Deck 19: Real Property

Question 1

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?

A) where both systems require lawyers to provide an opinion on the accuracy of title
B) where the right to an interest prioritized by registration is at issue
C) where the authenticity of an individual's right to ownership is unknown
D) where both systems require validation of good or other valuable considerations

Answer 1

B

Question 2

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?

A) Each owns an undivided co-ownership of the whole.
B) Each owns an undivided co-ownership of each portion.
C) Each owns an undivided interest in ownership of the whole.
D) Each owns an undivided interest in ownership of their portion.

Answer 2

D

Question 3

Which of the following terms refers to the concept of "buyer beware"?

A) res judicata
B) caveat emptor
C) volenti
D) the sophisticated buyer rule

Answer 3

A

Question 4

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

A) registry system
B) land titles system
C) first to file system
D) the deed system

Question 5

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?

A) a restrictive covenant
B) a lease
C) civil litigation
D) an easement agreement

Question 6

Meagan has been asked to search the chain of title to a cottage property located on the Lake of the Woods in Northwestern Ontario.What was the most likely result of the investigation if the deal proceeds after Meagan completes the search?

A) notification of deed of ownership
B) vicarious liability for deed defects
C) notification of unregistered deed
D) verification of ownership and clear title

Question 7

How many years back will a title search in a registry system normally extend?

A) 100 years
B) 40 years
C) 25 years
D) 10 years

Question 8

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?

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 9

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

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 10

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?

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

Question 11

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?

A) co-ownership
B) tenancy in common
C) joint tenancy
D) fee simple

Question 12

Which of the following is "tenant" synonymous with in the realm of real property law?

A) an individual who leases space rather than having outright ownership
B) a contract allowing owners to deal with their respective interests
C) an owner of any form of right or title in land
D) a contract limiting ownership by division in time

Question 13

Isabella and Martina are joint tenants of a commercial warehouse.What would happen if either Isabella or Martina were to die?

A) The property would be subdivided,and each half interest would be sold by auction.
B) The survivor would have the right to buy out the deceased owner's interest.
C) Each interest is subject to a right of survivorship,and the rights of the deceased owner would pass to the surviving owner.
D) The rights of the deceased owner would be inherited by the deceased's heirs.

Question 14

Which of the following is a distinguishing characteristic of a joint tenancy?

A) a right of survivorship
B) division of ownership over time
C) two undivided half interests
D) right of first refusal

Question 15

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

A) conversion of paper records to microfiche records
B) sequence of registration is used solely in registry system
C) constitutional jurisdiction of the registry system
D) absence of responsibility for validity of documents

Question 16

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?

A) to get a report on the structural integrity of the building
B) to get a formal valuation based on the structure and market
C) to determine the physical boundaries and the building's location
D) to check for environmental hazards

Question 17

Sarafal was disappointed to learn that she would be unable to plant a hedge along the front borders of her property.She didn't object to having mountain ash trees planted along the street,but the absence of any possibility of a hedge affected her purchasing decision.In this instance,what is the ability to place conditions on ownership most strongly influenced by?

A) an encroachment agreement
B) zoning regulations
C) a restrictive covenant
D) planning schemes

Question 18

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

A) a restrictive covenant
B) a lease
C) an easement
D) joint tenancy

Question 19

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

A) life estate
B) fee simple
C) joint tenancy
D) full estate

Question 20

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

A) The seller accepts the buyer's offer.
B) The buyer decides to buy the land.
C) The seller delivers the title document,and the buyer makes final payment.
D) The seller hires a surveyor to confirm boundaries.

Question 21

Jacqueline listed her home for $200 000.She received six offers to purchase,all with a closing date of April 1.She accepted the unconditional offer,though it was $3000 less than the highest offer of $246 000.The purchasers abandoned the deal on March 27.Jacqueline received an unsolicited offer that was $10 000 over the original asking price.She accepted that offer with a closing date of May 15.What remedy,if any,is available to Jacqueline with respect to the first accepted offer?

A) $0; injunction for specific performance
B) $26 000,damages for equity redemption
C) $33 000,damages for contractual breach
D) $36 000,for breach of contract damages

Question 22

What is the name given to the right of a commercial landlord to seize the property of the tenant located in the leased premises?

A) distress
B) seizure
C) injunction
D) forced sale

Question 23

Which of the following is a key feature of a real estate lease?

A) the right to alter the property
B) pre-emptive possession
C) the right of exclusive possession
D) the right to sublease

Question 24

Which of the following is synonymous with equity of redemption with respect to real property law?

A) the right to have legal ownership restored upon the repayment of the mortgage
B) damages based on the value of the property on the date of equity redemption
C) the right of owners to exclusively control land during the term of a lease
D) damages substituted for the court's decree of a right to equity redemption

Question 25

What principle has the Supreme Court endorsed when dealing with the broad social issue of how to balance the need to encourage development and commercial activity with the need to control and prohibit dangerous activities?

A) nuisance principle
B) negligence principle
C) public policy principle
D) polluter pays principle

Question 26

What is the major consequence of the creation of a lease?

A) a specified term of tenancy
B) an increase in the value of property
C) contractual obligations
D) exclusive possession

Question 27

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?

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

Question 28

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

A) There is no contract until the vender provides the seller with financing.
B) The transaction will not proceed unless the buyer's lender grants a mortgage.
C) The lender must approve the price,deposit,and method of payment.
D) The lender will be given control of the money needed to complete the deal.

Question 29

Why is a commercial lease dependent upon the value,nature,and size of the property?

A) they determine the complexity of the lease agreement
B) they determine the extent of leasehold improvements
C) they determine the permitted alternation of the space
D) they determine the responsibility for repairs and maintenance

Question 30

A bank took immediate possession of real property for the non-payment of a mortgage installment on its due date.It is taking steps to have the property sold.The bank is aware that,due to poor market conditions,the amount of the mortgage is higher than the value of the property.What are the most likely legal matters that will come before the courts?

A) distress and equity redemption
B) default and deficiency
C) foreclosure and deficiency
D) foreclosure and court-supervised sale

Question 31

On May 1,Orianna forwarded her client's signed title transfer document,keys,and remote control for the garage door to the purchaser's lawyer.The items were sent in trust,on the express condition that she receive the payment of the balance of the purchase price in return.John will comply,then submit the transfer document to the registry promptly for registration.In the meantime,which of the following should John's clients have effectively put in place for the May 1 closing date?

A) a certificate of mortgage financing
B) a certificate of insurance coverage
C) a registrable mortgage to pay the balance of the price due
D) mortgage financing and executed mortgage documents

Question 32

Merrilee and Keith own several of acres of vacant land adjoining the property where their greenhouse operations and large garden centre facility are located.The greenhouse side of the business is ready to expand.A senior lending officer of ImaBigBank is meeting with Merrilee and Keith to discuss the expansion plans and the financial needs and circumstances of their business.How will the parties most likely be described on the mortgage if ImaBigBank approves the financing?

A) Keith and Merrilee's business is the mortgagee,and ImaBigBank is the mortgagor.
B) ImaBigBank is the mortgagee,and Keith and Merrilee are the mortgagors.
C) Keith and Merrilee are the mortgagees,and ImaBigBank is the mortgagor.
D) ImaBigBank is the mortgagee,and Keith and Merrilee's business is the mortgagor.

Question 33

Martina is purchasing a home in Winnipeg.The closing date is October 1.Each year's real property taxes are payable in June for taxes owed up to December 31.The amount of the taxes paid by the vendor for the entire year is $2400.In the circumstances of this transaction,which of the following is a valid statement with respect to an adjustment on taxes?

A) The vendor will receive approximately $1200 in adjustment from the purchaser.
B) The vendor will receive approximately $600 in adjustment from the purchaser.
C) The purchaser will receive approximately $1800 in adjustment from the vendor.
D) The purchaser will receive approximately $800 in adjustment from the vendor.

Question 34

What is the main factor in deciding whether a lease has been created?

A) the Residential Tenancy Act or Commercial Tenancy Act
B) the contract between the landlord and tenant
C) the parties' ability to negotiate their own terms
D) the legal concept of exclusive possession

Question 35

Which of the following is a distinguishing characteristic of a tenancy that runs from fiscal year to fiscal year?

A) Either party may use the land as security for a loan for the duration of a lease term.
B) The tenancy automatically renews unless a notice of termination is given prior to expiry.
C) Either party will be bound by mutual obligations to negotiate a renewal or extension.
D) The tenancy terminates unless renegotiated on each fiscal year-end date in the tenancy lease.

Question 36

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?

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 37

Which of the following is a primary contributing factor regarding the necessity of a registry search to consist of a 40-year history?

A) to ensure no lingering environmental problems exist
B) to ensure the boundaries described in the title fit the physical land boundaries
C) to facilitate the registration of unregistered deeds to fix defects
D) to ensure a clear title to the property

Question 38

In which of the following circumstances will an original mortgagor,who has allowed its mortgage to be assumed by a new buyer,be held liable under the assumed mortgage?

A) if there is a deficiency in assigned insurance proceeds
B) if the original mortgagor agrees to pay a penalty for lost interest
C) if the new buyer defaults under the terms of the mortgage
D) if the lending bank assigned the mortgage to another financial entity

Question 39

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?

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 40

Often,matters relating to either the supply of water or soil contamination are addressed in an accepted offer for the purchase and sale of real property.Which of the following is most likely to be a valid statement with respect to future legal relevance in instances where such matters are addressed in this manner?

A) They are most often influenced by the misuse of erroneous information.
B) They are both forms of contractual warranties that survive closing.
C) They are both typically excluded by entire agreement clauses.
D) They are most often affected by the misuse of negligent information.

Question 41

Although a landlord's basic obligation is to refrain from interfering with the tenant's use of property,where a tenant has willfully damaged that property,the landlord may exercise a right of distress to evict the tenant and preserve the value in the property.

Question 42

An equity redemption is a credit arrangement where a title to land is security for the loan.

Question 43

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.

Question 44

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.

Question 45

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

Question 46

If a bank has foreclosed on a property located in Alberta,Saskatchewan,or British Columbia and has been left with a deficiency after its sale,the vendor cannot personally sue individual borrowers and can sue only corporations that have waived their statutory protection.

Question 47

At any point before the foreclosure process is complete,ownership of the land can be regained if the borrower is able to repay the loan.

Question 48

The highest and most comprehensive level of ownership of land possible is known as a fee simple.

Question 49

Tenants in common each have an undivided interest in the land and are able to deal with their own interests in any way they see fit without having to consult with one another.

Question 50

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.

Question 51

Joint tenancy,which is typically the form of ownership in land used for property acquired by spouses as their marital home,is distinguished by the right of survivorship.

Question 52

Exclusive possession is the mortgage lender's remedy to terminate the borrower's interest in land due to default.

Question 53

Real estate includes buildings as well as anything attached to buildings such as light fixtures.

Question 54

Administrators of the land titles system do not guarantee the authenticity or accuracy of the registry records because the historical authenticity of documents filed 40 years previously is difficult to prove.

Question 55

The mortgagor is the party who lends the money,and the mortgagee is the party who borrows the money and signs the mortgage promising to repay the loan.

Question 56

One of the factors that distinguishes registration in a land titles system from registration in the registry system is that the sequence of registration is unimportant in a land titles system.

Question 57

Real property is largely governed by common law,which,by tradition,devotes its focus on protecting rights to property and,in particular,determining the rights of ownership to a piece of land.

Question 58

Before Anya can draft the letter to the purchaser's lawyer stating the balance due on closing,she must adjust the sale price to take into consideration such things as prepaid annual municipal property taxes.

Question 59

A lease in land is,in theory,affected by the sale of the property by the landlord.Each tenant is entitled to stay 30 days past the closing date,by which time a new lease arrangement must have been negotiated with the new landlord or the leased premises must be vacated.

Question 60

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.

Question 61

Briefly discuss joint tenancy.

Question 62

Identify the key features of the registry system.

Question 63

Describe the role of the administrators of a land titles system

Question 64

Briefly discuss tenancy in common.

Question 65

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.

Question 66

Briefly outline the stages in a typical real estate transaction.

Question 67

Describe some of the statutory and common law restrictions frequently imposed on land use.

Question 68

Identify the basic terms generally contained in an agreement of purchase and sale of real property.

Question 69

Identify the limits on ownership that result from contracts made by the landowner.

Question 70

What basic terms might a lender typically included in a mortgage agreement?