Humber Real Estate Course 1 Modules 1-3| 77 questions and answers

Real Estate and Business Brokers Act (REBBA) - regulates real estate trading - Ministry of Government & Consumer Services is responsible for it - RECO enforces it - provides a framework for the regulation of the profession to protect consumers & ensure integrity of interactions is upheld REBBA Code of Ethics - objective is to protect sellers & buyers by outlining standards to be upheld during all real estate activities - Fairness & Honesty - Conscientious & Competent Service - Services From Others Code of Ethics: Services From Others must advise a seller/buyer to obtain services from another person if the registrant isn't able to provide the services listing brokerage when a brokerage has a property listed for sale co-operating brokerage A brokerage (typically representing the buyer) who is cooperating with a listing brokerage in a real estate trade. buyer's brokerage The term used to refer to the buyer's brokerage when the seller doesn't have their property listed for sale with a brokerage (privately selling their home). lessor the one who grants the lease, the landlord lessee the tenant representation relationship - the party is a client - an agency relationship has been established between the 2 parties - both regulatory (REBBA) & fiduciary obligations on the brokerage fiduciary obligatons brokerage is required to: - be loyal - not disclose confidential information - promote & protect the seller/buyer's best interests providing services relationship - the party is a customer who is receiving services from a brokerage (e.g., get info on a house for sale but represent themselves) - brokerage must treat party with fairness, honesty, and ensure any info provided is accurate - no fiduciary obligations representation agreement used when a brokerage represents a seller (listing agreement) or buyer (buyer representation agreement) as a client customer service agreement used when a brokerage provides services to a customer. It can be non-exclusive methods of calculating commission - percentage of the sale or lease amount (can only decrease as the sale value goes up) - an agreed amount - a combination of both note: if no amount is agreed upon between seller/buyer & brokerage, prevailing rate in the community is used real estate typically refers solely to the tangible aspects of a property, the land and improvements improvements any structure or other permanent addition, such as a deck, shed, fence real property includes the tangible aspects (real estate) and the intangible (the rights) bundle of rights The rights of an owner to possess, control, enjoy, sell, lease, mortgage, and dispose of the property. personal property moveable items of the property and referred to as consumer goods (e.g., appliances, furniture). Generally, all property except land & improvements is considered to be personal property fixtures they are securely attached, usually permanently, to a property and are to remain upon the sale of the property. If seller wants to retain any, agreement of purchase & sale should identify the items as excluded chattels the moveable possessions; by default they're excluded from purchase; any chattel to remain should be identified in agreement of purchase & sale title legal ownership of land - and with that ownership- legal rights; person who has title is the legal owner & has the authority to sell chain of title The series of deeds by which title to a piece of property was transferred from one owner to the next, over the course of the property's history. title search The examination of public records relating to real estate to determine the current state of the ownership. marketable title Good or clear title, reasonably free from the risk of litigation over possible defects. The transfer of title can occur without any encumbrances affecting the buyer (e.g., mortgage registered on title). transfer/deed of land In a Land Registry Office, the document used to transfer title (transfer when title is registered under Land Titles Act; deed under the Registry Act) mortgage claim or encumbrance upon a property given by the owner of the property to the lender as security for money borrowed (mortgage under the Registry Act; charge under the Land Titles Act) Charge/Mortgage of Land document used to register the mortgage against a property Discharge of Charge/Mortgage document used to remove the mortgage Lender referred to as mortgagee under Registry Act; chargee under Land Titles Act Borrower mortgagor under Registry Act; chargor under Land Titles Act activities that support RECO's mandate of protecting public interest - enforcing standards required to obtain & maintain registration as a brokerage, broker, or salesperson - establishing education standards for registration, post-registration, & continuing education - conducting insepctions of brokerages to ensure compliance with REBBA & to educate brokers of record - addressing inquiries, concerns, complaints & taking appropriate action - establishing & administering insurance requirements - being source of consumer protection education & information for sellers & buyers role of the broker of record - actively participate in management of the brokerage - supervision of registrants & non-registrants - ensure compliance with REBBA - review & approval of trade-related documents - sign any brokerage financial statements Note: branch with one broker or salesperson only needs the supervision of the broker of record at the head office role of the branch manager - provide adequate supervision for employees - take steps to deal with failure to comply with the Act or Regulations - manage all records related to the branch estate an interest in land that contains various rights associated with ownership or tenancy fee simple estate Absolute ownership with all the rights associated with ownership of real property. They can use, sell, lease, enter, give away properties. This bundle of rights is ownership. Ownership is for an indeterminate period of time leasehold estate An estate that gives the holder (Tenant) a temporary right to possession, without title. air rights The rights to use the air above the land. surface rights the rights to use the surface of the earth; any right of land that isn't mining rights riparian rights rights allocated to owners of waterfront property and are associated with property owner's access to and use of water mineral rights right to enter or use land for the purpose of removing mnierals concurrent ownership - ownership by two or more persons at the same time - can be disposed of by agreement of the owners - 2 categories: joint tenancy, tenancy in common joint tenancy A form of concurrent ownership, which occurs when two or more persons own a single estate in land, with right of survivorship. Must have equal shares, right to partition. 4 conditions of joint tenancy - title: each owner's interest must be the same & created at the same time in same document - time: interests of all joint tenants must be created at the same time & for the same period - possession: each owner must have equal, undivided ownership in the property - interest: each joint tenant must have undivided share at the same time as others & none is entitled to any part to the exclusion of other co-owners