OREA Land Registration Systems 2

Question 1

In Ontario, what is a 'Property Identification Number' (PIN)?

Accepted Answer

A unique number assigned to each property parcel in the electronic land registration system for identification purposes

Answer

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?

Accepted Answer

A condensed chronological summary of all documents registered against a property, including deeds, mortgages, liens, and other encumbrances

Answer

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?

Accepted Answer

It provides notice to the world of the interest claimed and establishes priority over subsequent registrations

Answer

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?

Accepted Answer

Any claim, lien, charge, or liability attached to and binding on the property, such as a mortgage, easement, or restrictive covenant

Answer

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?

Accepted Answer

An insurance policy that protects against losses arising from defects in title, including fraud, forgery, encroachments, and survey issues

Answer

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.

Ontario Real Estate Practice Test

Ontario Real Estate Practice Test

OREA Land Registration Systems 2