OREA Land Registration Systems 3 — Questions and Answers
Question 1: In Ontario, what is a 'transfer/deed of land' in the land registration context?
- A rental agreement
- The legal document that conveys ownership of property from the seller (transferor) to the buyer (transferee) (Correct answer)
- A property inspection report
- A mortgage application
Correct answer: The legal document that conveys ownership of property from the seller (transferor) to the buyer (transferee)
A transfer (formerly called a deed) is the legal document used to convey ownership of real property from the transferor (seller) to the transferee (buyer). In Ontario's electronic system, it is registered electronically as a 'transfer.'
Question 2: What are 'land titles conversion qualified' (LTCQ) properties in Ontario?
- Properties that have failed a quality inspection
- Properties converted from the Registry system to the Land Titles system but with limited title guarantee due to the lack of a full title search (Correct answer)
- Properties that qualify for a tax exemption
- Properties owned by the government
Correct answer: Properties converted from the Registry system to the Land Titles system but with limited title guarantee due to the lack of a full title search
LTCQ properties were converted from the Registry system to the Land Titles system without a full title search. They carry a qualified title guarantee, meaning some historical title defects may not be covered by the Land Titles Assurance Fund.
Question 3: In Ontario, what is a 'charge' in the Land Titles system?
- A fee for registration services
- The equivalent of a mortgage — a registered interest securing a debt against the property (Correct answer)
- An electrical service connection
- A property tax assessment
Correct answer: The equivalent of a mortgage — a registered interest securing a debt against the property
In the Land Titles system, a mortgage is referred to as a 'charge.' The borrower is the 'chargor' and the lender is the 'chargee.' The charge is registered against the property to secure repayment of the loan.
Question 4: What is a 'discharge' of a mortgage/charge in Ontario's registration system?
- The termination of the real estate agent's contract
- A registered document that releases the property from the security of the mortgage/charge after the debt has been paid (Correct answer)
- A notification of property tax arrears
- A construction permit completion certificate
Correct answer: A registered document that releases the property from the security of the mortgage/charge after the debt has been paid
A discharge is a document registered on title that removes the mortgage (charge) from the property's title, confirming that the secured debt has been fully paid and the lender no longer has a claim against the property.
Question 5: In Ontario, what is the concept of 'notice' in land registration?
- A letter sent to neighbours about a property sale
- The principle that registration of a document provides constructive notice to the world of the interest claimed, and knowledge of an unregistered interest may constitute actual notice (Correct answer)
- A notification from RECO about registration renewal
- A municipal notice about zoning changes
Correct answer: The principle that registration of a document provides constructive notice to the world of the interest claimed, and knowledge of an unregistered interest may constitute actual notice
Notice in land registration can be constructive (through registration on title) or actual (personal knowledge). Once a document is registered, the world is deemed to know about it. A person who has actual knowledge of an unregistered interest may also be affected by it.
Question 6: What is a 'parcel register' in Ontario's land registration system?
- A register of all parcels available for sale
- The official record maintained for each property that lists the owner and all registered interests affecting the property (Correct answer)
- A shipping register for real estate documents
- A registry of all real estate agents
Correct answer: The official record maintained for each property that lists the owner and all registered interests affecting the property
The parcel register is the central record for each property in the Land Titles system. It identifies the current owner, the legal description, and lists all registered interests (charges, easements, liens) affecting the property. It is the definitive record of title.
OREA Land Registration Systems 3
In Ontario, what is a 'transfer/deed of land' in the land registration context?