UNIT 1. THE REAL ESTATE PROFESSION Overview Career Application

Transcription

1 TABLE OF CONTENTS: UNIT 1. THE REAL ESTATE PROFESSION Session : of the Real Estate Industry Real Estate and Society Historic Importance of Real Estate Economic Importance of Real Estate Social Importance of Real Estate The Real Estate Market Forces Influencing the Real Estate Market Regulation of the Real Estate Industry The Manitoba Securities Commission (MSC) MSC s Mandate "Organized Real Estate" Members of Organized Real Estate The Term REALTOR The MREA - MSC Relationship Non-Organized Real Estate Welcome to the Real Estate Office The Scope of the Real Estate Industry Real Estate Opportunities Authorized Officials, Brokers, Salespeople Working for a Real Estate Brokerage Selecting a Brokerage Issues and Questions for the Salesperson to Consider Responsibilities of the Salesperson to the Broker Commission Earnings Salesperson Compensation Commission and the GST Commissions One Brokerage Involved Commissions Different Listing and Selling Brokerages Involved Following the Commission Dollar Federal Legislation Impacting the Salesperson Excise Tax Act Goods and Services Tax The Income Tax Act The Indian Act The Salesperson s Licensing Education Program Education Requirements Registration Requirements Mandatory Continuing Education Session : Marketplace Data Market Indicators Financial Indicators Local Market Activity The Modern MLS System CMHC A Proven Resource UNIT 2. TITLE DESCRIPTION AND REGISTRATION

2 - Session 1: Legal Land Descriptions River Lot System/Parish Lot System Township or Grid System The Grid System in Manitoba Legal Land Description in Manitoba Plan of Subdivision Surveys, Certificates and Plans Plan of Subdivision Plan of Crown Lands Building Location Certificate Staking and Building Location Certificate Special Plot Plans Parcel Plans Condominiums Sources of the Legal Description of a Property The Relationship Between Civic Addresses and Legal Descriptions Session 2: Ownership and Land Registry in Manitoba Historical Background Land and Land Characteristics Terminology Land Characteristics Ownership What Can People Own? Airspace, Subsurface, and Mineral Rights Water Rights Fixtures and Chattels Types of Ownership in Manitoba Other Classifications of Estate Shared Ownership Interests in Land Less Than Estates Limitations to the Rights of Ownership Land Registration in Manitoba The Registry Act The Real Property Act The Torrens System Land Titles Offices Land Titles Searches The Real Property Act Forms A Best Practice Guideline Session 3: Interests Registered Against Title Title Creation Title Searching Title Deed Interests

3 Mortgage Caveats Easements Building Restrictions Restrictive Covenants Judgements Personal Property Registry Notice of Pending Litigation Builders Lien Mineral Rights Tax Liens Expropriation UNIT 3. PLANNING, ZONING AND TAXATION Session 1: Municipal Regulations and Taxation Land Use Controls Applicable Legislation Land Use Districts Permitted Uses Conditional Uses Nonconforming Uses Zoning Regulation Zoning Bylaws and the Real Estate Salesperson Zoning Order Land Transfer Tax Taxation - Real Property Ad Valorem Portioned Assessment Tax Base Tax Rate Local Improvements Property Assessment Notice Payment of Taxes Tax Adjustments in a Real Estate Transaction Land Use Compliance Matters Building Location Certificate Should be Up-to-Date Should not be Used to Determine Property Limits Zoning Compliance Certificate/Memorandum UNIT 4. BASIC RESIDENTIAL CONSTRUCTION COMPONENTS AND MATERIALS Session 1: Building Design and Construction Manitoba Home Builders Association Building Codes and Inspection

4 Untitled Current Building Standards New Home Warranty Program in Manitoba Legal Framework in Manitoba Buildings and Mobile Homes Act Builders Lien Act Building Permits Residential Inspections Winnipeg s Housing Inspections Program Manitoba Hydro s Power Smart Program New Home Sales in Manitoba Materials Used Architectural Information Site Plan House Plan Residential Housing Classification Classification by Size of Living Area and/or Number of Floors Classification by External Style Specialized Residential Buildings Attached Homes Multi-Family Building Variations in Style Variations on External Style Classification by Structural Method Components of a Building Foundation Systems Superstructure Systems Building Envelope Systems Service Systems Finishes Housing Defects Design Defects Visible Defects Invisible Defects Appendix 1 Appendix 2 UNIT 5. REAL ESTATE MATHEMATICS Session 1: Basic Mathematical Calculations Fractions, Decimals, and Percentages Fractions Decimals Rules of Rounding Decimals Minor Rounding Differences Percentages Using a Calculator Basic Calculations Sequential Calculations The Percentage (%) Key Solution Strategies Working With Percentages file:///c /Webpages/MREA Other Web Sites/module1/tableofcontents_print.htm (4 of 7) [11/22/2013 2:31:58 PM]

5 Rules for Working with Percentages Calculating Percentage Increase or Decrease Solution Strategies Metric Conversion Conversion Area Measurements - Rectangular Shapes Various Other Measurements Area Measurements - Non-Rectangular Shapes Irregular Parallelogram Trapezoid The Front Foot (Metre) Volume Measurement Cube or Box Shape How to Measure Living Area Rule #1 Rule #2 Interior House Measurements Who Uses Measurements? Sources of Measurements Commercial Real Estate Measurements Information Appendix 1- ACRE Measurement Guidelines (Residential) UNIT 6. PROPERTY EVALUATION Session 1: The Concept of Value The Nature of Value Value in Exchange Value in Use Market Value Rules of Value Rule #1: There are Two Approaches to Value Rule #2: Market Value has Four Assumptions Rule #3: Market Value is Different than Market Price Rule #4: Market Forces Directly Affect Market Value Rule #5: Fifteen Principles Assist in Understanding Value Basic Principles of Real Property Value The Principle of Anticipation The Principle of Balance The Principle of Change The Principle of Competition The Principle of Conformity Related Principles The Principle of Consistent Use The Principle of Contribution The Principle of External Factors The Principle of Highest and Best Use The Principle of Increasing and Decreasing Returns The Principle of Substitution

6 The Principle of Supply and Demand The Principle of Surplus Productivity Session 2: Steps to the Appraisal Process The Appraisal Process - Eight Steps The Nature of an Appraisal Market Evaluations vs. Appraisals Step #1: Define the Problem Step #1: Define the Problem Seven Steps - Defining the Problem Step #2: Preliminary Inspection and Planning the Work Setting the Stage Step #2: Preliminary Inspection and Planning the Work Six Steps - Preliminary Inspection and Planning the Work Step #3: Data Collection and Analysis Step #3: Data Collection and Analysis General Data Trends Neighbourhood Analysis Specific Data Analyzing the Site What is a Site? Highest and Best Use Factors in Site Analysis Inspection of the Site Inspection of Improvements: Single Family Residence Inspection of Improvements: Multiple Dwellings Inspection of Improvements: Commercial, Industrial and Special Properties Inspection of Improvements: Agricultural Properties Comparable Sales Data Step #4: Application of the Direct Comparison Approach Rationale of the Direct Comparison Approach Advantages and Disadvantages of the Direct Comparison Approach Step #4: Application of the Direct Comparison Approach Selection of Comparable Sales Adjusting for Differences Using Market Data to Measure Adjustment Amounts Step #5: Application of the Cost Approach Step #5: Application of the Cost Approach Step One: Estimate the Value of the Site The Comparative Sales Method Step Two: Estimate the Replacement Cost of the Building

7 Step Three: Estimate the Accrued Depreciation of the Building The Nature of Depreciation Measurements of Depreciation Physical Depreciation Step Four: Estimate the Total Depreciation Cost of the Building Step Five: Add the Value of the Site to the Total Depreciated Cost Step #6: Application of the Income Approach Step #6: Application of the Income Approach Step One: Estimate the Potential Annual Gross Income Step Two: Calculate the Effective Gross Income Step Three: Estimate the Total Annual Operating Expenses Operating Statement Expenses Excluded Items Step Four: Calculate the Net Operating Income Step Five: Select the Appropriate Capitalization Rate Step Six: Capitalize the Net Income into Value Income Approach: Case Study #1 Income Approach: Case Study #2 Step #7: Reconciliation and Final Estimate Definition Final Reconciliation and Estimate of Value: An Example Step #8: Write the Appraisal Report CREA s REALTOR Code