only one name on the title, the brokerage must ask the titleholder :
-are you legally married
-have you or your spouse ever resided on the property at any time of the marriage.
answer to both questions is yes, dower does apply
section 8- conflict of interest
when brokerage is sole agent for both the buyer and seller
section 8- conflict of interest
when brokerage is sole agent for both the buyer and seller
section 9- brokerage fee and payment
9.1-9.2
brokerage must disclose the total fee and GST
If a buyer forfeits a deposit, the seller must pay the ?
brokerage fee or 50% of the deposit.
section 13- property info, notices and permits
-seller must disclose material latent defects by law
material latent means
major, hidden
exclusive buyer rep agreement AKA
buyers agreement
in alberta buyers agreements come in two forms
-exclusive/non-exclusive rep agreement
exclusive agreement
-details a fee for the services provided by brokerage
-buyer cannot work with another brokerage
non-exclusive agreement
brokerage to offer the same services and obligations to the buyer without a fee
what is extremely important to discuss with the buyer
authority to seek the brokerage fee from the seller
purchase contracts
complex documents forming a legal relationship between a seller and buyer.
5 key elements to determine from the buyer at the outset of the process
-buyers ideal price
-buyers ideal possession day
-buyers required conditions
-what buyer wants to include in purchase price
-additional or special terms
red flags include the words
trust, in trust, or in trust for a corp yet to be formed
corp created as a legal owner, with benefits of ownership resting in a beneficiary
bare trustee corp
section 1-the property (purchase contract)
condo properties will have
condo plan number
unit number
parking stalls/storage unit
deposit is usually how much of the purchase price
10%
section 5 land title (purchase contract)
-implied by law
-utlity right of way
-caveats
warranty
written promise, pledge pr guarantee
Non-residents who plan to dispose of Canadian property are required to report details of the intended sale and to pay
33% of the estimated capital gain
requires that certain event occur before the transaction becomes a binding contract
condition precent
satisfying a condition vs waiving a condition
-event is supposed to take place does
-cancelling regardless the event has occurred
what is a counteroffer
when seller changes the price, date, terms or other conditions in the original offer.
