Humber Real Estate - Course 2, Module 3, Understanding Residential Property Types, Ownership and Planning|97 questions and answers

A self-contained housing unit with one or more habitable rooms containing at minimum a kitchen, bathroom facilities and an exit from the building. Define a 'Dwelling Unit' - A duplex is under single ownership (under 1 title) ... the dwelling units can then be lived in or rented out - The 2 dwelling units in a semi-detached structure are each owned separately (under 2 titles) What is the difference between a semi-detached structure and a vertically divided duplex? The interest or rights associated with real property. Define 'An Estate In Land' - Freehold ownership - Freehold estate Holding a fee simple interest in a property can also be referred to as what? The rights (aka Bundle of Rights) include the right to: - Sell - Lease - Use - Do nothing - Give away - Enter the property *Use the acronym SLUDGE to remember these rights What rights are included under fee simple ownership? An implied easement exists under the Road Access Act permitting the owner to cross over someone else's property to achieve access. What happens if a property fronts onto a public road and the property as a result cannot be directly accessed? - The right to take property (expropriation) - The right to regulate - The right to levy taxes What are the 4 categories of government limitations over land ownership rights? The right to regulate (aka Police Power) Zoning bylaws, building codes, traffic and sanitary regulations are based on what government right? Restrictions placed on a property by a landowner rather than a government body. What are 'Private Limitations'? - Restrictive Covenants - Easements What are 2 common types of private limitations? A limitation placed on the use of property and is registered on title for that property. It's a contract between 2 land owners, where 1 owner (the "covenantee") acquires the right to restrain the other owner (the "covenantor") from putting the land to specific uses. Define 'Restrictive Covenant' Tenancy in common Unless documented explicitly, what is the default form of concurrent ownership? - Tenancy in common - Joint tenancy (one person dies, property gets passed to other joint tenant) What are the 2 types of concurrent ownership? - Possession - Interest - Time - Title What are the 4 unities that must be present to constitute joint tenancy? It a married person passes away while owning an interest in a matrimonial home as a join tenant with an individual who is not their surviving spouse, the joint tenancy is immediately severed and reverts to tenancy in common. This provision allows for the deceased's interest in assets of the property to revert to their legal spouse. Define 'Joint Tenancy: Spousal Interest' Severance If a joint tenant wishes to destroy the right of survivorship before their death without the consent of the other joint tenant(s), what is this called? This act turns joint tenancy into tenants in common with the other tenant or tenants. Even afterwards, if there are 2 or more other tenants remaining, they still remain joint tenants with each other, but are tenants in common with the person who holds the severed interest. What happens when a joint tenancy is severed? A joint tenant granting their interest to a third party, or all parties involved deciding to sever their joint tenancy and instead hold their interests as tenants in common (i.e. during a marriage separation, the joint tenancy termination can be mutually agreed upon as part of the separation agreement). What are 2 of the most common methods of severance? Splitting the land by means of an application to a court. What is an example of joint tenancy termination by partition? Married couples (especially when there is a difference in the equity being brought into the purchase), friends or business partners In what situations would you often see tenants in common? Tenants in common In which form of concurrent ownership can the tenants hold separate interests in a property? Joint tenancy In which form of concurrent ownership do the tenants share an equal interest in and title to the property? Rules are easier to change than bylaws because bylaws are not effective unless the majority of unit owners vote in their favour. What are the primary differences between a condominium board's 'Rules' and 'Bylaws'? Bylaws A copy of a condominium's ________ must be registered in the land registry office. This type of corporation has no units, but has common elements like roads, a golf course, or a ski hill. Owners enjoy the common elements and jointly fund their maintenance and repair. You own your house and the land on which it sits, and all owners within the community share ownership of the roads and community centre. Your part-interest in the corporation is attached to the parcel of land you own, not your house. What is a Common Elements Condominium? No. They are elected by condominium owners who are members of the condominium corporation. As some residents may not be owners (i.e. renters), they are not eligible to vote for the board. Is a condo's board of directors elected by the residents? The board of directors Who is in charge of setting a condo's fees? The owner's partial interest in the CEC is attached to the land their home sits upon, rather than the home itself. This land is considered a parcel of tied land (POTL). In a standard condominium, the owner's interest in the condominium corporation lies in the unit. What is the difference in ownership between a Common Elements Condominium and a Standard Condominium? Property is owned by a corporation made up of shareholders - also referred to as members. Ownership involves the purchase of share capital in the property that entitles the owner to use and occupy a specific unit under an arrangement defined in an occupancy agreement. Describe an 'Equity Co-operative' - Managed by a board of directors - Members pay monthly fees In what ways is an Equity Co-operative similar to a condominium? No, since they are member-owned and controlled corporations. Does the 'Co-operatives Corporations Act' regulate the day-to-day business of an equity co-operative or its bylaws? A co-op's monthly housing charges also include a share of the property tax that is charged for the entire property. Since each member contributes toward the larger bill rather than having to pay individual property taxes, they are indirectly liable if others fail to pay their property tax. What is a key difference between an equity co-operative's and a condominium's monthly housing charge / monthly fees? They require that their boards give approval to buyers, sellers or the leasing of all member units. How does an equity co-op's board of directors offset the risk of non-payment toward common liabilities (such as blanket mortgages that may require payment by any new owners)? Old, and are often have larger units than those offered in a new standard condo, and they may be more economical also. Are equity co-ops typically new or old buildings? - A share certificate - Occupancy agreement - Rules / regulations - Bylaws - The amount of the mortgage registered against the entire property owned by the co-operative corporation (as a mortgage cannot be placed upon an individual unit) The sale of a unit in an equity co-op will provide the buyer with what documents? The form of ownership. An equity co-op is defined by share capital, which is not applicable to a condo purchase. What is the biggest difference between an equity co-op and a condominium? Because it already includes the property tax. Why would an equity co-op's monthly maintenance fee be higher than a condo's? A fractional interest held by 2 or more people who are registered on title as owners of a property. The percentage owned by each person does not need to be equally divided. Define Co-Ownership Owners may receive an occupancy agreement in addition to the deed. The agreement gives them the right to occupy a specific unit within the structure, since the deed only documents the fractional interests held in the building. The tenants in common owners have exclusive right to occupy and use a specific unit. They are issued a share certificate in the co-ownership corporation, reflecting their proportionate interest. In this way, they are very similar to equity co-operatives, though they differ in concurrent ownership types. Describe a 'Multi-Unit Co-Ownership Building' A) Fee simple interest in a unit B) Property is owned by a corporation C) Tenant in common ownership with 1 or more persons What are the 3 ownership types of the following kinds of properties? A) Condominium B) Equity Co-Operative C) Co-ownership Co-ownership Which type of property does NOT have a board of directors? Condominium, Equity Co-operative or Co-ownership? Properties in which the buyer purchases the right to occupy a given dwelling unit within a community for the duration of their lifetime. Buyers of this type of lease are referred to as occupants rather than owners. What is a 'Life Lease Complex'? - Non-profit or charitable housing providers - Seniors' organizations - Church or faith groups - Service clubs - Ethnic associations Who are some typical sponsors of Life Lease Complexes? A lump sum up front followed by monthly fees. These fees take care of a range of expenses including snow removal, landscaping, garbage disposal, repairs, building insurance and possibly meals. What is the financial structure of purchasing a Life Lease? Setting aside funds for roofs, exteriors, buildings, roads, sidewalks, sewers, heating, electrical or plumbing systems, elevator, laundry, recreational, parking facilities, etc. In a Life Lease Complex, what is the purpose of the reserve fund? Based on the lot size, location and view. How is an amount paid for a land lease typically calculated? 20 to 99 years What is the range of term of land leases? The Residential Tenancies Act (doesn't apply if the site is used by travellers or people on vacation). Land lease homes (i.e. homes without wheels that are not seasonally occupied) are regulated by what Act? To maintain any grounds, buildings or equipment intended for common use. In a land lease, what is the monthly fee required for? The land lease tenant owns their residence and has the right to sell or lease the dwelling. What is the difference in ownership between a life lease community and a land lease tenant? Because the person will not technically own any land to pledge as security. Why is financing for land lease difficult to obtain? A provincial legislation that sets out rules for land-use planning and recognizes the authority of municipalities and planning boards in Ontario to make planning decisions. What is the 'Planning Act'? The Ministry of Municipal Affairs and Housing Who administers the Planning Act and provides advice and information on land-use planning to municipalities? The Local Planning Appeal Tribunal What does 'LPAT' stand for? Municipal At what level of government are most Planning Act initiatives carried out at? Severance and subdivision approvals and zoning bylaws What are the most direct ways the Planning Act will impact you as a salesperson? To describe local policies that outline how land in a given community should be used. What is the purpose of the official plans developed by municipalities? To grant variances from the provisions of zoning bylaws, to grant consents and to control the continuance of non-conforming uses that would alter current land use regulations. What is the job of the Committee of Adjustment? Upper Tier (region, country or district) Responsible for: Preparation, adoption and revision of the official plan, and the process of dividing and developing land. Lower Tier (municipality) Responsible for: Preparation, adoption and revision of the office plan and the adoption of zoning bylaws, interim control bylaws and other bylaws. Single Tier (district, region, township, city or municipality) Responsible for: Assumption of all municipal responsibilities where a municipality does not form part of an upper tier municipality. What are the 3 different types of municipalities and what are their responsibilities?