UBC REAL ESTATE MISSED TERMS:
retained earnings: - ANS-retained earnings is the company's total accumulated profits less any
dividends paid since incorporation
The owner of an interest in real property that is located in British Columbia always has: -
ANS-common law rights as modified by legislation; because real property ownership in British
Columbia is based on English common law property rights as modified by legislation such as
the Property Law Act and the Land Title Act.
ALSO, owners of real property in fee simple must still abide by various common law restrictions
as well as legislative restrictions (e.g., municipalities have the power to regulate subdivision).
Find Yield #EFF practice 5 minutes 3 questions - ANS-
Which of the following would NOT be included in a statement of profit and loss? Depreciation -
Current Liabilities - Rental Revenue - Interest on Mortgage - ANS-current liabilities are only
listed on the balance sheet. They would not show up on the statement of profit and loss, which
is also known as the income statement.
What can be found on an income statement? - ANS-the income statement shows revenues and
expenses, such as depreciation, rental revenue, and interest expense on a mortgage
A seller refuses to acknowledge the waiver (claim) of a condition precedent from a contract of
purchase and sale. Assuming that the condition was made exclusively for the benefit of the
buyer and the waiver was made prior to the expiry of the condition precedent, the agreement is:
- ANS-BINDING (valid and enforceable to both parties)
*because section 54 of the Law and Equity Act provides that "where a condition precedent is for
the sole benefit of the buyer, the buyer is allowed to unilaterally waive the condition prior to its
expiration" Section 54 overrides the common law rule preventing the unilateral waiver of a true
condition precedent
A mortgage broker has helped you set up a mortgage loan. The loan is for $350,000 at an
interest rate of j12 = 4.75% and a 20-year amortization. The loan calls for monthly payments of
$2,262 over a 2-year term with $327,975.95 owing at the end of 2 years. If the lender pays the
broker a fee of 2% of the funds advanced, what is the yield to lender, expressed as an effective
annual rate (j1), rounded to two decimal places. - ANS-
CCA rules for the year the asset is purchased and the year it is disposed, bonus: who
determines CCA % Rate? - ANS-Only one-half of the maximum allowable CCA may be claimed
on an asset in the year the asset is purchased.
No CCA may be claimed in the year of the asset's disposal.
The CRA
, In British Columbia, a lender who holds a mortgage registered as a charge on an otherwise
clear title to a borrower's land has - ANS-an interest in land that provides security for the loan.
three elements required for a successful negligence claim: - ANS-(1) owed a duty of care
(2) breached the standard of care
(3) that the damage was reasonably foreseeable
section 4 of the Real Estate Services Actstipulates that if an agent is unlicensed at the time real
estate services were provided, - ANS-he or she cannot bring a court action to collect
commission
A bylaw that is passed by a strata corporation cannot be enforced against a strata lot owner
unless or until - ANS-it has been filed in the appropriate land title office:
a strata corporation may amend the Standard Bylaws in the Strata Property Act by creating a
new custom-made bylaw, but they may not enforce such a bylaw until it has been filed at the
land title office
rental restriction bylaws do not apply to strata units for how long? what if there is a tenant? -
ANS-Do not apply for one full year following the strata bylaws passage or, if there is a tenant in
a strata lot on the day the new bylaw is passed, the one-year grace period only begins on the
day the tenant vacates the strata lot.
what are the requirements under section 10 of the Interest Act in order for a borrower to tender
prepayment? - ANS-The mortgage is not payable until a time more than five years from the date
of the mortgage.
The expiration of the five years from the date of the mortgage has occurred.
True or False: a lender has no right to demand payment of the total outstanding balance at any
time prior to the end of the contractual term provided the borrower meets all contractual
obligations? - ANS-TRUE
What is the difference between individuals (borrowers) and corporations, for the right to prepay
all of the OSB at any time after 5 years from the start of the mortgage? - ANS-Individual
borrowers, not corporations, have the right, under the terms of the Interest Act, to prepay all of
the outstanding balance at any time after five years from the initiation date of the mortgage
Land and Building Value Depreciation Equation: - ANS-Land + (building value - depreciation%)
= total value to date
Cornelius gave a life tenancy to Ruel, which did not expressly state anything about Ruel's
liability for waste. Ruel will NOT be liable to the remainderman for: - ANS-permissive waste
because, at common law, a life tenant is generally under no obligation to repair or compensate
for waste that occurs as a result of allowing the property to deteriorate without any positive acts
(permissive waste).
retained earnings: - ANS-retained earnings is the company's total accumulated profits less any
dividends paid since incorporation
The owner of an interest in real property that is located in British Columbia always has: -
ANS-common law rights as modified by legislation; because real property ownership in British
Columbia is based on English common law property rights as modified by legislation such as
the Property Law Act and the Land Title Act.
ALSO, owners of real property in fee simple must still abide by various common law restrictions
as well as legislative restrictions (e.g., municipalities have the power to regulate subdivision).
Find Yield #EFF practice 5 minutes 3 questions - ANS-
Which of the following would NOT be included in a statement of profit and loss? Depreciation -
Current Liabilities - Rental Revenue - Interest on Mortgage - ANS-current liabilities are only
listed on the balance sheet. They would not show up on the statement of profit and loss, which
is also known as the income statement.
What can be found on an income statement? - ANS-the income statement shows revenues and
expenses, such as depreciation, rental revenue, and interest expense on a mortgage
A seller refuses to acknowledge the waiver (claim) of a condition precedent from a contract of
purchase and sale. Assuming that the condition was made exclusively for the benefit of the
buyer and the waiver was made prior to the expiry of the condition precedent, the agreement is:
- ANS-BINDING (valid and enforceable to both parties)
*because section 54 of the Law and Equity Act provides that "where a condition precedent is for
the sole benefit of the buyer, the buyer is allowed to unilaterally waive the condition prior to its
expiration" Section 54 overrides the common law rule preventing the unilateral waiver of a true
condition precedent
A mortgage broker has helped you set up a mortgage loan. The loan is for $350,000 at an
interest rate of j12 = 4.75% and a 20-year amortization. The loan calls for monthly payments of
$2,262 over a 2-year term with $327,975.95 owing at the end of 2 years. If the lender pays the
broker a fee of 2% of the funds advanced, what is the yield to lender, expressed as an effective
annual rate (j1), rounded to two decimal places. - ANS-
CCA rules for the year the asset is purchased and the year it is disposed, bonus: who
determines CCA % Rate? - ANS-Only one-half of the maximum allowable CCA may be claimed
on an asset in the year the asset is purchased.
No CCA may be claimed in the year of the asset's disposal.
The CRA
, In British Columbia, a lender who holds a mortgage registered as a charge on an otherwise
clear title to a borrower's land has - ANS-an interest in land that provides security for the loan.
three elements required for a successful negligence claim: - ANS-(1) owed a duty of care
(2) breached the standard of care
(3) that the damage was reasonably foreseeable
section 4 of the Real Estate Services Actstipulates that if an agent is unlicensed at the time real
estate services were provided, - ANS-he or she cannot bring a court action to collect
commission
A bylaw that is passed by a strata corporation cannot be enforced against a strata lot owner
unless or until - ANS-it has been filed in the appropriate land title office:
a strata corporation may amend the Standard Bylaws in the Strata Property Act by creating a
new custom-made bylaw, but they may not enforce such a bylaw until it has been filed at the
land title office
rental restriction bylaws do not apply to strata units for how long? what if there is a tenant? -
ANS-Do not apply for one full year following the strata bylaws passage or, if there is a tenant in
a strata lot on the day the new bylaw is passed, the one-year grace period only begins on the
day the tenant vacates the strata lot.
what are the requirements under section 10 of the Interest Act in order for a borrower to tender
prepayment? - ANS-The mortgage is not payable until a time more than five years from the date
of the mortgage.
The expiration of the five years from the date of the mortgage has occurred.
True or False: a lender has no right to demand payment of the total outstanding balance at any
time prior to the end of the contractual term provided the borrower meets all contractual
obligations? - ANS-TRUE
What is the difference between individuals (borrowers) and corporations, for the right to prepay
all of the OSB at any time after 5 years from the start of the mortgage? - ANS-Individual
borrowers, not corporations, have the right, under the terms of the Interest Act, to prepay all of
the outstanding balance at any time after five years from the initiation date of the mortgage
Land and Building Value Depreciation Equation: - ANS-Land + (building value - depreciation%)
= total value to date
Cornelius gave a life tenancy to Ruel, which did not expressly state anything about Ruel's
liability for waste. Ruel will NOT be liable to the remainderman for: - ANS-permissive waste
because, at common law, a life tenant is generally under no obligation to repair or compensate
for waste that occurs as a result of allowing the property to deteriorate without any positive acts
(permissive waste).
