Week 1
Trends in the Real Estate Marketplace (Class Discussion)
3-5 years = flat line
o Income levels
o Affordability
o Rental rates increase
o Stress test
o Air bnb -> disrupt
Increases
o Growing population in Toronto
o 15% non-resident speculation tax
Made to ensure ppl who live in T.O can afford homes
Given to ppl who buy property but do not live in T.O (international investors)
Seniors selling
U.S federal rate increase
Canadian rate increases
Rent controls
Industrial
o Low cap rates
o Office leasing/rates
o Calgary vs. Toronto
Why Study Real Estate Law?
Very important
o Housing, businesses, environment
Impacts financial institutions --> banks use real estate as collateral bc you can't move it
Impact gov't --> if banks use real estate as collateral and real estate goes down then the bank goes in debt and the
gov't must help them
Manage risk in buying, selling, owning, and managing real estate
Legal System
Common Law = court made law
Statute Law = gov't made law
Division of Powers
Federal law effects real estate bc they can indirectly regulate it
o Ex. Real estate developers cannot build tall buildings near airports
Jurisdiction Over Real Estate
Provincial law has jurisdiction over real estate
Conflicts/Disputes
Federal vs. Province
Municipality vs. Province
City of Toronto wants new revenue generations tools
Building and financing affordable housing
Airports
Waterfront development
Waterways
Charter of Rights and Freedoms
No property rights (to own and enjoy property)
Gov't can regulate real estate
o Regulate real development (ex, zoning, planning, subdividing)
o Regulate resource industries
o Protect environment
o Restrict foreign ownership
, Protects us from the gov't (any authority), however, in the charter, there are no property rights which means that
gov't can infringe upon our property rights
Jurisdiction & Authority over real estate
Provincial Delegated Authorities
o TARION: if you fall w/n warranty, you can make a TARION claim
o Real estate council in Ontario
Regulates real estate agents
o Condominium Authority
This authority also has a tribunal, tribunal will be decision makers wil solve decision b/w tenants and
tenors
Brief History of Real Estate
King makes deals with ppl to use his land in return for:
o Loyalty
o Fight for him
o Work the land
o Give him stuff (ex. Crops)
*refer to diagram #1
Real Estate Ownership
Rights to surface
o Reasonable amt of sub surface
o Reasonable amt of air space
Real estate is different from other property bc:
Fee simple esate
--> best rights to land (next to gov't)
--> can enforce those rights to anyone in the world
--> (ex. if you have a trespasser on your land you can have them removed)
Privity Doctrine
Only they can sue on the contract (ex. Only buyer can sue seller, only seller can sue buyer)
*refer to diagram #2
Estates and Interest
Estates: exclusive rights to possess land for a period of time
Interests: no possession on the land; can't sit there for a long period of time
Expropriation: gov't takes away the bundle of rights
Life Estates
Bundle of rights for duration of particular life
Bundle of rights --> same limitations as fee simple but when you die someone else can have their rights, therefore,
you cannot waste the property/de-value the property
Restrictive Covenants
Negative
Stay with land --> a new person can buy the land, but they still have to abide by the RC
o Obligation to do something doesn't "run with the land"
Mineral Leases "ML"
Gov't owns the minerals
Profit of Prendre (Interest in Land)
Rights to go on someone s property to take something from it (ex. Cut a tree and take it)
, Leasehold Estate
Leasing law = landlord friendly
"Running with the Land"
Bound to them
VS
"Not Running with the Land"
Not bound to them
Licence
• does not run with the land
• permission to occupy space
Land Registration Systems
• records of fee simple, profit prendre, etc.
• helps check title and ownership
• 2 Types:
a. Registry System
b. Land Titles System
Registry System (OLD)
• collection of docs.
• gov't does NOT assure you of anything
• goes back to 40 yrs ONLY
• determines "chains of titles"
Land of Titles Systems
• gov't doesn’t just collect docs
• cares what's in the docs
• gov't CAN guarantee validity
• you can make a claim to the gov't if you suffer a loss due to believing what was told by the LTS
• in certificate of title --> docs are pulled out and opened
• based on 3 Principals:
a. Mirror: what you see is what you get
b. Curtain: not having to go behind the curtain (aka 40 yrs) to determine validity
c. Insurance: if you rely on the gov't and they make a mistake you can go after the gov't
• indefeasibility: with few exceptions, interests in the C of T cannot be defeated
*refer to diagram #3
Priorities Rule
• time of registration determines your priority
Unregistered Interests in LTS
• cannot just rely on the C of T
Subdivision Control
• buying land, then dividing it and selling it
• sec. 50 Planning Act (Ontario)
• limiting the division of property
• 21-year rule: not being able to lease land for 21 years
• agreement of purchase of sale (APS) is void if it's not made in the right compliance
*refer to diagram #4
Trends in the Real Estate Marketplace (Class Discussion)
3-5 years = flat line
o Income levels
o Affordability
o Rental rates increase
o Stress test
o Air bnb -> disrupt
Increases
o Growing population in Toronto
o 15% non-resident speculation tax
Made to ensure ppl who live in T.O can afford homes
Given to ppl who buy property but do not live in T.O (international investors)
Seniors selling
U.S federal rate increase
Canadian rate increases
Rent controls
Industrial
o Low cap rates
o Office leasing/rates
o Calgary vs. Toronto
Why Study Real Estate Law?
Very important
o Housing, businesses, environment
Impacts financial institutions --> banks use real estate as collateral bc you can't move it
Impact gov't --> if banks use real estate as collateral and real estate goes down then the bank goes in debt and the
gov't must help them
Manage risk in buying, selling, owning, and managing real estate
Legal System
Common Law = court made law
Statute Law = gov't made law
Division of Powers
Federal law effects real estate bc they can indirectly regulate it
o Ex. Real estate developers cannot build tall buildings near airports
Jurisdiction Over Real Estate
Provincial law has jurisdiction over real estate
Conflicts/Disputes
Federal vs. Province
Municipality vs. Province
City of Toronto wants new revenue generations tools
Building and financing affordable housing
Airports
Waterfront development
Waterways
Charter of Rights and Freedoms
No property rights (to own and enjoy property)
Gov't can regulate real estate
o Regulate real development (ex, zoning, planning, subdividing)
o Regulate resource industries
o Protect environment
o Restrict foreign ownership
, Protects us from the gov't (any authority), however, in the charter, there are no property rights which means that
gov't can infringe upon our property rights
Jurisdiction & Authority over real estate
Provincial Delegated Authorities
o TARION: if you fall w/n warranty, you can make a TARION claim
o Real estate council in Ontario
Regulates real estate agents
o Condominium Authority
This authority also has a tribunal, tribunal will be decision makers wil solve decision b/w tenants and
tenors
Brief History of Real Estate
King makes deals with ppl to use his land in return for:
o Loyalty
o Fight for him
o Work the land
o Give him stuff (ex. Crops)
*refer to diagram #1
Real Estate Ownership
Rights to surface
o Reasonable amt of sub surface
o Reasonable amt of air space
Real estate is different from other property bc:
Fee simple esate
--> best rights to land (next to gov't)
--> can enforce those rights to anyone in the world
--> (ex. if you have a trespasser on your land you can have them removed)
Privity Doctrine
Only they can sue on the contract (ex. Only buyer can sue seller, only seller can sue buyer)
*refer to diagram #2
Estates and Interest
Estates: exclusive rights to possess land for a period of time
Interests: no possession on the land; can't sit there for a long period of time
Expropriation: gov't takes away the bundle of rights
Life Estates
Bundle of rights for duration of particular life
Bundle of rights --> same limitations as fee simple but when you die someone else can have their rights, therefore,
you cannot waste the property/de-value the property
Restrictive Covenants
Negative
Stay with land --> a new person can buy the land, but they still have to abide by the RC
o Obligation to do something doesn't "run with the land"
Mineral Leases "ML"
Gov't owns the minerals
Profit of Prendre (Interest in Land)
Rights to go on someone s property to take something from it (ex. Cut a tree and take it)
, Leasehold Estate
Leasing law = landlord friendly
"Running with the Land"
Bound to them
VS
"Not Running with the Land"
Not bound to them
Licence
• does not run with the land
• permission to occupy space
Land Registration Systems
• records of fee simple, profit prendre, etc.
• helps check title and ownership
• 2 Types:
a. Registry System
b. Land Titles System
Registry System (OLD)
• collection of docs.
• gov't does NOT assure you of anything
• goes back to 40 yrs ONLY
• determines "chains of titles"
Land of Titles Systems
• gov't doesn’t just collect docs
• cares what's in the docs
• gov't CAN guarantee validity
• you can make a claim to the gov't if you suffer a loss due to believing what was told by the LTS
• in certificate of title --> docs are pulled out and opened
• based on 3 Principals:
a. Mirror: what you see is what you get
b. Curtain: not having to go behind the curtain (aka 40 yrs) to determine validity
c. Insurance: if you rely on the gov't and they make a mistake you can go after the gov't
• indefeasibility: with few exceptions, interests in the C of T cannot be defeated
*refer to diagram #3
Priorities Rule
• time of registration determines your priority
Unregistered Interests in LTS
• cannot just rely on the C of T
Subdivision Control
• buying land, then dividing it and selling it
• sec. 50 Planning Act (Ontario)
• limiting the division of property
• 21-year rule: not being able to lease land for 21 years
• agreement of purchase of sale (APS) is void if it's not made in the right compliance
*refer to diagram #4
