Deck 19: Real Property

Question 1

François and Wallace have been neighbours for 10 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.Which of the following would François' lawyer indicate as the most likely and amicable method of resolving the encroachment?

A) restrictive covenant
B) encroachment agreement
C) civil litigation
D) easement agreement

Answer 1

D

Question 2

The fact that much of the earth's surface is covered by vast bodies of water combined with the fact of land's permanency and immovability would most strongly influence which of the following?

A) the value of the land
B) the adaptability of land
C) the market for the land
D) the location of the land

Answer 2

A

Question 3

In the realm of real property law,"tenant" is synonymous with which of the following?

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

Answer 3

C

Question 4

Meagan has been asked to search the chain of title to a cottage property located on the Lake of the Woods in Northwestern Ontario.If the deal proceeds after Meagan has completed the search,which of the following is the most likely result of the investigation?

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 5

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 front street,but the absence of any possibility of a hedge would affect her purchasing decision.In this instance,the ability to place conditions on ownership is most strongly influenced by which of the following?

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

Question 6

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) both systems require lawyers to provide an opinion on 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) neither require validation of good or other valuable consideration

Question 7

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 8

Belle Blue works in the land office in Winnipeg as a document examiner.She doesn't look forward to the typically overwhelming workload during the summer months.What is the significance of Belle's role with respect to the type of registry system she is employed in?

A) the land titles system, which is responsible for the validity of information it gives
B) the registry system, because the deed itself is authoritative proof of title
C) the land titles system, which identifies the legal description on each title deed
D) the registry system, which identifies the legal description on the deed of title

Question 9

Which of the following is a common policy shared among many world nations?

A) restriction on quantity of land allowed to be owned by foreign interests
B) delegation of authority to control and use to municipal governments
C) delegation of authority to regulate environmental risks to municipal government
D) restriction on governments re: imposition of land ownership restrictions

Question 10

The legal interest considered to be the closest to full ownership in real property is legally described as which of the following?

A) joint tenancy
B) fee simple
C) tenancy in common
D) deeded title

Question 11

Aaron and Janelle enjoyed years of experiences shared through their rewarding ownership of Crystal Lake Cottage Resort Inc.When Aaron died unexpectedly,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

With respect to the legal concept of real property,which of the following distinguishes land from real estate?

A) adaptable purposes
B) structures and fixtures
C) total infinite quality
D) value of land versus value of commodity

Question 13

What is the meaning of the Latin term caveat emptor?

A) buyer beware
B) misled buyer
C) vendor
D) first to register

Question 14

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 land owners.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 15

With respect to land conservation and environmental protection,why has statute law become an increasingly significant factor?

A) restrictive covenants
B) subprime lending
C) protection of property rights
D) public policy

Question 16

Drew met with Sherry to have a second look at an apartment block his corporation may be interested in purchasing.When Drew returns to the office,if he calls Kent at Stewin Appraisals Ltd.,which of the following will most likely be the result?

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

Question 17

Now that approval of the zoning variance has been confirmed by the seller's lawyer,William's company is completing its purchase of a vacant piece of land for commercial development.Which of the following is the valid reason for William's company having made the possibility of the completion of this transaction subject to this requirement?

A) provincial statutory restriction on land use
B) government environmental agency restriction
C) restriction on land use by common law
D) restriction on land use by municipal regulation

Question 18

Isabella and Martina are co-owners of a commercial warehouse they lease to tenants.If a lawyer with a commercial law practice were discussing a matter relating to the interest in the real estate Isabella and Martina each own,which of the following would you reasonably expect him to say?

A) Either may deal with their portion as they see fit.
B) Either must automatically sell directly to the other.
C) Each interest is subject to a right of survivorship.
D) Each interest is unidentifiable in any distinct way.

Question 19

With respect to co-ownership of real estate,which of the following distinguishes an undivided one-half interest held in a tenancy in common from an one-half interest held in a joint tenancy?

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 20

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 21

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 Angela is pursuing?

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

Question 22

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.With respect to the first accepted offer,what remedy,if any,is available to Jacqueline?

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

Question 23

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

Question 24

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) Tenancy automatically renews unless notice of termination is given prior to expiry.
C) Either party will be bound by mutual obligations to negotiate a renewal or extension.
D) Tenancy terminates unless renegotiated on each fiscal year-end date in the tenancy lease.

Question 25

Which of the following would a commercial lender indicate as being central to a mortgage on commercial property being taken out by a commercial borrower?

A) that the bank has a first claim against the land
B) morality of the banking institutions lending practices
C) agreement on rate of interest and repayment schedule
D) notice to all other creditors of the existence of the new debt

Question 26

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 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 27

With respect to real property law,equity of redemption is synonymous with which of the following?

A) registry system right to restoration of legal ownership upon repayment of mortgage
B) damages based on the value of the property on the date of equity redemption
C) registry system 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 28

Drew submitted two offers to purchase for two apartment buildings.Of course,he made the offers subject to his lawyer's approval.What is the effect of this condition?

A) The lawyer has to approve the fair and adequate value of the transaction or no deal.
B) The offer will be void if his lawyer doesn't approve its form or content.
C) The lawyer will approve the price, deposit, and method of payment.
D) Drew's lawyer will be given control of the money needed to complete the deal.

Question 29

Which of the following would a commercial real estate agent most likely indicate as being the reason that a commercial lease is dependent upon the value,nature,and size of the property?

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

Question 30

In the case of Imperial Oil Ltd v.Quebec (Minister of the Environment),(2003)2 S.C.R.624,the Supreme Court dealt 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.Which of the following is an example of the principle applied by courts in these types of matters.

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

Question 31

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

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

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.Should ImaBigBank approve the financing,how will the parties most likely be described on the mortgage?

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

With respect to real property,what is the commonality shared by "the right to negotiate their own terms" and "enforcement mechanisms"?

A) differences between a tenant's rights under commercial and residential tenancy lease
B) the tenant's right to control land during the term of the tenancy
C) the right to exclusive possession of the leased premises
D) contracts that transfer possession of land from landlord to tenant in exchange for rent

Question 34

Which of the following would a business law professor most likely indicate to be a primary contributing factor regarding the necessity of a registry deed 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 registration of unregistered deeds to fix defects
D) to encompass the duration of validity of judgments registered against a seller

Question 35

A bank took immediate possession of real property for 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.Given these circumstances,which of the following provides a valid description of 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 36

Juha and Tesalle presented an offer to purchase at $15 000 below Rickie's asking price for her home.Rickie did not accept the offer,stating that she would accept $2000 less than asking price.The couple countered,offering $5000 below asking price,with the appliances included,and Rickie accepted.How many types of offers did this transaction require before a contract of purchase and sale existed?

A) three
B) two
C) one
D) one plus acceptance

Question 37

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

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 38

In which of the following circumstances will an original mortgagor,who has allowed its mortgage to be assumed by another,be held free of liability for repayment should the new buyer default under the assumed mortgage?

A) there is a deficiency in assigned insurance proceeds
B) the original mortgagor agrees to pay a penalty for lost interest
C) failure to notify original mortgagee of renewal of mortgage
D) the lending bank assigned the mortgage to another financial entity

Question 39

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.In instances where such matters are addressed in this manner,which of the following is most likely to be a valid statement with respect to future legal relevance?

A) They are most often influenced by 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 misuse of negligent information.

Question 40

Which of the following would a business law professor most likely indicate as being 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 41

In a province using a registry system,a paralegal is typically employed by a lawyer to conduct title searches of the chain of title to determine the state of ownership.The lawyer must evaluate the title search to decide whether an opinion must be given to indicate whether the history reflects that the title is clear or that title defects exist.

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

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 tenants and preserve the value in the property.

Question 44

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 45

Marina has given the required 90 days' notice that she will not be renewing her lease to her landlord.Marina's business has leased space from this landlord under a periodic tenancy arrangement.

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 sue personally sue individual borrowers and can sue only corporations that have waived their statutory protection.

Question 47

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 48

The highest and most comprehensive level of ownership of land possible is known as a fee simple.This level of ownership makes division of ownership in the land extremely difficult.

Question 49

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 50

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 51

Tangible personal property that is attached to land,buildings,or other fixtures is commonly known as real estate.

Question 52

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 53

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

Question 54

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 55

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 56

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 57

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

Question 58

As co-owners of a portion of the whole interest in a parcel of land,each co-owner's share may be distinctly singled out and identified should one decide to sell that interest to some other party.

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

The document that transfers possession of land from the landlord to the tenant in exchange for the payment of rent is legally described as a tenant lease.

Question 61

Briefly discuss joint tenancy.

Question 62

Identify the province that provides an example of the combined conversation from a registry to land titles systems and from paper to electronic systems.Briefly discuss what is involved at each stage of the conversion process.

Question 63

Discuss the effects on ownership of land that come about as a result of a mortgage being registered against a deed of land in a province under a registry system.

Question 64

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

Question 65

Identify and briefly discuss the key attributes that the value of land results from and explain what determines value based on the type and location of land.

Question 66

Contrast the administrators of a land registry system and the administrators of a land titles system.

Question 67

Briefly discuss tenancy in common.

Question 68

Identify the most common example of ownership of real property that is divided by time.Briefly discuss how this mechanism operates,including the legal identities of the parties involved.

Question 69

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 the parties affected by those problems.

Question 70

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