Conveyancing Theory Test 1 and 3

Real Property does not include...

Real Property includes intangibles like airspace, time, and land use

Examples of intangibles are plants and trees, fences, and chattels

Which is not a tangible with regards to Real Property

Fee Simple/Freehold is what we ordinarily think of as [blank_start]ownership[blank_end] of [blank_start]real property[blank_end]

A Fee Simple Owner has more rights than any other owner

Tenants in Common have the right of survivor

Joint ownership means that the land is jointly owned by two people

Group Ownership is when one owns a portion of the land

In BC the Land Registration System is based on the [blank_start]modified[blank_end] [blank_start]Torrens[blank_end] System

The Modified Torrens System provides security by [blank_start]indefeasibility[blank_end].

Torrens System invented by [blank_start]Sir[blank_end] [blank_start]Robert[blank_end] Torrens

"Indefeasibility" means that something cannot be [blank_start]defeated[blank_end] or made [blank_start]void[blank_end]

The Contract of purchase and sale is the [blank_start]initial[blank_end] source of [blank_start]information[blank_end]; it is the document by which the [blank_start]purchaser[blank_end] makes an [blank_start]offer[blank_end] to buy [blank_start]real[blank_end] [blank_start]property[blank_end], it outlines the [blank_start]terms[blank_end] and [blank_start]conditions[blank_end], and is [blank_start]signed[blank_end] once both parties [blank_start]agree[blank_end] to all [blank_start]terms[blank_end]

Completion date: all [blank_start]documentation[blank_end] to [blank_start]transfer[blank_end] title must be [blank_start]executed[blank_end], [blank_start]purchase[blank_end] [blank_start]money[blank_end] paid, documents [blank_start]registered[blank_end] in the LTO. If it does not take place, [blank_start]either[blank_end] party may [blank_start]cancel[blank_end] the agreement

[blank_start]Adjustment date[blank_end] is the day the purchaser assumes responsibility for all obligations

[blank_start]Possession Date[blank_end] is when the purchaser is given possession of property

[blank_start]Subject Clauses[blank_end]: an event that must occur before there is a binding contract

Once condition precedent of a subject clause is satisfied, all parties sign an [blank_start]addendum[blank_end] to the contract

Who owns property Correct legal description charges against property = [blank_start]First Search[blank_end]

immediately before completion date ensures nothing has changed immediately before completion date = [blank_start]Pre-registration date[blank_end]

After completion data ensures title appears in correct form ensures any new changes appear in correct form on title ensures any old charges to be discharges no longer appear on title = [blank_start]Post-registration search[blank_end]

a Conflict of interest may arise if the [blank_start]lawyer[blank_end] is asked to [blank_start]act[blank_end] for [blank_start]both[blank_end] [blank_start]parties[blank_end]

List some exceptions to conflict of interest rules: -[blank_start]Remoteness[blank_end] makes it [blank_start]impracticable[blank_end] -[blank_start]simple[blank_end] [blank_start]conveyance[blank_end] -unrepresented party wants [blank_start]existing[blank_end] [blank_start]encumbrances[blank_end] removed -Advises unrepresented party of attaining [blank_start]Independent legal advice[blank_end] in writing

[blank_start]Simple Conveyance[blank_end]: a) The payment of all [blank_start]cash[blank_end] for clear title b) The discharge of one or more encumbrances and payment of the balance, if any, in [blank_start]cash[blank_end] c) The assumption of one or more existing mortgages or agreements for sale and the payment of the balance, if any, in [blank_start]cash[blank_end] d) A mortgage that does not contain any commercial element, given by a mortgagor to any institutional lender to be registered against the mortgagor’s residence

If transaction falls into exceptions, the lawyer/notary must: -obtain both client's [blank_start]written consent[blank_end] -Advise clients that no [blank_start]information[blank_end] is [blank_start]confidential[blank_end] -if a [blank_start]conflict[blank_end] arises, lawyer must [blank_start]withdraw[blank_end] -[blank_start]raise[blank_end] and [blank_start]explain[blank_end] [blank_start]legal effect[blank_end] of relevant issues

Check the charges that MUST be discharged

Which charges are normally assumed

a Mortgage is a [blank_start]registered[blank_end] [blank_start]charge[blank_end] against the property to [blank_start]secure[blank_end] monies [blank_start]owing[blank_end] on a mortgage [blank_start]loan[blank_end]. It is usually used to pay the [blank_start]purchase[blank_end] of property.

Someone working on property has not been paid and they file lien against property to get that money

Restrictive Covenant: written [blank_start]promise[blank_end] that the property will not be used for certain [blank_start]purposes[blank_end] (farming). It imposes [blank_start]restriction[blank_end] on [blank_start]use[blank_end] of one person's land for [blank_start]benefit[blank_end] of another piece of land (like if there is a creek nearby and the city wants to protect it from contaminated run off?)

[blank_start]Easement[blank_end]: privilege acquired by landowner for benefit of their land. Allows another person to use the property (like access to driveway)

Right of Way: gives right to [blank_start]utility[blank_end] or [blank_start]city[blank_end] to [blank_start]cross[blank_end] or [blank_start]use[blank_end] the property

Statutory Building Scheme: restricts [blank_start]development[blank_end] and [blank_start]construction[blank_end] on each of several lot s is the building scheme for their mutual [blank_start]benefit[blank_end]

[blank_start]Caveat[blank_end]: filed by person intending to make a claim against title

[blank_start]Judgement[blank_end]: Court order registered against title, if person lost civil law suit and hasn't paid

Form A is

Form A is a required document used to [blank_start]transfer[blank_end] [blank_start]property[blank_end] from vendor to purchaser

Form A is executed by the purchaser

What must accompany the Form A: [blank_start]Property Transfer Tax Return[blank_end]

Form B is

Assumed Mortgage: purchaser pays [blank_start]down payment[blank_end] and [blank_start]assumes[blank_end] existing mortgage

Mortgage back to vendor: purchaser pays [blank_start]down payment[blank_end] and [blank_start]vendor[blank_end] agrees to [blank_start]hold[blank_end] mortgage on property to [blank_start]cover[blank_end] [blank_start]balance[blank_end] owing

[blank_start]Conventional Mortgage[blank_end]: -first mortgage -principle amount cannot exceed [blank_start]75[blank_end]% of value

[blank_start]High Ratio Mortgage[blank_end]: -principle amount exceeds [blank_start]75[blank_end]% of value -mandatory for borrowers with with down payment less than [blank_start]25[blank_end]%

Form C