LAW 603 Chapter Notes - Chapter 16: Real Estate Broker, Deeds Registration, Specific Performance

47 views8 pages
22 Jul 2016
Course
Professor
LAW603 Chapter 16 Notes – Real Property: Sales and Mortgages
Registration Systems
Registration System: documents the existence of interests in land
Registry System (or deeds registration system): provides an opportunity to inspect and evaluate
documents that may affect real property
Chain of Title: is a series of transactions in which ownership was validly passed from one person
Registry System
- The task of searching title is difficult and hazardous – ask a lawyer specializing in real
estate for expertise
- Mistakes may be made, errors may be overlooked for decades, and people rely on this
information
- The registry system provides access to documents but does not guarantee their accuracy
(title insurance)
- It is the lawyers job to ensure that the seller actually has a good chain of title
- Competing claims are resolved by the timing of the registration
Land Titles System
Land Titles System (Torrens system): generates certificates of title that virtually guarantee the
validity of the interests that are listed
Indefeasibility: with very few exceptions, the interests that are included in a certificate of title
cannot be defeated
The Mirror Principle: states that all the interests listed in a certificate of title generally are valid
Curtain Principle: states that the only valid interests in a property generally are the ones listed in
the certificate of title (it is unnecessary to “lift the curtain” and look behind the certificate of title to
determine whether anyone else has rights in the property)
Insurance Principle: a person who suffers a loss as a result of an error in the system generally is
entitled to compensation (the land titles system includes an assurance fund)
Mortgage Fraud
- Indefeasibility can cause hardship to original owner
oInnocent person owns a piece of land
oX steals innocent person’s identity and transfers land to Y
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 8 pages and 3 million more documents.

Already have an account? Log in
oY uses land as security (mortgage) for a loan from a bank
oX and Y disappear
obank tries to enforce the mortgage against innocent owner
oInnocent person (original owner) discovers the fraud
(Refer to textbook pg 391 for further explanation)
Unregistered Interests
Short-term leases: a short term (3 year) lease may be enforceable against a purchaser even if it is
not registered
Prescription and adverse possession: it is sometimes possible for a person to acquire an interest
in land as a result of a long period of use or occupation
Public Easements: a utility company or similar body may have the right to bury cables beneath a
property or to run wires above it
Unpaid taxes: as a landowner I am required to pay taxes on my property. If I fail to do so, the
government may be entitled to seize and sell the land to raise the necessary money
Unpaid creditors: your lawyer should also search the records in the sheriff’s office to determine
whether there are any writs of execution
-Writ of execution: a document that allows a court’s judgement to be enforced
Land Sales
Sale: occurs when ownership is transferred in exchange for consideration
Risk Management
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 8 pages and 3 million more documents.

Already have an account? Log in
- The buyer of the land must make sure that the property is in good condition(caveat
emptor= let the buyer beware)
- When purchasing a home, the vendor cannot cover up or hide a defect (must disclose)
- The real estate agent is equally liable for carelessly failing to ensure that the vendor
disclosed the defect
Real estate agent: searches the market for alternatives and help you find the right property
Lawyer: will communicate with the seller or the seller’s lawyer, verify which secondary pieces of
property are included in the sale, ensuring that local by-laws will allow you to use the land for you
intended purpose, obtaining insurance coverage for the property, checking mortgage
arrangements, and preparing/filing/registering the formal documents that are needed for the
transfer
Appraiser: determines the correct price of a property, including the condition of the buildings,
value of neighbouring properties, accessibility to public transport, the uses that are permitted
under zoning regulations, and the municipality’s plans for future development in the area
Surveyor: provides a legal description of the property including size and location. A survey will
reveal the fact that your property may encroach upon a neighbours land
Inspector: checks the premises for potential problems (physical condition, safety regulations)
Environmental auditor: identifies the possibility of a leaked toxic substance escaping into the
environment, for example, because a substantial amount of money would have to be paid for clean-
up even if no one got hurt.
- Either of the professionals above can be held liable for doing a job carelessly or not being
able to detect the problem
--------------------------------CONCEPT SUMMARY 6.1 PAGE 396 ------------------------------------
Agreement of Purchase and Sale
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 8 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class