OREA Land Registration Systems 1 — Questions and Answers
Question 1: What are the two land registration systems that have historically operated in Ontario?
- The Federal and Provincial systems
- The Registry system and the Land Titles system (Correct answer)
- The Municipal and Regional systems
- The Paper and Electronic systems
Correct answer: The Registry system and the Land Titles system
Ontario has historically operated two parallel land registration systems: the Registry system (based on recording documents) and the Land Titles system (based on government-guaranteed title). The province has been converting all properties to the Land Titles system.
Question 2: What is the fundamental principle of the Land Titles system in Ontario?
- The buyer must verify the chain of title independently
- The government guarantees the accuracy of the title as shown in the register, providing certainty of ownership (Correct answer)
- Title insurance is mandatory for all transactions
- The seller must provide a complete chain of title back to the Crown patent
Correct answer: The government guarantees the accuracy of the title as shown in the register, providing certainty of ownership
The Land Titles system is based on the 'mirror' and 'curtain' principles — the register mirrors the current state of title, and the curtain principle means you do not need to look behind the register. The government guarantees the accuracy of the registered title.
Question 3: How does the Registry system differ from the Land Titles system in Ontario?
- The Registry system is newer than the Land Titles system
- The Registry system records documents affecting title without guaranteeing ownership; the Land Titles system guarantees title (Correct answer)
- The Registry system provides stronger title guarantees
- There is no practical difference between the two systems
Correct answer: The Registry system records documents affecting title without guaranteeing ownership; the Land Titles system guarantees title
Under the Registry system, documents affecting title are recorded chronologically, but the government does not guarantee who owns the property. The buyer must search the chain of title to verify ownership. The Land Titles system provides government-guaranteed title.
Question 4: What is a 'chain of title' and why is it important in the Registry system?
- A decorative chain on the property boundary
- The sequential history of all documents and transfers affecting ownership of a property, which must be searched to verify good title (Correct answer)
- A list of all mortgages on the property
- The order in which offers were received
Correct answer: The sequential history of all documents and transfers affecting ownership of a property, which must be searched to verify good title
The chain of title is the complete chronological history of documents (deeds, mortgages, easements) affecting a property. In the Registry system, a buyer must search the chain of title for a minimum period to verify that the seller has good and marketable title.
Question 5: In Ontario's Land Titles system, what is the 'Land Titles Assurance Fund'?
- A fund for first-time homebuyers
- A government fund that compensates persons who suffer loss due to errors or omissions in the Land Titles register (Correct answer)
- An insurance fund for real estate agents
- A deposit protection fund managed by RECO
Correct answer: A government fund that compensates persons who suffer loss due to errors or omissions in the Land Titles register
The Land Titles Assurance Fund provides compensation to persons who suffer financial loss because of an error, omission, or misdescription in the Land Titles register. It supports the government's guarantee of title accuracy.
Question 6: What is the 'POLARIS' system in Ontario?
- A property appraisal system
- The Province of Ontario Land Registration Information System — the automated electronic database for property records (Correct answer)
- A satellite-based property mapping system
- A property listing service
Correct answer: The Province of Ontario Land Registration Information System — the automated electronic database for property records
POLARIS (Province of Ontario Land Registration Information System) is the electronic database that stores and provides access to property records in Ontario. It supports both title searching and electronic document registration.
OREA Land Registration Systems 1
What are the two land registration systems that have historically operated in Ontario?