Question 1

Which of the following statements is TRUE?

Accepted Answer

A) A registry system is sometimes called a Torrens system. 
B) Every province in Canada uses both a land titles system and a registry system. 
C) The rules that govern a land titles system were developed by judges,rather than legislators. 
D) The three principles of a land titles system are the mirror principle,the curtain principle,and the indefeasibility principle. 
E) An unregistered short-term lease may be enforceable under either a registry system or a land titles system. 
A) A registry system is sometimes called a Torrens system. 
B) Every province in Canada uses both a land titles system and a registry system. 
C) The rules that govern a land titles system were developed by judges,rather than legislators. 
D) The three principles of a land titles system are the mirror principle,the curtain principle,and the indefeasibility principle. 
E) An unregistered short-term lease may be enforceable under either a registry system or a land titles system.

Question 2

A mortgage under a registry system involves an immediate conveyance of title,but a mortgage under a land titles system does not.

Accepted Answer

A) True 
 B)False

Question 3

A piece of land called Blackacre is subject to a mortgage in favour of Hal.The mortgage was created to secure a debt of $100 000 that Myriam owed to Hal.Myriam defaulted on the repayment of that debt.Blackacre is worth $250 000.Hal has announced that he intends to use the remedy of foreclosure.Because Myriam's default was negligent,a court would probably allow him to do so even if Myriam asked for an order for judicial sale instead.

Accepted Answer

A) True 
 B)False

Question 4

As used in the context of a mortgage,the legal concept of a "charge"

Accepted Answer

A) means that the land is located in a part of the country that uses the land titles system. 
B) refers to the interest that the mortgagee must pay on the loan. 
C) occurs when the mortgagor demands possession of the property. 
D) means that the land must be subject to some pre-existing,unregistered interest. 
E) requires title to the property to be transferred at the outset. 
A) means that the land is located in a part of the country that uses the land titles system. 
B) refers to the interest that the mortgagee must pay on the loan. 
C) occurs when the mortgagor demands possession of the property. 
D) means that the land must be subject to some pre-existing,unregistered interest. 
E) requires title to the property to be transferred at the outset.

Question 5

Alexis borrowed $500 000 from Chong.As security for the repayment of the loan,she gave a mortgage over her property.She has now repaid the loan and otherwise satisfied the terms of the mortgage.Consequently,assuming that the facts arose in a land titles jurisdiction,she is entitled to a re-conveyance of title.

Accepted Answer

A) True 
 B)False

Question 6

Identify and briefly explain why the remedy of possession often is not particularly attractive to a bank that is a mortgagee.

Accepted Answer

Under a registry system,the mortgagee be

Question 7

Briefly explain the relationship between the mirror principle and the curtain principle in the context of a land titles system.

Accepted Answer

There are two types of land registration

Question 8

Salvatore is considering buying a piece of land called Blackacre that previously contained a chemical factory.He has hired an environmental auditor.As Salvatore explained,"It's a good move from a risk management perspective.By hiring that person,I may avoid liability in the first place and I may have access to a source of compensation if something goes wrong later on." Explain the meaning of Salvatore's statement.

Accepted Answer

Since it had previously contained a chem

Question 9

On January 1,Ichiro contractually agreed to sell a piece of land called Blackacre to Mandy for $250 000.The sale was scheduled to close,and the price was expected to be paid in full on December 1.Before that date,however,the value of Blackacre increased to $350 000 because of a general increase in the real property market.Ichiro now refuses to complete the transaction by transferring Blackacre to Mandy.She admits that she wanted to purchase the property for investment purposes only.Nevertheless,she claims that if she does not receive specific performance,she will not enjoy the benefit of the contract.Will a court award specific performance? If not,is there any other way for Mandy to enjoy the benefit of the contract? Explain your answers.

Accepted Answer

Specific performance is available only i

Question 10

Hofflehaus Inc owns a large piece of land known as Schwarzermorgen.It wanted to use that land as security for loans totaling $6 million.When it explained the situation to Primus Bank,however,it was told that it qualified for a loan of only $4 million.The company accepted the offer of that loan and allowed Primus Bank to take a mortgage over Schwarzermorgen.Primus Bank did not,however,immediately register its mortgage.The next day,the company approached Deuce Bank,asked for a loan of $2 million,and offered security in the form of a mortgage over Schwarzermorgen.The company did not mention that it had already granted a mortgage to Primus Bank and Deuce Bank had no other way of knowing about that first mortgage.Deuce Bank then (1)checked the records at the land registration office and found that there were no interests registered against Schwarzermorgen,(2)loaned $2 million to the company,and (3)immediately filed its own mortgage.The next day,Primus Bank finally registered its mortgage.And later that same day,the company suffered a devastating financial loss.That loss wiped out virtually every asset that the company had,including the $6 million that it had borrowed from the two banks.The company's only remaining asset is Schwarzermorgen.The value of Schwarzermorgen has,however,dropped to $1.5 million.That land has now been sold and the only question before the court concerns the disposition of the $1.5 million in cash.Which of the following statements is TRUE?

Accepted Answer

A) Each bank will receive half of the value of Schwarzermorgen. 
B) Primus Bank will receive $1 million and Deuce Bank will receive $500 000. 
C) Deuce Bank will receive $1 million and Primus Bank will receive $500 000. 
D) Primus Bank will receive $1.5 million and Deuce Bank must pay $4.5 million to Primus Bank. 
E) Deuce Bank will receive $1.5 million. 
A) Each bank will receive half of the value of Schwarzermorgen. 
B) Primus Bank will receive $1 million and Deuce Bank will receive $500 000. 
C) Deuce Bank will receive $1 million and Primus Bank will receive $500 000. 
D) Primus Bank will receive $1.5 million and Deuce Bank must pay $4.5 million to Primus Bank. 
E) Deuce Bank will receive $1.5 million.

Question 11

Jessica wants to purchase an old house to turn into a museum.Which of the following would be the most advantageous to have as a condition of the sale?

Accepted Answer

A) That the neighbours of the house give the current owner permission to sell 
B) That the pool in the back yard be removed 
C) That the lot is approved for commercial zoning 
D) That the current owner swears the house has historical significance 
E) That the house has proper humidification installed for housing paintings 
A) That the neighbours of the house give the current owner permission to sell 
B) That the pool in the back yard be removed 
C) That the lot is approved for commercial zoning 
D) That the current owner swears the house has historical significance 
E) That the house has proper humidification installed for housing paintings

Question 12

Which of the following statements provides the best definition for "the insurance principle," as that phrase was used in the text?

Accepted Answer

A) Because of the difficulties associated with title searches in registry systems,it is often prudent for the parties to a sale of land to purchase insurance that will provide a source of compensation if the chain of title is not properly established. 
B) The purchaser can sue the vendor for compensation if the vendor fails to provide clear title to land. 
C) Because of the concept of indefeasibility,the land titles system includes a fund that will compensate people who lose their interests in land by mistake of the land title system registry. 
D) A lawyer should be hired to help in the purchase of land,partly because the lawyer will have insurance and therefore can be successfully sued if something goes wrong. 
E) A purchaser of land should purchase property insurance that takes effect as soon as title is transferred from the vendor. 
A) Because of the difficulties associated with title searches in registry systems,it is often prudent for the parties to a sale of land to purchase insurance that will provide a source of compensation if the chain of title is not properly established. 
B) The purchaser can sue the vendor for compensation if the vendor fails to provide clear title to land. 
C) Because of the concept of indefeasibility,the land titles system includes a fund that will compensate people who lose their interests in land by mistake of the land title system registry. 
D) A lawyer should be hired to help in the purchase of land,partly because the lawyer will have insurance and therefore can be successfully sued if something goes wrong. 
E) A purchaser of land should purchase property insurance that takes effect as soon as title is transferred from the vendor.

Question 13

Alisa successfully used the remedy of foreclosure against Ivan.Which of the following statements is TRUE?

Accepted Answer

A) Alisa was the mortgagor. 
B) Ivan was the mortgagor. 
C) Alisa was the borrower. 
D) Ivan was the lender. 
E) Ivan was guilty of fraud. 
A) Alisa was the mortgagor. 
B) Ivan was the mortgagor. 
C) Alisa was the borrower. 
D) Ivan was the lender. 
E) Ivan was guilty of fraud.

Question 14

Suneeta wants to buy a large commercial property called Blackacre from Horst.The property contains various types of buildings.It is currently used as a television studio.Suneeta wants to use it as an Internet telecommunications centre.Which of the following statements is true as a matter of risk management?

Accepted Answer

A) Suneeta should hire an appraiser to determine whether or not Blackacre is,from a technical perspective,suitable for her business purposes. 
B) Suneeta should hire an inspector to ensure that the property,and buildings located on it are safe and sound and should hire a lawyer to make sure the land is zoned for her intended use. 
C) Suneeta should hire an environmental auditor to ensure that the buildings are strong enough to withstand the worst weather conditions that might reasonably be expected to occur in the area. 
D) Suneeta should hire a surveyor to search the marketplace in order to ensure that no other suitable property is available. 
E) Suneeta should hire a real estate agent to ensure that the land supposedly included within Blackacre does not encroach upon a neighbouring property. 
A) Suneeta should hire an appraiser to determine whether or not Blackacre is,from a technical perspective,suitable for her business purposes. 
B) Suneeta should hire an inspector to ensure that the property,and buildings located on it are safe and sound and should hire a lawyer to make sure the land is zoned for her intended use. 
C) Suneeta should hire an environmental auditor to ensure that the buildings are strong enough to withstand the worst weather conditions that might reasonably be expected to occur in the area. 
D) Suneeta should hire a surveyor to search the marketplace in order to ensure that no other suitable property is available. 
E) Suneeta should hire a real estate agent to ensure that the land supposedly included within Blackacre does not encroach upon a neighbouring property.

Question 15

Suki was recently involved in a successful application of the insurance principle under the land titles system.This most likely means that

Accepted Answer

A) the system made sure that she retained title to her land. 
B) she received a benefit under an insurance policy that she purchased from a private company. 
C) by checking the records carefully,she satisfied herself that she was at the end of a good chain of title. 
D) she acquired title to a new piece of land. 
E) the doctrine of indefeasibility has deprived her of an interest in land. 
A) the system made sure that she retained title to her land. 
B) she received a benefit under an insurance policy that she purchased from a private company. 
C) by checking the records carefully,she satisfied herself that she was at the end of a good chain of title. 
D) she acquired title to a new piece of land. 
E) the doctrine of indefeasibility has deprived her of an interest in land.

Question 16

Dianne is interested in a new condo being built in Hamilton,so she puts down a deposit.The condo is to be completed in 18 months.Nine months later,Dianne decides she no longer wants to move to Hamilton,so she asks for her money back and the seller refuses.In order to actively get her money back,Dianne should

Accepted Answer

A) arrange a purchaser's lien. 
B) prepare for a vendor's lien. 
C) sSue the vendor. 
D) hope the vendor changes his mind;her only hope is to have him voluntarily give back the money. 
E) hope the vendor voluntarily sells or mortgages the condo to someone else. 
A) arrange a purchaser's lien. 
B) prepare for a vendor's lien. 
C) sSue the vendor. 
D) hope the vendor changes his mind;her only hope is to have him voluntarily give back the money. 
E) hope the vendor voluntarily sells or mortgages the condo to someone else.

Question 17

Pavla is the victim of mortgage fraud in connection with a piece of land called Blackacre.Blackacre is located in a jurisdiction that uses a land titles system.Which of the following statements is TRUE?

Accepted Answer

A) Pavla cannot possibly lose title to Blackacre unless she carelessly allowed the fraud to occur. 
B) Pavla is entitled to compensation from the assurance fund as soon as she proves that she is the victim of fraud. 
C) Fraud is a general exception to the traditional doctrine of indefeasibility. 
D) The courts usually respond to mortgage fraud by ordering the victim and the mortgagee to hold the affected property as joint tenants. 
E) Lawrence v Wright created the concept of deferred indefeasibility,which delays the creation of an indefeasible title until an interest is registered by a person who did not deal with the rogue. 
A) Pavla cannot possibly lose title to Blackacre unless she carelessly allowed the fraud to occur. 
B) Pavla is entitled to compensation from the assurance fund as soon as she proves that she is the victim of fraud. 
C) Fraud is a general exception to the traditional doctrine of indefeasibility. 
D) The courts usually respond to mortgage fraud by ordering the victim and the mortgagee to hold the affected property as joint tenants. 
E) Lawrence v Wright created the concept of deferred indefeasibility,which delays the creation of an indefeasible title until an interest is registered by a person who did not deal with the rogue.

Question 18

Mike owned a piece of property known as Blackacre.The Bank of Montreal has a mortgage against Blackacre in the amount of $200 000.The property is worth $400 000.Mike borrows $100 000 from Bob and created a mortgage over Blackacre in favor of Bob.Mike subsequently borrows $100 000 from Jack and created a mortgage over Blackacre in favor of Jack.Due to Mike's gambling habit he has not paid back any part of the loans to either Bob or Jack.The economic downturn has recently caused the value of Blackacre to drop to $300 000.Which of the following is true?

Accepted Answer

A) It is possible that Jack may be a subsequent mortgagee to the Bank of Montreal,but have priority over Bob. 
B) If Blackacre is sold for $300 000,the Bank of Montreal,Bob,and Jack,will each get $100 000 . 
C) If Blackacre is sold for $300 000,the Bank of Montreal will get $200 000,Jack will get $100 000,and Bob will get $100 000. 
D) The concept of the equity of redemption is irrelevant with respect to subsequent mortgages. 
E) The terms of a subsequent mortgage must reflect the mortgagor's equity of redemption. 
A) It is possible that Jack may be a subsequent mortgagee to the Bank of Montreal,but have priority over Bob. 
B) If Blackacre is sold for $300 000,the Bank of Montreal,Bob,and Jack,will each get $100 000 . 
C) If Blackacre is sold for $300 000,the Bank of Montreal will get $200 000,Jack will get $100 000,and Bob will get $100 000. 
D) The concept of the equity of redemption is irrelevant with respect to subsequent mortgages. 
E) The terms of a subsequent mortgage must reflect the mortgagor's equity of redemption.

Question 19

A registry system and a land titles system are different because

Accepted Answer

A) a mortgage creates a charge under a registry system,but a conveyance of title under a land titles system. 
B) after the terms of a mortgage have been fulfilled,the mortgagee enjoys the benefit of a re-conveyance of title under a registry system,but a cessation of charge under a land titles system. 
C) the remedy of judicial sale is available under a registry system but not under a land titles system. 
D) the mirror principle applies under a land titles system but not under a registry system. 
E) unregistered interests may exist in a land titles system but not a registry system. 
A) a mortgage creates a charge under a registry system,but a conveyance of title under a land titles system. 
B) after the terms of a mortgage have been fulfilled,the mortgagee enjoys the benefit of a re-conveyance of title under a registry system,but a cessation of charge under a land titles system. 
C) the remedy of judicial sale is available under a registry system but not under a land titles system. 
D) the mirror principle applies under a land titles system but not under a registry system. 
E) unregistered interests may exist in a land titles system but not a registry system.

Question 20

Syd borrowed $100 000 from Marnie.To secure repayment of that loan,he created a mortgage over a piece of land called Blackacre.Syd has now repaid the loan and complied with all of the terms of the mortgage.Under what circumstances will Marnie be required to complete a re-conveyance of title? Under what circumstance will she be required to complete a cessation of charge?

Accepted Answer

The answer depends upon the type of land

Which of the following statements is TRUE?

A mortgage under a registry system involves an immediate conveyance of title,but a mortgage under a land titles system does not.

As used in the context of a mortgage,the legal concept of a "charge"

Identify and briefly explain why the remedy of possession often is not particularly attractive to a bank that is a mortgagee.

Briefly explain the relationship between the mirror principle and the curtain principle in the context of a land titles system.

Jessica wants to purchase an old house to turn into a museum.Which of the following would be the most advantageous to have as a condition of the sale?

Which of the following statements provides the best definition for "the insurance principle," as that phrase was used in the text?

Alisa successfully used the remedy of foreclosure against Ivan.Which of the following statements is TRUE?

Suki was recently involved in a successful application of the insurance principle under the land titles system.This most likely means that

Pavla is the victim of mortgage fraud in connection with a piece of land called Blackacre.Blackacre is located in a jurisdiction that uses a land titles system.Which of the following statements is TRUE?

A registry system and a land titles system are different because

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Special Contracts: Negotiable Instruments

Real Property: Interests and Leases

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Filters

Exam 16: Real Property: Sales and Mortgages

Which of the following statements is TRUE?

A mortgage under a registry system involves an immediate conveyance of title,but a mortgage under a land titles system does not.

As used in the context of a mortgage,the legal concept of a "charge"

Identify and briefly explain why the remedy of possession often is not particularly attractive to a bank that is a mortgagee.

Briefly explain the relationship between the mirror principle and the curtain principle in the context of a land titles system.

Jessica wants to purchase an old house to turn into a museum.Which of the following would be the most advantageous to have as a condition of the sale?

Which of the following statements provides the best definition for "the insurance principle," as that phrase was used in the text?

Alisa successfully used the remedy of foreclosure against Ivan.Which of the following statements is TRUE?

Suki was recently involved in a successful application of the insurance principle under the land titles system.This most likely means that

Pavla is the victim of mortgage fraud in connection with a piece of land called Blackacre.Blackacre is located in a jurisdiction that uses a land titles system.Which of the following statements is TRUE?

A registry system and a land titles system are different because

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Special Contracts: Negotiable Instruments

Real Property: Interests and Leases

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Filters