Under Ontario's Land Titles system, what is the primary benefit of registration compared to the Registry system?
Correct Answer
A) The government guarantees title and compensates losses from registration errors
The Land Titles system provides government guarantee of title through the Assurance Fund, which compensates registered owners for losses due to registration errors or fraud. This is the key advantage over the Registry system where buyers must rely on their own title search and insurance.
Why This Is the Correct Answer
Option A correctly identifies the core advantage of the Land Titles system under Ontario's Land Titles Act. The government provides an absolute guarantee of registered title through the Assurance Fund, which compensates owners for losses due to registration errors, omissions, or fraud. This state-backed guarantee distinguishes it from the Registry system where buyers bear the risk of title defects and must rely on title insurance for protection.
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