Unit 3 - Legislation Flashcards
There are two terms that were developed to describe estates in land. One medieval and one current. What are they?
Tenure
Medieval ownership in which you possess but king ultimately owns land
Estate
This is the EXTENT of rights associated with tenure. So being able to pass tenure from parent to child for example. It’s the building block of our modern-day real estate refined by countless court battles
What are the 5 types of estates?
- Fee Simple
- Most rights wiith least amount of limitations. This is what we would have acquired with 6442 Roslyn - Leasehold Estate
Tenants renting property - Life Estate
- Future Estate
- Estate to Uses
There are 3 dimensions of property:
Real Estate
Real Property
Personal Property
In terms of the following dimensions, which apply to the above 3?
Tangible (land, improvements, etc)
Intangible (rights of property)
Lot & Building
Chattels (moveable objects such as furniture)
Real estate includes tangibles and the lot & building only.
Real property includes all of them, tangibles, intangibles, lot and building, and chattels
Personal property includes all of them except the lot & building.
What are the two widely used forms of concurrent ownership in Canada?
- Joint Tenancy
Has possession, title, ttime, and interest. There is survivorship with joint tenancy. - Tenants-In-Common
Only has possession and there is no survivorship (transferring possession to surviving tenant)
There are lots of rights associated with ownership, but there are also lots of limitations. Namely governmental ones. Whhat are the 4 main categories of governmental limitations?
- Right to regulate (police come a knockin)
- Right to take private property (expropriation)
- Right to levy taxes (taxation)
- Right to have ownership returned if no heir can be found (escheat)
What is title and what is it secured by?
Title refers to the evidence that an owner has lawful ownership. it is secured by a deed, which is registered in the Registry of Deeds offices.
In the process of closing a transaction, the lawyer is concerned about what two dimensions of title?
- Quality of title which is supported by a registry search
2. Quantity of title which represents what actually exists on the ground
What is the difference between joint tenants and tenants in common?
These are the two ways people can hold joint assets.
A common example of joint tenants is a husband and wife owning a house together. If one dies, survivorship means that the diseased share goes to survivor.
For tenants in common, which would actually follow Abady’s and I model moreso. If I was to die, my share of the house would go to the beneficiaries in my will.
Various types of deeds are used in NS, but which his most common?
A warranty deed is most common in NS
What is the difference between land descriptions and metes and bounds descriptions
Land descriptions provide disctinct identities for individual properties. Whereas metes and bounds give EXACT delineation of the property.
What is bundle of rights?
Ownership rights associated with the possession, use, enjoyment, and disposition of real estate
What is the difference between fixtures and chattels?
Chattels are personal property which can be tangible and moveable
Fixtures are permanent improvements that may not be removed unless explicitly agreed to
What is a point of commencement?
It is a known reference point to delineate and enclose real estate by means of a metes and bounds description
What is land information (LIC)?
Service Nova Scotia operates LICs which maintain land information products and services such as property mapping, aerial photography, and property record database
What are the different land planning abilities for the 3 levels of government?
Federal:
Airports and oceans/fisheries
Provincial
Establishes overal policy
Municipal:
Direct control for administration purposes pursuant to the Municipal Government Act
What is a zoning variance?
What are non-conforming uses?
This is when an owner is seeking a variance from zoning requirements. A municipal development officer may grant the variance, subject to notification of, and appeal by, niehgbours.
Non-conforming uses is when the structure or land is permitted when those uses were in existand prior to the land use bylaw in effect.
Assessors use what three approaches to value for tax assessment?
- Direct Comparison
- Cost
- Income
When must appeals to property assessments be made?
Within 30 days of date on assessment notice (they are sent January of each year)
What are the three broad assessment classes used in Nova Scotia? A tax rate is established for each of these 3 classes. What is the Halifax urban residential tax rate?
- Residential
- Commercial
- Resource
The average urban residential tax rate in Halifax is 1.25%
Nova Scotia transferred from Assessment Services to what to be a not-for-profit municipally owned corporation to determine market value of properties?
Property Valuation Services Corporation (PVSC)
How is the property tax rate and therefore property tax calculated?
It’s the required budget (let’s say 4mil) divided by total assessment for community (let’s say 600mil).
So…
4,000,000 / 600,000,000 = 0.0067, or 67 cents for every $100 in assessment (.67%)
So on a property assessed at 150,000, the tax would be 150,000 * 0.0067 = $1,005 for the year
What are the 3 primary municipal land use activities for real estate purposes?
- Zoning provisions
- Subdivision requirements
- Development procedures
What is a development agreement? How is it different from a development permit?
A development agreement is between property owner and municipality to do something that does not meet current zoning requirements.
Whereas a development permit is simply a permit required before any development is commenced when a municipality has adopted a land use bylaw.
What is a comprehensive development district?
This is a defined area within a municipality that falls under a combination of zoning controls and development agreements
What is an assessment roll?
This is just a record of real property’s assessments
What is the Real Estate Trading Act (RETA)?
How does it differ from NSREC bylaw?
RETA is just 5 sections of definitions: the establishment of NSREC, licensing, discipline, general provisions.
NSREC bylaw parallels the overarching Real Estate Trading Act and expands on specifics as needed and with the context of it being in NS.
NSREC bylaw exists to regulate the real estate industry in NS. What 8 standards and requirements areas does the Bylaw cover?
- Definitions
- Commission administration
- Licensing
- Fees
- Real estate recovery fund
- Trust accounts and record keeping
- Conduct and trade practices
- Discipline
Can brokerages take all forms? Sole proprietor, corporation, or partnership?
Yes, a brokerage can be sole proprietorship, partnership, or corporation
What is a trust account?
A trust account is separate and apart from one’s personal monies, as required by law.
Define what “interference” is to NSREC?
Interference states that no licensed person is to induce any party to break an agreement to purchase/list/lease/etc for the purpose of entering another such agreement.
How do you report suspicious transactions?
You must report all suspicious transactions. They can be reported via a Suspicious (attempted) Transaction Report
What governmental body oversees money laundering legislation?
What 3 things must brokerages report?
What 3 things must brokerages do for every transaction?
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
Brokerages must report these 3 things to them:
- Suspicious Transactions
- Large cash transactions exceeding $10,000
- Terrorist Property in the possession or control of the brokerage
Brokerages must do the following for every transaction:
- Verify client names are not on Canadian or UN known terrorists lists
- Complete identification verification record
- Complete a receipt of funds record
So the CRTC is responsible for the national do-not-call list How do you define if you have an existing real estate business relationship and therefore are able to call someone on this list?
- Consumer purchased or leased a product from org within past 18 months
- Consumer had written contract with org that expired within past 18 months
- Consumer made an inquiry with org within last 6 months
Real property taxation rests with the provincial government. But what kind of taxation rests with federal gov?
Fed gov (CRA) is involved in tax matters arising from capital gains/losses in the sale of property
What is a matrimonial home and what is spousal consent?
A matrimonial home is a family residence designated from the Matrimonial Property Act. Spousal consent is required from non-owning spouse regarding the transfer and/or mortaging of a matrimonial home
When must large cash transactions be reported to FINTRAC?
Cash transactions over $10,000 must be reported to FINTRAC
What is legally required to create a tenants in common arrangement?
The tenants (buyers) need to have equal rights to possess and occupy the property.
When does a life estate cease?
A life estate ceases upon the death of the individual to whom it was granted.
Zoning bylaws can be grouped under what broad government power?
Police Power
A surveyoy’s location certificate (with diagram) includes what references?
References to any…
easements
rights of way
improvements contained in the current deed
How could Air right be alternatively described within a fee simple estate?
Fractional interests
What are the two primary audiences title insurance policies are designed for?
- Lenders
2. Owners
What is a holding zone?
A zone with no designation for land use yet.
When might you need a development agreement?
If the municipality wishes to control a large-scale development on a single property
When would an area rate apply?
It applies for specific areas within a larger district (suburban, urban, etc). So for example, if street lights are installed in a small built up area within an undeveloped portion of a municipality.
A municipal planning strategy, when adopted, does it have the status of law?
Yes
Can an owner of a non-conforming use property alter their property?
Yes
If you have a listing as a salesperson, can you put on it that the expiry is, “upon sale of the property?”
Nope, it has to be date.
Can salespeople offer verbal inducements to buyers and sellers?
Nope!
Does the Commission have to make a formal amendment in order to introduce new education standards or additional advertising requirements?
Nope, there are more informal channels for some of these changes.
Are businesses included nuder the definition of real estate in the Real Estate Trading Act and therefore can be sold by a salesperson?
Yup, they sure can.
Can a salesperson accept compensation from a co-operating brokerage if they obtain permission from their own brokerage?
Nope, those funds have to go through your brokerage, not directly to you.
Can a deposit cheque obtained from a buyer be post-dated with the approval of the brokerage?
Nope, it cannot be post-dated.
Can a developer who owns his own properties actively trade those properties without being licensed under the real estate trading act?
Yup!
How similar are the responsibilities owed by an associate broker and salesperson for purposes of the Real Estate Trading Act?
They are the same responsibilities.
Does an award or settlement of damages in court for one spouse automatically become part of the matrimonial assets of that married couple?
Nope, it doesn’t. It can stay with just one spouse.
Does the frequency of which a taxpayer dispositions capital properties impact whether or not any capital gains are taxed?
Yup!
If it looks like a serial flipper or investment buyer, it gets taxed.
Can an agency relationship be expressed or even just implied? Or does it always have to be explicitly written out?
Nope, an agency relationship can absolutely be expressed or implied. Does not need to be explicitly written out always, but it’s a good idea.
Do support staff who assist a transaction facilitator fall under the provisions of a Transaction Brokerage Agreement?
Yup, they do fall under the provisions.
