Course 4: Commercial Real Estate Transactions - Humber Real Estate Education

C4_Cover
C4_M1_Introducing_Commercial_Real_Estate
	Module 1: Introducing Commercial Real Estate
	Module 1: WELCOME TO INTRODUCING COMMERCIAL REAL ESTATE
	Menu: Introducing Commercial Real Estate
	Lesson 1: The Commercial Real Estate Environment
	The Commercial Real Estate Environment
	What is Commercial Real Estate?
	Your Employment
	Introduction to Seller/Buyer Relationships
	Terms of the Agreement
	Offers and Negotiations
	Due Diligence Required When Listing/Selling Commercial Real Estate
		Scope of analysis
	Time period
	Financial/Operational
	Due Diligence Required When Listing/Selling Commercial Real Estate
		Legal
	Structural (Building Condition Report)
	Environmental
	Congratulations, you have completed the lesson!
	Lesson 2: Impact of REBBA and the Commercial Tenancies Act when Trading in Commercial Real Estate
	Impact of REBBA and the Commercial Tenancies Act when Trading in Commercial Real Estate
	Introduction to REBBA
	Disclosure of Material Facts and Conscientious and Competent Service
	Impact of REBBA on Activities of Salespersons
		Record keeping
	Recommending services from third-party providers
	Working with registered and unregistered assistants
	Introduction to the Commercial Tenancies Act
	Rights and Obligations Under the Commercial Tenancies Act
	Dispute Resolution
		Option 1 – Small Claims Court
	Option 2 – Superior Court of Justice
	Congratulations, you have completed the lesson!
	Lesson 3: Impact of the Ontario Building Code, the Planning Act, and Zoning Bylaws on Commercial Real Estate
	Impact of the Ontario Building Code, the Planning Act, and Zoning Bylaws on Commercial Real Estate
	Introduction to the Ontario Building Code
	Building Permits
	Obtaining a Building Permit
		Step 1: Application
	Step 2: Review
	Step 3: Permit
	Step 4: Inspections
	Planning Fundamentals
	Influence of Bylaws and Planning on Commercial Development
	Congratulations, you have completed the lesson!
	Lesson 4: The Benefits and Challenges to Investing in Commercial Real Estate
	The Benefits and Challenges to Investing in Commercial Real Estate
	Introduction to Types of Commercial Properties
	Office Properties
	Retail Properties
	Industrial Properties
	Multi-Residential Properties
	Farm Properties
	Recreational, Hospitality, and Institutional Properties
		Recreational properties
	Hospitality properties
	Institutional properties
	Vacant Land
	Commercial-Residential-Retail Properties
	Ownership Options for Commercial Property
	Benefits and Limitations of Ownership Options for Commercial Properties
	Introduction to Commercial Investments
	Benefits and Opportunities to Investing in Commercial Real Estate
	Challenges and Risks to Investing in Commercial Real Estate
	Congratulations, you have completed the lesson!
	Lesson 5: Third-Party Professionals
	Third-Party Professionals
	Importance of Third-Party Professionals
	Roles of Third-Party Professionals in Commercial Real Estate Transactions
		Lawyer
	Accountant
	Environmental engineer
	Planning consultant
	Property manager
	Roles of Third-Party Professionals in Commercial Real Estate Transactions
		Appraiser
	Land use consultant
	Commercial mortgage broker or lender
	Architect and engineer
	Insurance broker
	Congratulations, you have completed the lesson!
	Lesson 6: An Introduction to Commercial Financing
	An Introduction to Commercial Financing
	Introduction to Commercial Financing and Mortgage Qualification
	Financing Requirements
		Financial capabilities of buyers
	Identifying needs of buyers
	Sources of funding for buyers
	Steps in the Mortgage Process
	Commercial Lending Practices
	Commercial Financing
	Types of Commercial Loans
	Financial Burden on the Buyer
	Financial Risk Identification
	Congratulations, you have completed the lesson!
	Lesson 7: The Impact of Taxation on Commercial Property Ownership
	The Impact of Taxation on Commercial Property Ownership
	Seller Tax Considerations
	Tax Concepts for Commercial Real Estate
	Tax Complexities: Harmonized Sales Tax (HST)
	Examples of Tax Calculations for Commercial Real Estate Sellers
		Capital gain
	Capital loss
	Capital cost allowance
	Congratulations, you have completed the lesson!
	Lesson 8: Summary Practice Activities
	Congratulations, you have completed the lesson!
	Module Summary
	Congratulations, you have completed this module!
	2.pdf
		Commercial Seller Representation Agreements – Differences from Residential
			Clause 1: Definitions and Interpretations
		Clause 2: Commission
		Clause 7: Indemnification and Insurance
	2c.pdf
		Clause 1: Definitions and Interpretations
		Commercial Buyer Representation Agreements – Differences from Residential
		Clause 2: Services Provided by the Brokerage
		Clause 3: Responsibilities of the Buyer
	1.pdf
		Tax Complexities
	2.pdf
		Module Resources
	2.pdf
		Recaptured capital cost allowance
	139-140.pdf
		Types of Commercial Loans
	18.pdf
		Seller Representation Agreements
	22.pdf
		Buyer Representation Agreements
C4_M2_Understanding_Commercial_Construction
	C04_M02_Understanding Commercial Construction
C4_M3_Identifying_Requirements_for_Office_and_Retail_Properties
	Untitled
C4_M4_Preparing_to_Sell_Office_and_Retail_Properties
	C04_M04_Preparing to Sell Office and Retail Properties_2
C4_M5_Preparing_to_Sell_Commercial_Condominiums
	Module 5: Preparing to Sell Commercial Condominiums
C4_M6_Identifying_Requirements_for_Industrial_Properties
	C04_M06_Identifying_Requirements_for_Industrial_Properties_2
C4_M7_Preparing_to_Sell_Industrial_Properties
	Module 7: Preparing to Sell Industrial Properties
C4_M8_Showing_Office_Retail_or_Industrial_Properties_And_Advising_on_Properties_of_Interest
	Module 8: Showing Office, Retail, or Industrial Properties and Advising on Properties of Interest
C4_M9_Completing_Agreements_of_Purchase_and_Sale_for_Office_and_Retail_Properties
	C04_M09_Completing_Agreements_of_Purchase_and_Sale_for_Office_and_Retail_Properties
C4_M10_Completing_Agreements_of_Purchase_and_Sale_for_Commercial_Condominiums
	Module 10: Completing Agreements of Purchase and Sale for Commercial Condominiums
	Module 10: WELCOME TO COMPLETING AGREEMENTS OF PURCHASE AND SALE FOR COMMERCIAL CONDOMINIUMS
	Menu: Completing Agreements of Purchase and Sale for Commercial Condominiums
	Lesson 1: Introduction to an Agreement of Purchase and Sale for a Commercial Condominium
	Introduction to an Agreement of Purchase and Sale for a Commercial Condominium
	Commercial Condominium Agreement of Purchase and Sale
		Property Description
	Parking and Lockers
	Property Manager
	Common Expenses
	Additional Parking and Lockers
	Approval
	Present Use
	Status Certificate and Management
	Meetings
	Outdoor Signage
	Chattels and Fixtures
	Chattels and Fixtures
	Congratulations, you have completed the lesson!
	Lesson 2: Review an Agreement of Purchase and Sale for a Commercial Condominium
	Review an Agreement of Purchase and Sale for a Commercial Condominium
	Clauses and Conditions in a Commercial Condominium Agreement of Purchase and Sale, Continued
		Key Fob/Access Device
	Special Assessments
	Occupation Prior to Completion of Construction
	Occupation Prior to Completion of the Transaction
	Review and Approval of the Status Certificate and Attachments
	Review and Approval of the Status Certificate and Attachments
	Warranty on Alterations
	Warranty on Alterations
	Congratulations, you have completed the lesson!
	Lesson 3: Complete an Agreement of Purchase and Sale for a Commercial Condominium
	Complete an Agreement of Purchase and Sale for a Commercial Condominium
	Commercial Condominium Scenario
	Completed Offer Plan
	Completing the Agreement – Part 2
	Completing the Agreement – Part 3
	Clauses in the Agreement
	Congratulations, you have completed the lesson!
	Lesson 4: Pre-Closing Issues for a Commercial Condominium
	Pre-Closing Issues for a Commercial Condominium
	Possible Issues Prior to Completion
	Buyer’s Options
	Change in Assessed Value of New Condominium
	Restrictions on Use
	Review of Documentation
	Ensure Understanding
	Potential Resolutions
	Congratulations, you have completed the lesson!
	Lesson 5: Summary Practice Activities
	Summary Practice Activities
	Congratulations, you have completed the lesson!
	Module Summary
	Congratulations, you have completed this module!
	1.pdf
		Clauses for Consideration
	54-55.pdf
		Completing the Agreement – Part 1
	59-61.pdf
		Completing the Agreement – Part 4
	103-104.pdf
		Scenario
	103-104.pdf
		Scenario
	49-51.pdf
		Drafting an Offer Plan
C4_M11_Completing_Agreements_of_Purchase_and_Sale_for_Industrial_Properties
	C04_M11.pdf
		Module 11: Completing Agreements of Purchase and Sale for Industrial Properties
C4_M12_Preparing_to_Lease_Office_Retail_and_Industrial_Properties
C4_M13_Transactions_Involving_Commercial_Leasing
	C04_M13_Transactions_Involving_Commercial_Leasing
C4_M14_Transactions_Involving_Development_Land_and_Farms
C4_M15_Transactions_Involving_Brokering_the_Sale_of_a_Business
	Module 15: Transactions Involving Brokering the Sale of a Business
	Module 15: TRANSACTIONS INVOLVING BROKERING THE SALE OF A BUSINESS
	Menu: Transactions Involving Brokering the Sale of a Business
	Lesson 1: REBBA's Impact on the Sale and Purchase of a Business
	REBBA's Impact on the Sale and Purchase of a Business
	Trading in Businesses
	Definition of business and components of a business sale
	Regulatory requirements
	Business Brokerage as a Real Estate Specialty
	Business Brokerage as a Real Estate Specialty
	Regulatory Requirements Under REBBA Affecting the Purchase of a Business
		Providing statements to the buyer
	Consequences of not providing the list of items not included in the transaction
	Affidavit statements
	Complexity in Selling a Business
	Congratulations, you have completed the lesson!
	Lesson 2: Additional Regulations and Legislation Impacting the Sale of a Business
	Additional Regulations and Legislation Impacting the Sale of a Business
	Impact of Municipal Bylaws on Business Trading
	Prohibitions on Businesses in Specific Areas of the Community
	Other Provincial Legislation that Affects Trading in Businesses
		Business Corporations Act
	Partnerships Act
	Impact of the Employment Standards Act on a Listing Salesperson
	Federal Legislation That Affects Trading in Businesses
		Income Tax Act: Capital gains
	Excise Tax Act: Harmonized sales tax (HST)
	Personal Information Protection and Electronic Documents Act (PIPEDA)
	Canada Labour Code
	Congratulations, you have completed the lesson!
	Lesson 3: Providing Services to a Seller or Buyer
	Providing Services to a Seller or Buyer
	Services Provided to Seller Clients
		Note specifics about the business
	Obtain and review documents required under REBBA
	Create and implement a marketing plan
	Marketing considerations
	Visit to the business
	Present and explain agreements
	Recommend third-party professional advice
	Confidentiality Agreements
		Parties
	Purpose
	Provisions
	Services Provided to Buyer Clients
		Identify business for the buyer and schedule appointments for viewing
	Draft agreement of purchase and sale
	Obtain necessary documentation from a seller
	Provide assistance and advice to complete the transaction
	Refer the buyer to third-party professionals
	Salesperson Compliance Requirements
		Fairness and honesty
	Client’s best interests
	Conscientious and competent service
	Providing opinions
	Services from others
	Disclosure of interest
	Congratulations, you have completed the lesson!
	Lesson 4: Understanding Financial Statements
	Understanding Financial Statements
	Income and Expense Statement
	Balance Sheet
	Audited and Unaudited Statements
	Notice to Reader Report
	Congratulations, you have completed the lesson!
	Lesson 5: Key Considerations when Selling a Business
	Key Considerations when Selling a Business
	Key Aspects of an Asset Sale and a Share Sale
	Asset Sale and Share Sale Considerations
	Key Considerations When Selling a Business
		Create a list of included and excluded items
	Provide a copy of the lease to the buyer
	Review a lease
	Disclose business to business sublets
	Disclose subleasing to the buyer
	Inventory valuation
	Disclose subtenant sublets
	Operating Licence
	Trade Unions
	Intellectual Property Use Agreement
	Distribution Rights Agreement
	Retention of Employees When Selling a Business
	Seller Financing
	Terms of a Seller Financing Agreement
	Seller Financing: Earnout
	Seller Financing: Types of Earnout
		Base period earnout
	Incremental earnout
	Cumulative earnout
	Congratulations, you have completed the lesson!
	Lesson 6: Valuing a Business
	Valuing a Business
	Direct Capitalization Method
	Considerations for Using the Direct Capitalization Method
		Benefits
	Other considerations
	Gross Profit Multiplier Method
	How to Calculate a Weighted Average
	Gross Profit Multiplier Method: Methods to Adjust Variances in Gross Profit
	Discounted Cash Flow Method
	Considerations for Using the Discounted Cash Flow Method
		Benefits
	Drawbacks
	Adjusted Book Value and Asset Valuation Methods
	Examples of Adjusted Book Value and Asset Valuation Methods
		Adjusted book value method
	Asset valuation method
	When to Use the Adjusted Book Value and Asset Valuation Methods
		Adjusted book value method
	Asset valuation method
	Factors That Impact the Selection of a Valuation Method
	Congratulations, you have completed the lesson!
	Lesson 7: Role of Third-Party Professionals
	Role of Third-Party Professionals
	Role of Potential Third-Party Professionals in Business Trades
		Accountants
	Lawyers
	Chartered business valuators
	Lenders
	Sources and Locations of Site Contamination
	Legislative Impact
		Clear Water Act
	Places to Grow Act
	Due Diligence: Recommending Third-Party Professionals
	Due Diligence: Financial, Legal, and Structural
		Financial
	Legal
	Structural
	Due Diligence: Verification of Ownership, Contracts, and Leases
	Compliance Concerns: Listing Salesperson Perspective
		Insufficient due diligence documents
	Misrepresentation of income and expenses
	Outdated or incomplete financial reporting
	Inability to verify the condition of goods, chattels, and fixtures
	Undisclosed liabilities
	Compliance Concerns: Buyer’s Salesperson Perspective
	Congratulations, you have completed the lesson!
	Lesson 8: Turnkey and Franchise Businesses
	Turnkey and Franchise Businesses
	Turnkey and Franchise Businesses
	Considerations of a Franchise Business – Part 1
	Considerations of a Franchise Business – Part 2
	Common Franchise Categories
		Retail
	Business and personal services
	Travel and leisure
	Additional Consideration: Selling a Franchise
	Buyer’s Obligation and Salesperson’s Role
	Congratulations, you have completed the lesson!
	Lesson 9: Preparing to Sell a Business
	Preparing to Sell a Business
	Gathering Facts: Questions to Ask
		Leased or owned premises
	Financial statements
	Type of sale (shares or assets)
	Inventory
	Business licences and agreements
	Buyer requirements
	Discretion about the sale
	Congratulations, you have completed the lesson!
	Lesson 10: Pre-closing Issues for a Business Trade
	Pre-closing Issues for a Business Trade
	Pre-closing Issues That May Affect a Business Trade Transaction
		Ownership of major assets
	Lender issues
	Unforeseen circumstances that affect insurance rates
	Missing chattels and/or fixtures
	Assumed approvals changed or withdrawn
	Unfulfilled agreed-upon terms
	Change to a material component of the business
	Sample Clauses for Business Trades
		Condition for due diligence investigation extending to the day of closing
	Condition to re-inspect the premises prior to closing
	Condition for seller to update all due diligence documents
	Example Condition for Updated Financial Information
	Managing the Exchange of Documentation
	Congratulations, you have completed the lesson!
	Lesson 11: Summary Practice Activities
	Summary Practice Activities
	Congratulations, you have completed the lesson!
	Module Summary
	Module Summary
	MS.pdf
		Module Resources