Real Estate Law Flashcards

In Ontario, which legislation governs the registration of title to land and the protection of registered interests?

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.

In Ontario, what is the standard form Agreement of Purchase and Sale governed by?

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.

Under the Ontario Land Transfer Tax Act, who is responsible for paying land transfer tax?

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.

What is a 'title search' in Ontario real estate transactions used to determine?

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.

In Ontario, what is a 'mortgage discharge statement' and when is it obtained?

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.

Under the Planning Act (Ontario), what is a 'consent' (severance) used for?

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.