OREA Ontario Real Estate Law 4

Question 1

Under Ontario law, what is 'specific performance' in the context of real estate?

Accepted Answer

A court order requiring a party to complete the transaction as agreed in the contract

Answer

A performance review of the real estate agent

Answer

A clause that specifies the closing date

Answer

A guarantee of property performance standards

Question 2

In Ontario, what is a 'severance' under the Planning Act?

Accepted Answer

The division of a parcel of land into two or more parts, requiring approval from the Committee of Adjustment or Land Division Committee

Answer

The termination of a real estate contract

Answer

The separation of a partnership between real estate agents

Answer

The removal of a lien from property

Question 3

What is the 'Ontario New Home Warranties Plan Act' (now Tarion) and what does it provide?

Accepted Answer

Warranty protection for buyers of new homes covering defects in work and materials, including deposit protection

Answer

Insurance for real estate agents

Answer

Property tax rebates for new homeowners

Answer

Mortgage insurance for high-ratio mortgages

Question 4

Under Ontario law, what is the purpose of a 'real property report' or 'survey'?

Accepted Answer

To identify property boundaries, building locations, easements, and encroachments

Answer

To appraise the property's market value

Answer

To assess the property's environmental condition

Answer

To determine the property's zoning classification

Question 5

In Ontario, what is a 'subdivision agreement' under the Planning Act?

Accepted Answer

An agreement between a developer and the municipality setting out conditions for developing a plan of subdivision

Answer

An agreement between two property owners to share a driveway

Answer

An agreement to subdivide a condominium unit

Answer

A contract between a buyer and seller for a subdivided lot

Question 6

What is the 'Expropriations Act' and how does it affect property owners in Ontario?

Accepted Answer

It governs the process by which government can compulsorily acquire private property for public purposes, with fair compensation

Answer

It allows property owners to expand their lot boundaries

Answer

It only applies to commercial property seizures

Answer

It allows municipalities to increase property taxes