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Canada (161,538)
MCS 3040 (228)
Chapter 19

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Department
Marketing and Consumer Studies
Course
MCS 3040
Professor
Joseph Radocchia
Semester
Fall

Description
Canadian Business and the Law Chapter 19 – Real Property Ownership  Real Property – Land or real estate, including buildings, fixtures, and the associated legal rights.  When people own real property, this includes as written in law, “the earth beneath and the air above.” In practice, this law is limited by legal rules like air travel.  Fixtures – Tangible personal property that is attached to land. Buildings, or other fixtures. This includes heating ducts, lights and plumbing for example.  Value of land results from two key attributes. First, land is permanent and immovable. Second, the total quantity is finite.  Real property governed by common law  Interest in Land o Fee Simple – The legal interest in real property that is closest to full ownership o Ownership of land easily divisible o Division of Ownership  As co-owners they would have an undivided interest in the entire building. Each owns a portion of the whole, but their respective shares cannot be singled out or identified in any distinct way  A tenant generally refers to someone who leases space rather than owns it outright; however, the legal use of the word “tenant” is much broader and includes someone who has any kind of right or title in land.  Tenancy in Common – co-ownership whereby each owner of an undivided interest can dispose of that interest.  Joint tenancy – Co-ownership whereby the survivor inherits the undivided interest of the deceased. o Division of ownership in time  Leasing land is an example of division of ownership in time.  Limits on Ownership o Restrictions on land imposed by statute and common law, include  Municipal governments have the authority to control land use through planning schemes and zoning regulations  Environmental regulations like discharge of harmful substances  Common law of nuisance limits any use of land that unduly interferes with other owners’ enjoyment of their land  Family law may designate property as matrimonial – to be shared by both spouses – even though under one name  Many government agencies have authority to expropriate land for particular purposes  Ownership of land in a foreign country can be limited by that country’s governmental policy o Other limits by contract  Grant an adjoining landowner the right to use a portion of his land for a particular purpose.  Easement – the right to use the land of another for a particular purpose only.  Grant lease to a tenant  Grant oil, gas, or mineral lease  Grant mortgage on the land as security for a loan  Restrictive covenant – a restriction on the use of land as specified in the title document  Registration of ownership o Two types: o A registry system – Eastern Provinces  Registry System – The system of land registration where by the records are available to be examined and evaluated by interested parties.  Public has access to records and can examine or search the records to evaluate the state of ownership of a particular piece of land. This process is known as “searching the title.”  Paralegal – one who performs legal work under the supervision of a practicing lawyer o The Land titles system – Western provinces  Land titles system – The system of land registration whereby the administrators guarantee the title to land Acquisition of Ownership  The Purchasing Transaction o Buying land is buyer beware situation expressed in law as caveat emptor – it is up to the buyer to investigate and evaluate the property both in financial and legal terms o Seller must not mislead the buyer, but is generally under no obligation to disclose information about the property  Participants in the transaction o Main participants are the buyer and seller o Real estate agents, property appraiser, land surveyor, engineer, lawyer, consultant can also be involved  Stages in the Transaction o Agreement of purchase and sale  Normal elements include provision for buyer to conduct full investigation of property, bring matters of concern to seller, time for buyer to arrange its financing, and a specific date for the conclusion of the transaction  The premise names of the parties, precise identification and description of the property, purchase price, deposit, and payment method, statement of any conditions, list and description of exactly what is included in the price, date for closing and what each party must deliver on that date, who is responsible for waht during the period between signing and closing, warranties o Investigation by the buyer and the seller’s response to any problems the buyer may raise o Title search- investigation of the registered ownership of land in a registry system o Legal claims against the seller- search should establish what legal claims exist against the seller of the property o Verification of Boundaries- confirm boundaries described in title fit the physical boundaries of the land o Physical examination- confirms that the property is in the state it is expecting o Environmental audit- ensures that there are no lingering or hidden environmental hazards o Taxes- all municipal property taxes and any other local charges related to the property are paid up to date o Local bylaws- verify that the property can be used for its desired purpose o Closing – final stage of a real estate transaction when final d
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