Under Ontario's Land Titles system, what is the key advantage for mortgage lenders compared to the Registry system?
Correct Answer
C) Government-guaranteed title accuracy and priority
In Land Titles the province maintains a register of ownership and registered interests that parties can rely on, and a person wrongfully deprived of an interest through fraud or error in the register can seek compensation from the Land Titles Assurance Fund. A lender can therefore rely on the register for title and the priority of its charge instead of investigating the whole chain of title, as it must under the Registry system.
Why This Is the Correct Answer
This answer names the defining advantage: the Land Titles register is maintained and backed by the province, which lets lenders rely on it for ownership and for the priority of their registered charge, with compensation available from the Land Titles Assurance Fund for losses caused by fraud or register errors.
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