OREA Land Registration Systems

Question 1

What are the two land registration systems that have historically operated in Ontario?

Accepted Answer

The Registry system and the Land Titles system

Answer

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?

Accepted Answer

The government guarantees the accuracy of the title as shown in the register, providing certainty of ownership

Answer

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?

Accepted Answer

The Registry system records documents affecting title without guaranteeing ownership; the Land Titles system guarantees title

Answer

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?

Accepted Answer

The sequential history of all documents and transfers affecting ownership of a property, which must be searched to verify good title

Answer

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'?

Accepted Answer

A government fund that compensates persons who suffer loss due to errors or omissions in the Land Titles register

Answer

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.

Ontario Real Estate Practice Test

Ontario Real Estate Practice Test

OREA Land Registration Systems