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
1
, 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
3
, – 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
4
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
1
, 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
3
, – 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
4
