A buyer is purchasing a commercial property in Ontario. Compared with the Registry system, what protection does the Land Titles system give the buyer?
Correct Answer
D) A parcel register backed by the Land Titles Assurance Fund
Under the Land Titles Act, the land registrar keeps a parcel register for each property, and a person wrongfully deprived of an interest through fraud or a registry error, who cannot otherwise recover, can claim compensation from the Land Titles Assurance Fund (ss. 54, 57). The Registry system has no such fund: it records instruments, and the searcher must prove a chain of title over the 40-year title search period (Registry Act s. 112). No extra registration step is required for commercial property.
Why This Is the Correct Answer
This answer is correct because the Land Titles system's distinctive protection is the parcel register backed by the Land Titles Assurance Fund. A buyer who is wrongfully deprived of an interest through fraud or a registry error, and who cannot recover elsewhere, can claim compensation from the Fund under s. 57 of the Land Titles Act. The Registry system offers no equivalent fund.
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