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

Specific performance is an equitable remedy where a court orders a party to fulfill their obligations under the contract. It is commonly available in real estate because each property is considered unique and monetary damages may be inadequate.

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

A severance (also called consent) under the Planning Act allows the division of a parcel of land into smaller lots. It requires approval from the local Committee of Adjustment or Land Division Committee to ensure compliance with planning policies.

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

The Ontario New Home Warranties Plan Act (administered by Tarion) provides warranty coverage for buyers of newly built homes. It covers defects in work and materials, major structural defects, unauthorized substitutions, and includes deposit protection.

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

A survey or real property report prepared by a licensed surveyor identifies property boundaries, the location of buildings relative to boundaries, easements, rights-of-way, and any encroachments that may affect the property.

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

A subdivision agreement is entered into between the developer and the municipality, specifying the conditions that must be met for the subdivision to proceed, including requirements for roads, services, parkland dedication, and other infrastructure.

Ontario Real Estate Practice Test

Ontario Real Estate Practice Test

OREA Ontario Real Estate Law 4