Humber Real Estate Course 2, Module 9, Preparing to Market a Residential Real Property Questions And Answers | Updated Solutions |

According to the AIC guideline, how is the "total livable area" defined? - Area above grade that provides heated year-round use. Are below-grade basement areas (whether developed or undeveloped) considered livable floor area? - No Before a pre-listing presentation, what details can you find in the archives of the local listing service? - - When did the seller buy the property? - How much did the seller pay for the property? - Are there any past disclosures about the property? Before scheduling a pre-listing presentation, what question should you ask the seller? - Are you working with another salesperson or brokerage? If they say yes, you should end further communication with them. If not, you can ask them why they are selling their property. Centimetres, Meters, Square Meters & Hectares are units used in what measurement system? - The Metric System During a visual inspection, what should you look for in relation to floors and staircases? - Floors: - Type of floors (hardwood, laminate, broadloom, ceramic) - Condition of the floors (slanted, warped) Staircase: - Safety rail- Slanted or loose stairs - A large number of stairs that would be a problem for a person with limited mobility During a visual inspection, what should you look for in relation to heating, ventilation and air conditioning (HVAC)? - - Type of heating source (e.g. electric, gas, ground source, oil, propane, solar or wood) - Type of air conditioning (e.g. packaged or central air) During a visual inspection, what should you look for in relation to plumbing and wiring? - Plumbing: - Kitec plastic plumbing - Pipes (e.g. lead, galvanized metal, cast iron) - Insulated pipes (possible asbestos insulation) - Leaks - Out-of-date systems Wiring: - Knob-and-tube wiring - Aluminum wiring - Out-of-date systems - Inadequate amperage During a visual inspection, what should you look for in relation to secondary structures? - Detached garage - general wear and tear (e.g. peeling paint) or does its roof encroach on another property? Shed - does it encroach upon another property? During a visual inspection, what should you look for in relation to the exterior areas of the house? - Exterior wall - cracks, water stainsDoors - type, peeling paint, how easily it opens and closes Windows - type, age, closure General wear and tear During a visual inspection, what should you look for in relation to the foundation? - - Cracks - Efflorescence (indicates previous presence of moisture) During a visual inspection, what should you look for in relation to the front yard and back yard? - Grass/lawn - whether grass is overgrown, presence of weeds Unusual depressions in the lot grading Potted plants/garden - whether it appears vibrant, well-kept Condition of any fencing Pipes sticking out of the ground (could be an indication of a buried oil tank) During a visual inspection, what should you look for in relation to the roof? - - Type of roof covering - Age of the shingles - Missing shingles During a visual inspection, what should you look for in relation to walls and ceilings? - - Cracks - Moisture - Water stains- Mould During a visual inspection, what should you look for in the attic and basement? - - Finished or unfinished - Cracks - Moisture - Mould - Peeling paint - Water stains How can you determine any misuse or stigma associated with a property? - - Check with the local police department - Do an internet search using the property address How can you determine if an area of the house is included in the livable floor area calculation? - - Is it finished with walls, floors and ceilings or materials accepted for interior construction? - Is it heated by a conventional heating system or systems, which are permanently installed in the dwelling? - Is it directly accessible from the other living areas through a door or heated hallway or stairway? How can you verify the accuracy of information about plumbing? - - Visually inspect the plumbing to determine whether it's copper, PVC, Kitec, lead or galvanized - If Kitec exists, recommend that an inspection and written report be completed by a licensed plumber regarding the current condition of the plumbing How do you calculate the total area of a parallelogram?*Note: These calculations are best learned by looking at the illustrations in the lessons and practicing the examples. - Length x Perpendicular Height How do you calculate the total area of a right angle triangle? *Note: These calculations are best learned by looking at the illustrations in the lessons and practicing the examples. - 1/2 x (Base x Height) How do you calculate the total area of a trapezoid? *Note: These calculations are best learned by looking at the illustrations in the lessons and practicing the examples. - Sum of Parallel Sides x (1/2 x Perpendicular Height) How do you convert feet into meters? - Multiply by 0.3048 How do you convert meters into feet? - Multiply by 3.28084 How do you convert square feet into meters? - Multiply by 0.0929 How do you convert square meters into feet? - Multiply by 10.76 How do you determine the total area of an irregular rectangular living area? *Note: These calculations are best learned by looking at the illustrations in the lessons and practicing the examples. - Calculate the total area as if a rectangle, and then subtract the non-livable floor area. How do you measure a split-level residential structure (generally the most difficult to measure, according to AIC)? - • Exterior length x Width of the livable area that is above the sill plate (the bottom horizontal part of a wall)Note: Basement and crawlspace areas are not considered to be livable floor area. Living space beside the garage that does not have a crawl space area or a basement is considered livable floor area because it is above-grade. How do you measure the area of a one and one-half-storey residential structure without dormers? - Ground Level: • Exterior length x Width of the base of the dwelling • Exterior length x Width of projections and *cantilevered areas Note: Ground level is calculated the same way as a one-storey dwelling. Upper- or Second-Level Measurement: • Interior length x Width to knee wall (angle where the wall meets the ceiling) Note: An additional 15-20 cm (approx. 6-8 inches per side) may be included to account for the exterior walls. How do you measure the area of a one-storey residential structure? - • Exterior length x Width of the base of the dwelling • Exterior length x Width of projections and *cantilevered areas *A cantilever is an overhang where one floor extends beyond and over a foundation wall. How do you measure the area of a two-storey residential structure with a built-in garage? - Ground Level: • Exterior length x Width, excluding garageUpper Level: • Exterior length x Width How do you measure the area of a two-storey residential structure? - • Exterior length x Width, then x2 How do you measure the exterior of a house? - - Make a sketch of the house before you start measuring - Start at one corner of the house and measure each exterior wall - Round off the measurement to the nearest centimetre or inch - As you measure each wall, record the measurement on the sketch - Measure other areas not considered "livable" according to the AIC guidelines and record these measurements separately How long is a FINTRAC form kept on file for? - 5 years How should you verify the accuracy of room sizes? - - Document any irregularly shaped rooms, including how that room was measured (e.g. "from the widest point") - Measure rooms yourself; you should not rely solely on previous listing information, which should be used only as a source of comparison How should you verify the accuracy of the information about the HVAC system? - Review source documents to verify the following:- Determine the age of the HVAC system and whether the components are owned, leased or rent-to-own - Determine whether the heating fuel source is gas, electric, wood or propane - Determine the age of the hot water tank and a water softener, and whether they are rented, leased or owned How should you verify the accuracy of the lot size? - - Review and retain a copy of the survey from the seller and keep it on file for reference - Review and compare source documents, such as the tax bill and notice of assessment from MPAC, which contain the lot frontage and depth - Include the frontage and depth for rectangular lots, full dimensions for irregular lots, and dimensions and/or exact acreage for larger tracts How should you verify the accuracy of the total living area? - - If your brokerage is a member of organized real estate, check with the local real estate board for measuring guidelines; for example, a range of square feet/square meters - Purchase a report from GeoWarehouse - Obtain the builder's floor plans from the seller, if it's a newer construction If an attic is finished, how would it be measured and noted on the listing? - As a finished walk-up attic. If any item in a home sale is included in a rent-to-own program, you should do what? - - Advise the seller that the outstanding balance of the contract may have to be discharged on or before the completion date of sale and cannot be assumed by the new owner- Advise the seller to contact the service provider to verify any costs associated with a transfer of the contract to a new owner or if the contract can be cancelled, if necessary - At the offer stage, provide a copy of the original contract to the potential buyer for their review If any items (such as alarm/security system, thermostat, hot water tank, water softener, water filtration system, furnace) are rented, what details should you confirm with the seller by asking to see the contract? - - Can a potential buyer assume the rental contract? - Is the item a conditional sales contract disguised as rent-to-own? If the wiring is visible in an unfinished part of the basement, words stamped on the insulation, such as Alcan, alum or aluminum will indicate ______________ wiring. Do not take the cover off an electrical panel or junction box to inspect the wiring, which can be dangerous. A professional electrician should verify this information. - Aluminum