LSO Barrister Real Estate Law 1 — Questions and Answers
Question 1: In Ontario, which legislation governs the registration of title to land and the protection of registered interests?
- Registry Act
- Land Titles Act (Correct answer)
- Real Estate and Business Brokers Act
- Planning Act
Correct answer: Land Titles Act
The Land Titles Act governs Ontario's electronic land registration system (Teraview/POLARIS) where title is guaranteed by the Province upon first registration.
Question 2: In Ontario, what is the standard form Agreement of Purchase and Sale governed by?
- The Real Estate and Business Brokers Act, 2002 (REBBA)
- The Ontario Real Estate Association (OREA) standard form contract (Correct answer)
- The Land Transfer Tax Act
- The Conveyancing and Law of Property Act
Correct answer: The Ontario Real Estate Association (OREA) standard form contract
Most residential transactions use the OREA standard form Agreement of Purchase and Sale, which sets out terms, conditions, representations, and warranties.
Question 3: Under the Ontario Land Transfer Tax Act, who is responsible for paying land transfer tax?
- The vendor (seller)
- The purchaser (Correct answer)
- Both parties equally
- The real estate agent
Correct answer: The purchaser
Land transfer tax is payable by the purchaser on registration of a transfer of land and is calculated based on the purchase price.
Question 4: What is a 'title search' in Ontario real estate transactions used to determine?
- The property's market value
- Whether the vendor has good and marketable title free from undisclosed encumbrances (Correct answer)
- The property's zoning classification
- The physical condition of the property
Correct answer: Whether the vendor has good and marketable title free from undisclosed encumbrances
A title search examines the registered title and encumbrances to ensure the vendor can convey good title free from mortgages, liens, and other charges not disclosed in the agreement.
Question 5: In Ontario, what is a 'mortgage discharge statement' and when is it obtained?
- A statement from MPAC confirming no property taxes are owed, obtained before closing
- A statement from the lender stating the amount required to pay off the mortgage, obtained before closing (Correct answer)
- A statement from the municipality confirming no local improvement charges, obtained after closing
- A statement from the title insurer confirming coverage
Correct answer: A statement from the lender stating the amount required to pay off the mortgage, obtained before closing
A discharge statement (payout statement) confirms the exact amount required to fully pay off and discharge an existing mortgage, necessary to clear title on closing.
Question 6: Under the Planning Act (Ontario), what is a 'consent' (severance) used for?
- Subdividing land into more than 5 lots
- Creating a new lot from an existing parcel by severing part of it for conveyance (Correct answer)
- Changing the zoning of a property
- Obtaining a building permit
Correct answer: Creating a new lot from an existing parcel by severing part of it for conveyance
A consent under section 53 of the Planning Act is required to sever a parcel of land and create a new conveyable lot without going through the full subdivision process.
LSO Barrister Real Estate Law 1
In Ontario, which legislation governs the registration of title to land and the protection of registered interests?