OREA Property Rights and Ownership

Question 1

In Ontario, what is the difference between 'freehold' and 'leasehold' ownership?

Accepted Answer

Freehold provides indefinite ownership of the land and buildings; leasehold provides the right to use land for a specified period under a lease

Answer

Freehold (fee simple) provides the most complete form of ownership — the owner holds title indefinitely. Leasehold provides the right to use and occupy land for a specified term under a lease agreement, after which rights revert to the freeholder.

Question 2

What is a 'fee simple' estate in Ontario property law?

Accepted Answer

The highest and most complete form of land ownership, giving the owner the right to use, sell, or transfer the property

Answer

Fee simple is the most complete estate in land recognized in law. The owner has the right to use the property, sell it, lease it, mortgage it, or pass it on by will. It is subject only to government limitations (taxes, zoning, expropriation).

Question 3

In Ontario, what is a 'life estate' and how does it affect property rights?

Accepted Answer

An estate that lasts for the life of the owner, after which it passes to a designated remainderman

Answer

A life estate grants ownership rights for the duration of a person's life. Upon the life tenant's death, the property passes to the remainderman (the person designated to receive it). The life tenant cannot sell the fee simple — only their life interest.

Question 4

What is 'joint tenancy' in Ontario property law?

Accepted Answer

A form of co-ownership where each owner has an equal, undivided interest with the right of survivorship

Answer

Joint tenancy is a form of co-ownership where two or more persons hold equal, undivided interests in property. The key feature is the right of survivorship — when one joint tenant dies, their interest automatically passes to the surviving joint tenant(s).

Question 5

How does 'tenancy in common' differ from 'joint tenancy' in Ontario?

Accepted Answer

In tenancy in common, owners can hold unequal shares and there is no right of survivorship — each owner's share passes through their estate

Answer

Tenancy in common differs from joint tenancy in two key ways: owners can hold unequal shares, and there is no right of survivorship. When a tenant in common dies, their share passes through their estate to their heirs, not to the other co-owners.

Ontario Real Estate Practice Test

Ontario Real Estate Practice Test

OREA Property Rights and Ownership