OREA Ontario Real Estate Law 1 — Questions and Answers
Question 1: In Ontario, which legislation governs the transfer of land and the registration of interests in real property?
- The Registry Act and the Land Titles Act (Correct answer)
- The Planning Act only
- The Condominium Act only
- The Municipal Act
Correct answer: The Registry Act and the Land Titles Act
Ontario has two systems for recording interests in land: the Registry system (governed by the Registry Act) and the Land Titles system (governed by the Land Titles Act). The province has been transitioning all properties to the Land Titles system.
Question 2: What is the purpose of the Planning Act in Ontario real estate?
- To set property tax rates
- To regulate land use planning, subdivision of land, and development controls (Correct answer)
- To govern the construction of residential buildings
- To establish the duties of real estate agents
Correct answer: To regulate land use planning, subdivision of land, and development controls
The Planning Act provides the framework for land use planning in Ontario, including zoning, subdivision control, site plan control, and official plans that guide development and land use decisions.
Question 3: Under Ontario law, what is the significance of the 'doctrine of merger' in real estate transactions?
- It combines two adjacent properties into one parcel
- It means that upon closing, the terms of the agreement of purchase and sale merge into the deed and can no longer be enforced separately (Correct answer)
- It merges the buyer's and seller's legal representation
- It combines multiple mortgages into a single loan
Correct answer: It means that upon closing, the terms of the agreement of purchase and sale merge into the deed and can no longer be enforced separately
The doctrine of merger states that once a transaction closes and the deed is delivered, the provisions of the agreement of purchase and sale merge into the deed. Any claims based on the agreement are extinguished unless specifically preserved.
Question 4: In Ontario, what is the 'Family Law Act' requirement regarding the matrimonial home in a real estate transaction?
- The matrimonial home can be sold without the spouse's knowledge
- Both spouses must consent to the sale or disposition of the matrimonial home, even if only one spouse is on title (Correct answer)
- Only the spouse on title needs to consent
- Spousal consent is only needed for properties over $500,000
Correct answer: Both spouses must consent to the sale or disposition of the matrimonial home, even if only one spouse is on title
Under the Family Law Act, both spouses must consent to the sale, mortgage, or other disposition of the matrimonial home, regardless of which spouse holds legal title to the property.
Question 5: What is the role of the 'Residential Tenancies Act' in Ontario real estate transactions?
- It only applies to commercial properties
- It governs the rights and obligations of residential landlords and tenants, including protections that survive property sales (Correct answer)
- It sets the price for rental properties
- It is only relevant to purpose-built rental buildings
Correct answer: It governs the rights and obligations of residential landlords and tenants, including protections that survive property sales
The Residential Tenancies Act governs the relationship between residential landlords and tenants in Ontario. Tenancy agreements survive the sale of a property — a new owner cannot simply evict existing tenants.
Question 6: Under Ontario law, what is the limitation period for bringing a civil action related to a real estate transaction?
- 1 year
- 2 years from the date the claim was discovered (Correct answer)
- 5 years
- 10 years
Correct answer: 2 years from the date the claim was discovered
Under the Limitations Act, 2002, the basic limitation period in Ontario is 2 years from the date the claim was discovered or ought to have been discovered. There is also an ultimate limitation period of 15 years.
OREA Ontario Real Estate Law 1
In Ontario, which legislation governs the transfer of land and the registration of interests in real property?