Understanding Estate in Land and Real Property Ownership, Exams of Human Resource Management

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Humber Real Estate - Course 2 Module 3

Understanding Residential Property Types-

Ownership and Planning Questions with Correct

Answers

A self-contained housing unit with one or more habitable rooms containing at minimum a kitchen, bathroom facilities and an exit from the building. - Correct Answer Define a 'Dwelling Unit'

• A duplex is under single ownership (under 1 title) ... the dwelling units can then be lived in or rented out
• The 2 dwelling units in a semi-detached structure are each owned separately (under 2 titles) - Correct Answer What is the difference between a semi-detached structure and a vertically divided duplex? The interest or rights associated with real property. - Correct Answer Define 'An Estate In Land'
• Freehold ownership
• Freehold estate - Correct Answer Holding a fee simple interest in a property can also be referred to as what? The rights (aka Bundle of Rights) include the right to:
• Sell
• Lease
• Use
• Do nothing
• Give away
• Enter the property *Use the acronym SLUDGE to remember these rights - Correct Answer What rights are included under fee simple ownership? An implied easement exists under the Road Access Act permitting the owner to cross over someone else's property to achieve access. - Correct Answer What happens if a property fronts onto a public road and the property as a result cannot be directly accessed?
• The right to take property (expropriation)
• The right to regulate
• The right to levy taxes - Correct Answer What are the 4 categories of government limitations over land ownership rights?

The right to regulate (aka Police Power) - Correct Answer Zoning bylaws, building codes, traffic and sanitary regulations are based on what government right? Restrictions placed on a property by a landowner rather than a government body. - Correct Answer What are 'Private Limitations'?

• Restrictive Covenants
• Easements - Correct Answer What are 2 common types of private limitations? A limitation placed on the use of property and is registered on title for that property. It's a contract between 2 land owners, where 1 owner (the "covenanted") acquires the right to restrain the other owner (the "covenanter") from putting the land to specific uses. - Correct Answer Define 'Restrictive Covenant' Tenancy in common - Correct Answer Unless documented explicitly, what is the default form of concurrent ownership?
• Tenancy in common
• Joint tenancy (one person dies, property gets passed to other joint tenant) - Correct Answer What are the 2 types of concurrent ownership?
• Possession
• Interest
• Time
• Title - Correct Answer What are the 4 unities that must be present to constitute joint tenancy? It a married person passes away while owning an interest in a matrimonial home as a join tenant with an individual who is not their surviving spouse, the joint tenancy is immediately severed and reverts to tenancy in common. This provision allows for the deceased's interest in assets of the property to revert to their legal spouse. - Correct Answer Define 'Joint Tenancy: Spousal Interest' Severance - Correct Answer If a joint tenant wishes to destroy the right of survivorship before their death without the consent of the other joint tenant(s), what is this called? This act turns joint tenancy into tenants in common with the other tenant or tenants. Even afterwards, if there are 2 or more other tenants remaining, they still remain joint tenants with each other, but are tenants in common with the person who holds the severed interest. - Correct Answer What happens when a joint tenancy is severed? A joint tenant granting their interest to a third party, or all parties involved deciding to sever their joint tenancy and instead hold their interests as tenants in common (i.e. during a marriage separation, the joint tenancy termination can be mutually agreed

upon as part of the separation agreement). - Correct Answer What are 2 of the most common methods of severance? Splitting the land by means of an application to a court. - Correct Answer What is an example of joint tenancy termination by partition? Married couples (especially when there is a difference in the equity being brought into the purchase), friends or business partners - Correct Answering what situations would you often see tenants in common? Tenants in common - Correct Answering which form of concurrent ownership can the tenants hold separate interests in a property? Joint tenancy - Correct Answering which form of concurrent ownership do the tenants share an equal interest in and title to the property? Rules are easier to change than bylaws because bylaws are not effective unless the majority of unit owners vote in their favor. - Correct Answer What are the primary differences between a condominium board's 'Rules' and 'Bylaws'? Bylaws - Correct Answer copy of a condominium's ________ must be registered in the land registry office. This type of corporation has no units, but has common elements like roads, a golf course, or a ski hill. Owners enjoy the common elements and jointly fund their maintenance and repair. You own your house and the land on which it sits, and all owners within the community share ownership of the roads and community center. Your part-interest in the corporation is attached to the parcel of land you own, not your house. - Correct Answer What is a Common Elements Condominium? No. They are elected by condominium owners who are members of the condominium corporation. As some residents may not be owners (i.e. renters), they are not eligible to vote for the board. - Correct Answers a condo's board of directors elected by the residents? The board of directors - Correct Answer Who is in charge of setting a condo's fees? The owner's partial interest in the CEC is attached to the land their home sits upon, rather than the home itself. This land is considered a parcel of tied land (POTL). In a standard condominium, the owner's interest in the condominium corporation lies in the unit. - Correct Answer What is the difference in ownership between a Common Elements Condominium and a Standard Condominium?

Property is owned by a corporation made up of shareholders - also referred to as members. Ownership involves the purchase of share capital in the property that entitles the owner to use and occupy a specific unit under an arrangement defined in an occupancy agreement. - Correct Answer Describe an 'Equity Co-operative'

• Managed by a board of directors
• Members pay monthly fees - Correct Answering what ways is an Equity Co-operative similar to a condominium? No, since they are member-owned and controlled corporations. - Correct Answer Does the 'Co-operatives Corporations Act' regulate the day-to-day business of an equity co- operative or its bylaws? A co-op's monthly housing charges also include a share of the property tax that is charged for the entire property. Since each member contributes toward the larger bill rather than having to pay individual property taxes, they are indirectly liable if others fail to pay their property tax. - Correct Answer What is a key difference between an equity co-operative's and a condominium's monthly housing charge / monthly fees? They require that their boards give approval to buyers, sellers or the leasing of all member units. - Correct Answer How does an equity co-op's board of directors offset the risk of non-payment toward common liabilities (such as blanket mortgages that may require payment by any new owners)? Old, and are often have larger units than those offered in a new standard condo, and they may be more economical also. - Correct Answer Are equity co-ops typically new or old buildings?
• A share certificate
• Occupancy agreement
• Rules / regulations
• Bylaws
• The amount of the mortgage registered against the entire property owned by the co- operative corporation (as a mortgage cannot be placed upon an individual unit) - Correct Answer The sale of a unit in an equity co-op will provide the buyer with what documents? The form of ownership. An equity co-op is defined by share capital, which is not applicable to a condo purchase. - Correct Answer What is the biggest difference between an equity co-op and a condominium? Because it already includes the property tax. - Correct Answer Why would an equity co-op's monthly maintenance fee be higher than a condo's?

A fractional interest held by 2 or more people who are registered on title as owners of a property. The percentage owned by each person does not need to be equally divided. - Correct Answer Define Co-Ownership Owners may receive an occupancy agreement in addition to the deed. The agreement gives them the right to occupy a specific unit within the structure, since the deed only documents the fractional interests held in the building. The tenants in common owners have exclusive right to occupy and use a specific unit. They are issued a share certificate in the co-ownership corporation, reflecting their proportionate interest. In this way, they are very similar to equity co-operatives, though they differ in concurrent ownership types. - Correct Answer Describe a 'Multi-Unit Co-Ownership Building' A) Fee simple interest in a unit B) Property is owned by a corporation C) Tenant in common ownership with 1 or more persons - Correct Answer What are the 3 ownership types of the following kinds of properties? A) Condominium B) Equity Co-Operative C) Co-ownership Co-ownership - Correct Answer Which type of property does NOT have a board of directors? Condominium, Equity Co-operative or Co-ownership? Properties in which the buyer purchases the right to occupy a given dwelling unit within a community for the duration of their lifetime. Buyers of this type of lease are referred to as occupants rather than owners. - Correct Answer What is a 'Life Lease Complex'?

• Non-profit or charitable housing providers
• Seniors' organizations
• Church or faith groups
• Service clubs
• Ethnic associations - Correct Answer Who are some typical sponsors of Life Lease Complexes? A lump sum up front followed by monthly fees. These fees take care of a range of expenses including snow removal, landscaping, garbage disposal, repairs, building insurance and possibly meals. - Correct Answer What is the financial structure of purchasing a Life Lease? Setting aside funds for roofs, exteriors, buildings, roads, sidewalks, sewers, heating, electrical or plumbing systems, elevator, laundry, recreational, parking facilities, etc. - Correct Answering a Life Lease Complex, what is the purpose of the reserve fund? Based on the lot size, location and view. - Correct Answer How is an amount paid for a land lease typically calculated?

20 to 99 years - Correct Answer What is the range of term of land leases? The Residential Tenancies Act (doesn't apply if the site is used by travellers or people on vacation). - Correct Answer Land lease homes (i.e. homes without wheels that are not seasonally occupied) are regulated by what Act? To maintain any grounds, buildings or equipment intended for common use. - Correct Answering a land lease, what is the monthly fee required for? The land lease tenant owns their residence and has the right to sell or lease the dwelling. - Correct Answer What is the difference in ownership between a life lease community and a land lease tenant? Because the person will not technically own any land to pledge as security. - Correct Answer Why is financing for land lease difficult to obtain? A provincial legislation that sets out rules for land-use planning and recognizes the authority of municipalities and planning boards in Ontario to make planning decisions. - Correct Answer What is the 'Planning Act'? The Ministry of Municipal Affairs and Housing - Correct Answer Who administers the Planning Act and provides advice and information on land-use planning to municipalities? The Local Planning Appeal Tribunal - Correct Answer What does 'LPAT' stand for? Municipal - Correct Answer At what level of government are most Planning Act initiatives carried out at? Severance and subdivision approvals and zoning bylaws - Correct Answer What are the most direct ways the Planning Act will impact you as a salesperson? To describe local policies that outline how land in a given community should be used. - Correct Answer What is the purpose of the official plans developed by municipalities? To grant variances from the provisions of zoning bylaws, to grant consents and to control the continuance of non-conforming uses that would alter current land use regulations. - Correct Answer What is the job of the Committee of Adjustment? Upper Tier (region, country or district) Responsible for: Preparation, adoption and revision of the official plan, and the process of dividing and developing land. Lower Tier (municipality) Responsible for: Preparation, adoption and revision of the office plan and the adoption of zoning bylaws, interim control bylaws and other bylaws.

Single Tier (district, region, township, city or municipality) Responsible for: Assumption of all municipal responsibilities where a municipality does not form part of an upper tier municipality. - Correct Answer What are the 3 different types of municipalities and what are their responsibilities? 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. - Correct Answer Describe the relationship between upper and lower tier municipalities.

• Restrictions relating to the placement of signs, notices or advertising on property
• Establishing provisions regarding flood control that affect properties in flood-prone areas
• Requiring property owners to meet various standards in the control of noise, vibration, odor, dust and outdoor illumination (e.g. operation of commercial enterprises and noise bylaws relating to residential uses) - Correct Answer What are 3 common ways municipal initiatives impact on real estate activities? The size, message content and location of signs on property. As a general rule, no signs can be placed on public lands without permission from the government body. Municipal bylaws differentiate between permanent signs (which require permits) and temporary signs (which do not require permits). - Correct Answer What does the sign bylaw in most municipalities regulate? The Ministry of Transportation (MTO) - Correct Answer Who should a salesperson contact if they have a question about if a permit is required for a sign?

1. Consult and Determine Authority
2. Complete Application
3. Application Review
4. Decision Issued
5. Appeal Process (if applicable) / Decision of Local Planning Tribunal
6. Issuing of Certificate - Correct Answer What are the steps in Consent for Severance? 90 days - Correct Answer How long is the timeframe during Consent for Severance between the steps 'Complete Application' and 'Decision Issued'? 20 days - Correct Answer How long is the timeframe during Consent for Severance between the steps 'Application Review' and 'Consultation with Other Agencies'?
7. Consult and Determine Authority
8. Prepare a Draft Plan
9. Complete Application / Appeal to LPAT if applicable
10. Approval Authority (Provide Notices & Hold Public Meetings)

5. Decision and Notice of Decision (Draft Plan Approval)
6. Appeal Decision (if applicable)
7. Final Approval and Registration - Correct Answer What are the steps in getting approval of a 'Plan for Subdivision'? 180 days - Correct Answer After submitting a 'Plan for Subdivision', how long is the time period between the steps 'Prepare a Draft Plan' and 'Decision and Notice of Decision (Draft Plan Approval)'? An alternative to land severance and subdivision. This solution to increasing housing demands involves expanding the use of existing land, buildings and municipal services rather than increasing housing through urban sprawl. - Correct Answer What is 'Intensification'? A document that is designed to provide a framework for future decisions on how land in a community should be used. - Correct Answer What is an 'Official Plan'? The Ministry of Municipal Affairs and Housing - Correct Answer Who approves the 'Official Plan'? Every 5 years - Correct Answer How often is the 'Official Plan' reviewed? True - Correct Answer True or false? Many lower tier municipalities will have their official plan approved by the upper tier municipality? False. They must hold at least one public meeting for the 5 year revision also. - Correct Answer True or false? When considering an official plan, the local council or planning board must hold at least one public meeting. There is no meeting requirement for the five year review or update to the official plan. True. - Correct Answer True or false? An official plan will identify not only the type and location of future development but also the services that will be needed for development to take place. To implement the general policies for future land use, according to the municipality's official plan. - Correct Answer What is the purpose of zoning bylaws?

• The use to which the land may be put (e.g. residential)
• Where buildings and other structures can be placed on the land
• The type of building permitted, building height and how that building may be used
• Lot sizes, dimensions and setbacks (minimum clearance) from the street or property line
• Parking requirements - Correct Answer What issues do zoning bylaws typically address?
• Residential

• Commercial
• Industrial
• Institutional
• Open space
• Agricultural - Correct Answer What are the general zoning classifications? Residential Restrictions - Correct Answering an apartment building, one dwelling is occupied by two siblings, whereas another unit is occupied by two unrelated friends. This provision of 'The Planning Act' disallows for a bylaw to treat these cases differently based on the occupants' relation to one another, or lack thereof. Holding Provision, which stipulates that signage with an "H" symbol, can be placed on a piece of land held (reserved) for a future specific use. However, the symbol can be removed if a bylaw amendment nullifies the intended future use. - Correct Answer sign is placed on a vacant lot, which indicates that it is to be used for a future purpose. What is the name of this provision of 'The Planning Act'? Allows the right to pass a bylaw, which temporarily restricts some land uses in a specific area for the duration of no more than one year. During this time, the municipality studies and reviews its land use policies related to the area. - Correct Answer What does the 'Interim Control Provision' of 'The Planning Act' do? False. While types of residential structures may share the same zoning class (i.e. R for Residential), structures are further subdivided into zoning symbols to account for minimum clearances unique to each structural type. - Correct Answer True or false? Individual types of residential structures (such as single-family dwellings and multi-unit residential structures) typically have a unique zoning symbol? False. Section 6 of a zoning bylaw typically contains content related to residential zones, which can be consulted in the listing and selling process. - Correct Answer True or false? Section 6 of a zoning bylaw typically contains content related to commercial zones. True. For example, a single-family residential building is zoned R1. - Correct Answer True or false? Building zones are divided into zone classes. All zone classes are associated with a class zone letter followed by a number, designating the type of structure. Residential structures but also commercial, industrial or public buildings, cemeteries or churches. Buildings are not required for designation, which means that vacant lots, cultural landscapes or landscape features, marine heritage and archaeological sites, ruins or properties only considered to be areas of archaeological potential may also qualify as

heritage properties. - Correct Answer What types of properties can be protected under the Heritage Act? To define processes that protect our past, even as municipalities plan for strong and vibrant futures. Heritage designation publicly recognizes, promotes and preserves places of cultural history, provides protection from demolition and ensures that any alterations respect the property's heritage value. - Correct Answer What is the purpose of 'The Ontario Heritage Act'?

1. Identification of the property by a municipal heritage committee, should one be established for the municipality. The committee ensures all relevant information is considered when assessing a potential property. This requires research & a site analysis.
2. Providing a notice to the owner and placing a notice in the local newspaper.
3. Passing and registering a heritage designation bylaw. The designation is registered on the title of the property. - Correct Answer What steps are involved in the Heritage Property Designation Process? Offers programs to aid in management of provincially held properties including buildings, natural heritage sites, registered archaeological sites and the support of heritage conservation easement properties. - Correct Answer What does 'The Ontario Heritage Trust' do? Council will refer the objection to the Conservation Review Board to conduct a hearing and make recommendations on whether the property should be designated. Council is not bound to follow these recommendations but rather ensure they are considered in their final decision. - Correct Answer What happens if a property is submitted as a heritage site, but there is an objection?

• A heritage designation bylaw will require that the owner preserve any specific heritage attributes that form part of the property's description and support the approval of its designation. They may also be required to repair any damages to the attribute by using original materials (especially if these have been noted as heritage attributes) and workmanship.
• These requirements can result in added costs and increased insurance premiums to any owner of the property because the designation runs with the land. - Correct Answer What type of things should a buyer be aware of when considering buying a heritage property? They must submit an application for a permit for the proposed work and obtain written consent from their municipal council before making any changes.

Note: General maintenance work, such as repainting trim, repairs/replacement to an asphalt roof or any alterations or repairs that are not part of the designation bylaw, do not usually require heritage approvals. - Correct Answer What if an owner wants to make alterations that could affect the heritage attributes of their property?

• Many municipalities have their own financial incentive programs
• The Heritage Property Tax Relief program
• Grant and loan programs from provincial & federal levels of government to assist with individual projects Note: Some financial assistance programs will require that a heritage easement be registered on title defining the owner's responsibilities to maintain their property in exchange for this financial support. - Correct Answer What type of financial support is available to owners of heritage properties to help them with ongoing maintenance and conservation of their properties?
• Identify how the building or structure could contribute to the future use of the property, such as proposed development
• Identify alternative uses for the building or the property
• Potentially selling the heritage property to the municipality or a buyer who will conserve it
• Expropriate the property - Correct Answer The owner of a heritage property can only demolish the property by obtaining written consent from the council. What are some alternatives to demolition that might be suggested? The bylaw does not require the owner to replicate any lost heritage attributes. The replacement building can be of a different design and constructed using different materials. - Correct Answer What is required by the designation bylaw if a building on a heritage property is completely or partially destroyed? True. Municipalities may add listed (or non-designated) properties to their register along with those that are individually designated or those that are part of a designated Heritage Conservation district through designation bylaws passed by the municipality. These non-designated properties have some protection from demolition because they have been included on the register, but they have not gone through n official designation process. - Correct Answer True or false? A property that is not designated can appear on the municipal heritage register. 30 - Correct Answer Anyone, including the property owner, can object to the intention to designate a listed property on the heritage register within how many days? Yes. While a property owner is able to identify their own property if they so choose, the municipality usually identifies most of the potential designated heritage properties. Any individual or group may do so. - Correct Answer Can a property owner recommend their own property for individual property heritage designation?