OREA Property Rights and Ownership 4 — Questions and Answers
Question 1: In Ontario, what is 'adverse possession' and what are the requirements to claim it?
- Buying property at a discount
- The acquisition of title to land through open, continuous, exclusive, and notorious possession for the statutory period, without the owner's permission (Correct answer)
- A hostile takeover of a commercial property
- Temporarily occupying vacant land with a permit
Correct answer: The acquisition of title to land through open, continuous, exclusive, and notorious possession for the statutory period, without the owner's permission
Adverse possession requires open, continuous, exclusive, and notorious possession of land without the owner's permission for the statutory limitation period. The possessor must treat the land as their own. Note: this generally does not apply under the Land Titles system in Ontario.
Question 2: What is 'expropriation' and what rights do Ontario property owners have when their property is expropriated?
- Property owners have no rights during expropriation
- Government can take private property for public purposes, and owners are entitled to fair compensation, a hearing, and the right to challenge the amount of compensation (Correct answer)
- Expropriation only applies to abandoned properties
- Property owners can refuse expropriation entirely
Correct answer: Government can take private property for public purposes, and owners are entitled to fair compensation, a hearing, and the right to challenge the amount of compensation
Expropriation allows government to acquire private property for public purposes. Under the Expropriations Act, property owners have the right to a hearing, fair market value compensation, and can challenge the compensation amount through an inquiry.
Question 3: In Ontario, what is a 'lien' on a property?
- A type of property insurance
- A legal claim or charge against a property as security for a debt or obligation (Correct answer)
- A property boundary marker
- A lease agreement for commercial property
Correct answer: A legal claim or charge against a property as security for a debt or obligation
A lien is a legal claim against a property that secures the payment of a debt or obligation. Common liens include mortgage liens, construction liens, tax liens, and judgment liens. They must generally be cleared before the property can be sold.
Question 4: What is the 'Construction Act' (formerly Construction Lien Act) and how does it protect contractors in Ontario?
- It only regulates construction safety standards
- It allows contractors, subcontractors, and material suppliers to register a lien against a property for unpaid work or materials (Correct answer)
- It sets construction timelines for new buildings
- It provides grants for construction projects
Correct answer: It allows contractors, subcontractors, and material suppliers to register a lien against a property for unpaid work or materials
The Construction Act provides contractors, subcontractors, and material suppliers with the right to register a lien against property when they have not been paid for work performed or materials supplied. It also establishes holdback requirements and prompt payment provisions.
Question 5: In Ontario, what is a 'license' in property law and how does it differ from an easement?
- A license and an easement are the same thing
- A license is a personal, revocable permission to use land that does not create an interest in land, while an easement creates a lasting property interest (Correct answer)
- A license provides more permanent rights than an easement
- A license can only be granted by the government
Correct answer: A license is a personal, revocable permission to use land that does not create an interest in land, while an easement creates a lasting property interest
A license is personal permission to use someone's land that is revocable and does not create a property interest (it cannot be registered on title). An easement creates a property interest that runs with the land and binds future owners.
Question 6: What is a 'mortgage' in Ontario property law?
- A lease agreement for residential property
- A legal instrument that pledges property as security for repayment of a loan, giving the lender a registered interest in the property (Correct answer)
- A property insurance policy
- A government grant for homebuyers
Correct answer: A legal instrument that pledges property as security for repayment of a loan, giving the lender a registered interest in the property
A mortgage is a legal charge registered against the property that gives the lender (mortgagee) a security interest. The borrower (mortgagor) retains ownership but pledges the property as collateral. If the borrower defaults, the lender can enforce the security through power of sale or foreclosure.
OREA Property Rights and Ownership 4
In Ontario, what is 'adverse possession' and what are the requirements to claim it?