Deck 21: Interests in Land and Their Transfer

Question 1

A owns a farm in rural Ontario,but lives in Toronto.B owns the farm right next to A's farm and earns his living as a farmer.If B enters into an agreement with A whereby B can plant and harvest crops on A's land,A has granted B

A)an easement.
B)a licence.
C)a lease.
D)an estate in fee simple.
E)none of the above

Answer 1

B

Question 2

Use this fact situation to answer the related questions that follow. A and B own farms in southern Ontario next to one another in an area where the land registry system applies.They have access to their farms by means of a road that runs along the northerly edge of both properties.Both A and B live in their houses,which are situated at the southernmost portions of their farms.At the northeastern end of B's property there is a bus stop at the side of the road,where A catches the bus to work.A now decides that he will cut across B's land to get to the bus stop and begins to do this,creating a pathway over B's land without B's knowledge or consent.
If A continues to cut across B's land for 10 years,

A)A will acquire a possessory right to the path.
B)A will acquire an easement in the path by prescription.
C)A will acquire an easement in the path by adverse possession.
D)A will acquire no easement in the path at all.
E)none of the above

Answer 2

A

Question 3

Albert and his spouse,Mary,want to buy a piece of property in Toronto and wish to have ownership that will permit the transfer of the land to either of them on the death of the other.To accomplish this,they will take title as

A)lessees.
B)reversioners.
C)joint tenants.
D)tenants in common.
E)licencees.

Answer 3

C

Question 4

Which of the following can create an easement?

A)the right to exclusive occupation of a building for 25 years
B)permission from your neighbour to hold a garage sale in his yard
C)the right to use your neighbour's driveway to reach the garage on your property
D)the right to go onto your neighbour's property to extract coal
E)all of the above

Question 5

Use the fact situation in Q2 to answer the related question that follows. Also in this case,at common law the two sons will be referred to as

A)lessees.
B)reversioners.
C)licencees.
D)remaindermen.
E)life tenants.

Question 6

After a life estate has been carved out,the balance of the fee simple is called

A)a balance.
B)an estate reversion.
C)a remainder.
D)a remainder of estate.
E)a balance of estate.

Question 7

Use the fact situation in Q6 to answer the related question that follows. If title to both farms was registered in the land titles system,

A)A will acquire a possessory right to the path.
B)A will acquire an easement in the path by prescription.
C)A will not acquire an easement in the path at all.
D)A will acquire an easement in the path by adverse possession.
E)A will acquire a licence in the path.

Question 8

Use this fact situation to answer the related questions that follow. On January 1,2009,A enters into an agreement of purchase and sale to purchase B's property in downtown Toronto and takes the agreement to his lawyer.
Among other things,and before the transaction closes,A's lawyer will conduct

A)a search of taxes.
B)a building/zoning compliance search of B's property.
C)an execution search.
D)a title search of B's property.
E)all of the above

Question 9

A's family has owned a parcel of land for five generations.There are no restrictions or conditions attached to the land.In this case,A's family holds the land

A)as a licence.
B)as a leasehold interest.
C)in fee simple.
D)as a life estate.
E)as an easement.

Question 10

Use the fact situation in Q10 to answer the related question that follows. In addition to the searches that A's lawyer will conduct,A's lawyer will need to examine

A)all court orders affecting B's property.
B)all encroachments over B's property.
C)all federal statutes providing for ownership of mineral rights.
D)all unregistered easements affecting B's property.
E)a survey of B's property.

Question 11

A geological survey of land owned by George in northern Ontario indicates that there are gold deposits under the soil,which makes the land very valuable.George approaches a mining company and agrees to let the company mine the gold for a very large sum of money.The agreement goes on to provide that the company will also pay George a portion of the value of gold extracted each year by the company.In this case,George and the company have entered into

A)a life interest agreement.
B)a mineral lease.
C)an oil lease.
D)a licence agreement.
E)an easement.

Question 12

Use the fact situation in Q14 to answer the related question that follows. Also in this case,

A)Although John's acts amount to nuisance,he cannot be sued in damages.
B)John's acts in destroying the landscaping amount to a nuisance,and he can be sued in damages.
C)Although John can be sued in damages,he is not a trespasser.
D)John is a trespasser and can be sued in damages.
E)John's acts constitute slander of Edward's title,and he can be sued in damages.

Question 13

A life estate is

A)an interest in land that is indeterminate in time.
B)an interest in land that is closest to complete ownership.
C)a holder of a life estate.
D)an estate in land held for the life of one person.
E)a fixed time during which a person holds an interest in land.

Question 14

Use the fact situation in Q10 to answer the related question that follows. Assume that the agreement of purchase and sale between A and B is silent as to production of a survey,but permits A or his authorized representative to inspect the property.In this case,to protect himself

A)A will obtain a survey at B's expense.
B)A will obtain a survey and the cost will be shared equally by A and B.
C)A cannot obtain a survey under the terms of the agreement.
D)A will obtain a survey at A's expense.
E)A will not need to obtain a survey at all.

Question 15

Use the fact situation in Q6 to answer the related question that follows. If A uses the path for a period of at least 20 years,A will acquire

A)an easement by adverse possession only.
B)a licence by prescription,but not adverse possession.
C)an easement by both prescription and adverse possession.
D)an easement by prescription only.
E)a licence by adverse possession,but not by prescription.

Question 16

John and Edward own property in Toronto.Edward owns 45 percent of the property,and John owns the remaining 55 percent.Both John and Edward can deal with their respective interests in the property at any time without the consent of the other.In this case,John and Edward own the property as

A)joint tenants.
B)tenants in common.
C)remaindermen.
D)servants.
E)licencees.

Question 17

A freehold estate

A)an interest in land that is indeterminate in time.
B)a holder of a life estate.
C)an interest in land that is closest to complete ownership.
D)a fixed time during which a person holds an interest in land.
E)an estate in land held for the life of one person.

Question 18

Tenancy in common and joint tenancy are distinguished by

A)probate.
B)leasehold interests.
C)probate fees.
D)legal fees.
E)the right of survivorship.

Question 19

Use this fact situation to answer the related questions that follow. Edward and John own residential lots of land in Ontario that are beside each other.The previous owners of the lots wanted to save themselves the cost of surveys and put up a fence on what they thought was the lot line between the two properties.Edward bought his lot in 1961,and from that time on began to landscape a 3 metre wide strip beside the fence;erecting a rock wall 3 metres from the fence;planting trees,shrubs,and flowers;and constructing a small fountain between the wall and the fence.In 1986,John purchased his lot and had a survey done,which disclosed that the fence had been placed 3.3 metres inside his lot,so John proceeded to move the fence back to the lot line and in the process destroyed all of the landscaping that Edward had done.
Assuming that the property was in the land registry system,in this case

A)Edward acquired ownership of the strip of land by adverse possession.
B)Edward acquired possessory ownership of the strip of land by adverse possession.
C)Edward is now the absolute owner of the strip of land.
D)the strip of land has become part of Edward's land,and Edward can sue John for the damage caused to his landscaping.
E)all of the above

Question 20

Use this fact situation to answer the related questions that follow. John owns a cottage property and wants to ensure that on his death,his wife will have the use of the property as long as she lives,but that when she dies it will be transferred to his two sons.
To accomplish this,John will give his wife

A)an estate in fee simple of the land.
B)a leasehold interest in the land.
C)an easement in the land.
D)a life estate in the land.
E)a licence in the land.

Question 21

Unless someone has adverse possession,the law presumes an owner to be in possession of his or her property.

Question 22

Today,most utility companies have easements over residential property.

Question 23

Where A leaves his land to his spouse for life and after her death to his son for life and after the son's death to his daughter,the daughter holds a life estate in the land.

Question 24

A unit in a multiple-unit development that may be owned in fee simple is usually referred to as

A)real estate development.
B)life estates.
C)a condominium.
D)joint tenancy.
E)a tenancy in common.

Question 25

By the terms of his will,Ted gives a life estate in a small home he owns to his brother Bob.Ted then directs that the rest of the fee simple pass to his brother's son Philip after Bob dies.Bob's son is referred to as

A)the reversion man.
B)life tenant.
C)the remainder man.
D)tenant in common.
E)servient tenement.

Question 26

Where A takes a shortcut over B's land for six years without B's consent,A is a trespasser.

Question 27

Jack and Mary owned their matrimonial home as joint tenants.Approximately two weeks before he passed away,Jack prepared a new document that transferred his interest in the home to his sister Janet.Jack's conduct is known as

A)transference.
B)preparing a will.
C)severance.
D)separation of interest.
E)last will and testament.

Question 28

In a condominium,structures and areas that are external to a condominium unit,such as the reception,stairs,gardens,and gymnasium,are referred to as

A)joint tenancy areas.
B)common elements.
C)communal areas.
D)general areas.
E)estates.

Question 29

Jack buys a farm house.The day after he buys the home he sees Joseph,another farmer,walking over his property with a pail,towards a nearby stream.Jack is angry that Joseph is walking over his land and he tells Joseph not to do so.Joseph tells him that he has a right to walk over the land to fetch water from the stream.Joseph tells Jack that the right has existed since Joseph's great-grandfather purchased the property.This means that Jack's property is a

A)severance.
B)servient tenement.
C)right of way.
D)statutory easement.
E)dominant tenement.

Question 30

Erin and Oliver own their house as joint tenants.Erin makes a will leaving her interest in the house to her parents;Oliver makes a will leaving his interest in the house to his parents.Erin and Oliver are both killed as a result of a car accident.Erin dies one week before Oliver.Her interest in the house will pass to her parents.

Question 31

Two benefits of owning a condominium are absolute ownership and the sharing of all common expenses.

Question 32

A building scheme is different from a restrictive covenant because a building scheme

A)applies only to a condominium development.
B)covers an entire neighbourhood.
C)requires an owner to get developer approval before building.
D)does not bind future purchasers.
E)can be extinguished if the majority of owners agree.

Question 33

An estate in land given by A to B during A's life gives A a remainder in the land.

Question 34

When land is compulsorily transferred to a public body pursuant to statute,this is known as

A)transfer by operation of statute.
B)reservation.
C)transfer.
D)levy execution.
E)expropriation.

Question 35

In some parts of Canada,using another person's land may give an adjoining landowner an easement over her or his neighbour's land.An easement by prescription will not be created if

A)there is a continuous exercise of the right for a period of at least 20 years.
B)the exercise of the right is conducted openly.
C)the exercise of the right is without fraud or deceit.
D)the owner is aware of the use and does not object.
E)the exercise of the right is without force or threats against the owner.

Question 36

Absolute ownership of real property does not entitle the owner to sell it.

Question 37

An eavestrough that overhangs A's house onto B's land is an encroachment.

Question 38

Jack buys a farmhouse.The day after he buys the home,he sees Joseph,another farmer,walking over his property with a pail,towards a nearby stream.Jack is angry that Joseph is walking over his land,and he tells Joseph not to do so.Joseph tells him that he has a right to walk over the land to fetch water from the stream.Joseph tells Jack that the right has existed since Joseph's great-grandfather purchased the property.This means that Joseph has a right of way.

Question 39

To seize to hold and sell land in order to realize the amount due under a judgment registered against the owner is

A)a foreclosure sale.
B)to levy execution.
C)a levy sale.
D)a creditor execution.
E)to expropriate the property.

Question 40

An easement can only be acquired through the use of land and never by way of a grant or transfer from the owner of the land.

Question 41

When is an owner's title to property extinguished?

Question 42

A potential purchaser of land is often provided with a time period under the agreement of purchase and sale to search for information relating to the property.This has the effect of reducing the risks of receiving defective title.One of the sources of information that can be obtained or requisitioned is a survey.What is a survey,and why is it important for a purchaser to consider obtaining?

Question 43

Michael has been in adverse possession of a home for close to 30 years.Assume that the limitation period for adverse possession is 31 years and that a few months before the end of the thirtieth year the owner returns to the property and demands rent from Michael,which Michael pays.This means that adverse possession has been interrupted and the limitation period will start to run again.

Question 44

These days,it is wise for a purchaser of real property to obtain title insurance.Explain.

Question 45

Explain two major advantages of the land titles system of registration.

Question 46

It has been suggested that the disadvantages of owning a condominium are actually minimal.Explain one situation where this statement may be less than accurate.

Question 47

Explain the common law concept of severance.

Question 48

Explain the effect of severance and how can it be done.

Question 49

Explain the distinction between a tenancy in common and a joint tenancy.

Question 50

A is making his last will.He wants to leave his cottage property to his daughter and her husband,but in such a way that neither of them can deal with the property without the consent of the other and that when one of them dies,the other will become the owner of the property.He also wants to leave his condominium for the use and possession of his son during his son's lifetime,and after that to his niece and her husband,although he wants to specify that his niece will have an undivided 85 percent interest in the condominium and her husband an undivided 15 percent interest.State the type of estates that the beneficiaries will have in A's property,as well as the type and quality of ownership.

Question 51

What is a life estate?

Question 52

Michael has been in adverse possession of a home for close to 30 years.Assume that the limitation period for adverse possession is 31 years and that a few months before the end of the thirtieth year the owner returns to the property and demands rent from Michael,which Michael pays.Explain the effect on Michael's adverse possession.

Question 53

Explain the difference between a restrictive covenant and a positive covenant.

Question 54

Explain why it is important to conduct,before closing,a zoning search of property that is the subject matter of an agreement of purchase and sale.

Question 55

What is a condominium corporation?

Question 56

Before present-day legislation,which permits electronic registration,grants of land by deed had affidavits attached to them that identified both the vendor and the purchaser,and these affidavits were sworn under oath.As a result,identity theft and fraud seldom occurred.Today,however,such affidavits have been done away with in transfers,particularly in situations where registration is by electronic means.Given the rise in identity theft and the corresponding number of fraudulent transfers related to land,discuss whether there is good reason to return to the ways of the past and,if not,the best way to protect the parties involved in the purchase and sale of land.

Question 57

Describe the two main classifications of interests in land.

Question 58

What is expropriation?