part 3 unit 23; Residential real estate contracts

Question 1

exclusive seller rep agreement AKA

Answer 1

listing contract

Question 2

Alberta has two brokerage models

Answer 2

common law
designated agency brokerage

Question 3

A real estate proof must do what prior to listing a property?

Answer 3

Pull the title, because it provides the names of all the legal sellers, legal property info, caveats.

Question 4

section 1 - the property

Answer 4

-describes the property
-municipal address and legal description
-includes price or GST
-possession date

Question 5

section 2- agency relationship

Answer 5

-discloses establishing an exclusive agency relationship
-listing agreement is only valid with fixed start/end date

Question 6

section 3 - brokerage responsibilities

Answer 6

-marketing property, seller starts informed, buyers are told about material latent defects, negotiate, holding money, presenting all offers after contract is accepted.

Question 7

section 4- other services

Answer 7

installing a for-sale sign or lockbox on property can be listed here.

Question 8

section 5 sellers responsibility

Answer 8

-provide RPR, Maintain insurance on property, inform brokerage on changes to property, ensure they have enough equity after paying all services to brokerage

Question 9

section 6-seller warranties and rep

Answer 9

-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

Question 10

section 7- dower consent

Answer 10

allows non-titled spouse to block the disposal of a property

Question 11

If there’s only one name on the title, the brokerage must ask the titleholder :

Answer 11

-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

Question 12

section 8- conflict of interest

Answer 12

when brokerage is sole agent for both the buyer and seller

Question 13

section 8- conflict of interest

Answer 13

when brokerage is sole agent for both the buyer and seller

Question 14

section 9- brokerage fee and payment
9.1-9.2

Answer 14

brokerage must disclose the total fee and GST

Question 15

If a buyer forfeits a deposit, the seller must pay the ?

Answer 15

brokerage fee or 50% of the deposit.

Question 16

section 13- property info, notices and permits

Answer 16

-seller must disclose material latent defects by law

Question 17

material latent means

Answer 17

major, hidden

Question 18

exclusive buyer rep agreement AKA

Answer 18

buyers agreement

Question 19

in alberta buyers agreements come in two forms

Answer 19

-exclusive/non-exclusive rep agreement

Question 20

exclusive agreement

Answer 20

-details a fee for the services provided by brokerage
-buyer cannot work with another brokerage

Question 21

non-exclusive agreement

Answer 21

brokerage to offer the same services and obligations to the buyer without a fee

Question 22

what is extremely important to discuss with the buyer

Answer 22

authority to seek the brokerage fee from the seller

Question 23

purchase contracts

Answer 23

complex documents forming a legal relationship between a seller and buyer.

Question 24

5 key elements to determine from the buyer at the outset of the process

Answer 24

-buyers ideal price
-buyers ideal possession day
-buyers required conditions
-what buyer wants to include in purchase price
-additional or special terms

Question 25

red flags include the words

Answer 25

trust, in trust, or in trust for a corp yet to be formed

Question 26

corp created as a legal owner, with benefits of ownership resting in a beneficiary

Answer 26

bare trustee corp

Question 27

section 1-the property (purchase contract)
condo properties will have

Answer 27

condo plan number
unit number
parking stalls/storage unit

Question 28

deposit is usually how much of the purchase price

Answer 28

10%

Question 29

section 5 land title (purchase contract)

Answer 29

-implied by law
-utlity right of way
-caveats

Question 30

warranty

Answer 30

written promise, pledge pr guarantee

Question 31

Non-residents who plan to dispose of Canadian property are required to report details of the intended sale and to pay

Answer 31

33% of the estimated capital gain

Question 32

requires that certain event occur before the transaction becomes a binding contract

Answer 32

condition precent

Question 33

satisfying a condition vs waiving a condition

Answer 33

-event is supposed to take place does
-cancelling regardless the event has occurred

Question 34

what is a counteroffer

Answer 34

when seller changes the price, date, terms or other conditions in the original offer.