Under Ontario's Land Titles Act, what happens when there is a conflict between a registered owner and someone claiming an unregistered interest?
Correct Answer
B) The registered owner generally prevails unless fraud is involved
The Land Titles system protects registered owners by giving them priority over unregistered interests, with limited exceptions such as fraud or certain statutory overriding interests.
Why This Is the Correct Answer
Option B correctly states the fundamental principle of Ontario's Land Titles system under the Land Titles Act. The system is designed to protect registered owners through the concept of indefeasibility of title, meaning their registered interest generally takes priority over unregistered claims. The 'generally prevails' language acknowledges the limited exceptions, primarily fraud, where the registered owner's protection may be lost. This reflects the statutory framework that balances certainty for registered owners with protection against fraudulent conduct, ensuring the integrity of the land registration system.
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Under Ontario's Land Titles Act, what happens when someone purchases property in good faith from a registered owner who obtained title through fraud?
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A person claims to be the true owner of land in Ontario's Land Titles system, but someone else is shown as the registered owner. What is the general position under the Land Titles Act?