OREA Ontario Real Estate Law 2

Question 1

In Ontario, what does 'caveat emptor' mean in the context of real estate?

Accepted Answer

Buyer beware — the buyer is responsible for inspecting and investigating the property

Answer

The seller must disclose all defects

Answer

The government guarantees the condition of the property

Answer

The real estate agent guarantees the property's condition

Question 2

What is the purpose of a 'status certificate' under the Ontario Condominium Act?

Accepted Answer

To provide financial and legal information about a condominium corporation and a specific unit

Answer

To certify the building meets fire codes

Answer

To confirm the unit owner's identity

Answer

To verify the condominium's zoning designation

Question 3

Under the Ontario Building Code Act, what is required before construction or renovation of a building?

Accepted Answer

A building permit must be obtained from the local municipality

Answer

Only verbal approval from the municipality

Answer

No permits are required for residential properties

Answer

Only commercial buildings require permits

Question 4

In Ontario, what is the effect of a 'certificate of pending litigation' (CPL) on a property?

Accepted Answer

It serves as notice that there is a court action affecting the property, which may affect its marketability

Answer

It prevents any work on the property

Answer

It certifies that the property is free of liens

Answer

It confirms the property has been inspected

Question 5

Under Ontario law, what is 'adverse possession' and does it apply under the Land Titles system?

Accepted Answer

It is the acquisition of title through continuous possession, and it generally does not apply under the Land Titles system

Answer

It is the right to possess property during a lease and applies under both systems

Answer

It is another term for foreclosure and applies under both systems

Answer

It only applies to commercial properties under both systems

Question 6

What is the purpose of the 'Environmental Protection Act' in relation to Ontario real estate?

Accepted Answer

It addresses contamination, environmental assessments, and liability for environmental cleanup on properties

Answer

It regulates the energy efficiency of new buildings

Answer

It only applies to agricultural land

Answer

It sets landscaping requirements for residential properties