BC Real Estate Trading Services Course Land Title and Registration in BC 2 — Questions and Answers
Question 1: What is the key legal difference between joint tenancy and tenancy in common in BC?
- Joint tenants may sell their share independently; tenants in common may not
- Joint tenancy includes the right of survivorship; tenancy in common does not (Correct answer)
- Tenancy in common requires equal ownership shares; joint tenancy allows unequal shares
- Joint tenancy applies only to commercial properties under BC law
Correct answer: Joint tenancy includes the right of survivorship; tenancy in common does not
In joint tenancy, if one owner dies their interest automatically passes to the surviving owners (right of survivorship), whereas in tenancy in common each owner's share passes through their estate.
Question 2: In BC, what does an easement registered on a property's title allow the easement holder to do?
- Purchase the property at a predetermined price in the future
- Use a defined portion of the land for a specific stated purpose (Correct answer)
- Restrict all development on the burdened property indefinitely
- Claim ownership of the property after a period of continuous use
Correct answer: Use a defined portion of the land for a specific stated purpose
An easement grants the holder the right to use part of another person's land for a defined purpose, such as access or running utility lines.
Question 3: Under the Land Title Act BC, the term 'charge' broadly refers to:
- The fee paid to the LTSA for registering any document
- Any registered interest in land other than freehold ownership, such as a mortgage or easement (Correct answer)
- A legal notice that a property is under criminal investigation
- A penalty imposed on an owner who fails to register a transfer within the required time
Correct answer: Any registered interest in land other than freehold ownership, such as a mortgage or easement
In BC land title law, a 'charge' encompasses any registered encumbrance or interest against a property, including mortgages, easements, and covenants.
Question 4: When two charges are registered against the same BC property, how is priority between them generally determined?
- Priority is determined by the dollar value of each charge
- Priority is generally determined by the order in which the charges were registered (Correct answer)
- Mortgages always take priority over all other registered charges regardless of registration order
- Priority is assigned by the LTSA based on the nature of the charge
Correct answer: Priority is generally determined by the order in which the charges were registered
Under BC's Torrens system, the priority of registered charges is generally determined by the order of registration — first registered means first priority.
Question 5: How does BC law treat adverse possession (squatter's rights) for land registered under the Torrens system?
- It is fully recognized and allows a squatter to claim title after 10 years of open occupation
- It has been abolished in BC for Torrens-registered land, protecting the registered owner's title (Correct answer)
- It applies only to rural or agricultural properties in BC after 20 years
- It requires a court order after 15 years of continuous possession
Correct answer: It has been abolished in BC for Torrens-registered land, protecting the registered owner's title
BC abolished adverse possession for Torrens-registered land; indefeasibility of title protects registered owners against claims based on long-term occupation.
Question 6: What does a title search at the LTSA primarily involve in a BC real estate transaction?
- Physically inspecting the property and all improvements for defects
- Reviewing registered documents to determine ownership, charges, and encumbrances affecting the property (Correct answer)
- Checking with the municipality about outstanding building permits and bylaws
- Obtaining a current appraisal of the property's market value
Correct answer: Reviewing registered documents to determine ownership, charges, and encumbrances affecting the property
A title search involves reviewing the registered documents at the LTSA to identify the current owner, all registered charges, and any encumbrances affecting the property.
Question 7: British Columbia's Property Transfer Tax (PTT) is primarily intended to:
- Fund specific municipal improvements to the property being transferred
- Raise provincial government revenue on the transfer of real property (Correct answer)
- Ensure all properties are assessed at fair market value for tax purposes
- Compensate the LTSA for the cost of registering the transfer documents
Correct answer: Raise provincial government revenue on the transfer of real property
PTT is a provincial tax imposed on buyers when real property is transferred in BC, calculated as a percentage of the property's fair market value.
BC Real Estate Trading Services Course Land Title and Registration in BC 2
What is the key legal difference between joint tenancy and tenancy in common in BC?