COURSE 1 - INTRO TO REAL ESTATE
PROVINCIAL GOVERNMENTS ROLE IN REAL ESTATE?
- OVERSEES REA ESTATE GOVERNANCE IN ONTARIO. SPECIFICALLY MINSITRY OF GOVERNMENT AND CONSUMER SERVICES IS RESPONSIBLE FOR REEBA AND OVERSEES RECO
TIPS FOR PREPARING FOR FIRST YEAR FINANCIALLY?
- HAVER SIX MONTHS EXPENSES ASIDE - SET REALISTIC EXPECTATION FOR FIRST YEAR - STAY ON BUDGET - KEEP SOME EARNINGS AND PUT ASIDE FOR SLOW TIMES - DONT SPEND BASED OFF UNCLOSED SALES - KEEP BUISNESS AND PERSONAL EXPENSES SEPERATE - SEEK TAX ADVICE - ENSURE PROPER TECH
ENCUMBERENCES?
- LEGAL CLAIMS OR LIEN AGAINST PROPERTY
buyer's market?
, the number of properties available exceeds the number of buyers looking to purchase. ·More listings available, so the listing period can be extended. ·Fewer buyers could result in prices falling. ·Buyers may take a longer time to purchase a property to ensure they have found the right property. ·Buyers may view a property several times before deciding to place an offer on it. ·Buyers will feel confident in including more conditions in an offer as a seller may not want to deter a buyer.
CHATTEL?
- ALL EXCLUDED FROM THE PURCHASE OF A PROPERTY BY DEFAULT - (CAN BE INCLUDED IN NEGOICATION SUCH AS FRIDGE OR STOVE) - MOSTLY MOVABLE
DEFINITION OF TRADE UNDER REBBA?
- DISPOSING OR ACQUIRING AN INTEREST IN RELA ESTATE (SELLING, LEADING, EXHCNACING) - SEEKING TO DISPOSE OR ACQUIRE AN INTEREST IN REAL ESTATE - ADVERTISNG OF ANY REAL ESTATE NEGOTATING OF ANY REAL ESTAE. PURCHASE OF BUISNESS.
WHEN IS COMMISION PAYED?
- ONCE TRANSACTION IS COMPLETED -
FACTORS IMPACTING REMUNERATION?
- RESIDENTIAL: CAN BE SEVERAL WEEKS OR MONTHS TILL BROKERAGE IS PAYED - COMMERICAL: CAN BE EXTENDED UP TO SEVERAL MONTHS OR YEAR BEFORE COMPLETING TRANSACTION - ACCPTED OFFERS DONT ALWAYS MEAN PAYEMENT - TIME OF YEAR (WINTER SLOWER) - TYPE OF MARKET - CYCLICAL MARKET CONDITIONS
duties required to represent seller?
- advise on home price listing - must perform agreed upon duties (listing agreement)
residential resale is?
- bulk of the real estate activity - irregular hours - continual reassessment
3 steps to fulfilling registration requirements?
- complete pre registration education - register with RECO once employed by brokerage (12months to get employed with brokerage and register with RECO) - purchase insurance coverage through RECO (WITHIN 24 MONTHS ONCE REGISTERED FOR SALSPERSON)
presenting an offer?
- ensure seller is aware of market conditions - countering an offer means selling under different terms. -
three examples of a few obligations under the Code
- fairness and Honesty -conscientious and Competent Service -Services from Others
Commerical sales?
- grouped under retail, office, industrial, investement properties -·Commercial sales are typically grouped under retail, office, industrial, and investment properties (e.g., a multi-residential property). ·Office real estate - focuses on locating a property that is suitable for the buyer's operation ·Industrial real estate - focuses on warehousing and manufacturing space, ·Investment real estate - focuses on the purchasing of a property where the basis for decision making is the return on investment. ·Generally, any commercial transaction will take longer to market the property, are subject to extensive research and negotiations,
salespersons provide what type of information?
- inspect property listed for sale - conduct comparative market - establish listing price - design/recommend sales marketing strategy - third party expert referrals provide recommendations for repairs etc
good propsecting techniques?
- introducing yourself to neighbors - distribute flyers ensure other sales persons in brokerage are aware of your listing (incase they have the right buyer)
rural, recreational, agriculture sales?
- knowledge of septic tanks, water - zoning, restrictions, improvements regulations,
New home sales is?
- little listing involvement more like retail sales - fixed hours
preparing an offer?
- pay attention to wording of client when drafting offer - ensure accuracy and being complete to protect buyer interest
Key importance when listing property?
- promotion materials used -target market - advertising media - when advertising takes place
steps in educational requirement cirriculum?
- real estate essentials - residential real estate transactions - additional residential real estate transactions - commerical real estate
what to prepare before viewing?
- repair need to be done - ensure you know the home
qualify buyers?
- select a specific number of properties (avoid confusion and allow for want discovery) based on client info
important skills as a real estate person?
- self discipline (self motivated to achieve) - people skills (develop and maintain strong relationships) - research ( gather/analyze info draw conclusion's) - problem solving (address issues and find solutions) - interviewing techniques (ask right questions and understand needs) - negotiating (between parties) - confidence-persistence - computer literacy - math skills (dimension, costs, sizes) - technology proficient (marketing) - organizing and planning
rediential condominium?
- understand differen type of condos - understand specific condo regulation - consider ameneties
TYPES OF DETACHED HOMES?
-BUNGALOW: PRIMARY LIVING AREA ON ONE FLOOR (RANCH STYLE HAS TYICAPPY A GARAGE) -BI-LEVEL/SPLIT: FRONT DOOR FOYER LOCATED BETWEEN UPPER MAIN AREA AND LOWER AREA.(HIGHER BASEMENT WINDWS, GOOD SUNLIGHT, ACCESS AND VENTILATION) -ONE AND A ONE HALF STORY: 60% OF LIVING AREA ON FIRST FLOOR. COST EFFECTIVE SQUARE FOOTAGE WITH DORMERS ON ROOF TWO STOREY: UPPER LEVEL ROOMS SPACIOUS (NO ANGLED CEILING). MAXIMUM LIVING SPACE IN HIGH LAND COST SPLIT LEVEL: USUALLY 3+ LEVELS; CAN BE SIDE SPLIOT AND BACK SPLIT.
REMENURATION AGREEMENT IS?
-USUALLY DEFINED IN REPRESENATION AGREEMENT -CAN BE PERCENTAGE OF SALE, AGREED AMOUNT, OR BOTH
RECO OPERATING STRUCTURE?
12 BOARD MEMBERS WHO GIVE DIRECTION TO CEO CEO IS RESPONSIBLE FOR DAY TO DAY MANAGEMENT - REGISTRAR CARRIES OUT THE POWERS AND DUTIES IMPOSED UNDER REEBA - MANAGEMENT TEAM/STAFF SUPPORT PROGRAM DELIVERY AND SERVICES
PERSONAL PROPERTY IS?
MOVABLE AND CONSIDERED CONSUMER GOODS ALL PROPERTY EXCEPT LAND AND IMPROVEMENTS ARE CONSIDERED PERSONAL PROPERTY.
RECO JOBS IS TO?
ADMINISTER AND ENFORCE REEBA MISSION: SUPPORT A FAIR, SAFE, AND INFORMED REAL ESTATE MARKET FOR CONSUMERS IN ONTARIO ENSURES PUIBLIC CONFIENCE IN REAL ESTATE TRADE
REPRESENTATION IMPLIES? 2 OBLIGATIONS?
AGENCY RELATIONSHIP BETWEEN TWO PARTIES. - REGUL;ATORY - FIDUCIARY (NON DISCLOSURE)
TWO TYPES OF AGREEMENT UNDER REBBA?
AGREEMENT FOR THE PURPOSE OF TRADING (REPRESENTATION/ CUSTOMER SERVICE) AGREEMENT FOR THE CONVEYANCE OF AN INTEREST IN REAL ESTATE (AGREEMENT OF PURCHASE/ SALE)
CUSTOMER SERVICE AGREEMENT IS?
AGREEMTN USED WHEN A BROKERAGE PROVIDES SERVICES TO A CUSTOMER (VERBAL OR WRITTEN) CAN BE NON EXCLUSIVE!
TYPES OF RESIDENTIAL STRUCTURES?
ATTACHED: ONE OR MORE WALLS ARE SHARED WITH OTHER STRCUTRE. LOCATE DETACHED: BUILDING PHYSICALLY SEPERATED FROM OTHER BUILDING (ON INDIVIDUAL LOT)
What is a registrant?
All brokerages, brokers, and salespersons registered under REBBA.
leasing commerical properties
will require a comprehensive understanding of the legislation impacting commercial tenancies
CLIENT CAN BE USED AS A SELLER OR A BUYER UNDER REBBA?
CAN BE USED AS A SELLER OR BUYER
CAN A BROKERAGE CONDUCT BUISNESS FROM MORE THAN ONE LOCATION?
CANNOT CONDUICT BUISNESS IN MORE THAN ONE LOCATION UNLESS BROKERAGE IS REGISTERED AT ACH LOCATION AND ONE IS DISGNATED AS HEAD OFFICE.
MORTGAGE IS?
CLAIM RO ENCUMBERANCE UPON A PROPERTY GIVEN BY OWNER OF PROPRTY TO THE LENDER AS A SECURITY FOR MONEY BORROWED. REGISTRY ACT = MORTAGE LAND TITLE ACT = CHARGE
RECO insurance coverage covers?
CONSUMER DESPOSIT PROTECTION ERRORS AND OMISSIONS COMISSION PROTECTION
3 PARTS TO ORGANIZED REAL ESTATE IN ONTARIO>
CREA (NATIONAL - INTERNATIONAL ACTIVTIES) PROVIINCIAL/ TERRITORIAL REAL ESTATE BOARDS (MLS) WORK TOGETHER PROVIDING DISTINCE SERVICES
CO0MPLETION DATE IS?
DATE WHEN TRANSFER OF OWNERSHIPS IS COMPLETED BETWEEN BUYER AND SELLER. "CLOSING DATE"
SOCITEY OF INDUSTRIAL AND OFFICE REALTORS (sior)
DEDICATED TO MINTAENE OF HIGH PROFFESIONAL STANDARDS IN OFFICE AND INDUSTRIAL REAL ESTATE.
EVIDENCE OF OWNERSHIPS IS?
DOCUMENT USED TO SHOW THE TRANSFER OF ONWERSHIP? DEED IS TERM USED TO DESCRIBE DOCUMENT USED.
AGREEMENT OF PURCHASE AND SALE IS?
DOCUMENTUSED TO NEGOTIATE THE TERMS OF SALE BETWEEN A SELLER AND BUYER. (HANDWRITTEN AND SIGNED BY BOTH PARTIES)
PROVIDING SERVICES?
DOES NOT PLACE FIDCIARY OBLIGATIONS
BROKER OF RECORD ?
EMPOYEE OF BORKERAGE REGISTERED WITH RECO ENSURES MAINTAINED STANDARDS ALL TIMES. (BROKERAGE, SALESPERSON, BROKERS CARRYING OUT RESPONSIBILITY AND COMPLIES) RESPONSIBLE FOR TAKING CARE OF MISCONDUCT. COMPLIANCE TO REEBA BROKERAGE OPERATIONS SUPERVISION OF STAFF SIGN ANY BROKERAGE FINANCIAL STATEMENTS.
CREA MAIN ROLE?
FOCUSES ON NATIONAL AND INTERNATIONAL RESPRSENTATION OF THE REAL ESTATE INDUSTRY.
MARKETIBLE TITLE
FREE OF DEFECTS/ TRANSFERABLE
REAL PROPERTY?
INCLUDES THE TANGIBLE ASPECTS (REAL ESTATE) AND THE INTAGIBLE (THE RIGHT TO OWN)
LOCAL REAL ESTATE BOARDS ARE?
INDUSTRY REPRESENTATIVES FOR A LOCAL AREA OR REGION. EACH REGION OF PROVINCES HAVE SEVERAL LOCAL BOARDS TYPICALLY OFFER MLS SERVICES AND OFFER SERVICES TO BROKERAGES IN REGION. MARKET ANALYSES, INFO ETC.
INTIAL EXPENSES?
Initial Expenses: ·Application review fee ·Salesperson registration fee ·RECO Insurance Program premium - this insurance is mandatory for all brokerages, brokers, and salespersons ·Start-up costs, such as website, signage, business cards, and updating or purchasing the tools needed for your new career Ongoing Expenses: ·Education and professional development ·Registration renewal every two years Annual premium for the RECO Insurance Program
TITLE IS?
LEGAL OWNERSHIP OF A LAND (LEGAL RIGHTS) *CHAIN OF TITLE IS SERIES OF DOCUMENTS OF HISTORICAL TITLES*
WHAT TWO PARTS OR THEIR IN THE COMMISSION RECIEVED?
LISTING SIDE (BROKERAHE REPRESENTING THE SELLER) AND SELLING PORTION (BROKERAGE THAT REPRESENTS THE BUYER - COOPERATING BORKERAGE)
TITLE SEARCH?
LOCATING, ORGANIZING, CONSENDING PERTITENT FACTS ABOUT DOCUMENTS REGISTERED ON TITLE.
DIVESTITURE?
MEANS REFERENCING TH SELLING ASPECT OF A TRANSCATION
TYPES OF COMMERICAL BUILDINGS?
OFFICE; RANGE FROM HIGH RISE OFFICE COMPLEX TO SMALL OFICES RETAIL: SINGLE STANDALONE BUILDING, MALLS, BIG BOX STORES MIXED USE: OFFICE, RETAIL, AND OR RESIDENTIAL ARE COMBINED IN A COMPLEX MULTI UNIT: STRUCTURE WITH MORE THAN ONE DWELLING UNIT; MID RISE BUILDINGS, 12 STOREY, HIGH RISE INDUSTRIAL: BUILDINGS OF SPECIFIC USE; GENERAL PUPROSE BUILDING CAN BE USED FOR OPERATIONS AGRICULTURAL: FARM, LIVESTOCK, CROP PRODUCTION
WHAT IS THE PROVINCIAL ASSOCIATION IN ONTARIO?
OREA
ROLE AND RESPONSIBILITIES OF BRANCH MANAGER??
PROVIDE ADEQUATE SUPERVISION FOR REGISTRANTS AND OTHER BRANCH EMPOLYEES TAKING STEPS TO DEAL WITH FAILURE TO COMPLY TO REGULATIONS MANAGING ALL RECORDS RELATED TO THE BRANCH
REAL ESTATE INSTITUE OF CANADA? (REIC)
PROVIDE ADVANCED EDUCATION AND PROFFESIONAL DEVELOPMENT WITHIN CANADIAN REAL ESTATE INDUSTRY.
CERTIFIED COMMERICAL INVESTMENT MEMBER (ccim)?
PROVIDES EDUCATION PROGRAMS FOR PROFFESIONAL IN COMMERICAL AND INVESTMENT REAL ESTATE.
REEBA VS RECO
REAL ESTATE IS REGULATED UNDER REEBA WHICH IS THE LEGISLATIVE FRAMEWORK FOR THE RESITRATION AND REGULATION OF BROKERAGES,BROKERS, SALESPERSONS. RECO REGULATES REAL ESTATE ACTIVITIES TO ENSURE COMPLIACE WHILE TRADING
WHAT DOES REBBA DO?
REBBA provides a framework for the responsive regulation of the real estate profession to protect consumers and ensure the integrity of real estate transactions is upheld.
WHAT TWO SERVICES DOES A BROKERAGE TYPICALLY OFFER?
REPRESENTATION: RELATIONSHIP WHEN PARTY IS CLIENT PROVIDING SERVICES: RELATIONSHIP WHEN PARTY IS A CUSTOMER.
OREA ROLE IN ONTARIO>?
REPRESENTS TH BROKERS, AND SALPERSONS WHO ARE MEMBER OF PROVINCIAL REAL ESTATE BOARDS. - OFFERING SAVING PROGRAMS - INFORMAING MEMBERS OF INDUSTRY NEWS PROVIDE FORMS MAINTING PROVINCIAL LOBBYING
Real estate trading is regulated under?
Real Estate and Business Brokers Act and associated regulations, collectively referred to as REBBA
FIXTURES?
SECURELY ATTACHED USUALLY PERMANENT (SELLER MUST INDIACTE IN THE AGREEMENT TO RETAIN ANY FIXTURE) EXAMPLES: WINDOW SHUTTWERS, MIRRORS, CURTAIN RODS
TYPES OF ATTACHED HOMES?
SEMI DETACHED: ONE STRUCTURE WALLS BEING ATTACHED TO ANOTHER STRUCTURE. (SIDE BY SIDE) TOWNHOUSE: 3 OR MORE UNITS ATTACHED TOGEHTER; EACH UNITS CONTAIN BASEMENT, MAIN LIVING SPACE, UPPER LEVEL ROOMS. LINKED DWELLING: TWO OR MORE SINGLE FAMILY HOMES THAT ARE ATTACHED. ATTACHED BELOW GRAD (CONCRETE WALL) OR ABOVE GRADE (GARAGE WALLS) MULTI UNIT RESIDENTIAL DEWLING: MORE THAN ONE DWELLING UNIT (SELF CONTAINED LIVING QUATER WITHIN A SINGLE BUILDING. (DUPLEX, TRIPLEX, FOURPLEX)
REAL ESTATE MEANS?
SOLELY THE TANGIBLE ASPECTS OF PROPERTY (SUCH AS LAND AND BUILDING)
A LANDLORD IS THE LESSOR? T/F
T
any agreement with a seller or a buyer is made with the brokerage, and not the individual broker or salesperson. t/F?
T
conditional time period of an offer?
The transaction must be monitored after the offer has been accepted because there may be one or more conditions that must be satisfied by the seller or the buyer before the offer becomes binding
Do you need to be registered to RECO to trade in ontario?
True
MORTGAGOR IS?
USED TO IDENTIFY THE BORROWER UNDER REGISTRY ACT CHARGIR UNDER LANDTITLES ACT
MORTGAGEE IS?
USED TO IDENTIFY THE LEDER UNDER REGISTRY ACT CHARGEE USED UNDER LAND TITLES ACT
REPRESENTATION AGREEMENT IS? TWO TYPES?
USED WHEN BROKERAGE REPRESENTS A SELLER OR BUYER' - LISTING AGREEMENT (WHEN WORKING WITH SELLER) - REPRESENTATION AGREEMENT ( WORKING WITH BUYER) **EXCLUSIVE**
what is a brokerage?
a corporation, partnership, or sole proprietorship that trades in real-estate on behalf of others for compensation or reward (remax)
Broker is?
an individual who has the prescribed qualifications to be registered as a broker under REBBA and who is employed by a brokerage
leasehold is?
an interest of land for a finite period of time. such as a week, year, 99 years etc
the word registrant refers to?
any individual or brokerage that is registered to trade in real estate
why should you not be called a real estate agent?
because the agent is the brokerage, we as salespersons are authorized to sign on their behalf during listing agreement.
three registration categories permitted under REBBA? :
brokerage, broker, and salesperson.
two types of estates?
fee simple: owns property and has all rights associated with ownership. leasehold: the right to use and occupy a property. (NOT OWNERSHIP)
what is the highest right in real property (estate)? what can they do?
fee simple; and can do anything with it
salesperson?
is 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
what is TRADE considered in ontario?
listing a property for sale, showing a property to a buyer, negotiating an offer for a seller or a buyer, or any act, advertisement or conduct that would further any purchase, sale, exchange, option, lease, or rental of a property
what are RECO registered brokers and salespersons?
maintain professional standards to enhance consumer confidence.
The Impact of the Type of Real Estate on a Salesperson's Schedule
residential - erratic hours of contact - minimal response time - irregular work hours commerical: most contact is between 8-6 - requires more knowledge, skills education
Code sets minimum standards to help?
sets minimum standards to help ensure no misunderstanding or ambiguity exists in the minds of sellers and buyers about what they should expect when interacting with a real estate professional.
The Code of Ethics (Code) does?
sets requirements for acceptable conduct by a brokerage, broker, and salesperson when conducting business.
WHO IS RESPONSIBLE FOR REBBA?
the Ministry of Government and Consumer Services
broker of record?
the key position within a brokerage that ensures compliant practices and high standards are firmly entrenched and continuously enforced BIG AUTHORITY; OVERVIEWING SMOOTH FUNCTIONING AND COMPLAINCE OF BROKERAGES
what is the person called who is leesing the estate and the person renting out?
the lessee/ tenant lessor or landlord
seller's market?
the number of buyers who want to purchase properties exceeds the available properties. - quick property sale high prices less viewing time for properties be prepared financiaially
a balanced market?
the number of listings is sufficient for the number of buyers. That is, supply and demand are equal. ·Properties sell within a reasonable period of time. ·The number of available properties is typical for the trading area. ·Offers include terms and conditions readily acceptable by all parties. ·Sale prices are generally stabilized. A more relaxed atmosphere as sellers and buyers do not have to work under any extreme conditions;
FUNDAMENTAL DIFFERENCE BETWEEN FEE SIMPLE AND LEASEHOLD?
time! (indeterminate) leasehold (finite duration)
What is RECO responsibility?
to regulate trading and real estate markers in ontario and sustain public trust in maintaining regulations.
a person is obligated to the brokerage as much as the seller chosen?
true
Seller's market (as a salesperson)
·As a listing salesperson, activity will happen very quickly once the property is listed. In some instances, a seller may select to review any and all offers on a specific date and time. You will be required to set aside several hours to review and advise on the offers received, which typically results in an immediate plan for negotiations, and acceptance of an offer. Be prepared for negotiations to extend into the early morning hours. ·As a buyer's salesperson, you must be alert to any new listings which would meet your buyer's criteria, and then immediately act on those listings. You will need to be ready to show the
how does reco enforce rebba?
·Enforcing the standards to obtain and maintain registration. ·Establishing education standards for registration, post-registration, broker education, and continuing education. ·Establishing and administering insurance requirements, which include consumer deposit protection. ·Addressing inquiries, concerns, and complaints about the conduct of a brokerage, broker, or salesperson and taking appropriate action. ·Conducting inspections of brokerages to ensure compliance with REBBA and to educate brokers of record. ·Being the source of consumer protection education and information for sellers and buyers involved in real estate transactions.