Deck 19: Real Property

Question 1

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

Answer 1

B

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?

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 2

B

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?

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.

Answer 3

D

Question 4

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

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

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?

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

Question 6

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 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?

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.

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?

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

Question 9

What 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 10

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

A) the sequence of registration is irrelevant
B) transactions are less time consuming
C) transactions are less costly
D) there is greater reliability and certainty

Question 11

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 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?

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 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?

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 14

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 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?

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 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?

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

Question 17

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 18

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 19

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 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?

A) They have no obligations to disclose anything to potential buyers.
B) They do not have to disclose the crack unless they are asked about the condition of the foundation.
C) They have a positive duty to disclose the hidden defect.
D) They have an ethical duty but not a legal duty to disclose the defect.

Question 21

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

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

Question 22

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 23

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 24

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 25

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 26

Minimarket Grocers is in a one year lease of a bay in a strip mall that is subject to a periodic tenancy.The one year period will be completed in three months.What will happen if Minimarket allows the three months to pass without taking any further steps?

A) Minimarket will be in breach of the terms of the lease.
B) The lease will expire and Minimarket will have to vacate the premises.
C) The lease will automatically renew for another year.
D) The lease will renew for an additional one month period.

Question 27

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 28

What is the purpose of a 'state of repair' clause in a real estate transaction?

A) to relieve the seller of any liability for hidden defects in the property
B) to require the seller to notify the buyer of any defects that would impact its decision to purchase the property
C) to require the seller to ensure the condition of the property remains unchanged until closing
D) to require the seller to repair hidden defects in the property

Question 29

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 30

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 31

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 32

One of MSM Properties' tenants is now three months behind on its rent and MSM plans to exercise its remedy of distress.How will this remedy assist MSM?

A) MSM can relet the property to a different tenant.
B) MSM can lock the tenant out of the property.
C) MSM can seize property belonging to the tenant.
D) MSM can evict the tenant.

Question 33

Which investigation step is likely to reveal whether the buildings on a property comply with local setback bylaws?

A) environmental audit
B) land titles search
C) site assessment
D) survey

Question 34

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 35

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 36

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 statement best describes 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 37

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 38

Which of the following would NOT typically be contained in an Agreement of Purchase and Sale?

A) purchase price
B) mortgage terms
C) closing date
D) legal description of property

Question 39

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 40

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 statement most accurately describes an adjustment on taxes?

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

Question 41

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 42

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 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

Commercial leases are highly regulated by provincial legislation.

Question 45

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 46

Mineral rights-such as rights to oil,gas,or coal and other minerals may be owned separately from ownership of the surface.

Question 47

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 48

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 49

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

Question 50

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 51

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 52

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 53

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 54

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

Question 55

A tenancy in common is a form of undivided co ownership distinguished by the right of survivorship.

Question 56

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.

Question 57

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

Question 58

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 59

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 60

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 61

Identify the key features of the land titles system.

Question 62

What remedies are available to the mortgagee (lender)in the event of default by the homeowner?

Question 63

Briefly discuss tenancy in common.

Question 64

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 65

Briefly outline the typical covenants in a commercial lease.

Question 66

Briefly discuss joint tenancy.

Question 67

Describe the role of the administrators of a land titles system

Question 68

Briefly outline the stages in a typical real estate transaction.

Question 69

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