Term
| The different methods of financing for purchase of a fee simple is.. |
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Definition
| Conventional financing...Family , financial institution, credit union, mortgage companies, insurance companies or private lenders. |
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Term
| Defination of agreement for sale.. |
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Definition
| Amethod where the purchaser pays the owner for a fee simple interest over a period of time while the owner retains legal title. |
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Term
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Definition
| Where the seller is willing to assist the buyer by financing a small portion of the purchase price to allow the buyer to finance the bulk of the financing through an instutional lender. |
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Term
| Risks of vendor financing.. |
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Definition
| The seller has a second mortgage which is taxable and may complicate the sellers income tax. The seller may be at risk if the buyer does not pay the mortgage. |
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Term
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Definition
| Government programs such as high ratio mortgage insurance by GMAC or Genworth allow the buyer to finance without the 20% down payment. |
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Term
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Definition
| Buyers can purchase with joining another and have an identical undevided possession of the property and survival of the property goes to the joint tenant. |
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Term
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Definition
| Tenants in common have undivided possession of the property but their interest may not be identical and the interest of each devolves to their individual heirs. |
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Term
| Purchasing with partnerships or corporate investments... |
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Definition
| which can have a combined ownership and can consist of individuals , partnerships or companies or a combination of all three. With a partnership each of the partners will usually have undivided interest in the property equal to their interest in the property. A company can also purchase property and have investors purchase shares in the property. |
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Term
| What is Financing by Agreement? |
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Definition
| When a purchaser pays the vendor for the fee simple interest over a period of time while the vendor retains legal right. |
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Term
| How do both parties gain security in an agreement for sale? |
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Definition
| The Vendor remains the registered owner and the purchaser has a registered right to purchase on title |
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Term
| What is Vendor Financing? |
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Definition
| When the vendor will assist the purchaser by financing a small portion of the purchase price thru advancing the funds to the purchaser (deferring paymant of part of the purchase price) |
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Term
| What is a vendor risk in Vendor Financing? |
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Definition
| The interest paid will be under a second mortgagee which will be treated as income in the hands of the vendor, complicating the vendor's income tax. |
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Term
| CHMC adn Genworth are government sponsored programs to assist home buyers. Is the a government sponsored program to assist a commercial real estate investment? |
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Definition
| No. But some programs are available to a manufacturer or other businesses which requires financing to assist in its business operations, as long as part of the operation is real estate. |
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Term
| At common law can a corporation be set up as joint tenancy? |
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Definition
| No. because a corporation could not die and the right of survivorship would therefore not be mutual. |
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Term
| At common law could a company be set up as joint tenancy. |
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Definition
| Yes, the Company Act gives a company all the rights of a natural personand therefore the company can hold property as a joint tenant. |
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Term
| What is a passive Long-Term Investor |
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Definition
| An owner who is most often looking to acuqire undeveloped land at a price that will not require borrowed funds. They do not wish to become involved with improving the property. |
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Term
| What is a Short-Term Investor |
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Definition
| An owner who views the property as similar to a savings account, a quiet secure investment that can readily be converted to cash should the need arise. Still passive in that they do not wish to improve the property. |
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Term
| What doews the gross domestic product (GDP) represent. |
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Definition
| The money value of all final goods and services that our economy produces uring a specific period. Usually 1 year |
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Term
| Using the GDP as a basis for comparison, we can break the economy into what industries? |
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Definition
| Good producing Industries and Services producing Industries with Real Estat is a part of. |
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Term
| What has the trend been for the goods producers. |
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Definition
| It has been in a decline with manufacturing showing a steep drop due to lower demand for Canadian manufactured good, both domestically and internationally. |
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Term
| Waht has the trend been for the Services Producing Industries? |
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Definition
| It has been increasing in Canada as in all undustrilaized nations. |
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