Question 1

What is the term for the system of land registration that guarantees title to land?

Accepted Answer

The land titles system guarantees title to land, providing a high level of security to land ownership by recording ownership, interests, and other rights in the land.

Question 2

What are the circumstances that would allow a party to disregard the particular type of registry system used to register documents securing a loan against a title?

Accepted Answer

The right to an interest prioritized by registration is a circumstance that would allow a party to disregard the particular type of registry system used, as the priority of interests is a fundamental aspect of property law that transcends the specifics of how documents are registered.

Question 3

Sylvano requested a copy of Certificate of Title No.12312 from the land titles office.He intends to purchase the land for development if it is unencumbered by registrations affecting its use.This particular land titles office maintains an insurance fund to compensate for loss due to their error.What significance does that fact have with respect to the copy of title Sylvano will receive in exchange for payment of the prescribed fee?

Accepted Answer

The insurance fund maintained by the land titles office is designed to compensate for losses due to errors in the titles they provide. Therefore, the copy of the title Sylvano receives, for which he pays a fee, is considered authoritative proof of the status of the title, including any encumbrances or clearances. This assurance is critical for buyers like Sylvano who need to know the exact status of the land they intend to purchase.

Question 4

Which term refers to the concept of "buyer beware"?

Accepted Answer

Caveat emptor is a Latin term that means "let the buyer beware." This principle of contract law puts the onus on the buyer to perform due diligence before making a purchase.

Question 5

Aaron and Janelle enjoyed years of experiences shared through their rewarding ownership of Crystal Lake Cottage Resort Inc.When Aaron died unexpectedly,the title automatically transferred to Janelle.Aaron's family has decided to dispute Janelle's right to ownership.What is the name given to the type of ownership interest enjoyed by Aaron and Janelle that allowed her to acquire ownership in this manner?

Accepted Answer

Joint tenancy includes the right of survivorship, meaning when one owner dies, their interest in the property automatically transfers to the surviving owner(s), as was the case between Aaron and Janelle.

Question 6

What type of land ownership confers the most comprehensive level of ownership possible?

Accepted Answer

Fee simple ownership grants the most comprehensive level of ownership possible, allowing the owner almost unlimited control over the property, including the rights to use, sell, or bequeath it.

Question 7

What distinguishes an undivided one half interest held in a tenancy in common from a one half interest held in a joint tenancy with respect to the co ownership of real estate?

Accepted Answer

The answer of What distinguishes an undivided one half interest...

Question 8

François and Wallace have been neighbours for ten years.François arranged to have a new garage constructed in his backyard.He provided the builders with his surveyor's certificate,but after completion the garage encroached onto Wallace's land.What is the most likely and amicable method of resolving the encroachment?

Accepted Answer

An easement agreement is the most likely and amicable method for resolving the encroachment issue, as it would legally allow François's garage to encroach onto Wallace's land with Wallace's permission, avoiding the need for litigation or other less cooperative solutions.

Question 9

What is a distinguishing characteristic of a joint tenancy?

Accepted Answer

A distinguishing characteristic of a joint tenancy is the right of survivorship, meaning that when one joint tenant dies, their interest in the property automatically passes to the surviving joint tenant(s), rather than being part of the deceased's estate.

Question 10

Which of the following is NOT an advantage of land titles systems over registry systems?

Accepted Answer

The answer of Which of the following is NOT an...

Question 11

Graham has granted a cellphone company permission to erect a transmission tower on his property.What type of right has Graham granted?

Accepted Answer

Graham has granted an easement, which is a right for someone else to use a specific part of his property for a specific purpose, in this case, to erect a transmission tower.

Question 12

John and Jackson are purchasing a property together and would like to register their title as joint tenants.What is the defining feature that distinguishes this form of ownership?

Accepted Answer

The defining feature of joint tenancy is the right of survivorship, where upon the death of one owner, their interest in the property automatically passes to the surviving owner(s), rather than to the deceased owner's heirs or through their will.

Question 13

Drew meets with Sherry to have a second look at an apartment block his corporation may be interested in purchasing.Why might Drew call an appraiser when he returns to the office?

Accepted Answer

Appraisers are professionals who assess the value of properties based on various factors including the condition of the property, its location, and market trends. Drew would likely call an appraiser to get a formal valuation of the apartment block to help in making an informed purchase decision.

Question 14

From a lender's perspective,which of the following is the focus of a mortgage?

Accepted Answer

Preserving the value of the land in question is the focus of a mortgage from a lender's perspective.

Question 15

Before the real estate market took a serious downturn,Prime Lenders Inc.had entered into a high ratio mortgage agreement with Juha Dally.Dally ceased making mortgage payments six months ago,and Prime now wants to commence foreclosure proceedings,but it appears that the proceeds of the sale will not be sufficient to pay the outstanding debt.Which of the following statements describes Prime's legal position?

Accepted Answer

Prime Lenders Inc. can sue Dally for the shortfall between the outstanding mortgage and the proceeds from the sale. This is a common legal recourse for lenders in the event that the foreclosure sale does not cover the outstanding debt.

Question 16

The Krays are purchasing a home in a new subdivision and,like all the other homes in the subdivision,the property's title contains a prohibition from erecting a storage shed on the property.What is the name for this type of restriction?

Accepted Answer

This type of restriction is known as a restrictive covenant. It is a legal obligation imposed in a deed by the seller upon the buyer of real estate to do or not do something. In this case, it prohibits the erection of a storage shed on the property.

Question 17

What typically occurs during the "closing" stage of a real estate transaction?

Accepted Answer

During the "closing" stage of a real estate transaction, the seller delivers the title document to the buyer, and the buyer makes the final payment. This is the final step in the transaction process where ownership officially changes hands.

Question 18

In what way is a registry system different from a land titles system?

Accepted Answer

In a registry system, the government does not guarantee the validity of documents, whereas in a land titles system, the government guarantees the title's validity.

Question 19

What is the legal effect of a financing condition in an offer?

Accepted Answer

The financing condition in an offer means that the transaction is contingent upon the buyer obtaining financing (usually a mortgage) from a lender. If the buyer cannot secure the necessary financing, the deal will not go through, protecting the buyer from being obligated to purchase a property they cannot afford.

Question 20

The Burtons are selling their home which has long standing basement flooding problems which have damaged the foundation of the home.Before putting the home up for sale,they renovated the basement and the foundation crack is now behind a wall and cannot be seen.Which statement best describes the Burton's obligations toward potential buyers of the home?

Accepted Answer

They have a positive duty to disclose the hidden defect because it is a significant issue that affects the property's value and safety, and concealing such information can lead to legal consequences.

Quiz 19: Real Property