Unit 7: Real Property Law and Related Legislation Flashcards
1
Q
Define Land
A
the physical ground and air space above it to the extent that is useable.
2
Q
Characteristics of Land (5):
A
1) Durable
2) Rigid
3) Immobile
4) Unique
5) Scarce
3
Q
Real Property refers to…
A
the tangible attributes of the land, the real estate (land and buildings) and intangible rights of ownership
4
Q
The Bundle of Rights are (5)
A
- To possess the land and to use it
- To lease the land to another
- To sell the land to another
- To give the land to another
- To retain the land
5
Q
Joint Tenancy involves…
A
2 or more owners with each having the right of survivorship (cannot leave it to someone else in will)
- Equal ownership (both 100%)
6
Q
4 Conditions for Joint Tenancy
A
1) Time (receive interest together)
2) Title
3) Interest
4) Possession
7
Q
Tenancy-in-Common refers to..
A
2 or more property owners but when one dies, their share goes to their estate. (can own different shares)
8
Q
What are the Legislated Limitations to ownership rights? (8)
A
1) Taxation
2) Land Use
3) Police Power
4) Eminent Domain (gov’t expropriation)
5) Escheat (gov’t claims for unpaid taxes or dies with no heirs)
6) Surface Rights
7) Mineral Rights
8) Water Rights
9
Q
In Alberta, all water is owned by ___________
A
the Provincial Government
10
Q
_____________ permits certain uses from being exempt from water licensing requirements.
A
The Water Act
11
Q
A water license to divert and use water is not required for the following:
A
- Domestic household use
- Traditional agriculture use
- Firefighting
- A well that is hand pump operated
12
Q
Water licenses are tied to the land so it will transfer to a new owner. Will it appear on the title?
A
No
13
Q
Examples of Registered Encumbrances (11)
A
1) Easement
2) Conservation Easement
3) Caveat
4) Encroachment
5) Restrictive Covenants
6) Liens
7) Builders’ Liens
8) Leases
9) Writs of Enforcement
10) Party Wall Agreements
11) Mortgages
14
Q
An ________________ is a right to use land in common with others.
A
Easement (e.g. utility right-of-ways)
15
Q
A _________________ is a voluntary agreement between a landowner and a government agency or conservation charity that limits the amount / type of development that can occur on that property.
A
Conservation Easement
16
Q
A ____________ is a notice or warning that someone is claiming an interest in the land and it must be in writing.
A
Caveat
17
Q
An _______________ is the result of an item being placed, erected, or built on an adjoining property.
A
Encroachment
18
Q
A ________________ places a restriction or limitation on the use of or architectural detail of a property.
A
Restrictive Covenant (e.g. height limit, material use, setbacks, etc.)
19
Q
___________ are financial claims permitted by statute on real property that does not arise from a contractual agreement, such as a mortgage.
A
Liens
20
Q
____________ are created by statute under the _____________ Act and are generally subject to the Land Titles Act.
A
Builder’s Lien (claim for unpaid services or materials)
21
Q
Under the Builders’ Lien Act, a claim for unpaid service or material must be in excess of $______ and made within ______ days after completion / final day work.
A
$300, 45 days
22
Q
A ___________ registered against the title provides notice that litigation is in progress on that land.
A
Certificate of Lis Pendens
23
Q
A ____________ is a written directive from the court issued against a property title. It’s issued when a claimant successfully sues a debtor.
A
Writ of Enforcement
24
Q
Attached properties may have a common wall that divides each property from one another, this requires a _________________
A
Party Wall Agreement
25
A ___________ is a charge on the land for security of a debt or loan (according to the Land Titles Act)
Mortgage
26
A lender may register a __________ on the borrower's land, and a __________________ on their personal property.
Mortgage, Personal Property Security Agreement
27
How is mortgage priority determined?
Based on their registration date
28
Which 2 financial interests have priority over the mortgage?
1) Property Taxes
2) Condo Fees
29
Alberta uses the _____________ of land registration
Torrens System
30
What are the 3 key principles of the Torrens System?
1) Mirror Principle (Title currently reflects accurate facts)
2) Curtain Principle (Title shows all current but not previously addressed interests)
3) Insurance Principle (provincial gov't provides compensation for loss of rights)
31
Compensation for title issues is funded through the collection of assurance fees from land transactions, becoming part of the _____________
Land Titles Assurance Fund
32
Who is responsible for Alberta's Land Titles Act?
Minister of Service Alberta
33
A __________ is someone who works at the Land Titles Office and issues Certificates of Title
Registrar
34
e-copies of land titles are available through the ____________, run by Alberta Registries
Spatial Info System (SPIN)
35
Certificate of Titles typically include (14)
- Land registration district
- Land ID Number Code (LINK)
- Short Legal Description
- Title Number
- Owner name(s) and address(es)
- Estate type (fee simple, life, leasehold)
- Legal Description
- Encumbrances
- Consideration paid
- Municipality
- Reference Number
- Alberta Topographical Survey (ATS) reference
- # of instruments against property
- Transfer of Title
36
To do a historical title search you need one of the following:
- legal description
- LINC number
- Name of the owner
37
You can search titles in 3 ways:
1) Alberta Registries
2) Brokerage / Law office
3) SPIN online
38
____________ an inspection by means of land, water or air space for the purpose of preparing maps, plans and documents to determine boundaries delineating any right of interest in the property.
Land Survey
39
The method of legal land description used for __________ is based on the grid system of survey.
Undivided Land (described by meridian, range, township, section, quarter section, legal subdivision)
40
_________ are longitudinal lines running north south. Alberta has the 4th and 5th in its boundaries.
Meridians
41
_____________ are used roughly every 24 miles as part of the survey system
Correction Lines
42
_____________ longitudinal lines that are 6 miles apart and run between Meridians
Ranges (numbered going west)
43
___________ latitudinal lines (east and west) that are 6 miles apart
Townships (numbered 1 at southern border, to 126 at northern border)
44
Townships are divided into ______________ WHICH ARE 1 mile square (36 total per township)
Sections
45
Sections are divided into ____________ and are directional (NE, NW, SE, SW)
Quarter Sections
46
A ____________ refers to specific quarter of a Quarter Section.
Legal Subdivision (LSD) - 16 Hectares/ 40 acres
47
Legal land description SE1/4-14-42-1-W5 would be expressed as:
SE quarter of Section 14, Township 42, Range 1, west of 5th Meridian
48
4 Exceptions to standard survey system in Alberta:
1) Settlement Plans
2) Metes and Bounds (irregular topography)
3) National Parks
4) First Nations Land
49
A subdivision plan is required to be approved under the _________________
Municipal Government Act
50
Most municipal land and some acreages are created by a ______________.
Survey Plan (changes to plan, block lot)
51
___________ is described using Plan Block Lot
Municipal property (aka subdivided legal land desc)
52
____________ is described using Legal Subdivision
Rural Property
53
_____________ is described using plan and unit numbers
Condominium property
54
Condominium plans describe the...
size, location, boundaries of the land and location of buildings
55
_____________ is a 3D subdivision and divides land into 3D airspace without referencing buildings
Strata Plans
56
A _____________ is a legal document that illustrates boundaries of the property and location of structures relative to boudaries.
Real Property Report
57
A ____________ confirms that the setbacks conform to the Municipal Land Use Bylaw
Certificate of Compliance
58
2 types of residential Title Insurance
1) Policies for lenders with mortgages on title
2) Policies for owner
59
What are the 4 types of Municipal Districts?
1) Residential District (R)
2) Commercial District (C)
3) Industrial District
4) Special District (agriculture, parks, schools)
60
A ___________ applies to the overall use of the land. A ____________ applies to a specific project that is an improvement to the property,
Development Permit, Building Permit
61
____________ entitle an applicant to a permit if the development conforms with those parts of the Land Use Bylaw that apply to it.
Permitted Use
62
_____________ are generally set out in the bylaw for each land use classification, but some districts only do permitted uses. Generally god for that district but not necessarily for surrounding areas.
Discretionary Uses
63
The term ____________ means that the use was legal at the time of development but become illegal due to changes in the Land Use Bylaw
Non-Conforming
64
If the non-conforming use (e.g. basement suite) is discontinued for more than ____ months, the non-conforming use must stop.
6 months
65
__________ was built meeting currently Land Use Bylaw requirements and permits, ___________ built without meeting those requirements or permits, ___________ at one time met those requirements.
Legal Suite, Illegal Suite, Non-Conforming Suite
66
___________ is the process of determining property value for taxation purposes.
Assessment
67
___________ refers to a dwelling unit like a mobile or modular home that is often located in specified parks.
Manufactured Home
68
__________ are not assessed using the market value approach.
Agricultural Properties
69
An ______ is a specialist who calculates the value of a property for tax purposes.
Assessor
70
A current ___________ by a real estate professional is an estimate of a property's ability to achieve a potential sale price if it were put on the market.
Market Evaluation
71
The municipal tax rate is expressed as a __________ which is an amount per $1,000 of assessed value.
Mill Rate
- Mill rate of 1 means owner will pay 1 tax per $1,000 of assessed value
72
3 Options for property tax payments
1) Lump Sum Payment
2) Installment Payment Plan
3) Payments to Lender
73
Property taxes are due and payable on ________
June 30
74
3 Approaches used to determine market value of business properties:
1) Direct Sale Comparison Approach
2) Income Approach
3) Cost Approach
75
Residential Tenancies Act refers to the following living arrangements (4)
- Tenants who rent residences (houses, apartments, mobile homes)
- Residents in rooming / boarding houses (food and rent)
- Occupants of motels/hotels for >6 consecutive months
- Employers renting out to employees
76
2 Types of Residential Tenancies:
- Fixed Term (signed for specific time)
- Periodic (auto renew for same length)
77
Landlord obligations (8)
1) Premises available on move-in date
2) Copy of written residential tenancy agreement within 21 days of signing
3) Tenant has peaceful enjoyment
4) Must meet minimum standards of Health Act, etc.
5) Inspection report within 1 week of possession
6) Contact info of landlord / property manager given within 7 days of possession
7) All security deposits in interest accruing account within 2 days of receipt
8) Pay tenant interest on their deposit
78
Tenant Obligations (8)
- Pay rent on time
- Be considerate of others' rights
- Don't endanger others
- No illegal acts
- Don't operate business on premises
- Prevent damage to premises
- Obtain written permission to sublet
- Move out at end of tenancy
79
Landlords will return security deposit with interest within ___ days of tenancy termination
10 days
80
If the landlord deducts money from deposit, they must provide a final statement of account within ___ days of tenancy termination
30 days
81
Landlord must retain security deposit records for at least ____ years after termination
3 years
82
Amounts of rental increases are not legislated but the frequency is. The limit is ___ from when the tenancy began, or _______ from the last rent increase, whichever is later
1 year for both
83
Rent increase notice is:
Weekly tenancy requires ___ weeks' notice
Monthly tenancy requires ___ months notice
Any other tenancy requires __ days' notice
12 weeks, 3 months, 90 days
84
Landlord entry to property must be between __________ but not on a holiday, a Sunday or other day of worship for the tenant
8 am - 8 pm
85
Landlords may enter without consent only after giving tenants ____ hours written notice
24 hours
86
2 instances a landlord can enter without notice:
1) In an emergency
2) If tenant abandoned the premises
87
Termination of periodic tenancy
- Weekly: Landlord __ week, Tenant __ week
- Monthly: Landlord ___ months, Tenant ___ month
- Yearly: Landlord ___ days, Tenant ___ days
Weekly: 1 week for both
Monthly: 3 months, 1 month
Yearly: 90 days, 60 days
88
Prescribed reasons to terminate periodic tenancy (6)
- landlord / relative moving in
- sold the property
- use the property for non-residential use
- landlord is a school and the tenant isn't a student any more
- landlord is demolishing building
- landlord is doing a big reno
89
Notice to terminate tenancy requires (5)
- it's in writing
- address of premises
- signed by person giving notice
- state reasons for termination
- date of termination
90
If someone commits a breach to a tenancy agreement, notice to terminate needs to be given at least ____ days before the termination date.
14 days
91
24hr notice of eviction can be given in 2 circumstances
1) tenant assaulted or threatened to assault landlord or their agent
2) tenant significantly damaged property
92
If tenant doesn't vacate at the notice period, landlord may apply for an order for possession within ___ days of last day
10 days
93
Unauthorized people living on a premises are given ___ hours to vacate if it is abandoned
48 hours
94
Unauthorized people living in a tenant occupied premises will be served a _____ day notice to vacate
14 day
95
If tenant leaves personal stuff behind and it's not dangerous / unsanitary to store them, and they are worth more than $2,000 ($1,000 for mobile homes), then the landlord must store them for a period of _______ days .
30 days
96
In a ___________, the original tenant intents to return and resume the tenancy agreement.
Sublease
97
In an _________, the original tenant is not returning to the premises.
Assignment
98
____________ governs the relationship between a landlord who rents the mobile home site and the owner of the home that leases it.
Mobile Home Site Tenancies Act
99
Tenancy agreements may be written or verbal, however agreements arranged by a brokerage ..
are required to be in writing
100
Landlords must provide mobile site periodic tenancy tenants with at least ______ days written notice of rent increase
180 days
101
Sale of mobile homes is regulated under the ________________________ pursuant to the Fair-Trading Act and in some cases, The Real Estate Act
Retail Home Sales Business Licensing Regulation
102
Real Estate Act applies to mobile homes if all these requirements are met (4)
- designed as a residence
- mounted on own chassis and running gear
- capable of transport on own chassis / running gear
- Situated on a site intended for residential purposes
103
___________ are business arrangements that encourage agricultural producers and processors in their operations
New Generation Cooperatives
104
__________ are formed by a variety of individuals like customers, suppliers, investors, gov't that share common interest or live in same area to achieve common goals
Multi-Stakeholder Cooperatives
105
__________ are formed by a group who start a business or buy an existing business/
Employment Cooperatives
106
____________ are an alternative form to other types of residential accommodation because they are controlled by the members who are also the residents of the unit.
Housing Cooperatives
107
2 Types of Housing Cooperatives in Alberta
1) Non Profit Continuing Housing Cooperatives
2) Non-Profit Home Ownership Cooperatives
108
The intent of the ________________ is to allow lenders by way of a security agreement, the ability to register their interest in the personal property of a borrower as collateral.
Personal Property Security Act
109
Examples of Personal Property Registry items (4)
- Aircraft, farm vehicles, mobile homes, general collateral (office equipment, furnishings)
110
The ___________ affects how most household purchases can be sold by prohibiting unfair practices and misleading advertisements
Fair Trading Act
111
Fair Trading Act investigates complaints from Albertans about consumer transactions between...
people and businesses that are covered under the legislation (not between businesses)
112
2 enforcement actions of Fair Trade Act non-compliance
1) issue a director's order
2) entering into an undertaking
113
Fair Trading Act convicted penalties (4)
1) fine up to $100,000 or
2) 3x the amount obtained by defendant (whichever is higher), or
3) Imprisonment (2 years or less)
4) Both a fine and imprisonment
114
____________ supports and promotes the protection, enhancement, and wise use of the environment
Environmental Protection and Enhancement Act
115
_________________ were passed to ensure that these resources continue to be owned and enjoyed by Albertans (and other Canadians)
Agricultural and Recreational Land Ownership Act and Regulations
116
____________ provides the legal framework for the creation and operation of all condos
Condo Property Act (CPA) and Regulations
117
_______ is rent money that should have been paid previously
Arrears
118
______________ is a remedy that a landlord can use to recover unpaid rent without having to go to court
Distress
119
If tenant commits a substantial breach of tenancy agreement, the landlord can give the tenant ___ day notice of termination
14
- Same amount of time for non-payment of rent
120
A ___________ can be used in a transaction as a provision to an offer or contract to automatically increase offer price under certain conditions
Escalation Clause
121
__________ is the actual income a property owner can expect to receive after accounting for vacancies and collection losses (but before operating expenses)
Effective Gross Income (EGI)
122
__________ is the maximum income a property could produce if it were fully occupied
Potential Gross Income (PGI)
123
__________ accounts for expected losses due to vacant unites and uncollected rents
Vacancy and Collection Allowance
124
____ can include other additional income streams for a property
Other Income
(e.g. laundry, parking fees, etc)
125
NOI stands for...
Net Operating Income (Effective Gross Income - Operating costs)
126
Effective Gross Income = _________ - ________
Gross Income - Vacancies and Credit Losses
127
Which homes have higher risk of Radon, new or old homes?
New
128
Health Canada sets the acceptable average annual radon concentration in indoor air at ___ Bq/m3
200
129
If Radon concentration is between 200-600 Bq/m3, remediation should be started within ___ years
2
130
If Radon concentration exceeds _____ Bq/m3, remediation should be initiated within 1 year
600
131
Long-term Radon testing lasts at least ______ days during the heating period
90
132
__________ are the real property rights acquired as a result of ownership of real estate
Bundle of Rights
133
What are the Bundle of Rights?
- Right to possess / use the land
- Right to Lease the land
- Right to sell the land
- Right to give the land away
- Right to retain the land
134
