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Real Property LawLand Registration SystemsONEASY

Under Ontario's Land Titles Act, what happens when a property is first brought under the Land Titles system?

Correct Answer

D) The registrar investigates title and issues a certificate showing valid interests

When property is first brought under the Land Titles system, the land registrar conducts a thorough investigation of the title history and issues a certificate of title that shows all valid interests and encumbrances.

Answer Options
A
The property automatically becomes exempt from property taxes for one year
B
All existing encumbrances are automatically cancelled, giving the owner a clean title
C
The property must be resurveyed by a land surveyor regardless of existing surveys
D
The registrar investigates title and issues a certificate showing valid interests

Why This Is the Correct Answer

Option D is correct under Ontario's Land Titles Act. When property is first brought under the Land Titles system, the land registrar must conduct a thorough investigation of the title history to determine which interests are valid and should be reflected on the new certificate of title. This investigation process is mandatory and ensures that the government-guaranteed title accurately reflects legitimate encumbrances, easements, and other interests. The resulting certificate of title becomes the definitive record of ownership and registered interests, providing the foundation for the Land Titles system's guarantee of title accuracy.

Why the Other Options Are Wrong

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Key Terms

Land Titles Actcertificate of titleregistrar investigationtitle conversionencumbrances
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