OREA Land Registration Systems 4 — Questions and Answers
Question 1: In Ontario, what is the 'first to register' rule?
- The first person to visit a property gets the first right to buy
- When two competing interests exist, the one registered first on title generally takes priority over the one registered later (Correct answer)
- The first real estate agent to list the property gets the commission
- The first offer received must be accepted
Correct answer: When two competing interests exist, the one registered first on title generally takes priority over the one registered later
The first to register rule (priority of registration) means that when two or more competing interests exist for the same property, the interest registered first on title takes priority. This makes timely registration critically important.
Question 2: What is an 'instrument' in the context of Ontario land registration?
- A measuring tool used by surveyors
- Any legal document registered or capable of being registered on title, such as a transfer, charge, discharge, or easement (Correct answer)
- A musical device used at closing ceremonies
- A financial calculator for mortgage payments
Correct answer: Any legal document registered or capable of being registered on title, such as a transfer, charge, discharge, or easement
An instrument is any legal document that is registered or capable of being registered against a property's title. This includes transfers, charges (mortgages), discharges, easements, liens, powers of attorney, and court orders.
Question 3: In Ontario, what is a 'caution' registered on title under the Land Titles Act?
- A warning about dangerous property conditions
- A notice registered on title by a person claiming an interest in the property, warning that no dealings should be registered without notifying the cautioner (Correct answer)
- A building inspection warning
- A traffic warning near the property
Correct answer: A notice registered on title by a person claiming an interest in the property, warning that no dealings should be registered without notifying the cautioner
A caution is a notice registered on title by someone who claims an unregistered interest in the property. It prevents the registration of any dealings with the property without the cautioner being notified, giving them an opportunity to assert their claim.
Question 4: What is the 'doctrine of indefeasibility' in Ontario's Land Titles system?
- A doctrine about property tax exemptions
- The principle that a registered owner's title cannot be defeated except in limited circumstances specified by the Act, such as fraud (Correct answer)
- A doctrine about lease renewals
- A principle of environmental protection
Correct answer: The principle that a registered owner's title cannot be defeated except in limited circumstances specified by the Act, such as fraud
The doctrine of indefeasibility means that a registered owner's title is conclusive and cannot be challenged except in specific circumstances defined by the Land Titles Act, such as fraud by the registered owner. This provides certainty and security of title.
Question 5: In Ontario, what is 'electronic registration' and what are its requirements?
- Scanning paper documents and emailing them to the registry
- The process of registering legal documents affecting title electronically through Teranet's system, requiring authorized users with digital signatures (Correct answer)
- Posting property listings online
- Using a credit card to pay registration fees online
Correct answer: The process of registering legal documents affecting title electronically through Teranet's system, requiring authorized users with digital signatures
Electronic registration in Ontario allows authorized users (lawyers and their delegates) to register documents affecting title electronically through Teranet's e-registration system. Users must be authorized, use digital signatures, and comply with electronic registration requirements.
Question 6: What is a 'legal description' of property in Ontario's registration system?
- A general description of the neighbourhood
- The precise identification of a property's boundaries and location using lot and plan numbers, metes and bounds, or PIN, as recorded in the land registration system (Correct answer)
- The property's street address
- A description of the building on the property
Correct answer: The precise identification of a property's boundaries and location using lot and plan numbers, metes and bounds, or PIN, as recorded in the land registration system
A legal description precisely identifies a property using methods such as lot and plan numbers (in a registered plan of subdivision), metes and bounds (bearings and distances), or the Property Identification Number (PIN). The street address alone is not a legal description.
OREA Land Registration Systems 4
In Ontario, what is the 'first to register' rule?