Humber Real Estate Student: What is the Land Title Conversion Project?

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Humber Real Estate Tutor: The Land Title Conversion Project (LTCQ) was an initiative to convert all land records in Ontario from the paper-based registry system to the electronic Land Titles system. This project aimed to improve the accuracy and accessibility of land records, making it easier for real estate professionals to conduct searches and transactions.

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Humber Real Estate Student: Can you explain what a charge on the land/mortgage means?

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Humber Real Estate Tutor: A charge on the land, typically known as a mortgage, is a legal claim by a lender against a property that the borrower uses as security for a loan. If the borrower fails to repay the loan, the lender has the right to take possession of the property to recover the owed amount.

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Humber Real Estate Student: What is involved in the mortgage of land/discharge of fee?

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Humber Real Estate Tutor: The mortgage of land involves the borrower granting a mortgage to the lender as security for the loan. The discharge of a mortgage (or discharge of fee) occurs when the loan is fully repaid, and the lender removes the charge against the land, freeing the property from the mortgage lien.

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Humber Real Estate Student: What does “in general, documentation” refer to in real estate transactions?

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Humber Real Estate Tutor: In general, documentation in real estate transactions includes all the legal paperwork required to complete a transaction. This can involve contracts, deeds, mortgages, land transfer forms, and any other documents necessary for the buying, selling, or leasing of property.

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Humber Real Estate Student: What is meant by “schedule” in real estate?

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Humber Real Estate Tutor: A schedule in real estate typically refers to an annexure or attachment to a contract that provides additional details or lists specific items related to the agreement, such as property fixtures, exclusions, or legal descriptions.

Humber Real Estate Student: Can you define what a reference plan or R-plan is?

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Humber Real Estate Tutor: A reference plan (R-plan) is a detailed drawing prepared by a licensed land surveyor that shows the division of land into parts with specific boundaries and dimensions. It’s used for various purposes, including the creation of new lots, easements, and rights of way.

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Humber Real Estate Student: What is a Block Index Map?

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Humber Real Estate Tutor: A Block Index Map is a tool used in land registration to depict the layout of a subdivision or a large parcel of land divided into blocks, lots, and streets, providing a comprehensive overview of the area’s division.

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Humber Real Estate Student: What does “by leaps and bounds” mean in the context of real estate?

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Humber Real Estate Tutor: “By leaps and bounds” in real estate refers to rapid and significant growth or development in the market or property values, often due to economic factors, urban development, or infrastructure improvements.

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Humber Real Estate Student: How are deeds or surveys with complete legal land descriptions important?

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Humber Real Estate Tutor: Deeds or surveys with complete legal land descriptions are crucial for accurately defining the boundaries, dimensions, and rights associated with a property. They provide a legal basis for ownership and are essential for resolving disputes, conducting transactions, and registering properties.

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Humber Real Estate Student: What are double front townships?

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Humber Real Estate Tutor: Double front townships refer to a land division pattern where lots front onto two opposite roads, allowing for access from both sides. This pattern is less common and typically found in certain rural or historical areas.

Humber Real Estate Student: Can you explain e-registration in real estate?

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Humber Real Estate Tutor: E-registration, or electronic registration, is a system that allows the electronic submission of documents for the registration of real estate transactions, such as transfers of ownership, mortgages, and discharges. It streamlines the process, making it faster and more efficient.

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Humber Real Estate Student: How was POLARIS a participant in the process?

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Humber Real Estate Tutor: POLARIS (Province of Ontario Land Registration Information System) was a key component in modernizing Ontario’s land registration process. It provided a comprehensive electronic mapping system that linked property information to geographical locations, aiding in the transition to electronic land registration.

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Humber Real Estate Student: What is involved in LTCQ regarding land registration?

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Humber Real Estate Tutor: In the context of LTCQ, land registration involved converting existing paper-based records into an electronic format and integrating them into the Land Titles system. This process ensured a more secure, accessible, and efficient system for registering and searching property titles.

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Humber Real Estate Student: Can you differentiate land registration formats?

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Humber Real Estate Tutor: Land registration formats typically refer to the two main systems used in Ontario: the Land Registry system, which is the older, paper-based system, and the Land Titles system, which is an electronic, more modern system. The LTCQ project aimed to convert all properties to the Land Titles system.

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Humber Real Estate Student: What role do land surveyors play?

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Humber Real Estate Tutor: Land surveyors play a crucial role in the real estate industry by measuring and mapping property boundaries. They prepare plans and reports that define legal property limits, which are essential for transactions, development, and dispute resolution.

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Humber Real Estate Student: How is the legal description of the property used?

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Humber Real Estate Tutor: The legal description of a property provides a precise, technical definition of the property’s boundaries and location, distinguishing it from other properties. It’s used in legal documents, such as deeds and contracts, to identify the property involved in a transaction.

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Humber Real Estate Student: What are metes and bounds?

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Humber Real Estate Tutor: Metes and bounds is a system of describing land by detailing the length (metes) of its boundaries and the direction (bounds) those boundaries run. It’s one of the oldest methods of land description and is used to provide a detailed, legal description of a parcel of land.

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Humber Real Estate Student: What is a Property Identification Number (PIN)?

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Humber Real Estate Tutor: A Property Identification Number (PIN) is a unique number assigned to a parcel of land within the land registration system. It helps in accurately identifying and tracking properties through the land registration process.

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Humber Real Estate Student: What is ONLAN?

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Humber Real Estate Tutor: ONLAN refers to Ontario’s electronic land registration network, which facilitates the electronic filing, searching, and registration of land-related documents. It’s part of the province’s efforts to modernize and streamline the land registration process.

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Humber Real Estate Student: How is a Property Index Map used?

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Humber Real Estate Tutor: A Property Index Map is a tool used in land registration to provide a graphical representation of properties within a specific area, showing their relative locations and boundaries. It’s useful for identifying properties and understanding their context within a neighborhood or region.

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Humber Real Estate Student: What does separation of lands involve?

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Humber Real Estate Tutor: Separation of lands involves dividing a larger parcel of land into smaller lots, which can be sold, developed, or otherwise used separately. This process typically requires approval from local authorities and may involve creating new legal descriptions and reference plans.

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Humber Real Estate Student: Can you explain the concept of severance of an existing parcel of land?

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Humber Real Estate Tutor: Severance of an existing parcel of land refers to the legal process of dividing a piece of property into two or more new, separate parcels. This requires municipal approval and often involves considerations related to zoning, access, and the impact on surrounding properties.

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Humber Real Estate Student: How is TERANET connected to POLARIS?

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Humber Real Estate Tutor: TERANET is the company that manages Ontario’s electronic land registration system, including the implementation of the POLARIS project. It’s responsible for maintaining the system that supports the registration and search of property information in Ontario.

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Humber Real Estate Student: What are TERAVIEW & GEO WAREHOUSE?

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Humber Real Estate Tutor: TERAVIEW and GEO WAREHOUSE are software platforms used in Ontario’s electronic land registration system. TERAVIEW allows legal professionals to access, submit, and manage land registration documents electronically. GEO WAREHOUSE provides access to property information, including ownership and valuation data, for real estate professionals.

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Humber Real Estate Student: What is the act relating to land titles?

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Humber Real Estate Tutor: The act relating to land titles in Ontario is the Land Titles Act, which governs the registration of land and interests in land. It establishes the legal framework for the land titles system, ensuring the accuracy and security of land ownership records.

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Humber Real Estate Student: What was the first Land Titles Act?

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Humber Real Estate Tutor: The first Land Titles Act was legislation introduced to establish a system for the registration of land titles in Ontario, aiming to provide a more reliable and secure method of recording land ownership than the previous deed registration system. This act laid the foundation for the current land titles system.

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Humber Real Estate Student: How does the parcelization stage fit into real estate?

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Humber Real Estate Tutor: The parcelization stage refers to the process of dividing a larger tract of land into smaller, marketable parcels or lots. This is a critical step in land development, preparing the land for sale, building, or further subdivision.

Humber Real Estate Student: What is meant by the surveyor’s real property?

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Humber Real Estate Tutor: The surveyor’s real property refers to the tangible assets and land that a land surveyor assesses and maps. It involves the detailed measurement and documentation of land boundaries and features, providing essential information for legal, construction, and development purposes.

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Humber Real Estate Student: How do The Surveys Act and the Surveyors Act impact real estate?

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Humber Real Estate Tutor: The Surveys Act and the Surveyors Act provide the legal framework for land surveying in Ontario, setting out the qualifications for land surveyors and the standards for conducting surveys. These acts ensure the accuracy and reliability of land surveys, which are crucial for real estate transactions and land development.

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Humber Real Estate Student: What is a township with a single front?

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Humber Real Estate Tutor: A township with a single front refers to a land division pattern where lots are arranged along a single road or frontage, as opposed to having access from two opposite roads. This is a common layout in rural areas, allowing for straightforward access to properties along the roadway.

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Humber Real Estate Student: What are the implications of the prohibition on real estate trading?

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Humber Real Estate Tutor: The prohibition on unauthorized real estate trading is designed to protect the public by ensuring that only qualified, registered professionals engage in real estate transactions. This includes brokers, brokerages, and salespersons who must adhere to regulatory standards and ethical practices. Unauthorized trading can lead to disciplinary actions, fines, or legal consequences.

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Humber Real Estate Student: A brokerage, broker, or salesperson must be registered. Why?

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Humber Real Estate Tutor: Registration is required to ensure that professionals in the real estate industry have the necessary education, knowledge, and adherence to ethical standards set by the Real Estate Council of Ontario (RECO). This protects consumers by ensuring competent and professional service.

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Humber Real Estate Student: What are considered actions and offenses in real estate?

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Humber Real Estate Tutor: Actions and offenses can include unethical behavior, unprofessional conduct, unauthorized trading, providing false information, or failing to disclose a conflict of interest. These actions can lead to disciplinary measures, including fines, suspension, or revocation of registration.

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Humber Real Estate Student: As the selling or renting price increases, the property’s value declines. Can you explain?

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Humber Real Estate Tutor: This statement seems to be a misunderstanding. Typically, as the selling or renting price increases, it reflects an increase in property value, not a decline. Market dynamics such as demand, location, and economic factors influence property values and pricing.

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Humber Real Estate Student: Consider the following scenario: the residence is sold for $650,000.00. How is the commission calculated?

Humber Real Estate Tutor: In the given scenario, the commission is calculated based on agreed percentages. For the first $300,000, 5% is $15,000. For the remaining $350,000, 4% is $14,000. The total commission would be $29,000.

Humber Real Estate Student: What are broker of record requirements?

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Humber Real Estate Tutor: A broker of record is responsible for ensuring the brokerage complies with all legal and ethical standards. They must be registered with RECO and meet all requirements for education and experience. The broker of record oversees brokerage operations and ensures compliance with the Real Estate and Business Brokers Act (REBBA).

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Humber Real Estate Student: How are complaints, inspection, and discipline handled?

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Humber Real Estate Tutor: Complaints are filed with RECO, which may conduct an inspection or investigation. Depending on findings, disciplinary actions can include warnings, mandatory education, fines, or more severe measures like suspension or revocation of registration.

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Humber Real Estate Student: What are disbursements in real estate?

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Humber Real Estate Tutor: Disbursements refer to the brokerage’s process of paying out expenses from the trust account, such as commissions, after a transaction is completed and all conditions are met. This process is strictly regulated to ensure transparency and protect client funds.

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Humber Real Estate Student: Can you explain the requirement for disclosure in real estate?

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Humber Real Estate Tutor: Disclosure is required when a registrant has a direct or indirect personal interest in a transaction. They must inform all parties involved in writing before any offers are made to ensure transparency and avoid conflicts of interest.

Humber Real Estate Student: What does written acknowledgement entail?

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Humber Real Estate Tutor: Written acknowledgement involves obtaining confirmation from all parties that they have received and understand the disclosed information regarding a registrant’s interest in a transaction. This is a critical step to ensure informed consent.

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Humber Real Estate Student: What about financial status consideration for registration?

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Humber Real Estate Tutor: Financial status is considered during registration to ensure that applicants have the financial integrity necessary for managing transactions and holding client funds. This includes assessing financial history and current status to protect public interests.

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Humber Real Estate Student: What are the penalties for furnishing false data and falsifying data?

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Humber Real Estate Tutor: Penalties for furnishing or falsifying data can be severe, including fines up to $50,000 for individuals or up to $250,000 for corporations. In some cases, criminal charges could lead to imprisonment or orders for compensation and restitution.

Humber Real Estate Student: What are the prohibitions pertaining to practice?

Humber Real Estate Tutor: Prohibitions include engaging in unauthorized practices, providing misleading information, failing to disclose conflicts of interest, and any actions that compromise the integrity of the real estate profession or harm the public interest.

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Humber Real Estate Student: Can you explain REBBA and its importance?

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Humber Real Estate Tutor: The Real Estate and Business Brokers Act (REBBA) is the legislative framework governing the practice of real estate in Ontario. It sets out the rules, ethical standards, and registration requirements for brokers, salespersons, and brokerages to protect consumers and ensure a high standard of professionalism in the industry.

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Humber Real Estate Student: What happens if a candidate’s registration is refused?

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Humber Real Estate Tutor: If a candidate’s registration is refused, it’s usually due to failure to meet the requirements set by REBBA, such as education, financial integrity, or ethical standards. Candidates are informed of the refusal and the reasons for it, and they may have the right to appeal the decision.

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Humber Real Estate Student: What are the requirements for trade registration?

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Humber Real Estate Tutor: Requirements include completing the educational curriculum, passing examinations, demonstrating financial responsibility, and adhering to ethical standards. Applicants must also agree to abide by REBBA and its regulations.

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Humber Real Estate Student: How is the ethical code of conduct relevant to real estate professionals?

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Humber Real Estate Tutor: The ethical code of conduct sets the standard for professional behavior, requiring honesty, integrity, competence, and fairness in all transactions. It ensures that real estate professionals act in the best interests of their clients and the public.

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Humber College Real EstatetSalesperson Program Terms & Definitions

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Term: 'Registrant' -

Definition: Any individual OR brokerage that is registered to trade in real estate.

Term: "A borrower __________ the mortgage and the lender __________ the financing." -

Definition: gives

Term: 3 tenants of REBBA's Code of Ethics? -

Definition: - Fairness and Honesty

- Conscientious and Competent Service

- Services from Others

Term: A binding contract requires an ___________ of something between the parties. -

Definition: Exchange

Term: A brokerage, as a telemarketer, must register with the National Do Not Call List (DNCL) but also maintain an internal do not call list. What should the internal do not call list contain? -

Definition: - Date and time of the request

- Consumer's name and contact information

- Applicable 10-digit phone number(s)

Term: A commission percentage can decrease as the sale price goes up.

True or False? -

Definition: True

Term: A commission percentage can increase as the sale price goes up.

True or False? -

Definition: False. A commission based on the difference between the listing price and the selling price is not allowed.

Term: A landlord must give the tenant a copy of any written lease within _____ days after the tenant signs it. -

Definition: 21

Term: A man buys a home with his new spouse, but upon his death he wants the estate to be passed down to his adult daughter from a previous marriage, not his new spouse. What type of concurrent ownership should the couple choose? -

Definition: Tenants In Common

Term: A permit is required to build a new subdivision or install infrastructure that will affect a newly protected species or habitat. The permit establishes that certain rules are followed. The rules depend on what? -

Definition: - When the project received approval

- When the work began or will begin

- The project's current status

- The project type

- When a species was classified as threatened or endangered

Term: A potential buyer asks his salesperson about an unoccupied house he would like to purchase with the intent to rent it out to a tenant. When viewing the home, the salesperson notices the absence of smoke alarms. What should he advise the buyer? -

Definition: To consult with the fire department and identify places where the alarms need to be installed, after the transaction has been completed.

Term: A rented site for a mobile home is considered a ______ ______ , even if the mobile home on the site is owned by the tenant of the site. -

Definition: Rental Unit

Term: A salesperson can confirm what details about a property using E-Registration online? -

Definition: - Who is the registered owner

- Determine what financing exists

- Identify various issues that might affect the selling of the property

Term: A salesperson sells a home and a family member happens to be the lender the buyer chooses to use for the transaction. Is disclosure of interest required to all parties involved before the offer is made? -

Definition: Yes. This is an example of an indirect interest. The salesperson must obtain written acknowledgement from the other parties that they have received the required disclosure before the offer can proceed.

Term: According to its mission statement, what is CREA's primary purpose? -

Definition: To represent and promote the interests of the members, enhance members' professionalism and ability to succeed, and advocate policies that ensure real estate property rights and ownership.

Term: According to The Association of Ontario Land Surveyors, what are the 4 components of a survey? -

Definition: - Research (info available re: legal description, easements, etc.)

- Measurement

- Monumentation (physical markers/posts located at regular intervals around the property boundary)

- Plan and/or Report

Term: According to the Competition Act, what is a 'Bid-Rigging'? -

Definition: An agreement in response to a call or request for bids or tenders in which one or more bidders agree not to submit a bid, or two or more bidders agree to submit pre-arranged bids. This is a criminal offence. (i.e. A real estate brokerage agrees to submit a bid to perform services at an unreasonably high rate so that another brokerage will be successful on this bid and so that the other brokerage will do the same for them at the next opportunity.)

Term: According to the Competition Act, what is a 'Conspiracy'? -

Definition: Unlawful agreements between competitors to fix or increase prices, manipulate markets or in some way control output. (i.e. agreements to establish commission or other fees or amounts paid to co-operating brokerages).

Term: According to the Competition Act, what is a 'Price Maintenance'? -

Definition: - person attempting to influence prices - in an upward direction or by discouraging individuals who are offering lower prices. - Also can be where a salespersons refuses to negotiate or deal with a competitor bc of that competitor's pricing policy, commission structure or business model. (i.e. A salesperson does not show listings of another brokerage that only offers $1 commission to the co-operating brokerage.

Term: According to the Consumer Protection Act, what rights do buyers have when purchasing a timeshare within Ontario (but not outside of the province)? -

Definition: - Every agreement must be in writing

- Cancellation: Cooling-off Period (within 10 days of receiving the written agreement without any reason required)

- Cancellation: Failure to Meet Requirements (within 1 year after the agreement if they don't receive a written legal copy of the agreement)

Term: According to the EPA, after notification of the spill to the authorities, what are the next steps required of the person responsible for a spill? -

Definition: Steps to prevent, eliminate and remedy the adverse effect of the spill and to restore the natural environment.

Term: After a severance application is completed and submitted, the consent-granting authority will issue a decision within how many days? -

Definition: 90

Term: After the completed application is received, how many days does it take until the decision is made regarding approval of the proposed subdivision? -

Definition: 180

Term: All transactions in a real estate trust account must be authorized and cheques signed by by who? -

Definition: Broker of Record

Term: Andy buys a house in 2010 and it's his principal residence until 2015 when Andy moves into his partner's condo and rents out his house. In 2020 Andy sells his house.

How does capital gain taxation affect Andy during the sale of the house? -

Definition: Since the house was Andy's principal residence from 2010-2015, no taxation is applied to the capital gain during that time. However, any capital gain that accumulated between 2015 and 2020 would be taxed at 50% as it was no longer Andy's principal residence.

Term: Are all breaches of any section of the Act and the Code of Ethics referred to a Discipline Committee? -

Definition: No. Only a potential contravention of the Code of Ethics is referred to the Discipline Committee.

Term: Are both spouses required to sign all the legal documents, such as the Listing Agreement? -

Definition: Yes

Term: Are the disciplinary decisions of RECO private? -

Definition: No. Decisions are posted publicly on the RECO website.

Term: Before calling someone, should you reference the National Do Not Call List or the Internal Do Not Call List? -

Definition: Both

Term: Before you are able to register with RECO, what documents must you submit? -

Definition: 1. Completed application form with fees (application review fee, 2 year registration fee & pro-rated insurance fee).

2. Criminal record check.

3. Canadian work permit (if required).

Term: Can a cheque be post-dated for a deposit? -

Definition: No.

Term: Can a dominant and servient tenement be owned by the same person? -

Definition: No

Term: Can a photocopy of a survey plan be accepted as authentic? -

Definition: No. A photocopy may be altered in some way or may not show all of the information from the original survey. A copy of the plan that does not bear an impressed seal may not be a valid copy of the original plan.

Term: Can a salesperson be employed by more than one brokerage (i.e. in different areas?) -

Definition: No.

Term: Can a salesperson charge commission based on the difference between the price listed for sale and what the property sells for? -

Definition: No

Term: Can a salesperson provide advice on the implications of an inappropriate termination of a tenant under the Residential Tenancies Act? -

Definition: Yes, the salesperson can give general information about the potential implications, but the salesperson cannot provide legal advice on the termination and needs to recommend the person seeks third party expert for further details about the specific situation at hand.

Term: Can express consent be obtained in writing only? -

Definition: No. Oral consent is acceptable but you may be asked to prove consent later.

Term: Can land be registered under both the Registry Act and the Land Titles Act? -

Definition: No.

Term: Can RECO refuse to grant registration if the applicant does not disclose they have substantial debt and are considering declaring bankruptcy? -

Definition: No.

RECO cannot refuse registration on the assumption that the applicant is considering bankruptcy. The applicant can have the ability to rectify the situation.

Term: Can the amount of a deposit cheque be rounded up to the nearest $10? -

Definition: No. Deposits must be exactly the amount listed in the Agreement of Purchase and Sale.

Term: Can you use a check-box that is pre-checked to obtain consent to send CEMs? -

Definition: No. Consent must be obtained through an opt-in mechanism rather than an opt-out mechanism. A pre-checked box for consent is not permitted as this would assume consent where it was not intended.

Term: Counties were divided into smaller parcels of land called _____________ -

Definition: Townships

Term: Define 'Adverse Possession' -

Definition: Occurs when an individual who is not the owner takes possession of the property, without the consent of the owner.

Term: Define 'Broker of Record' -

Definition: An individual who is a broker and is designated by the brokerage to ensure compliance with REBBA.

Term: Define 'Broker' -

Definition: An individual who has the prescribed qualifications to be registered as a broker under REBBA and who is employed by a brokerage to trade in real estate.

Term: Define 'Capital Gains' -

Definition: Refers to the net increase in value of a capital property from the date the property was purchased or the valuation date of Dec. 22, 1971 (whichever is most recent), to the date the property is sold.

Term: Define 'Damages' -

Definition: Financial compensation arising as a result of the breach. The injured party must prove the actual actual amount of their loss. They also have a general duty to make reasonable efforts to mitigate that harm by taking steps, following the breach, in order to reduce the extent of the loss.

Term: Define 'Estate' -

Definition: An interest in land that contains various rights associated with ownership or tenancy.

Term: Define 'Injunction' -

Definition: A court order stopping a party from doing something wrongful.

Term: Define 'Innocent misrepresentation' -

Definition: A statement by one party of a fact that is wrong, but is honestly believed to the true.

Term: Define 'Negligent misrepresentation' -

Definition: A misrepresentation without reasonable verification of its accuracy and the person who is misled may bring a lawsuit for damages.

Term: Define 'Principal Residence' -

Definition: A house, apartment in a duplex or apartment building or condominium, a cottage, a houseboat, a trailer or mobile home, or a share in a co-operative housing corporation, where a person usually lives.

Term: Define 'Quantum Meruit' -

Definition: A reasonable sum for services rendered, as determined by the courts that directs payment to the claiming party.

Term: Define 'Recission' -

Definition: Involves the revocation or cancellation of a contract, the contract is set aside by the court.

Term: Define 'Salesperson' -

Definition: An individual with the prescribed qualifications to be registered as a salesperson under REBBA and who is employed by a brokerage to trade in real estate.

Term: Define 'Specific Performance' -

Definition: An exceptional remedy. It's an order of the court directing the party in a breach to carry-out a specific obligation. This is a discretionary remedy and not an absolute right. It may be awarded only where damages are not an adequate remedy, the contract is fair and just, and the injured party acts promptly and fairly in making their claim.

Term: Define "'Brokerage' -

Definition: A corporation, partnership or sole proprietorship that trades in real estate on behalf of others for compensation or reward, or expectation thereof.

Term: Define a 'Balanced Market' -

Definition: The number of listings is sufficient for the number of buyers.

Term: Define a 'Buyer's Market' -

Definition: Available properties outnumber buyers looking to purchase.

Term: Define a 'Common Mistake' -

Definition: When both parties to the contract know the intention of the other, accept it, but are mistaken about an underlying fact. (ie. Both seller & buyer believe a property includes a right-of-way near a body of water, but in fact it doesn't. Basically an innocent mistake made by both parties and they both though the same thing was true.)

Term: Define a 'Mutual Mistake' -

Definition: When the parties misunderstand each other and are at cross-purposes, or have a contrary understanding. (i.e. A seller owns two lots on opposite sides of a lake. Buyer believes they are buying the South shore property while the seller believes the North shore property is being sold. Not intentional, but differing opinions on the mistake.)

Term: Define a 'Plan of Subdivision' -

Definition: A detailed survey indicating lots, blocks of land, road allowances, etc. Illustrates individual parcels that will be created once plans are approved.

Term: Define a 'Plan of Survey' -

Definition: A survey that consists of a visual depiction of the property, but does NOT contain a written report. Not registered in a land registry office but commonly attached to another document (i.e. deed/transfer of land). Also lacks certain certificates required by the Registry Act or Land Titles Act.

Term: Define a 'Seller's Market' -

Definition: Buyers outnumber available properties.

Term: Define a 'Surveyor's Real Property Report' -

Definition: A survey, traditionally referred to as a building location survey, that consists of two parts: The Plan of Survey and the Written Report. Shows everything that might affect the title to the property.

Term: Define a 'Unilateral Mistake' -

Definition: When one party is mistaken about a fundamental aspect of a contract. (i.e. The buyer believes the lot is approx. 1 acre; the seller is aware of this mistaken belief but remains silent. The buyer proceeds with the purchase based on the mistaken fact.)

Term: Define an easement via 'Implication' -

Definition: Created to avoid detrimental effects or inconvenience to an adjoining property owner. For example, if a sale of land adjoining the seller's land causes that parcel of land to be landlocked, the law implies that a buyer would have an easement over the seller's remaining land by way of necessity.

Term: Define an easement via 'Prescription' -

Definition: Continuous, exclusive access which is open for many years without the consent of the owner, but with the owner's knowledge.

Term: Define an easement via 'Statute' -

Definition: Easements created by statute do not require a dominant tenement. For example, the back of one property is bordered by a strip of land hosting public utilities that are only accessible with machinery through that property. In this case, an easement over the property is created by statute.

Term: Define the 'Competition Act' -

Definition: A federal statute that aims to protect fair competition and efficiency in the Canadian marketplace and protect consumers against anti-competitive activities.

Term: Define the 'Land Titles Assurance Fund' -

Definition: Under the Land Titles Act, this states that persons deprived of ownership through selected errors or fraud are entitled to compensation, provided such compensation cannot be obtained from other sources.

Term: Define the 'Parol Evidence Rule' -

Definition: In the determination of contractual disputes, this rule provides that oral evidence is inadmissible in court to vary or contradict the terms of a written contract, except in a case of fraud or mistake.

Term: Define the 3 elements of 'Fraudulent misrepresentation' -

Definition: - Made with the knowledge of its falsity or with reckless disregard for its truth

- The purpose must have been to induce the other party to enter a contract

- Must have been relied on to the other party's prejudice

(Deceived party by resist enforcement of the contract and seek damages for the conduct)

Term: Define The Fire Protection and Prevention Act -

Definition: The enabling legislation for the Ontario Fire Code, this Act sets out responsibilities for fire protection services; the duties and powers of the fire marshal and those appointed by the fire marshal; rights of entry in emergencies and fire investigations; inspections and related orders, offences and enforcement; recovery of costs; and employment and labour relations issues.

Term: Define the Greenbelt Act -

Definition: - Protects approx. 1.8 million acres of environmentally sensitive and ecologically important natural environments

- Includes (as of 2017) the Oak Ridges Moraine, the Niagara Escarpment, the Parkway Belt West Plan Area & the Glenorchy Conservation Area

Term: Define the Ontario Fire Code -

Definition: Provides for the safety of occupants in existing buildings through the elimination or control of fire hazards in and around buildings, the maintenance of life safety systems in buildings, and the establishment of a fire safety plan in those buildings where necessary.

Term: Describe a 'Lower-Tier Municipality' -

Definition: Responsible for preparation, adoption and revision of the Official Plan and the adoption of zoning bylaws, interim control bylaws, and other bylaws. Examples of lower-tier municipalities include the city of Cambridge, Mississauga, etc.

Where an upper-tier municipality exists, its council will often coordinate planning between the respective lower-tier municipalities, as well as address matters for which it may be directly responsible, including roads and water/sewer systems. In some instances, the upper-tier municipality may assume, by agreement, any of the planning responsibilities of the lower-tier municipality. Otherwise the lower-tier municipality will handle land-use matters within its jurisdiction, such as location, type and density of development.

Term: Describe a 'Single-Tier Municipality' -

Definition: One that assumes all municipal responsibilities set out under the Municipal Act and other provincial legislation. Some examples of single-tier municipalities are the City of Toronto, Ottawa, Sault Ste. Marie, etc.

Term: Describe a client relationship in reference to a brokerage. -

Definition: The term representation implies an agency relationship with the brokerage and this places both regulatory (REBBA) & fiduciary obligation on the brokerage. The brokerage is required to be loyal, not disclose confidential information and promote & protect the seller or buyer's best interests.

Term: Describe a customer relationship in reference to a brokerage. -

Definition: A brokerage can provide services to a seller or buyer rather than representing the party. This doesn't require the same level of obligation as a client relationship.

A brokerage must treat the customer with fairness, honesty & integrity and ensure information provided is accurate.

BUT ... No fiduciary obligations are owed when providing services (such as loyalty, confidentiality or promoting their best interests).

Term: Describe a linked dwelling. -

Definition: - Two or more single-family homes that are attached

- Placement of the attached portion isn't always obvious (may be a concrete wall below grade or above grade using the garage walls)

- May appear closer to the property line than other homes in similar neighbourhoods

Term: Describe a multi-unit residential dwelling. -

Definition: - More than one dwelling unit within a single building

- Often a residential duplex, triplex or fourplex

- Separate entrance and/or shared entrance through a common vestibule

Term: Describe a townhouse. -

Definition: - 3 or more units joined together by party walls

- Full basement, main level living area & upper level for bedrooms

- Can be on their own land or part of a condo complex

Term: Describe an 'Upper-Tier Municipality' -

Definition: One formed by two or more lower-tier municipalities. Municipal responsibilities set out under the Municipal Act and other provincial legislation and split between the upper-tier and lower-tier municipalities. Upper-tier is typically the region, county or district. Upper-tier municipalities are responsible for preparation, adoption and revision of the Official Plan, and the process of dividing and developing land. Examples of upper-tier municipalities are counties such as the Wellington County, Grey County, or a regional municipality such as Halton, Peel, Niagara, etc.

Term: Describe POLARIS -

Definition: The mapping and property detail database of the Ontario government.

Term: Describe some characteristics of an energy-efficient home -

Definition: - Well insulated and airtight with high-efficiency heating and cooling appliances that reduce energy bills

- Furnished with low-flow showers and toilets that lower water usage and heating costs

- Using energy-efficient lighting and appliances that lower energy and electricity consumption, including ones identified by the ENERGY STAR program

Term: Describe Teranet -

Definition: Responsible for implementation, operation and enhancement of POLARIS.

Term: Describe The City of Toronto Act -

Definition: - Provides for the broad, permissive legislative framework for the city's municipality and balances the interests of the province and the city

- Enables Toronto's council to better respond to the city's needs and pass bylaws on matters ranging from health and safety to the city's economic, social and environmental wellbeing, subject to certain limitations

- Enables determination of the appropriate mechanisms for delivering municipal services, the appropriate levels of municipal spending and use of fiscal tools to support the city's activities

- Helps to ensure that the city is accountable to the public and that the processes for making decisions are transparent

Term: Describe The Curtain Principle according to the Land Title Act -

Definition: The register is the sole source of information for proposed buyers, who need not and indeed must not concern themselves with trusts and equities that lie behind this curtain of information.

Term: Describe the history of the "Metes and Bounds" system. -

Definition: An older system of written land description that arose when irregular parcels were carved out of concession lots.

Term: Describe the Image Database -

Definition: Includes plans as well as images of all active instruments in the title index database. E-registration documents are updated shortly after registration. Paper-based documents are collected on microfilm and then transferred to the image database.

Term: Describe The Insurance Principle according to the Land Title Act -

Definition: The Mirror Principle is deemed to give the absolute correct reflection of title but, if through human error, a flaw appears, anyone who suffers loss must be put in the same position, so far as money can do, that they would have been in had the reflection been a true one.

Term: Describe The Mirror Principle according to the Land Title Act -

Definition: The register of title is a mirror that accurately and completely reflects, beyond all argument, the current facts that are material to a person's title.

Term: Describe The Ontario New Home Warranties Plan Act -

Definition: Requires every builder and vendor selling new homes to warrant that a home is:

- Constructed in an efficient and competent manner

- Free from defects in material

- Fit for habitation

- Constructed in accordance with the Ontario Building Code

- Free of major structural defects

- Subject to any other warranties as prescribed by the regulations

Term: Describe the Property Index Database -

Definition: Provides visual indexing maps to locate properties. Updates occur following document registration when mapping amendments are made relating to property boundaries.

Term: Describe the Title Index Database -

Definition: Replaces the abstract indexes and parcel registers found in the traditional paper-based land registry office. The database is automatically updated as new documents are registered.

Term: Do direct messages sent to people via social media count as CEMs? -

Definition: Yes

Term: Does a person trading in seasonal / vacation rentals and commercial leases require registration? -

Definition: Yes, as the exemption only applies to a person who trades solely for the purpose of arranging leases under the Residential Tenancies Act.

Term: Does an easement transfer when the land is sold? -

Definition: Yes.

Term: Does capital gains tax apply to the sale of a principal residence? -

Definition: No

Term: Does every branch office require a Broker of Record? -

Definition: No.

Only 1 Broker of Record is required for the main office only. Each branch office is assigned its own Branch Manager to provide supervision, compliance with REBBA & handle all record management.

Term: Does having ENERGY STAR appliances contribute to a low carbon footprint of a property? -

Definition: No. The ENERGY STAR rating on an appliance indicates the energy consumption for the appliance but does not indicate that the property will have a low carbon footprint. It only provides a mechanism to make energy-efficient choices to save money on energy bills.

Term: During a purchase or sale by a registrant of their own property (or one they have a direct or indirect interest in), what needs to be included in the disclosure statement to all other parties? -

Definition: - That the individual is a salesperson, broker or brokerage

- All known facts that may affect the value of the property

- Details of any third-party negotiations for the subsequent sale of the property

The salesperson must obtain written acknowledgement from the other parties that they have received the required disclosure before the offer can proceed.

Term: During what project is the first application process replaced with a large-scale administrative conversion? -

Definition: The Land Titles Conversion Project

Term: E-registration refers to what? -

Definition: Title documents being created, submitted and maintained in electronic form.

Term: Each concession was divided into ________ -

Definition: Lots

Term: Each concession was separated from the next one by what? -

Definition: A road allowance

Term: Each township was divided into strips of land known as __________ -

Definition: Concessions

Term: Fundamental objective of REBBA's Code of Ethics? -

Definition: To protect sellers and buyers by outlining professional and ethical standards to be upheld during all real estate activities.

Term: General term used to refer to all brokerages, brokers & salespersons registered under REBBA? -

Definition: Registrant

Term: Green building refers to house construction techniques that promote what? -

Definition: - Energy-efficiency and effective use of resources

- Durability in component products

- Sound environmental planning

Term: How are Capital Gains taxed differently than Business Income? -

Definition: - With business income, the net income after deductive expenses is taxed.

- With a capital gain, only 50% of the net proceeds is added to the income of the taxpayer and taxed at the appropriate tax rate.

Term: How are documents in the abstract books organized? -

Definition: Chronologically, thereby establishing priority.

Term: How can a homeowner register an underground fuel storage tank? -

Definition: Submit an Underground Fuel Oil Application Form to the TSSA. After approval, the TSSA issues a registration number that the homeowner can provide to the fuel distributor to access fuel supply.

Term: How can a non-resident of Canada sell their Canadian property and take the tax requirements off of the buyer? -

Definition: - may pay the tax liability in advance of the completion of sale. - actual tax that the non-resident owes is calculated using the estimated sale proceeds minus the property's "adjusted cost base." -Once seller files the necessary documents + pays required taxes, the Minister of National Revenue issues a certificate. - If seller obtains this certificate before closing, then no credit needs to be applied. - As long as the buyer has demonstrated reasonable enquiry, there's no tax liability concern to the buyer.

Term: How can the buyer demonstrate that they made reasonable enquiry and there is no tax liability concern to the buyer? -

Definition: Have the seller sign a statutory declaration that they are NOT a non-resident (both at the time of signing the offer and upon sale completion).

Term: How do the Greenbelt Plan, the Oak Ridges Moraine Conservation Plan and the Niagara Escarpment Plan work together? -

Definition: - Determine where urbanization should not take place

- Ensure that agricultural, ecological and hydrological features, areas and functions are protected

Term: How do you avoid the common pitfalls of advertising? -

Definition: Be specific and site sources for everything (i.e. instead of saying "#1 in Grovetown", say "#1 team for units sold* in Grovetown" *Based on Grovetown local listing service statistics for 2018 for the ABC Brokerage team consisting of four salespersons)

Term: How does a right-to-use interest in a timeshare work? -

Definition: A buyer purchases the right to use a unit but does not have an ownership interest in the property. The buyer doesn't receive a title deed, the contract only gives the right to use for a specific time period. Typically the right to use will expire after a stated number of years and then revert back to the owner of the property.

Term: How does EnerGuide for houses work? -

Definition: - Gives a rating between 1-100 (1 = significant air leakage, limited or no insulation and high energy consumpton while a home near 100 = well-insulated, properly ventilated and requires no purchased energy, such as a solar house)

- Older homes are typically in the 50-65 range with R-2000 being above 80

Term: How does fee ownership interest work in a timeshare? -

Definition: A buyer purchases an actual deed interest in the property for a specific period of time each year. Ownership does not end after a specific time period and usage rights can be sold, gifted or included in a will.

Term: How does RECO work in the public interest? -

Definition: 1. Enforcing standards to obtain & maintain registration.

2. Establishing education standards.

3. Establishing & administering insurance requirements (including

consumer deposit protection).

4. Addressing inquiries, concerns, & complaints about the conduct of a

brokerage, broker, or salesperson and taking appropriate action.

5. Conducting inspections of brokerages to ensure compliance with REBBA and

to educate brokers of record.

6. Consumer protection education and information for sellers & buyers involved in real estate transactions.

Term: How does the Land Titles Register differ from the Abstract Book? -

Definition: The only existing and valid interests remain on the Register. All prior interests that have ended are deleted.

Term: How is 'Matrimonial Home' defined in The Family Law Act? -

Definition: Every property in which a person has an interest and that is or, if the spouses have separated, was at the time of separation ordinarily occupied by the person and his or her spouse as their family residence is their matrimonial home.

Term: How is a buyer's deposit safeguarded before closing? -

Definition: Held in a real estate trust account and covered by the RECO Insurance Program.

Term: How long after express consent is granted does it expire? -

Definition: Not until the recipient withdraws their consent.

Term: How long does a Rezoning application take from start to finish? -

Definition: 9 months

Term: How long does an Official Plan last? -

Definition: 10 to 15 years, and is reviewed every 5 to 10 years based on growth or the needs of the community.

Term: How long does registration with RECO last before you need to renew? -

Definition: 2 years

Term: How long is typically given for the satisfying of conditions when a conditional consent for land severance is given? -

Definition: 1 year

Term: How long must numbers recorded on the internal Do Not Call List be kept? -

Definition: A minimum of 3 years

Term: How many members does RECO's Board of Directors have? -

Definition: 12

Term: How many principal residences can a person have? -

Definition: 1

Term: How many real estate boards are currently operating in Ontario? -

Definition: 38

Term: How often is the Ontario Building Code reviewed and amended? -

Definition: Every 5 years

Term: How quickly should funds from a buyer be deposited? -

Definition: As soon as possible. 5 days is the absolutely maximum only.

Term: How, under 'Adverse Possession', can an occupier of land extinguish the title of the owner and claim legal ownership of that land? -

Definition: Possession must be:

- Visible

- Exclusive

- Continuous for a period without the consent of the owner but with the owner's knowledge for a minimum of 10 years

Note: No title claims by adverse possession can occur under the land titles, which is a system of land registration in Ontario

Term: If a buyer is keeping a mobile home in a park after closing, the Agreement of Purchase and Sale should include what document? -

Definition: Relevant Site Lease Document

Term: If a co-operating brokerage receives a deposit that is director to another party (i.e. the listing brokerage), what should be obtained? -

Definition: A receipt

Term: If a Non-Conforming Structure is sold, will the status as an except to the zoning continue to the new owner? -

Definition: Yes, as long as the non-conforming use continues.

Term: If a permit wasn't obtained at the time an improvement was made to a house, is it a good idea to hire a home inspector to evaluate the property? -

Definition: No. Even if all the work appears to have been performed as specified in the Building Code, a home inspector cannot see behind finished walls to see if the framing, wiring and plumbing meets the code. There is still a legal requirement for the owner or contractor to obtain a building permit for the improvement.

Term: If a property is a designated matrimonial home, to avoid any issues regarding conflicting ownership, you must always ensure that all parties do what? -

Definition: Consent to the transaction.

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