AB

Introduction to Real Estate

Important Terms (Interchangeable Terms)

  • Crown = Government

  • Buyer = Purchaser

  • Seller = Vendor

  • Transfer = Deed

  • Charge = Mortgage

  • Title Search Date = Requisition Date

Real Property

  • Definition: Land with or without buildings or permanent attachments.

  • Distinction: Real property is immovable, while personal property (e.g., appliances) can be moved.

Ownership of Land in Canada

  • Land belongs to the Crown until purchased.

  • Reverts to Crown if the owner dies without beneficiaries (escheat).

  • Title holding is considered as tenancy.

Interests in Title

  1. Fee Simple: Absolute ownership, right of survivorship.

  2. Life Estate: Lifetime ownership, no right of survivorship.

  3. Leasehold: Right of possession for a fixed period in exchange for rent.

Title Holding Methods

  • Sole Ownership: One individual or corporation owns the property.

  • Joint Tenants: Equal ownership, right of survivorship; cannot sell without consent.

  • Tenants in Common: Individual ownership shares, no right of survivorship; can sell shares independently.

  • Partnership Property: Varies by partnership agreement; no partner can sell shares without consent.

Other Interests in Land

  • Easements: Right for one landowner to use part of another's land.

  • Rights of Way: Right to cross another’s land.

  • Encroachments: When one property extends onto another's land.

Mineral and Water Rights

  • Mineral Rights: Surface ownership may differ from underground minerals.

  • Water Rights: Crown owns water; landowners cannot obstruct natural watercourses.

Agreements of Purchase and Sale

  • Initial Offer becomes a binding Agreement once signed.

  • Understanding of documents, parties involved, and key terms is critical.

Land Registration Systems

  • Types: Land Titles System (guarantees accuracy) and Registry System (not guaranteed).

  • Purpose: Public record, notice of encumbrances, priority of debts.

Legal Descriptions

  • Not street addresses; divided into Counties, Cities, Lots, and Plans.

  • Constant even when street names/numbers change.

Plans**

  • Registered Plans of Subdivision: For subdividing land.

  • Reference Plans: Used for property severing, replacing old legal descriptions with a plan reference.