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.