week 9 class notes - land and mortgages

Question 1

What is real property?

Answer 1

Land and everything that attaches to it.

Question 2

What does land include at common law?

Answer 2

Buildings, minerals, airspace above and below.

Question 3

What happens when personal property is attached to land?

Answer 3

It becomes a fixture.

Question 4

Under the feudal system, how was land granted?

Answer 4

In return for military or agricultural service, reverting (escheat) to the Crown when service ended.

Question 5

What is tenure?

Answer 5

The system where estates in land were granted by the Crown.

Question 6

What is a freehold estate?

Answer 6

type of land ownership where a person has full rights to the property and land for an indefinite period—possibly forever.

Question 7

What is fee simple?

Answer 7

The highest form of land holding, existing forever and inheritable.

Question 8

How were estates in land originally created?

Answer 8

Through a Crown patent.

Question 9

What rights does fee simple allow?

Answer 9

Alienation, sale, gifting, inheritance.

Question 10

What happens if a fee simple owner dies without heirs?

Answer 10

The land escheats (reverts) to the Crown.

Question 11

What is expropriation?

Answer 11

The forced taking of land by the Crown, with compensation to the owner.

Question 12

When can expropriation occur?

Answer 12

When land is needed for public projects like highways or hydro lines.

Question 13

Who is the grantor in a land transfer?

Answer 13

The person transferring the interest in land.

Question 14

Who is the grantee?

Answer 14

The person receiving the interest in land.

Question 15

What is a deed?

Answer 15

A document that transfers an interest in land.

Question 16

What does the Statute of Frauds require for land contracts?

Answer 16

They must be in writing.

Question 17

When is a transfer legally completed?

Answer 17

When the deed is executed, delivered, and registered.

Question 18

What is a life estate?

Answer 18

An estate that grants rights similar to fee simple but only for a person’s lifetime.

Question 19

What happens when a life tenant dies?

Answer 19

The land reverts to the original grantor or their heirs.

Question 20

What is a reversion interest?

Answer 20

The fee simple interest that remains with the grantor when a life estate is granted.

Question 21

What can a life tenant NOT do?

Answer 21

Commit waste (destroy property, remove trees or buildings unnecessarily).

Question 22

What are the financial responsibilities of a life tenant?

Answer 22

Paying interest on mortgages and land taxes, but not principal or local improvement taxes.

Question 23

What is a leasehold estate?

Answer 23

A grant of possession for a period in return for rent.

Question 24

How is a leasehold estate different from fee simple?

Answer 24

It is temporary and contractual rather than permanent ownership.

Question 25

Why are leasehold estates common in the UK?

Answer 25

They help with housing affordability.

Question 26

What are the two parts of a condominium estate?

Answer 26

Exclusive ownership of a unit and shared ownership of common elements.

Question 27

What does a condominium declaration do?

Answer 27

Sets out rights, obligations, and management guidelines for the condominium.

Question 28

How are common elements owned?

Answer 28

As tenants in common.

Question 29

Who manages a condominium?

Answer 29

A board of directors elected by unit owners.

Question 30

How can a condominium be terminated?

Answer 30

By unanimous or high-percentage vote of owners.

Question 31

What is a co-op housing corporation?

Answer 31

A corporation where members acquire shares and receive occupancy rights.

Question 32

How is membership terminated?

Answer 32

By removing occupancy rights.

Question 33

What is an easement?

Answer 33

A right to use another person’s land for a specific purpose.

Question 34

What is a dominant tenement?

Answer 34

The land benefiting from an easement.

Question 35

What is a servient tenement?

Answer 35

The land burdened by an easement.

Question 36

What is a restrictive covenant?

Answer 36

A legal obligation to not use land in a certain way, often to maintain property values.

Question 37

Who usually owns mineral rights in Canada?

Answer 37

The Crown, unless granted otherwise.

Question 38

What are riparian rights?

Answer 38

Rights of landowners adjacent to water bodies to reasonable water use.

Question 39

What actions are prohibited under riparian rights?

Answer 39

Obstructing water flow, polluting, or altering fish habitats.

Question 40

What is adverse possession?

Answer 40

Claiming ownership of land through continuous, open, and notorious use.

Question 41

What are the three criteria for adverse possession?

Answer 41

1. Actual possession 2. Intent to exclude others 3. Discontinuance of possession by the owner

Question 42

Where does adverse possession not apply?

Answer 42

Provinces with the Land Titles system.

Question 43

What happens if a structure encroaches on another’s land?

Answer 43

If unchallenged, the encroaching party may gain rights over time.

Question 44

What is a fixture?

Answer 44

A chattel attached to real property that becomes part of the land.

Question 45

What are joint tenants?

Answer 45

Co-owners with equal undivided shares and a right of survivorship.

Question 46

What happens when a joint tenant dies?

Answer 46

Their share automatically transfers to the surviving tenants.

Question 47

What is tenancy-in-common?

Answer 47

Co-ownership without survivorship rights, where shares can be willed or transferred.

Question 48

What was the old system for proving land ownership?

Answer 48

Keeping all title documents and proving a chain of title.

Question 49

What does the Land Titles system do?

Answer 49

Guarantees clear title, eliminating the need for a 40-year title search.

Question 50

What is Polaris?

Answer 50

Ontario’s computerized land registration system.

Question 51

Who is the mortgagor?

Answer 51

The debtor (borrower).

Question 52

Who is the mortgagee?

Answer 52

The creditor (lender).

Question 53

What is the purpose of a mortgage?

Answer 53

To use property as security for a loan.

Question 54

What is an acceleration clause?

Answer 54

A clause allowing the lender to demand full repayment upon default.

Question 55

What is an equitable mortgage?

Answer 55

A mortgage that does not transfer title, but still secures debt.

Question 56

How are mortgage priorities determined?

Answer 56

By the order of registration in the land registry office.