Real Estate Trading Services Licensing Course Manual

Table of Contents

UBC Real Estate Division. 2024. Real Estate Trading Services Licensing Course Manual. Vancouver, BC: UBC Real Estate Division.

Preface: Introduction to Real Estate

Land Ownership
Land Value
Elements of the Real Estate Market
Characteristics of Real Property
Organization of the Real Estate Brokerage Industry

Chapter 1: Fundamentals of Law

The Sources of Our Laws
Categories Within Our Legal System
Real Property Law
The Judicial System in Practice: The British Columbia Court System

Chapter 2: The Real Estate Services Act

Requirements for Licensing
Importance of Agency Law In Providing Real Estate Services
The Regulatory and Licensing Body The BC Financial Services Authority
Real Estate Foundation, Errors and Omissions Insurance Corporation, and Compensation Fund Corporation
Other Real Estate Related Organizations
Licensing System
Property Management Conducted by Trading Services Licensees
Trust Accounts
A Closer Look at the Rules
Discipline and Enforcement
The Real Estate Development Marketing Act

Chapter 3: What the Purchaser Buys: Estates and Interests in Land

The Evolution of Real Property Law and the Doctrine of Estates
Fee Simple Estate
Life Estate and Estate Pur Autre Vie
Leasehold Estates
Interests in Land Less Than Estates
The Extent of “Ownership” in Land
Introduction to Tort Law
Co-Ownership of Land
Appendix 3.1: Form A Freehold Transfer

Chapter 4: The Subdivision of Land and Title Registration in British Columbia

Who Owns the Land?
How is Land Divided?
How a Strata Development is Created
Types of Strata Property
Title Registration in British Columbia
The Torrens System of Land Registration
Land Title Offices, Searching Title and the Registration Process
First Nations Land Registration
Contaminated Sites
Manufactured Homes
Appendix 4.1: Sample Excerpts from Strata Plans: Sample Strata Plan
Appendix 4.2: Sample Title Search

Chapter 5: The Professional Liability of Real Estate Licensees

Common Grounds of Liability Against Licensees
Misrepresentations and Deceit
Errors in Drafting Agreements
Breach of Fiduciary Duty
Statutory and Industry Liability
What is the Bottom Line?
Proceeds of Crime (Money Laundering) and Terrorist Financing Obligations
Key Compliance Obligations under the PCMLTFA
Protecting Against Impacts of Climate Change

Chapter 6: Commercial and Residential Tenancies

Nature of the Relationship
Types of Tenancies and Termination
Residential Tenancy Arbitrations
The Key Rights and Obligations of the Parties in a Tenancy Relationship

Chapter 7: Strata Properties (Condominiums) and Cooperatives in British Columbia

The Strata Corporation
How a Strata Corporation is Governed
Bylaws and Rules
Legal Proceedings
Leasehold Stratas
Strata Titles Compared with Cooperative Corporations
Appendix 7.1: Strata Property Act Form B – Information Certificate
Appendix 7.2: Strata Property Act Form F – Certificate of Payment
Appendix 7.3: Strata Property Act Form J – Rental Disclosure Statement
Appendix 7.4: Strata Property Act Form K – Notice of Tenant’s Responsibilities

Chapter 8: Financial Statements

Forms of Organization
Importance of Financial Reporting
Generally Accepted Accounting Principles (GAAP)
Financial Statements
Income Tax Return
Analyzing Financial Statements

Chapter 9: Professionalism and Ethics

Professions, Professionals, and Professionalism
The Regulation of a Profession
Regulating in the Public Interest
How Honesty and Integrity Relates to Trust
Duties to Clients
Duties to Third Parties
The Duty to Report Misconduct
Handling Reports of Misconduct as a Managing Broker
Ethical Codes Outside of RESA and the Rules

Chapter 10: The Law of Contract

Void, Illegal, Voidable and Unenforceable Contracts
Legal Intention
Legal Object
Genuine Consent
Termination of a Contract

Chapter 11: Contracts for Real Estate Transactions

The Requirement of Writing
Listing Contracts
Contract of Purchase and Sale
The Home Buyer Rescission Period
Conditions Precedent and Subsequent
Effective Contract Negotiation
The Nature of Effective Negotiations
Risk Management for Licensees
Appendix 11.1: Sample Listing Contract
Appendix 11.2: Contract of Purchase and Sale
Appendix 11.3: Property Disclosure Statement

Chapter 12: Law of Agency

The Agency Relationship
Real Estate Agency in British Columbia
Capacity to Act as an Agent
Agent’s Appointment and Authority
Termination of Authority
Relationship Between the Agent and the Third Party
The Duties of the Agent to the Principal
The Duties of the Principal to the Agent
Agency Disclosure in British Columbia
Appendix 12.1: Buyer's Agency Exclusive Contract
Appendix 12.2: Buyer Agency Acknowledgement
Appendix 12.3: Agreement Regarding Conflict of Interest Between Clients Form
Appendix 12.4: Disclosure of Representation in Trading Services Form
Appendix 12.5: Disclosure of Risks to Unrepresented Parties Form
Appendix 12.6: Disclosure for Residential Tenancies
Appendix 12.7: Disclosure of Risks Associated with Dual Agency Form
Appendix 12.8: Disclosure of Remuneration – Trading Services Form
Appendix 12.9: Disclosure to Sellers of Expected Remuneration (Payment) Form
Appendix 12:10: Notice to Seller Regarding Assignment Terms
Appendix 12.11: Notice to Seller Regarding Assignment Terms

Chapter 13: Introduction to Mortgage Finance

Role of Financing in Real Estate Transactions
Capital Market
Characteristics of Mortgage Loans as Investments
Development of Contemporary Mortgage Lending
Classification of Mortgage Loans
Mortgage Repayment Plans
Mortgage Interest Rates and the Federal Interest Act
Setting Up the HP 10bII+ Calculator
Basis of Interest Calculations
Future Value and Present Value of Lump Sums
Annuities: Payments
Calculating Interest Only Payments

Chapter 14: Interest Rates and Mortgages

Equivalent Interest Rates
Application of Equivalent Rates to Periodic Mortgage Payments
Analysis of Constant Payment Mortgages

Chapter 15: Introduction to Mortgage Law

Introduction to Mortgage Law
Legal and Equitable Mortgages
Implied Terms of a Mortgage
Express Terms of a Mortgage
Special Types of Mortgages
Federal Legislation over Mortgages
Provincial Legislation over Mortgages
Assignment of the Mortgage
Assumption of the Mortgage
Further Advances
The Foreclosure Process in British Columbia
Agreements for Sale
Appendix 15.1: Form B Mortgage

Chapter 16: Mortgage Analysis in Real Estate Practice

Impact of Financing on Real Estate Transactions
Portable Mortgages
Impact of Brokerage and Other Fees
Prepayment Penalties

Chapter 17: Mortgage Underwriting and Borrower Qualification

Residential (Owner-Occupied) Mortgage Underwriting
Financial Covenants of the Borrower
Advancing the Loan and Collection of Payments
Commercial Mortgage Loan Underwriting

Chapter 18: Local Government Law

The Three Levels of Government
The Rationale for the Regulatory System
The Planning Process
Official Community Plans
Rural Land Use Bylaws
Land Use Contracts
Non-Conforming Use
Board of Variance
Building Bylaws and Inspection
Licensing Bylaws
Appendix 18.1: Sample Zoning Bylaw Extract (District of West Vancouver)

Chapter 19: Taxes on Real Property

Taxes on the Purchase or Sale of Real Property
Taxes Paid While Holding Real Property
Appendix 19.1: Sample Property Assessment Notice
Appendix 19.2: Sample Property Tax Notice

Chapter 20: Building Design and Construction

Current Building Standards
Metric Construction Modules
Architectural Information
Multi-Family Building Construction
Building Systems
Interior Finishes
Inspecting Multi-Family Properties
Residential Housing Classifications
Green Housing: Energy Efficiency and Sustainable Real Estate
Appendix 20.1: Building Measurement Guidelines
Appendix 20.2: Measurement Practices Bulletin CP-15

Chapter 21: Introduction to Real Estate Appraisal

The Appraisal Process
Step 1: Defining the Appraisal Problem
Step 2: Scope of Work Determination
Step 3: Data Collection
Step 4: Data Analysis
Step 5: Selection of the Appropriate Appraisal Approach
Step 6: Reconciliation of Value Indications and Final Opinion of Value
Step 7: Communicate Findings
Legal Considerations for Appraisal
Looking Ahead Innovations in Property Valuation

Chapter 22: Direct Comparison (Comparative) and Cost Approaches of Appraisal

Purpose of the Appraisal
Direct Comparison (Comparative) or Market Approach
Analysis of Market Transactions
Adjustments for Value
Case Study 1
Further Applications of the Comparative Approach
Scope and Limitations of the Comparative Approach
The Comparative Approach and the Comparative Market Analysis
The Cost Approach
Determining Market Value by the Cost Approach
Scope and Limitations of the Cost Approach
Appendix 22.1: Calculations Used to Find Market Value of a Vendor Takeback
Appendix 22.2: Sample Construction Costs of a Single Family Residence
Appendix 22.3: Sample Comparative Market Analysis (CMA)

Chapter 23: The Income or Investment Approach of Appraisal

Establishing Net Operating Income
Required Rate of Return
Capitalization Process: Market Value
Case Study 1
Case Study 2

Chapter 24: From Contract to Completion

The Contract of Purchase and Sale
Closing Procedures
General Introduction to Statements of Adjustments
Items on Statements
Preparing Statements of Adjustments
Appendix 24.1: Building Location Survey
Appendix 24.2: Statement of Adjustments

Chapter 25: Introduction to Marketing

Marketing and Real Estate: An Overview
Marketing Theory
Integrated Marketing
Communication Process
Other Types of Marketing
Measuring the Effectiveness of Advertising and Marketing
Listing Presentation
Developing a Listing Marketing Program
Competition Act

Chapter 26: Technology and the Real Estate Licensee

Technology and the Licensee’s Office
Software, Apps, and Technological Devices
Real Estate Licensee Websites
Email Marketing
Technological Resources
Online Protocol
Security, Computer, and Consumer Protection