lgst369 assgn 3 PDF

Preview

Summary

property rights assignment...

Description

Abhijai Mansingh 3275610 LGST369

My plan is to open a bowling alley in Wabash, Newfoundland. In an attempt to do so, I

have

selected

the

property

seen

in

this

link,

https://www.realtor.ca/real-

estate/21686435/12-30-grenfell-drive-wabush#view=neighbourhood, to purchase. The preparatory steps to be taken in a real estate transaction in Canada is dependent on the location of the property. This is because Canada has two types of registration systems known as the Registry system and the Land title (or Torrens) system. The province that the property falls in will determine which system is used. The land title system is used in western provinces and parts of Ontario and Manitoba while the registry system is used in maritime provinces as well as parts of Ontario and Manitoba. Newfoundland is a maritime province and therefore uses the Registry system. Under the registry system, I (through my lawyer) would have to search through relevant records at a registry office in order to determine whether the land has a good chain of title. If my lawyer indicates to me that there is a good chain of title, then it is my duty to return the transfer documents to the registry office as soon as possible if the purchase of the property is made. This would minimize the risk of competing claims that may occur under the registry system. A concern that I would have when buying this land is that, I would need the municipality (local by-laws) to allow me to use the land to erect a bowling alley. My lawyer would have to ensure that my land is fit for its intended purpose. In addition to this my lawyer will be tasked to ensure the land is free of squatters as well as unpaid taxes and creditors. An inquiry would have to be made to utility companies to identify the existence of public easements which can affect the construction of the alley. Also, I would be concerned about the right price for my investment. In order to determine what the true value of the property that I am buying is, I would have to hire an appraiser. The appraiser would consider

the value of neighbouring properties, accessibility to public transport, the uses that are permitted under zoning regulations, and the municipality’s plans for future development in the area. After the appraiser gives me a value, it is up to my judgement whether my investment in the land for a bowling alley is worth it or I should use the land for other purposes. Another concern that I may have is the validity of the land size and its dimensions. In order to ensure there are no misdescriptions of the land, I would seek the services of a land surveyor. This will ensure that the land size and dimensions are accurate and then it would be up to my judgement to determine whether the property is ideal for the construction of the alley and of what size. Finally, to ensure that the land is free from any toxic or hazardous substances that may affect the property in the future, I would hire an environmental auditor. In the agreement for sale, I would have to put in a condition precedent before the transaction can be completed. This is because buying land is extremely expensive and I can only go through with the purchase of the property if I obtain a mortgage from the bank. Therefore, I would put a special condition in the agreement stating that the contract is conditional on the bank granting me a mortgage. I would have to make a reasonably effort to ensure the mortgage is granted otherwise I can be held liable by the vendor for a breach of contract. This condition will allow me(purchaser) to generate funds to pay for the property and will give the vendor the security that it will be paid. Another special term that I would put into the contract is that the transaction can only be completed if the municipality gives me permission to erect a bowling alley. I would have to make a reasonable effort to persuade the municipality to grant me permission for the condition to be valid. This condition gives me the security, knowing that if permission is granted then I could use the land for its intended purpose. My purpose is to erect a bowling alley which I could use to generate an income. If the municipality rejects my plans, then buying the property would not be worth my investment. Under the registry system, in exchange for the loan, I (mortgagor) would have to transfer the property to the bank (mortgagee), who then becomes the legal owner. When the loan is repaid and the agreement is properly performed, the bank will reconvey the title back to me. This only occurs in provinces that use the registry system. In other provinces

that use the land title system, there is no conveyance of title initially. Instead a charge is created over the property, until the loan is repaid by the mortgagor at which point the mortgagee would remove the charge. If a charge occurs, the mortgagor agrees that the land will be available to the mortgagee if the debt is not repaid. When the bank grants me a mortgage and the municipality grant me permission for my plans, then I can go ahead and close the transaction. In order to safeguard against any new information or issues that may arise during the time the contract was created and closed; my lawyer will scan through all the relevant documents to ensure everything is accurate. The vendor must inform me of any changes to the property if any that might have occurred such as hazardous waste. A failure to do so can lead to the vendor being held liable for misleading me into buying a defective property. Even if the vendor informs me of any issues, I am entitled to cancel the contract if a suitable agreement cannot be reached to resolve the issue. The next stage in the closing process is to determine if any adjustments to the price of the property must be made. Typically, a vendor may increase the price of the property to reflect any taxes that may have been paid for the property for the remainder of the year. Therefore, the adjustment in price will reflect the benefit that I would receive from not having to pay taxes for that year. Under the registry system, my lawyer would have to make conduct one last search at the registry offices to ensure that competing interests have not been filed or registered against the land at the last minute. Provided that no such thing has occurred, the vendor's lawyer will provide my lawyer with the formal document that is needed to convey ownership in the property. This process is known as a deed (or deed of conveyance) in the registry system. In the land title system, a document called a transfer is used instead of a deed of conveyance. My lawyer will then register the deed in order to protect my rights especially against any competing claims that may arise. The lawyer will generally also help with the paperwork that is needed to obtain insurance coverage on the property and may notify the municipality, the utility companies, and so on of the change in ownership....