BC Real Estate Trading Services Course Estates and Interests in Land 2

Question 1

Which of the following BEST describes a 'fee simple' estate?

Accepted Answer

The most complete form of ownership interest in real property, inheritable and transferable without limitation

Answer

A leasehold interest for a fixed term of years

Answer

A life estate that ends upon the death of the life tenant

Answer

An interest held jointly by two or more owners

Question 2

Under BC's Land Title Act, what is the legal effect of the 'indefeasibility' principle?

Accepted Answer

A registered owner's title is conclusive and cannot be challenged, except in cases of fraud

Answer

It makes title transfers automatic upon signing a contract

Answer

All prior interests are extinguished when a new owner registers title

Answer

Lenders are guaranteed repayment if a title is insured

Question 3

Two people take title to a property as 'joint tenants.' If one owner dies, what happens to their share?

Accepted Answer

It automatically passes to the surviving joint tenant by right of survivorship

Answer

It passes to their heirs as specified in their will

Answer

It is divided equally among all remaining joint tenants and the deceased's heirs

Answer

It becomes the property of the Province of BC

Question 4

A 'statutory right of way' registered on a BC property title in favour of BC Hydro most likely means:

Accepted Answer

BC Hydro has the right to access, maintain, and install infrastructure (power lines) across that portion of the land

Answer

BC Hydro has the right to purchase the property at any time

Answer

The property owner has no right to use the area covered by the right of way

Answer

The property is zoned for utility use only

Question 5

What is a 'restrictive covenant' as it applies to BC real property?

Accepted Answer

A registered encumbrance on title that restricts how the land can be used by the current and future owners

Answer

A bylaw restricting the type of businesses that can operate in a zone

Answer

An agreement between a lender and borrower limiting refinancing options

Answer

A Heritage Designation that prevents demolition of a building

Question 6

Under BC law, an 'easement' is best described as:

Accepted Answer

A non-possessory right to use another person's land for a specific purpose

Answer

The right of an owner to subdivide their property without municipal approval

Answer

The obligation to maintain a shared boundary fence between two properties

Answer

A government right to expropriate property for public use