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?

Q: What is the correct answer to: 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?

The correct answer is The purchaser takes subject to the easement despite lack of registration. Option B is correct because under Ontario's Registry system, registration serves only as notice, not as validation of title. The Registry system operates on the principle that purchasers take subject to all existing interests, whether registered or not. Unregistered easements remain legally valid and enforceable against subsequent purchasers. This is a fundamental characteristic distinguishing the Registry system from the Land Titles system, where registration generally provides greater protection against unregistered claims.

Q: What background knowledge is needed for this Real Property Law question?

Ontario operates two land registration systems: Registry and Land Titles. The Registry system, older and less protective, treats registration as notice only - it doesn't guarantee title validity. Under this system, purchasers acquire only what the vendor actually owns and take subject to all existing interests, registered or not. Easements are rights to use another's land for specific purposes and can be created through grant, prescription, or necessity. They're considered interests in land that bind subsequent owners regardless of registration. The Land Titles system, conversely, provides greater protection through government guarantee and the assurance fund, generally protecting against unregistered claims.

Q: What is a good way to remember the answer to this Real Property Law question?

Remember 'Registry = Risk Remains' - under the Registry system, unregistered risks remain with the purchaser. Think of it like buying a used car 'as is' - you get what the seller actually owns, including any hidden problems. Registration is just posting a notice, not a warranty. When you see Registry system questions, immediately think 'Risk Remains' - purchasers take subject to all interests whether registered or not. If it mentions Land Titles system, think 'Government Guarantee' for greater protection.

Q: What exam tip applies to this Real Property Law question?

For Registry system questions, remember that registration equals notice only, not title guarantee. Purchasers always take subject to existing unregistered interests. Look for keywords like 'Registry system' and 'unregistered' to identify these scenarios.

Q: How does this Real Property Law concept apply in real world practice?

A client wants to purchase a century farm property in rural Ontario under the Registry system to build a new home. During due diligence, they discover an old unregistered farm access easement crossing their intended building site. Despite not being registered, this easement is legally valid and enforceable, preventing construction in that area. The purchaser must either negotiate with the easement holder, redesign their plans, or walk away from the purchase. Title insurance becomes crucial to protect against such unregistered interests.

Question

Real Property LawRegistry SystemONHARD

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?

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