Summary REAL ESTATE (law703) - week (1-12)

Law 703 – Real Estate




GROUP DISCUSSION:
Trends:
 Mortgage stress test = harder for buyers to quality – more rental = rent goes up
o Hard to qualify = go to alternate lenders
 Sustainability impact = environment green
 Foreign investors are going up
o = non resident specialization tax = going up (Vancouver - now 20%). 15% in Toronto
o vacant units = bad for locals because prices go up, and locals cant afford
o good if you already own a home because foreign buyers are driving the prices up, but bad if you don’t own = because cant afford
 prices decreased ($780K)
o number of sales decrease 16.1%
 block chain machine learning
o digital
 shared economy
o airbnb – if investor = good because buying it to rent them out to short term = not subjected to rent control = but hurts the long term
renting market
o
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,  mortgage rates
o bank of Canada keeping rates the same, not harder to get finance – suppose to support the market going upwards
o but the stress test is still making it harder to qualify
 industrial = online retail = buying more distribution space = vacancy rate lower
 retail
o amazon e stores = automate
o retail = going down because of online stores
o banks going online = closing branches
 retirement housing
 rent controls



WEEK ONE
1. Why study real estate law?
2. Legal System
3. Constitution Act (Division of Powers & Charter)
4. Brief History
5. Estates & Interests
6. Land Recording Systems
7. Priorities
8. Control over Subdivision of Land

Why study real estate law?
• Important
o Housing
o Business
o Environment
• Impacts financial institutions - banks use real estate as collateral bc you can't move it
• Impacts governments - --> 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 System
• (except Quebec)
2

, • Common Law = Statute Law + Common Law
• Statute Law – gov’t made law
• Real estate = cant moved = vulnerable to gov intervention
• Common Law – court made law
Public Law vs. Private Law
 Public law
o Constitutional law
o Criminal law
o Tax
o Administrative
 Private law
o Tort Law
o Contract Law
o Property Law

Hierarchy of Law
1) The Constitution Division of Powers
 Which level of government has jurisdiction over real estate? PROVINCIAL
 Jurisdiction of federal government and provincial:
- S. 91 -- Federal
Division of Powers – Banks
 Federal law effects real – Money
estate bc they can – Criminal Law
indirectly regulate it – Taxation
o Ex. Real estate – Bankruptcy & insolvency
developers – Patents & Copyrights
cannot build – International & Interprovincial Trade & Commerce
tall buildings – Etc.
near airports – Residual powers – topics not allocated to provinces (e.g. telecommunication)
 S. 92 – Provinces
Jurisdiction Over Real Estate
– Property Rights
 Provincial law has
– Civil Rights (e.g. contract, torts)
jurisdiction over real
estate – Taxation
– Corporations with provincial objects
– Municipalities
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, – Administration of justice
– Matters of a merely local or private nature in province
– Etc.
 Conflicts/Disputes
o Conflicts/disputes arise between different levels of gov’t over real estate
 Federal vs. Province
 Municipality vs. Province
 City of Toronto wants new revenue generation tools
 Building & financing affordable housing
 Airports
 Waterfront development
 Waterways
 Etc.
Charter of Rights & Freedoms
 Protect basic rights & freedoms
 For example – fundamental rights, democratic rights, legal rights, mobility rights, equality rights, official
languages, etc.
 2. Everyone has the following fundamental freedoms:
o (a) Freedom of conscience and religion;
o (b) Freedom of thought, belief, opinion and expression, including freedom of the press and other media
of communication;
o (c) Freedom of peaceful assembly; and
o (d) Freedom of association.
 s. 15(1)
o Every individual is equal before and under the law and has the right to the equal protection and equal
benefit of the law without discrimination and, in particular, without discrimination based on race,
national or ethnic origin, colour, religion, sex, age or mental or physical disability.
 No property rights (to own & enjoy property) in the Charter
 Therefore, government can regulate real estate
o Regulate development (e.g. zoning, planning, subdividing)
o Regulate resource industries
o Protect environment
o Restrict foreign ownership
 So, real estate is predominantly governed by the provinces
 No property or economic rights in the Charter therefore gov’ts can restrict property rights
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