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Final exam for Dec 2nd

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djcoda2000
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Conveyancing

Conveyancing

Question 1 of 46

1

Name 3 taxes payable in a real estate transaction?

Select one or more of the following:

  • PTT

  • HST

  • GST

  • Property Tax

Explanation

Question 2 of 46

1

When acting for a vendor, name some documents that you will likely prepare and what are their specific purpose?

Select one or more of the following:

  • Letter requesting payout statements from bank

  • Letter of Authorization

  • Vendor's Authorization

  • Form C Release

  • Form B

  • Letter enclosing documents to purchaser's lawyer

  • Payout Letter

  • Reporting letter to Vendor

Explanation

Question 3 of 46

1

When your client comes into the office, why is it important to obtain their photo ID as well as ascertain who they are??

Select one of the following:

  • To protect against Fruad

  • To protect your office

  • In case of a lawsuit

  • In case of fire

Explanation

Question 4 of 46

1

What are some of the steps you need to take to ensure you have met the Law Society's Client Verification Rules?

Select one of the following:

  • Obtain Occupation, address, & Phone number
    Copy of government issue ID
    Call bank if there's a financial transaction involved.
    If no face to face meeting, nee to get guarantor's Verifying ID

  • Take no steps

  • Check their age, criminal record, drug history

  • List of places they may have lived

Explanation

Question 5 of 46

1

In a foreclosure action, what are 2 final orders available? Under which order can you not sue for shortfall?

Select one or more of the following:

  • Order Absolute of Foreclosure

  • Order Conduct of Sale

  • Order of Pizza

  • Order Absolutely

Explanation

Question 6 of 46

1

52. When transferring from a deceased to the personal representative, what are 3 documents you will need to prepare?

Select one or more of the following:

  • Form C

  • Form 17

  • PTT

  • Letters of Probate

Explanation

Question 7 of 46

1

Why is it important to obtain photo ID when your client comes into your office?
Law Society client verification rules require it, and to prevent FRAUD

Select one of the following:

  • True
  • False

Explanation

Question 8 of 46

1

What is the Land Tax Deferment Act for?

Select one of the following:

  • Allow people to get away without paying taxes

  • Allows deferment of Property Tax in low income, widow, senior.

  • You get one kick in the can

  • Allows deferment of Property Tax indefinitely.

Explanation

Question 9 of 46

1

What document do you use to register a judgment?

Select one or more of the following:

  • Form 17 Release

  • Form C

  • Form 17 Charge

  • Form 17

Explanation

Question 10 of 46

1

What document do you register to remove a judgment from title?

Select one or more of the following:

  • Form 17 Charge

  • Form C

  • Form 17

  • Form 17 Release

Explanation

Question 11 of 46

1

Does a Vendor’s occupation have to be specified on the Form A transfer when you are preparing it?

Select one of the following:

  • True
  • False

Explanation

Question 12 of 46

1

Instead of an enduring power of attorney, what is another document you can use to manage one’s affairs and decisions if they become incapacitated?

Select one of the following:

  • Representation Agreement

  • General

  • Springing

  • Special or Limited

Explanation

Question 13 of 46

1

For the purposes of the Land Title office, long is a power of attorney valid for?

Select one of the following:

  • 3 years only

  • 3 Years, unless you specify that s 56(1) of the Land Title Act does not apply.

  • 2 years

  • 21 days from the from the execution date.

Explanation

Question 14 of 46

1

Name the most common legal remedy used in British Columbia by a lender when the purchaser is in default under the mortgage. What charge does the lender’s lawyer register in the land title office immediately after she has commenced the action?

Select one or more of the following:

  • Title Search

  • General

  • Foreclosure

  • Declaration of Balance Due

Explanation

Question 15 of 46

1

What are reporting letters?

Select one of the following:

  • To report wrong doing

  • To make a complaint

  • Final letters to clients reporting transaction is complete in accordance with their instructions

  • To give notice

Explanation

Question 16 of 46

1

Why do you prepare a vendor’s authorization to pay?

Select one of the following:

  • To make money

  • Vendor authorizes where the money will go and amounts (i.e. to pay legal fees, to pay out existing mortgage, to pay for new home, etc.)

  • To hide the money

  • So that you get paid.

Explanation

Question 17 of 46

1

Is it possible that an easement only affects one property? Why or why not?

Select one of the following:

  • True
  • False

Explanation

Question 18 of 46

1

What does “subject to” in the Contract of Purchase and Sale mean?

Select one of the following:

  • That means you have sign the contract

  • Conditions that must be fulfilled before contract is binding

  • A condition that is missing

  • A contract for real estate purchase.

Explanation

Question 19 of 46

1

What is the name of the document filed with the conveyancing documents which certifies that all strata maintenance fees have been paid up to date? In addition to that document, what is the name of the document that the purchaser’s lawyer normally asks the management company of the strata corporation to provide in order to confirm things like the monthly maintenance fees, if there are any pending actions against the strata corporation, the amount of funds in the contingency reserve fund, etc.?

Select one or more of the following:

  • Form A

  • Form B

  • Form C

  • Form D

  • Form E

  • Form F

Explanation

Question 20 of 46

1

33. If there was a mortgage registered against title which the vendor’s solicitor will be paying off from the sale proceeds, what document would be registered in the land title office to remove the mortgage from title? How does the vendor’s lawyer know how much money is owing under the mortgage? On what basis would the purchaser’s lawyer pay the net sale proceeds to the vendor’s lawyer in order to ensure that the vendor’s lawyer will in fact pay off the mortgage and discharge it from title?

Select one of the following:

  • Form A Mortgage

  • Form B

  • Form C Discharge

  • Form 17 Charge

Explanation

Question 21 of 46

1

32. Why does the purchaser’s lawyer ask her land title agents to do pre-registration and post-registration searches at the time of registration of a Form A?

Select one or more of the following:

  • To ensure no liens

  • Make sure the paper work is correct

  • Make sure no CPL’s or judgments filed on title at the same time.

  • To make sure the Vendor did his part

Explanation

Question 22 of 46

1

What are pending applications?

Select one of the following:

  • Documents submitted to LTO but are awaiting “examination” before they are entered into the Register.

  • Application in waiting

  • Application before the sale is final

  • A list of ducuments

Explanation

Question 23 of 46

1

Under what circumstances can a person defer property taxes?

Select one or more of the following:

  • 55 years or older

  • Land Tax Deferment Act

  • When you see fit

  • A surviving spouse of any age

  • A person with disabilities

  • When you are lock out of your house

  • A person who qualifies under the Families with Children Program.

Explanation

Question 24 of 46

1

Specify at least 2 requirements which must be satisfied in order for a person to be able to claim an exemption under the First Time Home Buyer Program

Select one or more of the following:

  • Must Be a Canadian Citizen or Permanent Residence.

  • Be a high school Graduate

  • Must have a job

  • Must not have own a home before, anywhere in the world

Explanation

Question 25 of 46

1

27. If the Vendor is a non-resident of Canada within the meaning of the Income Tax Act what is the name of the document issued by Canada Revenue Agency that the Purchaser’s lawyer will ask the Vendor’s lawyer to provide for the protection of the Purchaser?

Select one of the following:

  • A drivers license

  • Passport

  • Clearance Certificate

  • Title Certificate

Explanation

Question 26 of 46

1

If the Vendor is a non-resident of Canada within the meaning of the Income Tax Act what is the name of the document issued by Canada Revenue Agency that the Purchaser’s lawyer will ask the Vendor’s lawyer to provide for the protection of the Purchaser?

Select one of the following:

  • True
  • False

Explanation

Question 27 of 46

1

If the vendor, who lives in Montreal, Quebec decides to sell the lot she purchased in Richmond, B.C., does the non-resident vendor tax hold back apply?

Select one of the following:

  • True
  • False

Explanation

Question 28 of 46

1

In addition to the Property Transfer Tax Return, what other documents must be submitted to the land title office to satisfy the requirement of the land title office in the following circumstances:

Select one or more of the following:

  • Form A and Form B

  • Transfer from the deceased joint tenant to the surviving joint tenant – Form 17 & Death Certificate.

  • Transfer from the deceased to the administrator of his or her estate – Form 17& letters of Probate

  • Vendor's Tax holdback and Clearance Certificate.

Explanation

Question 29 of 46

1

What is the Torrens system of registration?

Select one of the following:

  • Registry system adopted from Australia whereby registered owner on title has “indefeasible” title which cannot be challenged (i.e. “good against the world”).

  • A virus on your computer

  • A download manager

  • Some famous persone

Explanation

Question 30 of 46

1

3. Define “joint tenants” and “tenants-in-common”. If two people are registered on title and there is no indication whether they are “joint tenants” or “tenants-in-common” specified on title, what is the presumption in law under the Land Title Act, i.e. are they registered as “joint tenants” or “tenants-in-common”?

Select one of the following:

  • Successes Act

  • In Tenants in common, your 50% goes according to your will.

  • When one spouse dies the property goes to the surviving spouse.

  • If nothing specified in part 6 of Form A – presumption is T/C

Explanation

Question 31 of 46

1

What is the difference between fee simple ownership and a leasehold interest?

Select one of the following:

  • Fee simple = right to ownership forever. Leasehold = ownership for a specified period of time.

  • No fees and lease hold, is a person holding the lease.

  • No Fees paid, and landlord holds the lease.

  • Month to month rent and the other annual lease.

Explanation

Question 32 of 46

1

List at least 2 people the Purchaser’s lawyer would pay monies to on the completion date. Would these cheques be trust cheques or general cheques

Select one or more of the following:

  • To Vendor

  • To Bank

  • To Listing Agent

  • Government office

  • PTT to LTO

  • Trust Checks

Explanation

Question 33 of 46

1

If there is insufficient space for all the vendors to sign on the Form A what other land title document must you use in order to include the signatures of all the vendors?

Select one of the following:

  • Form A

  • Form B

  • Form C

  • Form D

Explanation

Question 34 of 46

1

When is each of the following Land Title Forms used: Form A, Form B, Form C, Form D, form E.

Select one or more of the following:

  • Form A Transfer

  • Form B Information

  • Form B Mortgage

  • Form C Release

  • Form D Extra

Explanation

Question 35 of 46

1

8. If your purchaser is purchasing a NEW CONDO, what tax must they pay to the Federal Government? What percentage is it? What is a rebate? Under what circumstances would they be entitled to a rebate?

GST, 5%, rebate is 36% of GST payable or 6,300 whichever is less. Must be Cdn resident/principal residence/under $450,000 price. May need to pay a portion of PST too.

Select one of the following:

  • True
  • False

Explanation

Question 36 of 46

1

What 3 documents does the Purchaser’s solicitor normally send to the Vendor’s solicitor for signature by the Vendor?

Select one or more of the following:

  • Form B Mortgage

  • Form A Transfer

  • Form 17

  • Vendor's Statement of Adjustment

  • GST Certificate

Explanation

Question 37 of 46

1

Under the Law Society Rules, when can one lawyer act for both the Purchaser and the Lender in a real estate transaction? In these circumstances, what must the lawyer do in order to satisfy the requirements of the Law Society?

Select one of the following:

  • When both parties show up to your office.

  • Simple conveyance and conflict letter

  • Contact the Law Society right away

  • Sit both parties down

Explanation

Question 38 of 46

1

What are Standard Mortgage Terms?
Why does the Lender normally ask the borrower to acknowledge receipt of the Standard Mortgage Terms?

Select one of the following:

  • Just a Regular Mortgage

  • Normal Terms

  • Standard Mortgage terms are set by each bank depending on their terms of the loan and are filed at the LTO under an “MT” number.

  • When you pay monthly instead of bi-weekly

Explanation

Question 39 of 46

1

What are Prescribed Mortgage Terms?

Select one of the following:

  • What the Bank require you to have.

  • Mandated Terms

  • What you are stuck with.

  • The Prescribed are prescribed by Lieutenant Governor in Council. Must be acknowledged or Prescribed will apply by law.

Explanation

Question 40 of 46

1

What is a high ratio mortgage?
Loan is greater than 75% of the value of the property. Permitted under the Bank Act s __ provided insured by CMHC

Select one of the following:

  • True
  • False

Explanation

Question 41 of 46

1

What is title insurance?

Select one of the following:

  • Front page of your insurance policy

  • The name of the insurance

  • What is covered under the policy

  • Insurance to protect against title defects and fraud

Explanation

Question 42 of 46

1

What is a survey?

Select one of the following:

  • Measurements

  • A drawing that shows the structures on a piece of property in relation to its boundaries.

  • The work the city does

  • When you take a look around and account for everything.

Explanation

Question 43 of 46

1

What are opinion letters?

Select one of the following:

  • When you voice your opinion

  • A letter telling someone exactly how you feel.

  • Letters required by lenders assuring them that their loan is secure.

  • Telling it like it is

Explanation

Question 44 of 46

1

Why would you need to order an STC?

Select one of the following:

  • State of Title Certificate shows and confirms the transaction has completed correctly.

  • To put your name on it

  • Correct any mistakes

  • To show to your friends

Explanation

Question 45 of 46

1

In addition to the Property Transfer Tax Return, what other documents must be submitted to the land title office to satisfy the requirement of the land title office in the following circumstances:

Select one or more of the following:

  • Transfer of a fee simple interest from vendor to purchaser (house) – Form A

  • Transfer a Fee Simple interest from a vendor to the purchaser using a from C

  • Transfer of a fee simple interest from vendor to purchaser (condo) – Form A & Form F

  • Transfer of a fee simple interest from a vendor to purchaser using a form B

Explanation

Question 46 of 46

1

Name some of the things you will need to do when closing a file after everything in a transaction is completed.

Select one or more of the following:

  • Render account (if not already done) & Transfer funds from trust to pay legal fees & disbursements

  • Payout BLH’s after confirmation there are no liens

  • Make sure vendor’s mortgage has been discharged w/in 60 days of closing. If not, report to Law Society w/in 5 days.

  • Send final report to client with a copy of the STC

  • Forward any leftover trust funds to correct person

  • Close file, scan and keep for 10 years

Explanation

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