Question 1

Briefly outline the typical covenants in a commercial lease.

Accepted Answer

There are a number of features typical in a commercial lease,including the following terms: 
• The tenant is responsible for repairs unless the lease imposes some obligation on the landlord.
• The tenant is entitled to exclusive and quiet possession of the premises for the full term.In return,the tenant must pay rent and observe the terms of the lease.
• The tenant cannot withhold rent,even if the landlord fails to meet a requirement in the lease.The tenant's remedy is to claim compensation from the landlord while continuing to pay rent.
• The tenant cannot terminate the lease and move out unless the landlord's breach of the lease has made the premises uninhabitable for normal purposes.
• Ordinarily,the tenant can assign the lease or sublet the property to another tenant.It is common for the lease to require the landlord's consent for both of these arrangements.Such leases normally also provide that the landlord's consent may not be unreasonably withheld.

Question 2

The risk associated with borrowing a high percentage of the capital needed to acquire commercial real estate is that,if there is default in payment due under the loan at any time and the company is unable to negotiate more favourable terms with the lender,the ownership and possession of the property can be completely lost.

Accepted Answer

A) True 
 B)False  True

Question 3

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

A)  lien 
B)  easement 
C)  restrictive covenant 
D)  forfeiture rule 
A)  lien 
B)  easement 
C)  restrictive covenant 
D)  forfeiture rule C

Question 4

Andrea manages several strip malls for a mid sized real estate holding company.One tenant appears to have abandoned the offices he had leased,leaving a lot of possessions of value behind.Andrea has taken all of the necessary steps to sell the property and apply the proceeds to the tenant's rent arrears.What is the legal description of the remedy Andrea is pursuing?

Accepted Answer

A)  assignment of lease 
B)  commercial sublet of lease 
C)  exclusive occupation 
D)  landlord's right of distress 
A)  assignment of lease 
B)  commercial sublet of lease 
C)  exclusive occupation 
D)  landlord's right of distress

Question 5

It is typical that a commercial lease will address such important matters as the responsibility for repairs and maintenance to the leased space and any common areas,as well as permitted alterations a tenant may make to the space and what happens with the alterations once the lease expires.

Accepted Answer

A) True 
 B)False

Question 6

Briefly discuss tenancy in common.

Accepted Answer

Tenancy in common provides each owner in

Question 7

The city has decided to green up its public transportation system by converting to light rail transit.Plans are underway to commence compensation negotiations with affected landowners.What is the legal name given to the type of authority that has been exercised in these circumstances?

Accepted Answer

A)  authority to regulate zoning 
B)  authority of restrictive covenant 
C)  authority to expropriate 
D)  authority of easement of ownership 
A)  authority to regulate zoning 
B)  authority of restrictive covenant 
C)  authority to expropriate 
D)  authority of easement of ownership

Question 8

Identify the key features of the land titles system.

Accepted Answer

​ In the land titles system,the certific

Question 9

With the exception of Newfoundland and Labrador,Prince Edward Island,and Quebec,all provinces and territories in Canada either use the land titles system or are in the process of converting from a registry system to a land titles system.

Accepted Answer

A) True 
 B)False

Question 10

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

A)  Title defects can be fixed to give first priority. 
B)  It is justification of the valuation of the land. 
C)  It provides verified ownership by searching chain of title. 
D)  It is authoritative proof of the status of title. 
A)  Title defects can be fixed to give first priority. 
B)  It is justification of the valuation of the land. 
C)  It provides verified ownership by searching chain of title. 
D)  It is authoritative proof of the status of title.

Question 11

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

Accepted Answer

A)  preserving the value of the land in question 
B)  scheduling payments 
C)  controlling use of the land 
D)  the personal guarantee of the borrower 
A)  preserving the value of the land in question 
B)  scheduling payments 
C)  controlling use of the land 
D)  the personal guarantee of the borrower

Question 12

The rights of the mortgage lender are limited to a combination of the following three remedies: suing the borrower,taking possession of the land,and foreclosure.

Accepted Answer

A) True 
 B)False

Question 13

Briefly discuss the relevance of the sequence of registration in a land registry system and a land titles system.Also identify how the sequence of registration has recently become particularly problematic,and identify the parties affected by those problems.

Accepted Answer

The sequence of registration is crucial

Question 14

Briefly discuss joint tenancy.

Accepted Answer

A joint tenancy is a form of undivided c

Question 15

The rights of a new purchaser will normally be subject to any previously registered interests against the title.

Accepted Answer

A) True 
 B)False

Question 16

Which term refers to the remedy that allows a lender to terminate the mortgagor's interest in the property?

Accepted Answer

A)  exclusive possession 
B)  foreclosure 
C)  action on the deficiency 
D)  distress 
A)  exclusive possession 
B)  foreclosure 
C)  action on the deficiency 
D)  distress

Question 17

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

A)  Prime cannot sue Dally for the shortfall if it elects to proceed with foreclosure. 
B)  Prime cannot sell the property if Dally is still using it as her primary residence. 
C)  Prime cannot sell the property if it will result in a shortfall. 
D)  Prime can sue Dally for the shortfall between the outstanding mortgage and proceeds from the sale. 
A)  Prime cannot sue Dally for the shortfall if it elects to proceed with foreclosure. 
B)  Prime cannot sell the property if Dally is still using it as her primary residence. 
C)  Prime cannot sell the property if it will result in a shortfall. 
D)  Prime can sue Dally for the shortfall between the outstanding mortgage and proceeds from the sale.

Question 18

A mortgage covering the loan arranged by Kryhalla Spa Inc.has been forwarded to the land titles system.What is the most likely result once the document has been registered?

Accepted Answer

A)  Registration gives the owner an occupier's right to the land. 
B)  Registration transfers ownership to the lender for the duration of the loan. 
C)  Registration creates a right to have ownership restored. 
D)  Registration creates a charge on land until repayment is complete. 
A)  Registration gives the owner an occupier's right to the land. 
B)  Registration transfers ownership to the lender for the duration of the loan. 
C)  Registration creates a right to have ownership restored. 
D)  Registration creates a charge on land until repayment is complete.

Question 19

The legal right to drive across someone's land would typically be achieved through a restrictive covenant.

Accepted Answer

A) True 
 B)False

Question 20

A tenant cannot withhold rent,even if the landlord fails to meet a requirement in the lease and must instead sue for compensation while continuing to pay rent.

Accepted Answer

A) True 
 B)False

Exam 19: Real Property

Briefly outline the typical covenants in a commercial lease.

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?

It is typical that a commercial lease will address such important matters as the responsibility for repairs and maintenance to the leased space and any common areas,as well as permitted alterations a tenant may make to the space and what happens with the alterations once the lease expires.

Briefly discuss tenancy in common.

The city has decided to green up its public transportation system by converting to light rail transit.Plans are underway to commence compensation negotiations with affected landowners.What is the legal name given to the type of authority that has been exercised in these circumstances?

Identify the key features of the land titles system.

With the exception of Newfoundland and Labrador,Prince Edward Island,and Quebec,all provinces and territories in Canada either use the land titles system or are in the process of converting from a registry system to a land titles system.

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

The rights of the mortgage lender are limited to a combination of the following three remedies: suing the borrower,taking possession of the land,and foreclosure.

Briefly discuss the relevance of the sequence of registration in a land registry system and a land titles system.Also identify how the sequence of registration has recently become particularly problematic,and identify the parties affected by those problems.

Briefly discuss joint tenancy.

The rights of a new purchaser will normally be subject to any previously registered interests against the title.

Which term refers to the remedy that allows a lender to terminate the mortgagor's interest in the property?

A mortgage covering the loan arranged by Kryhalla Spa Inc.has been forwarded to the land titles system.What is the most likely result once the document has been registered?

The legal right to drive across someone's land would typically be achieved through a restrictive covenant.

A tenant cannot withhold rent,even if the landlord fails to meet a requirement in the lease and must instead sue for compensation while continuing to pay rent.

Knowledge of Law As a Business Asset

The Canadian Legal System

Managing Legal Risks

Dispute Resolution

An Introduction to Contracts

Forming Contractual Relationships

The Terms of a Contract

Non-Enforcement of Contracts

Termination and Enforcement of Contracts

Introduction to Tort Law

The Tort of Negligence

Other Torts

The Agency Relationship

Business Forms and Arrangements

The Corporate Form: Organizational Matters

The Corporate Form: Operational Matters

Introduction to Property Law

Intellectual Property

The Employment Relationship

Terminating the Employment Relationship

Professional Services

The Sale of Goods

Consumer Protection and Competition Law

Business and Banking

The Legal Aspects of Credit

Bankruptcy and Insolvency

Insurance

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