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In Ontario, a property is registered under the Registry system and a purchaser discovers an unregistered easement that affects their intended use. What is the purchaser's legal position?

Correct Answer

B) The purchaser takes subject to the easement despite lack of registration

Under the Registry system, registration does not guarantee title but merely provides notice. Unregistered interests can still be valid and enforceable, meaning purchasers take subject to all existing interests whether registered or not. This is a key risk of the Registry system compared to the Land Titles system which generally protects against unregistered claims.

Answer Options
A
The easement is invalid because it was not registered
B
The purchaser takes subject to the easement despite lack of registration
C
The government will compensate the purchaser for any losses
D
The easement becomes void after 30 days from purchase

Why This Is the Correct Answer

Under the Registry system, registration does not guarantee title but merely provides notice. Unregistered interests can still be valid and enforceable, meaning purchasers take subject to all existing interests whether registered or not. This is a key risk of the Registry system compared to the Land Titles system which generally protects against unregistered claims.

Deep Dive: Understanding the Answer

Under the Registry system, registration does not guarantee title but merely provides notice. Unregistered interests can still be valid and enforceable, meaning purchasers take subject to all existing interests whether registered or not. This is a key risk of the Registry system compared to the Land Titles system which generally protects against unregistered claims.

This question tests your understanding of Real Property Law concepts that are commonly assessed on Canadian real estate licensing exams. The correct answer, “The purchaser takes subject to the easement despite lack of registration”, reflects a fundamental principle that real estate professionals in Canada must understand.

Specifically, this falls under the sub-topic of Registry System, which is an important area within Real Property Law that appears regularly on provincial licensing exams across Canada.

About Real Property Law

Land registration systems (Torrens, Land Titles), estates and interests in land, condominiums, and cooperative ownership.

Real Property Law is one of the core areas covered on Canadian real estate licensing exams, including RECO (Ontario), BCFSA (British Columbia), and RECA (Alberta). Understanding these concepts is essential for anyone pursuing a career in Canadian real estate.

Study Tips for Real Property Law

  • Understand the difference between Torrens and Land Titles registration systems across provinces.
  • Focus on the key distinctions between freehold and leasehold estates.
  • Review how easements and restrictive covenants affect property rights.
  • Pay attention to how condominium legislation varies by province.

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