Under Ontario's Land Titles Act, what happens when someone purchases property in good faith from a registered owner who obtained title through fraud?
Correct Answer
D) The buyer gets clear title; the assurance fund compensates the original owner
The Land Titles Act protects bona fide purchasers for value who rely on the register. Even if the seller obtained title fraudulently, a good faith buyer receives clear title, and the defrauded original owner is compensated through the government's assurance fund rather than losing their investment.
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Under Ontario's Land Titles Act, what happens when an innocent purchaser for value acquires property from someone who fraudulently obtained title?
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