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Understanding Real Estate Transactions

Introduction

Underwriters should have an enhanced understanding of the real estate purchase transaction.  Knowledge of the detailed process including key aspects of contract law as they relate to real estate transactions, the Agreement of Purchase and Sale, how to evaluate property appraisals, the Canadian land title systems, fraud prevention measures, and disbursements is critical in assessing a request for a mortgage.

Course Outline

Section 1: An Overview of the Process
  • The resale home purchase process
  • Deciding to buy and sell
  • Receiving and accepting offers
  • Buyer activity, inspections, and insurance
  • Closing the deal
Section 2: Purchase and Sale Agreements
  • The seven elements of a contract
  • The key details of purchase/sale agreements
  • Terms and conditions
  • Preventing fraud
  • Preventing termination and unenforceability
Section 3: Property Valuation
  • Defining value and the appraisal process
  • Analysis of the real estate market
  • Appraisal results: error and fraud
Section 4: Title Registration
  • Registration of land in Canada
  • Registration, priority, and indefeasibility of charges
Section 5: Disbursements
  • The closing procedure and document preparation
  • Deposits, commissions, and adjustments
  • Transfer taxes and legal fees