Nova Scotia RAS cheat sheet

Governing statute is the Real Estate Trading Act; the Nova Scotia Real Estate Commission administers licensing, bylaws, and the Code of Ethics.

Licence classes: broker, associate broker, salesperson, and broker-managed teams; licences are held by the brokerage, not the individual.

Written service agreements are required before trading services are provided; the agreement states term, services, and remuneration.

Trust funds must be held in a pooled trust account at a recognized financial institution; deposits and commission trust money are reconciled monthly.

Commission may be paid only through the brokerage; a salesperson cannot accept remuneration directly from a client or another party.

Trading includes buying, selling, leasing, optioning, and negotiating on behalf of another for remuneration, or holding out as available to do so.

Discipline ranges from letters of reprimand and fines to licence suspension or revocation; the Commission may also order education.

Records of trade must be retained by the brokerage for the period set by Commission bylaws and produced on request.

Fiduciary duties owed to a client: loyalty, obedience to lawful instructions, disclosure of material information, confidentiality, accounting, and reasonable care and skill.

Designated agency: the brokerage represents the client through a named licensee; other licensees of the same brokerage may represent other parties.

Dual agency requires informed written consent of all parties and the brokerage must deal even-handedly, not favour either side.

Customer (unrepresented) status entitles a party to honesty and factual information but not confidentiality or loyalty.

Material facts must be disclosed to the client and, where required by statute, to all parties - latent defects, stigma, and environmental hazards.

Confidential information survives the end of the service agreement unless disclosure is required by law or the client consents.

A licensee may not buy or sell for their own account without written disclosure and consent of the client.

Agency relationships are created by written service agreements, not by the mere act of showing a property.

An Agreement of Purchase and Sale must identify parties, property, price, deposit, closing date, inclusions/exclusions, and conditions.

The deposit is trust money; on default it is dealt with per the contract and the Real Estate Trading Act, often forfeited to the seller.

Conditions precedent (financing, inspection, sale of buyer's home) must be satisfied or waived in writing by the stated date or the contract may lapse.

Time is generally of the essence; failure to close on the closing date is a breach unless the contract states otherwise.

Closing mechanics: statement of adjustments, title search, registration of transfer and mortgage, and disbursement of funds.

A seller warrants good title and quiet possession; the buyer should obtain a title search or title insurance before closing.

Statutory disclosure obligations include the seller property condition disclosure statement where used, and disclosure of material latent defects.

Amendments must be in writing and signed by both parties; oral variations are generally unenforceable.

Estates in land: fee simple is the fullest ownership; life estates and leaseholds are lesser estates.

Co-ownership forms: joint tenancy has right of survivorship; tenancy in common does not and passes by will or intestacy.

Interests in land include easements, restrictive covenants, licences, mortgages, and liens; easements run with the land.

Nova Scotia uses a registry system and the Land Registration Act (Torrens-style) system; parcel registers record title and interests.

Title defects include encumbrances, encroachments, unregistered interests, and adverse possession claims; a title search reveals registered interests.

Matrimonial property legislation can create possessory rights of a spouse in the matrimonial home regardless of registered title.

Condominium ownership combines a unit and an interest in common elements under the Condominium Act.

Riparian and littoral rights attach to waterfront land; boundaries may be affected by accretion or erosion.

Loan-to-value ratio = loan amount ÷ property value; high-ratio mortgages above 80% LTV require mortgage default insurance.

Gross debt service ratio = (mortgage principal and interest + taxes + heating + half of condo fees) ÷ gross annual income; guideline maximum 32% (39% total debt service).

Total debt service ratio = (housing costs + all other debt payments) ÷ gross annual income; guideline maximum 40-44%.

Blended payment formula: P = L × [i(1+i)^n] ÷ [(1+i)^n − 1], where i = annual rate ÷ payments per year and n = total number of payments.

Canadian mortgages compound semi-annually; effective per-payment rate = (1 + annual rate ÷ 2)^(2 ÷ payments per year) − 1.

Stress test: uninsured mortgages qualify at the greater of the contract rate plus 2% or the benchmark rate; insured mortgages use the same floor.

Closing costs include land transfer tax, legal fees, title insurance, adjustments, and appraisal; land transfer tax is calculated on the purchase price.

Prepayment privileges, portability, and penalties (three months' interest or interest rate differential) are negotiated terms of the mortgage.

Three approaches to value: direct comparison (residential), cost (new or special-purpose), and income (capitalization of net operating income).

Capitalization rate = net operating income ÷ property value; value = net operating income ÷ cap rate.

Gross rent multiplier = sale price ÷ gross annual rent; used for quick income-property comparison.

Adjustments in the comparison approach are applied to comparable sales for differences in time, location, size, condition, and features.

Market value assumes a willing buyer and seller, both informed, no undue pressure, and a reasonable exposure period.

Absorption rate = properties sold in a period ÷ active listings; a low rate indicates a seller's market.

Assessment value (property tax) is not market value; it is set by the assessment authority on a base date.

Pricing strategy considers days on market, list-to-sale ratio, and competitive listings; overpricing lengthens exposure and reduces final price.

Listing agreement types: exclusive right to sell, exclusive agency, and open listing; the terms must be in a written service agreement.

The listing contract should state list price, term, commission, inclusions, showing instructions, and marketing authorization.

Advertising must be accurate and must identify the brokerage; a licensee may not advertise a property without authority.

Buyer representation begins with a written buyer service agreement; a showing alone does not create agency.

Material facts known to the licensee about the property must be disclosed to buyers regardless of who they represent.

Fair housing and human rights law prohibits discriminatory advertising or refusal to show based on protected grounds.

Marketing plans should include photography, online listing syndication, signage, and open houses, with the seller's written consent.

Commission is negotiable and payable per the service agreement; cooperating brokerage compensation is set out in the listing.

Code of Ethics duties: honesty, integrity, reasonable care, confidentiality, and avoidance of conflicts of interest.

Licensees must not misrepresent property facts, conceal material defects, or make promises outside their authority.

Personal interest in a transaction, referral fees, and outside remuneration require written disclosure and consent.

Commingling personal and trust funds is prohibited; trust shortages must be reported to the Commission immediately.

Risk management: document instructions, use written agreements, verify information, and maintain errors and omissions insurance.

Advertising, social media, and testimonials must comply with Commission advertising rules and not be misleading.

Privacy legislation governs collection, use, and disclosure of client personal information; obtain consent and secure records.

Reportable incidents include criminal charges, discipline by another regulator, and trust account irregularities.

Common property types: detached, semi-detached, townhouse, condominium, duplex, acreage, waterfront, and commercial/investment.

Construction basics: footing and foundation, framing, roofing, mechanical, electrical, and finishes; building codes set minimum standards.

Building permits are required for structural work, additions, and many renovations; unpermitted work is a material fact.

Well and septic systems are common in rural Nova Scotia; water quality testing and septic inspection are typical conditions.

Environmental hazards: urea-formaldehyde foam insulation, asbestos, lead paint, radon, mould, and underground oil tanks.

Oil tank leaks and contaminated soil trigger environmental legislation and can affect financing and value.

Waterfront and coastal properties may be subject to wetlands, floodplain, and coastal protection regulations.

Condominium documents (declaration, bylaws, financial statements, reserve fund study) should be reviewed before purchase.

Real Estate Trading Act sets licensing and trust requirements; Commission bylaws add operational detail.

Licence held by brokerage; salespersons and associate brokers act under it.

Written service agreements required before trading services.

Trust accounts reconciled monthly; no commingling.

Commission paid through brokerage only.

Discipline includes fines, suspension, revocation, and education orders.

Trade records retained per bylaw period.

Trading includes leasing, optioning, and negotiating for remuneration.

Fiduciary duties: loyalty, obedience, disclosure, confidentiality, accounting, care.

Designated agency allows one brokerage to represent multiple parties through different licensees.

Dual agency requires written informed consent of all parties.

Customers receive honesty and factual information, not confidentiality.

Material facts must be disclosed to clients and, where required, to all parties.

Confidentiality continues after the agreement ends.

Self-dealing requires written disclosure and consent.

Agency arises from written agreement, not from showings.

APS essentials: parties, property, price, deposit, closing date, inclusions, conditions.

Deposit held in trust; disposition on default governed by contract and statute.

Conditions must be waived or satisfied in writing by the deadline.

Time is of the essence unless stated otherwise.

Closing: adjustments, title search, registration, disbursement.

Seller warrants good title; buyer obtains title search or insurance.

Amendments must be written and signed by both parties.

Material latent defects must be disclosed.

Fee simple is the fullest estate; life estate and leasehold are lesser.

Joint tenancy includes survivorship; tenancy in common does not.

Easements and restrictive covenants run with the land.

Nova Scotia uses registry and Land Registration Act parcel registers.

Title defects: encumbrances, encroachments, unregistered interests.

Matrimonial home rights may exist regardless of registered title.

Condominium units carry an interest in common elements.

Waterfront boundaries can shift by accretion or erosion.

LTV = loan ÷ value; above 80% requires default insurance.

GDS = housing costs ÷ gross income; guideline maximum 32%.

TDS = housing plus other debt ÷ gross income; guideline maximum 40-44%.

Payment: P = L × [i(1+i)^n] ÷ [(1+i)^n − 1].

Semi-annual compounding: effective rate = (1 + r/2)^(2/m) − 1.

Stress test: contract rate plus 2% or benchmark, whichever is greater.

Closing costs: land transfer tax, legal fees, title insurance, adjustments.

Penalties: three months' interest or interest rate differential.

Approaches: comparison, cost, income.

Cap rate = NOI ÷ value; value = NOI ÷ cap rate.

Gross rent multiplier = price ÷ gross annual rent.

Comparison adjustments: time, location, size, condition, features.

Market value assumes informed parties and reasonable exposure.

Absorption rate = sales ÷ active listings.

Assessment value is not market value.

List-to-sale ratio and days on market guide pricing.

Listing types: exclusive right to sell, exclusive agency, open listing.

Listing agreement states price, term, commission, inclusions, marketing authority.

Advertising must be accurate and identify the brokerage.

Buyer agency begins with a written buyer service agreement.

Material facts must be disclosed to buyers.

Human rights law prohibits discriminatory advertising.

Marketing plan requires seller consent for photography and open houses.

Commission is negotiable and paid per the service agreement.

Ethics duties: honesty, integrity, care, confidentiality, conflict avoidance.

No misrepresentation or concealment of material defects.

Disclose personal interest and referral fees in writing.

No commingling of trust and personal funds; report shortages.

Document instructions and maintain E&O insurance.

Advertising and social media must not mislead.

Privacy law governs collection and disclosure of personal information.

Report charges, foreign discipline, and trust irregularities.

Property types: detached, semi, townhouse, condo, duplex, acreage, waterfront, commercial.

Construction sequence: foundation, framing, roofing, mechanical, electrical, finishes.

Permits required for structural work and additions.

Rural properties often use well and septic systems.

Hazards: UFFI, asbestos, lead paint, radon, mould, oil tanks.

Oil tank leaks can trigger environmental liability.

Coastal and wetland regulations affect waterfront property.

Review condo declaration, bylaws, financials, and reserve study.