BC Real Estate Trading Services Course Title Registration and Land Use Questions and Answers

Question 1

A prospective buyer is reviewing a title search for a property in British Columbia and notes a restrictive covenant registered in 1995 that prohibits the construction of any secondary suites. The local municipal zoning bylaw was updated last year and now permits secondary suites in this area. Which of the following statements is most accurate?

Accepted Answer

The restrictive covenant is a private contractual agreement that runs with the land and remains enforceable despite the change in zoning.

Answer

Restrictive covenants are private agreements that are registered on title and 'run with the land,' binding subsequent owners. They operate independently of, and in addition to, municipal zoning bylaws. A change in zoning does not automatically invalidate a more restrictive private covenant. While there are legal processes to modify or discharge a covenant, it is not automatic and remains enforceable by the parties who benefit from it.

Question 2

In British Columbia's Torrens land title system, what is the primary significance of the principle of 'indefeasibility'?

Accepted Answer

It means that the registered owner's title is conclusive evidence of ownership, subject only to certain statutory exceptions.

Answer

The core principle of indefeasibility in the BC Torrens system is that the person named on a Certificate of Indefeasible Title is the true owner, and their title is conclusive evidence of ownership. This guarantee by the province allows parties in a transaction to rely on the accuracy of the Land Title Register. The title is subject to certain exceptions listed in the Land Title Act, such as fraud in which the owner participated, certain taxes, and other specific statutory charges.

Question 3

A buyer is purchasing a strata townhouse in Kelowna. The REALTOR® points out that the unit's parking stall and private backyard are designated as 'Limited Common Property' (LCP) on the strata plan. What does this designation imply for the buyer?

Accepted Answer

The buyer has the exclusive right to use these areas, but they are still owned collectively by all strata members.

Answer

Limited Common Property (LCP) is part of the common property that is designated for the exclusive use of one or more specific strata lots. While the buyer gets exclusive use rights, the ownership of LCP areas remains with the strata corporation on behalf of all owners collectively. Typically, the owner is responsible for routine maintenance, while the strata corporation handles major repairs, although bylaws can modify these responsibilities.

Question 4

Which of the following is a non-financial charge that a buyer would typically expect to 'run with the land' and remain on the title after purchasing a property in BC?

Accepted Answer

A statutory right-of-way in favour of a utility company.

Answer

Non-financial charges typically relate to the use of the property and remain on title after a sale. A statutory right-of-way is a common example, granting a utility company the right to access a portion of the property. Financial charges, such as mortgages, builder's liens, and judgments, are debts of the seller and are required to be paid out and discharged from the title by the seller on or before the completion date so the buyer receives clear title.

Question 5

A client is interested in purchasing a 10-hectare property located within British Columbia's Agricultural Land Reserve (ALR). They want to build a large primary residence and a separate cottage for their parents. What should a real estate licensee advise them?

Accepted Answer

Provincial regulations limit the size of a principal residence and may permit an additional, smaller residence, subject to local government bylaws.

Answer

The Agricultural Land Reserve (ALR) has specific rules regarding residential use to prioritize agriculture. There is a maximum size for a principal residence (currently 500 square metres) without needing special ALC approval. Regulations also permit one additional residence on the property, with its size depending on the overall parcel size, provided it also complies with local government or First Nation government laws.

BC Real Estate Practice Test

BC Real Estate Practice Test

BC Real Estate Trading Services Course Title Registration and Land Use Questions and Answers