Real Estate Legislation & Regulations - module 8

Vocabulary flashcards summarizing essential terms, statutes, and concepts from Units 2 – 13 of the lecture, focusing on taxation, property law, privacy, competition, environmental rules, and other real-estate-related legislation in Alberta.

Income Tax Act

Federal statute governing taxation of income, including capital gains on property sales in Canada.

Excise Tax Act

Federal law that establishes the Goods and Services Tax (GST) rules on property transactions.

Capital Gain

Profit realized when property sells for more than its purchase price; taxable unless primary-residence-exempt.

Primary Residence Exemption

Rule that eliminates capital gains tax on the sale of an owner’s principal home.

Non-Resident Withholding Tax

Requirement for a lawyer to hold back 25 % of sale proceeds from a non-filing seller until CRA clearance.

Clearance Certificate (CRA)

Document from Canada Revenue Agency that releases withheld funds once taxes owing are satisfied.

Goods and Services Tax (GST)

5 % federal tax applied to new, renovated, or certain commercial/property sales; used homes usually exempt.

Substantially Renovated Residence

Home whose major components are 90 %+ replaced, causing GST to apply on resale.

Dower Act (Alberta)

Provincial law protecting non-titled spouses; owner cannot dispose of homestead without written consent.

Homestead

Property occupied by spouses during marriage; triggers Dower Act rights even if now rental or vacant.

Dower Consent

Written acknowledgment and consent of non-titled spouse required for each disposition (listing, mortgage, transfer).

Release of Dower Rights

Registered document signed by surviving spouse that ends Dower Act protections on a property.

Estate

Legal entity holding a deceased person’s assets, including real property, administered by a personal representative.

Personal Representative

Individual named in a will or court grant to manage and convey the deceased owner’s property.

Power of Attorney (POA)

Legal authority allowing another person to act on someone’s behalf; cannot give Dower consent for spouse.

Controlled Land

Prime agricultural/recreational land in Alberta where foreign ownership is limited to two parcels ≤ 20 acres total.

Land Titles Act

Statute that creates the Torrens system in Alberta, authorizing land titles office to issue, cancel, or amend titles.

Encumbrance

Claim or liability (mortgage, lien, easement) that affects property value or owner’s ability to convey clear title.

Electronic Transactions Act (ETA)

Alberta law enabling digital signatures for most contracts but excluding instruments that create/transfer land interests.

Proceeds of Crime and Terrorist Financing Act (PCMLTFA)

Federal statute requiring ID, record-keeping, and reporting to deter money laundering and terrorism financing.

FINTRAC

Financial Transactions and Reports Analysis Centre of Canada; collects and analyzes data to enforce PCMLTFA.

Large Cash Transaction

Receipt of $10,000 + in cash in a single deal, triggering mandatory reporting and identity verification.

Dual Process Method (ID Verification)

Way to confirm identity by obtaining two separate, reliable information sources matching name with address, DOB, or account.

Suspicious Transaction

Deal showing red-flag indicators (e.g., unexplained third-party funds, name changes) that must be reported to FINTRAC.

Secret Commission

Undisclosed payment or gift received by an agent for influencing a principal’s business; criminal offence (≤ 5 years).

Criminal Interest Rate

Annual rate exceeding 60 % on credit advanced, punishable by up to five years in prison or $25,000 fine.

Personal Information Protection Act (PIPA)

Alberta law regulating private-sector collection, use, and disclosure of personal information.

Freedom of Information and Protection of Privacy Act (FOIP)

Statute governing access to and privacy of records held by Alberta public bodies.

Confidential Information (RECA)

Any client data—financial, personal, or transaction-related—protected under Real Estate Act Rules 1(1)(g.02).

Accountability Principle

Privacy principle requiring organizations to designate responsibility for personal-information safeguards.

Identifying Purposes Principle

Obligation to tell individuals why their data is collected before or at collection time.

Consent (Privacy)

Voluntary, informed agreement—express or deemed—for an organization to process personal information.

Limiting Collection Principle

Rule allowing collection only of personal data necessary for stated purposes.

Openness Principle

Requirement that organizations publish policies explaining how they manage personal information.

Withdrawal of Consent

Right of an individual to revoke or vary permission; organization must cease processing or explain consequences.

Office of the Information and Privacy Commissioner (OIPC)

Independent body overseeing PIPA, FOIP, and HIA compliance, able to investigate and order remedial actions.

Competition Act

Federal legislation prohibiting anti-competitive practices such as price-fixing, bid-rigging, and misleading advertising.

Price Fixing (Section 45)

Illegal agreement among competitors to control prices, markets, or production; penalties up to $25 million/14 years.

False or Misleading Representation

Material statement to the public that is untrue or deceptive about a product/service; criminal under Competition Act.

Telemarketing Identification Requirements

Obligation to state caller’s name, company, product, purpose, price, and terms during solicitation calls.

Do Not Call List

CRTC registry restricting telemarketing to numbers without existing business relationships or explicit consent.

Canada Anti-Spam Legislation (CASL)

Federal law banning unsolicited commercial electronic messages and requiring opt-in consent & unsubscribe tools.

Municipal Government Act (Land Use)

Law granting Alberta municipalities power to create land-use bylaws that dictate permitted and discretionary property uses.

Mines and Minerals Act

Statute stating surface owners seldom own subsurface resources; governs leasing/extraction of mineral rights.

Environmental Protection and Enhancement Act (EPEA)

Alberta framework regulating air, land, water, and biodiversity; allows cleanup orders for contaminated sites.

Water Act (Alberta)

Legislation controlling diversion and use of provincial water; grants limited riparian rights to adjacent owners.

Riparian Rights

Owner’s right to access and reasonably use water bordering or crossing their land, subject to Water Act limits.

Alberta Land Stewardship Act

Enables regional plans balancing private property, environmental, social, and growth objectives, including Indigenous rights.

Residential Tenancies Act

Sets rights and responsibilities for Alberta landlords and tenants to ensure fair leasehold relationships.

Condominium Property Act

Governs ownership, management, and duties of condominium corporations and unit owners in Alberta.