Chapter 4: Property Ownership in Ontario

Question 1

Difference between real property and personal property

(2)

Answer 1

Real property: land, and everything affixed to it (land)
Personal property: everything that is not real property.

Question 2

Define expropriation

(1)

Answer 2

Taking of land without the consent of the owner by an expropriating authority in the exercise of its statutory power. Right to take back the land for the benefit of the wider community.

Question 3

Fee Simple Estate

(3)

Answer 3

Provide the holder with the widest breadth of rights available (inheritance).
- Fee refers to the fact that teh estate may be inherited
- Simple refers to the fact that there is no prohibition against who may inherit it

Question 4

Leasehold Estate

(1)

Answer 4

provides owner of this estate the right to exclusive use and posession of property

Question 5

Life Estate

(2)

Answer 5

Right to use or occupy real property for teh duration of one’s life. At the end of that person’s life, a fee simple ownership goes to the remainderman.

A remainderman is the individual who is on the deed as next in line to own the property.

Question 6

Types of Properties

(6)

Answer 6

1. Detached
2. Semi-detatched: two house joined by one wall
3. Row-townhouse
4. Condominium unit
5. Duplexes, triplexes, etc
6. Co-operativeL corporate entities (own land and building)

Question 7

Condominium Types

(4)

Answer 7

1. Standard condominium corporation: register the condo before title can be transferred or pay rent if its not registered
2. Vacant land condominium corporation: one unit to be vacant when corporation is registered
3. Common elements condominium corporation: benefits the property (gold course, gated acess)
4. Phased in condominium coporation: built in pahses by developers

Question 8

Leasehold condominium

(4)

Answer 8

• land is not owned by condo corporation
• lease purchasers buy a leasehold interest in common elements
• percentage of rent payable to landowner
• ground lease expires, the owner right to occupy unit is automatically terminated

Question 9

Subdivisions

(1)

Answer 9

developer divides a piece of land into two or more parcels and offers one or more for sale

Question 10

Registered plan of subdivision is a legal document that shows

(3)

Answer 10

• exact survey boundaries and dimension of lots
• location and width of street
• site of any schools or park

Question 11

Surveys

(1)

Answer 11

A Surveyor’s Real Property Report, typically referred to as survey, is a legal document that clearly illustrates the location of all visible public and private improvements relative to property boundaries.

Question 12

Property owner (purchaser) to ensure that

(6)

Answer 12

• extent of property being purchased is the same as described in offer to purchase
• boundary location is known, and deed describe the property accurately
• pertinent fences, tree, buildings, gardens within boundaries
• other are not entitiled to partial use of property through easement
• property conform to municipal requirements
• mortgage will proceed without delays

Question 13

Property sellers (vendor) to provide

(2)

Answer 13

• confidence in purchase for buyer by verifying size and extent of property
• protection from potential lawsuit

Question 14

Realtor, to provide

(4)

Answer 14

• visual representation of property for sale
• information to avoid delay in completing property transaction
• protection from potential lawsuit
• propterty boundaries and improvements

Question 15

Emcumbrances

(1)

Answer 15

interest in property that has the effect of limiting the rights of fee simple ownership on real property

Question 16

What are the four types of emcumbraces

(4)

Answer 16

**Mortgages: **registered on title and mortgage act that prohibit the fee simple owner from having full control of their property

Easements: right acquired for the benefit of real property, granting to use another property. Interest in land that passes from one owner to anohter.

Restrictive convenant: place a title on the servient tenement for the benefit of the dominant tenement

Buidling scheme: group of restrictive convenant registed against several property (color, limi number of stories, etc)

Question 17

Define parcel register

(1)

Answer 17

A Parcel Register is a record that contains a description of the property, as well all any instruments that are registered against the property, such as mortgages, liens, easements, restrictive covenants, etc.

Question 18

Blanket mortgage

(1)

Answer 18

when a borrower has enough equity in two properties to borrow a specific amount of money, but not in either individually. In this case, the lender will use both properties as security for the loan.

When a lender requires more security for a loan than a borrower has in one property, or in a construction loan (i.e., a high-rise condominium)

Question 19

Charge/mortgage

(1)

Answer 19

Use to register the debt or loan against the borrower’s property (lender’s security for the debt)

Question 20

Judgement

(1)

Answer 20

to debt, is a judge decision that a debt is owed by a debtor to a creditor

Question 21

What is a write of seizure and sale of land?

(1)

Answer 21

Creditor can write a seizure and sale of land against a debtor in any country where the debtor may own land (including house)

Question 22

Does a creditor have to wait for the debtor to decide to sell the land?

(1)

Answer 22

No, four month after filing you can seize and sell the land, but actual sales cannot proceed until the writ has been file for six months

Question 23

What does a homeowner actually own in relation to his or her property?

(1)

Answer 23

The current owner of a piece of real property actually owns rights to use the land, and not the land itself.

Question 24

Describe the term “Fee Simple” and discuss the rights of the fee simple holder.

(3)

Answer 24

The owner of this estate is in control of the real property for as long as he or she has it, subject to paying the property taxes and other municipal obligations and subject to any interests in the property that may be registered against the property’s title.

This individual may transfer his or her interest in the property during his or her lifetime or dictate who will inherit the fee simple interest upon his or her death, mortgage the interest, and so on.

If the fee simple owner dies without a will and there are no heirs, the fee simple interest is terminated and the property will escheat or revert back to the Crown.

Question 25

What makes condominium ownership unique?

(1)

Answer 25

Condominiums combine fee simple ownership of individual units, referred to as strata lots, including all of the rights attached to that ownership, with a combined ownership of common areas, referred to as common elements.

Question 26

What impact on property ownership do encumbrances have?

(1)

Answer 26

An encumbrance is an interest in property that has the effect of limiting the rights of fee simple ownership of real property

Question 27

What is an easement and what are its impacts on property rights?

(1)

Answer 27

Easements are rights acquired for the benefit of real property, granting rights to use another property. An easement is an interest in land that passes from one owner to another or as is commonly referred to, “runs with the land”.

Question 28

What is a restrictive covenant and what are its impacts on property rights?

(1)

Answer 28

A restrictive covenant is a restriction of use placed on title of the servient tenement for the benefit of the dominant tenement. As with an easement, a restrictive covenant runs with the land and can only be extinguished through the agreement of both current owners of the dominant and servient tenements.

Question 29

Describe the difference between a building scheme and a restrictive covenant.

(2)

Answer 29

A building scheme is a group of restrictive covenants registered against several properties in a development plan that is binding on all purchasers of a property within that development while a restrictive covenant is on a single property.

Question 30

Discuss the main difference between joint tenancy and tenancy in common.

(2)

Answer 30

A joint tenancy is a type of co-ownership of real property typically used by spouses purchasing a matrimonial home. Unlike a tenancy in common, where each owner owns a divided share of the property, joint tenants own an undivided interest in the property.

Question 31

Explain the impact of a judgment on property ownership.

(1)

Answer 31

A judgment, as it relates to a debt, is a judge’s decision that a debt is owed by a debtor to a creditor. Most Lenders will not lend on a property until this debt is paid, unless, with certain Lenders, the debt is being paid from the proceeds.

Question 32

Explain the impact of a judgment on property ownership.

(1)

Answer 32

A judgment, as it relates to a debt, is a judge’s decision that a debt is owed by a debtor to a creditor. Most Lenders will not lend on a property until this debt is paid, unless, with certain Lenders, the debt is being paid from the proceeds.

Question 33

What is the purpose of the planning act?

(1)

Answer 33

The Planning Act (the Act) is provincial legislation that sets out the ground rules for land use planning in Ontario. It describes how land uses may be controlled, and who may control them.