OREA Property Rights and Ownership 4

Question 1

In Ontario, what is 'adverse possession' and what are the requirements to claim it?

Accepted Answer

The acquisition of title to land through open, continuous, exclusive, and notorious possession for the statutory period, without the owner's permission

Answer

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?

Accepted 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

Answer

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?

Accepted Answer

A legal claim or charge against a property as security for a debt or obligation

Answer

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?

Accepted Answer

It allows contractors, subcontractors, and material suppliers to register a lien against a property for unpaid work or materials

Answer

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?

Accepted 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

Answer

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.

Ontario Real Estate Practice Test

Ontario Real Estate Practice Test

OREA Property Rights and Ownership 4