Module 6 & 7 Real Estate Legislation and Regulations

This set of flashcards covers key concepts, legal acts, and regulatory requirements regarding contracts, land use planning, privacy, FINTRAC compliance, and environmental protection in Ontario real estate.

Contract

A legally binding agreement between competent parties with value to do or not do something lawful, which can be oral or written but requires intention and mutual agreement to be enforceable.

Statute of Frauds

Key legislation requiring that real estate sales and leases must be in writing and signed to be enforceable, though part performance like a deposit acceptance can validate an agreement.

Vendors and Purchasers Act

A law that applies implied terms to every Agreement of Purchase and Sale (APS) unless changed, such as the buyer searching title at their own cost within 30 days.

Parol Evidence Rule

A legal principle stating that a written contract cannot be changed or contradicted by oral evidence, except in cases of fraud or mistake.

Privity of Contract

The legal concept that only the parties to a contract can enforce or be bound by it; in an APS, these are the buyer and seller, while brokerage and salespersons are witnesses.

Non est factum

A legal defense where a contract is invalid because a party signed it without understanding its nature or content.

Consideration

One of the six essential elements of a binding contract where each party must give something of value, such as money from a buyer or property from a seller.

Quantum Meruit

A remedy for breach of contract meaning "reasonable payment for work done," applicable when one party performs but is not paid.

Specific Performance

A court order forcing a party to complete a contract, usually reserved for unique properties where money damages are insufficient.

Frustration (Impossibility)

A method of contract termination where something unexpected makes performance impossible through no fault of either party.

Electronic Commerce Act (2000)

Legislation that allows real estate documents to be created, signed, and stored electronically with the same legal enforceability as paper versions.

PIPEDA

Legislation protecting personal information; it requires brokerages to appoint a privacy officer and follow 10 fair information principles when handling client data.

Matrimonial Home

Under the Family Law Act, property where spouses live or lived at separation as their family residence, granting both spouses equal rights to possession even if only one is on title.

Provincial Policy Statements (PPS)

Rules issued by the Minister of Municipal Affairs and Housing that all planning decisions must follow to ensure efficient land use and environmental protection.

Official Plan

A municipality's long-term plan (10 to 15 years) defining how land will be used, community growth, and the location of infrastructure like roads and schools.

Minor Variance

A small exception to current zoning bylaws approved by the Committee of Adjustment that must still follow the intent of the official and zoning bylaws.

Non-conforming Use

A property that was legal under old zoning bylaws but no longer meets current requirements; it can typically continue but cannot freely expand.

Plan of Subdivision

A legal requirement for dividing land into many lots (usually more than 3) to ensure development follows official plans and includes proper infrastructure.

Ontario Land Tribunal (OLT)

An independent land tribunal created in 2021 that hears appeals involving land use planning, official plans, zoning bylaws, and severances.

FINTRAC

Canada's financial intelligence unit created under the PCMLTFA to detect, prevent, and deter money laundering and terrorist financing.

Beneficial Ownership

The requirement for brokerages to identify individuals who own or control 25% or more of a corporation or entity involved in a transaction.

Suspicious Transaction Report (STR)

A report that must be filed with FINTRAC as soon as practicable when there are reasonable grounds to suspect money laundering or terrorist financing.

Declaration (Condominium)

A legal document registered under the Condominium Act 1998 containing details about common expenses, common elements, and mortgagee consent.

Reserve Fund

A separate bank account used by condominium corporations only for major repairs and replacements of common elements, funded through monthly expenses.

Status Certificate

A document providing financial and legal information about a condominium unit and the corporation, which must be provided within 10 days of a request for a fee not exceeding $100.

National DNCL

Created under the Telecommunications Act, this list allows consumers to register their numbers to stop unsolicited telemarketing calls and faxes.

CASL

Canada's Anti-Spam Law, which regulates commercial electronic messages (CEM) and requires sender identification, consent, and an unsubscribe option.

Capital Gains

A tax classification where only 50% of the profit is taxed, typically applied to properties not bought primarily for resale at a profit.

Environmental Site Assessment (ESA)

A three-phase process used to identify contamination; Phase 1 is a non-invasive review, Phase 2 involves soil/groundwater sampling, and Phase 3 is remediation.

Greenbelt Act (2005)

Legislation protecting approximately 1.8 million acres of environmentally sensitive land and farmland in the Greater Golden Horseshoe from urban development.

EnerGuide

NRCan's program that measures a home's energy efficiency rating based on annual energy use in gigajoules ($GJ$).

Tarion

The organization that administers Ontario's new home warranty program (ONHWPA) and manages warranty claims for new builds.

Ontario Building Code (OBC)

Administered by the Ministry of Municipal Affairs and Housing, it sets minimum standards for safety, fire protection, and structural integrity for new construction and renovations.

Carbon Monoxide (CO) Alarms

Under the Ontario Fire Code, these are required near sleeping areas in homes with fuel-burning appliances, fireplaces, or attached garages.

TSSA

The regulatory body that governs fuel storage tanks, including their installation, maintenance, and mandatory removal of older underground tanks.

Large Cash Transaction Report

A report submitted to FINTRAC when $10,000 or more in cash is received in a single transaction or multiple transactions from the same source within 24 hours.