OREA Land Registration Systems 2 — Questions and Answers
Question 1: In Ontario, what is a 'Property Identification Number' (PIN)?
- A personal identification number for property owners
- A unique number assigned to each property parcel in the electronic land registration system for identification purposes (Correct answer)
- A postal code for properties
- A tax identification number
Correct answer: A unique number assigned to each property parcel in the electronic land registration system for identification purposes
A PIN is a unique identifier assigned to each property parcel in Ontario's electronic land registration system. It replaces the traditional lot and plan descriptions and is used for searching title and registering documents.
Question 2: What is an 'abstract of title' in Ontario's Registry system?
- A summary of the property's architectural features
- A condensed chronological summary of all documents registered against a property, including deeds, mortgages, liens, and other encumbrances (Correct answer)
- A brief description of the property's location
- A financial summary of the property's value
Correct answer: A condensed chronological summary of all documents registered against a property, including deeds, mortgages, liens, and other encumbrances
An abstract of title is a summary of all documents that have been registered against a property in the Registry system, listed in chronological order. It allows a lawyer to trace the chain of title and identify any encumbrances.
Question 3: In Ontario, what does 'registration' of a document on title accomplish?
- It makes the document legally valid between the parties
- It provides notice to the world of the interest claimed and establishes priority over subsequent registrations (Correct answer)
- It guarantees the document is accurate
- It replaces the need for a lawyer to review the document
Correct answer: It provides notice to the world of the interest claimed and establishes priority over subsequent registrations
Registration gives constructive notice to the world that the interest exists. In both the Registry and Land Titles systems, registered interests generally take priority over unregistered interests, and earlier registrations take priority over later ones.
Question 4: What is an 'encumbrance' in the context of Ontario land registration?
- A structural problem with the building
- Any claim, lien, charge, or liability attached to and binding on the property, such as a mortgage, easement, or restrictive covenant (Correct answer)
- A type of property insurance
- A government subsidy for property development
Correct answer: Any claim, lien, charge, or liability attached to and binding on the property, such as a mortgage, easement, or restrictive covenant
An encumbrance is any right or interest held by someone other than the property owner that affects the title or use of the property. Common encumbrances include mortgages, easements, liens, restrictive covenants, and leases.
Question 5: In Ontario, what is 'title insurance' and why is it important?
- Insurance that covers the building against fire damage
- An insurance policy that protects against losses arising from defects in title, including fraud, forgery, encroachments, and survey issues (Correct answer)
- Insurance required only for commercial properties
- An insurance policy that covers the real estate agent's errors
Correct answer: An insurance policy that protects against losses arising from defects in title, including fraud, forgery, encroachments, and survey issues
Title insurance protects property owners and lenders against financial losses arising from title defects that were not discovered during the title search. It covers issues like fraud, forgery, encroachments, zoning violations, and survey errors.
Question 6: What is the 'nemo dat' rule and how does it relate to land registration in Ontario?
- A rule about property taxation
- The principle that no one can give what they do not have — a person cannot transfer better title than they possess (Correct answer)
- A rule about construction permits
- A rule about mortgage interest rates
Correct answer: The principle that no one can give what they do not have — a person cannot transfer better title than they possess
The 'nemo dat quod non habet' rule means that a person cannot transfer a greater interest in property than they themselves hold. However, the Land Titles system modifies this principle through the concept of guaranteed title, which can override certain defects.
OREA Land Registration Systems 2
In Ontario, what is a 'Property Identification Number' (PIN)?