Trends in the Real Estate Marketplace
Why Study Real Estate Law?
Legal System
• Common Law = court made law
• Statute Law = gov't made law
Division of Powers
• Federal law effects real estate bc they can indirectly regulate it
o Ex. Real estate developers cannot build tall building...
Law 703 – week 2
Land Titles System -- 3 Principles
1. Mirror
– In general, all interests listed in Certificate of Title (“C of T”) reflect valid interests
2. Curtain
o Only valid interests are listed in the C of T
o No need to look ‘behind the curtain” (i.e. C of T)
o When the transfer of land is registered, a curtain comes down, and no one has to check the old ones.
Under the registry, you have to check everyone to make sure things are done right, but for this, the gov tells you that its all
good.
3. Insurance
o A person who suffers a loss due to an error in C of T is entitled to compensation
If the gov makes a mistake, and we suffer lost, the gov has to pay
o Assurance Fund
Unregistered Interests in LTS
• C of T is not entirely indefeasible
• Titleholder is subject to:
1) Exceptions in s. 44 LTA (examples – short term leases, prescription, adverse possession, unpaid taxes, public easements, unpaid
execution judgment creditors)
2) Fraud
3) Actual notice of unregistered interest
Controls on Subdivision of Land
• Section 50 Planning Act Gov was worried that ppl will buy land and subdividing it in ways that might not be good rural planning
(Ontario) o Gov wants to control sub division of land because of services (school etc)
• Chapter 12 – s. 50 Planning o Have to apply for gov approval: need to request consent to divide it into different lots,
Act o Its about controlling the subdivision of land so gov can control services
Section 50 Planning Act (Ont.) No person shall convey land by way of a deed or transfer, or grant, assign or exercise a power of
appointment with respect to land, or mortgage or charge land, or enter into an agreement of sale and
purchase of land or enter into any agreement that has the effect of granting the use of or right in land
directly or by entitlement to renewal for a period of twenty-one years or more unless,
(a) the land is described in accordance with and is within a registered plan of subdivision;
(b) the grantor by deed or transfer, the person granting, assigning or exercising a power of
appointment, the mortgagor or chargor, the vendor under an agreement of purchase and sale or the
grantor of a use of or right in land, as the case may be, does not retain the fee or the equity of
redemption in, or a power or right to grant, assign or exercise a power of appointment in respect of,
, any land abutting the land that is being conveyed or otherwise dealt with other than land that is the
whole of one or more lots or blocks within one or more registered plans of subdivision;….
(f) a consent is given to convey, mortgage or charge the land, or grant, assign or exercise a power of
appointment in respect of the land or enter into an agreement in respect of the land;
Buying & Selling Estates & Interests in Real Estate
• Risk Management
• Agreement of Purchase and Sale (“APS”)
• Use of Professionals (e.g. real estate agent; building inspectors; mortgage brokers; surveyors; appraisers; lawyers; environmental
consultants; )
WEEK TWO – go to Toronto website for agreement of purchase and sale – plain language
explanation – print and bring to class
1. Real Estate Agency Relationship (Ch. #2)
2. What is being Bought and Sold? (Ch. # 4)
Real estate Agency relationship
1. Real Estate & Business Brokers Act, 2002
2. Administrative Framework
3. Canadian Real Estate Association
4. Multiple Listing Service
5. Legal Framework
6. Who Does the Real Estate Agent Represent?
7. Duties
8. Agent as Buyer or Seller
9. Commission Payable
10. Deposit
1. Real estate business broker’s act (2002)
“broker” “broker” – means an individual who has the prescribed qualification to be registered as a broker under this act
“brokerage” and who is employed by a brokerage to trade in real estate; (“courtier”
“real estate” “brokerage” – means a corp, partnership, sole proprietor, association or other org or entity that, on behalf of
“registrant” others and for compensation or reward or the expectation of such, trades in the real estate or holds himself,
“salesperson” herself or itself out as such: “maison de courtage”
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