struggle areas

Question 1

municipal(city) government responsible for

Answer 1

private owned land

Question 2

federal government responsible for?

Answer 2

postal, fisheries

Question 3

municipal(city) government responsible for

Answer 3

private owned land

Question 4

is covenantee:

dominant tenement or servient tenement?

Answer 4

dominant tenement

Question 5

restrictive covenant?

Answer 5

means that you can restrict another parcel(pc of property) from growing trees or something etc

Question 6

under the regulations to the RESA certain categories of presons are exempted from the licensing requirements contain in the act. which of the following is NOT covered by an expemption under section 2.

1. an executive with hudson bay company selling a neighbors hoouse for a flat fee
2. an individual providing a property inspection
3. accountaints in relation to the purchase and sales of a business
4. a full time salaried employee of mega land company selling houses in a 3000 house tract developed by mega land company

Answer 6

1. an executive with hudson bay company selling a neighbors hoouse for a flat fee

notice the other 3 options are not people that are real estate license

Question 7

what is REDMA and what do they do

Answer 7

real estate development marketing act

they must disclose everything bylaws etc involved with a property before buyer signs contract

Question 8

assuming a real estate developer is not exempt from the disclosure statement requirements under the real estate development and marketing act, which of the following obligations must the developer fulfill

1. the developer must provide a copy of the disclosure statements to both the superintendant of real estate agents
2. the developer must inform the purchaser of his right to rescind the purchase agreement by serving written notice on he developer within 30 days after the date of the purchase agreement
3. the developer must have the purcahse price of a development property approved by the superintendent of REA estate before entering into a purchase agreement
4. the developer must fullfill all of the above obligations

Answer 8

1. the developer must provide a copy of the disclosure statements to both the superintendant of real estate agents

answer 2 and 3 are false!!

Question 9

real estate foundation is in charge of

Answer 9

real estate law reform

Question 10

after the contractual right to redeem has passed on a mortgage

1. the borrower must give up the mortgaged property
2. the lender is the owner of the mortgage property
3. an equitable right to redeem still exists
4. the borrower owes a higher rate of interest on the arrears than on the principle if the borrower redeems

Answer 10

3. an equitable right to redeem still exists

be careful on answer 1 it says “BORROWER” not lender!!

the thing to understand (that we didnt know) is the term length is only a fraction of the total mortgage amortization) and that even after the term which could be 3 or 5 years, there is still more money owing and a new term must be set up or paid out

Question 11

acceleration clause?

Answer 11

if you default on your payments, you have 7 days to get sorted!!!

Question 12

which of the following statements regarding a due on sale clause is True?

1. a due on sale clause provides that when a property is sold, the buyer of the mortgaged property has the option to assume the mortgage
2. if a mortgage contains a due on sale clause any outstanding balance on a mortgage must be assumed by the buyer of the mortgagedd property
3. if the mortgage contains a due on sale clause, the borrower cannon sell the mortgaged property without written approval from the lender
4. a due on sales clause allows the lender to collect on all amounts owing under the mortgage, including prepayment penalties upon sale of the property

Answer 12

4. a due on sales clause allows the lender to collect on all amounts owing under the mortgage, including prepayment penalties upon sale of the property

for answer 2- (confusing) it is the “Seller” who would be responsible for paying back the lender, not the “new” buyer. see how tricky the word play is

Question 13

who is the mortgagee

Answer 13

lender

remember, there is 2 “e” in both lender and mortgagee

Question 14

what does “act” mean?

Answer 14

law

Question 15

what four unities are required for joint tenancy

Answer 15

unity of time- must receive interests at the same time
unity of title- must obtain their interest from the same document
unity of interest- have the same interest (eg fee simple) in land
unity of possession-undivided interest of the (whole) property

Question 16

real estate act aims:

Answer 16

to ensure that real estate licensees are reasonably competent
to ensure the real estate licensees are of good reputation
to disclipline and where neccessary, re educate real estate licensees if they breach the provisions of the act

Question 17

which of the following is NOT a power or duty of the real estate council

1. levy fees on all license inn order to meet the councils expensies
2. holding disciplinary hearings
3. collecting premiums and assesements form licensees on behalf of the real estate errors and ommisions insurance corporation
4. undertaking and carrying out real estate law remore to promote the interests of real estate proffesionals

Answer 17

4. undertaking and carrying out real estate law reform to promote the interests of real estate professionals

the real estate foundation is responsible for law reform!!!

Question 18

when the original loan agreement between the lender and the seller of the property is replaced by a new loan agreement between the lender and the buyer of the property for the mortgage debt, what legal concept has occurred?

1. assignment
2. novation
3. redemption
4. forclosure

Answer 18

2. novation

Question 19

municipal(city) government responsible for

Answer 19

private owned land

Question 20

real estate act aims:

Answer 20

to ensure that real estate licensees are reasonably competent
to ensure the real estate licensees are of good reputation
to disclipline and where neccessary, re educate real estate licensees if they breach the provisions of the act

Question 21

the requirement in BC that a real estate agent must possess a license is set out by

1. the common law
2. the federal law
3. provincial statute
4. the real estate council of BC

Answer 21

3. provincial statute

Question 22

what is novation

Answer 22

when a new contract is made between lender and second owner that is taking over the term (assuming) from the first owner

Question 23

describe the best answer in regards to the steps in forclosure

1. demand letter, petition, NISI, absolute foreclosure
2. NISI, petition, judicial sale, absolute forclosure
3. petition of hearing, NISI, demand letter, absolute foreclosure
4. NISI, demand letter, petition, absolute foreclosure

Answer 23

1. demand letter(first step), petition, NISI, absolute foreclosure
   note: you need to know the steps “in order”

because demand letter is listed 3rd or 4th in answers 3 and 4, both are incorrect!!

Question 24

what are the foreclosure steps in order

Answer 24

1. dmand letter to the borrower
2. petition
3. petition hearing
4. order NISI (redemption period)
5. order of conduct sale (judicial sale) or order absolute of foreclosure

Question 25

how long is order NISI and what does it do

Answer 25

think of NISI as NICE GUY it gives you 6 months to get your financials sorted out and sell the property before the official foreclosure takes place