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

Fee simple (also called fee simple absolute) is the greatest possible ownership interest in real property — it is perpetual, freely transferable, and passes to heirs upon death.

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

Indefeasibility means that a registered owner in BC holds title that is conclusive against the world — it cannot be defeated by prior unregistered claims, except in limited circumstances such as fraud or specific statutory exceptions.

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

The right of survivorship is the defining characteristic of joint tenancy — upon the death of one joint tenant, their interest automatically vests in the surviving joint tenant(s), bypassing the deceased's will entirely.

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

A statutory right of way (SRW) grants a utility or government entity specific rights to use and access a defined portion of private land for infrastructure purposes — the landowner retains ownership but the SRW limits certain uses in that area.

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 restrictive covenant is an obligation registered on a property's title that binds not just the current owner but all future owners — restricting the use, type, or character of development or activity on the land.

BC Real Estate Practice Test

BC Real Estate Practice Test

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