Property Law Basics in Canada
45 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

All provinces and territories in Canada operate solely under the land titles system.

False (B)

The registry system allows for public access to records for evaluating property ownership.

True (A)

Once a property is transferred, no further investigation into the title is required.

False (B)

If title issues are found, a buyer cannot proceed with the purchase at any adjusted price.

<p>False (B)</p> Signup and view all the answers

The administrators of a registry system guarantee the validity of all filed documents.

<p>False (B)</p> Signup and view all the answers

In a registry system, the burden of title search liability falls solely on the seller.

<p>False (B)</p> Signup and view all the answers

Historical documents must be examined to confirm a property's ownership and location.

<p>True (A)</p> Signup and view all the answers

A fundamental defect in a property's title can lead to the collapse of a deal.

<p>True (A)</p> Signup and view all the answers

Environmental regulations may require property owners to clean up contamination caused by previous owners.

<p>True (A)</p> Signup and view all the answers

In most jurisdictions, squatters gain rights after occupying a property for five years.

<p>False (B)</p> Signup and view all the answers

Bankruptcy legislation can potentially result in claims against personal property or fixtures.

<p>True (A)</p> Signup and view all the answers

Hiring an environmental auditor is an unnecessary step when purchasing a property.

<p>False (B)</p> Signup and view all the answers

Incorporating assurances about property features into the contract means the seller must provide truthful information.

<p>True (A)</p> Signup and view all the answers

It is advisable to examine the property for the presence of tenants before finalizing a purchase.

<p>True (A)</p> Signup and view all the answers

It is not necessary to determine compliance with local setback requirements when hiring a surveyor.

<p>False (B)</p> Signup and view all the answers

Making an offer to purchase conditional on a satisfactory environmental audit is an unnecessary precaution.

<p>False (B)</p> Signup and view all the answers

Sellers are not held accountable for clean-up expenses if contamination is discovered prior to the sale.

<p>True (A)</p> Signup and view all the answers

A mortgage represents a loan specifically secured by the property being purchased.

<p>True (A)</p> Signup and view all the answers

A mortgagee is the borrower in a mortgage agreement.

<p>False (B)</p> Signup and view all the answers

If a purchaser is unable to secure financing, they must proceed with the purchase regardless.

<p>False (B)</p> Signup and view all the answers

Personal guarantees can be required by lenders when the borrower is a corporate entity.

<p>True (A)</p> Signup and view all the answers

Registration of the mortgage document is unnecessary for the lender to secure their interest in the property.

<p>False (B)</p> Signup and view all the answers

Claims registered against the land prior to a new mortgage will not affect the bank's decision to grant a loan.

<p>False (B)</p> Signup and view all the answers

The contract established between a purchaser and a lender will detail the interest rate and repayment schedule.

<p>True (A)</p> Signup and view all the answers

In a commercial lease, tenants can withhold rent if the landlord fails to meet a requirement in the lease.

<p>False (B)</p> Signup and view all the answers

The rights and obligations in a commercial lease are generally referred to as covenants.

<p>True (A)</p> Signup and view all the answers

A tenant is typically entitled to make alterations to the leased space without restrictions.

<p>False (B)</p> Signup and view all the answers

The duration of a typical commercial lease is often between five to seven years.

<p>False (B)</p> Signup and view all the answers

A tenant's usual remedy for a landlord's breach is to terminate the lease and vacate the premises.

<p>False (B)</p> Signup and view all the answers

Dispute resolution processes are a common component included in commercial leases.

<p>True (A)</p> Signup and view all the answers

Commercial leases can prohibit landlords from leasing to the tenant’s competitors.

<p>True (A)</p> Signup and view all the answers

Security deposits in commercial leases are usually optional and are not commonly required.

<p>False (B)</p> Signup and view all the answers

The doctrine of frustration was frequently invoked in commercial leases before the COVID-19 pandemic.

<p>False (B)</p> Signup and view all the answers

Gap was required to pay full rent for the months of April and May 2020, despite the store being closed due to government restrictions.

<p>False (B)</p> Signup and view all the answers

The landlord argued that the pandemic situation fell outside of the force majeure clause's scope.

<p>False (B)</p> Signup and view all the answers

Gap vacated the leased premises in September after partially paying rent from June to September 2020.

<p>True (A)</p> Signup and view all the answers

The trial judge determined that the lease should be interpreted as a whole when looking at the force majeure clause.

<p>True (A)</p> Signup and view all the answers

The force majeure clause in the lease was triggered by public health measures during the pandemic.

<p>False (B)</p> Signup and view all the answers

According to the court, the purpose of entering the lease was fundamentally altered due to the pandemic.

<p>False (B)</p> Signup and view all the answers

Gap was relieved of its obligation to pay rent due to the force majeure clause.

<p>False (B)</p> Signup and view all the answers

The doctrine of frustration requires a contract to be more burdensome, rather than radically altered, to apply.

<p>True (A)</p> Signup and view all the answers

The force majeure clause includes references to riots and insurrection.

<p>True (A)</p> Signup and view all the answers

The court determined that restrictive laws during the pandemic did not constitute a force majeure event.

<p>False (B)</p> Signup and view all the answers

The lease explicitly stated that the tenant was required to operate a retail store.

<p>False (B)</p> Signup and view all the answers

The force majeure clause allows for the extension of performance periods equivalent to the delay caused.

<p>True (A)</p> Signup and view all the answers

Flashcards

Registry System

A system for recording property documents and maintaining ownership registrations, allowing public access for title searches.

Searching the title

Investigating the history of a property's ownership to ensure clear title.

Chain of title

The documented history of property ownership.

Unregistered document (deed)

A document related to property ownership that has not been recorded in the registry system.

Signup and view all the flashcards

Clear title

Property ownership free of any conflicting claims.

Signup and view all the flashcards

Title defect

A flaw or issue in the registered property ownership.

Signup and view all the flashcards

Responsibility for title search

Buyers' lawyers are responsible for verifying property ownership.

Signup and view all the flashcards

Land titles system

A system that guarantees clear title for a property through public registry system.

Signup and view all the flashcards

Environmental Regulations

Rules limiting or prohibiting harmful substance discharge and requiring cleanup of past contamination.

Signup and view all the flashcards

Squatter's Rights

Potential legal claims of squatters after long-term occupation (typically 10 years).

Signup and view all the flashcards

Property Claims in Bankruptcy

Bankruptcy may lead to claims against property or fixtures.

Signup and view all the flashcards

Property Investigation

A process of checking for environmental issues, structural problems, and proper zoning.

Signup and view all the flashcards

Real Estate Agent and Lawyer

Essential professionals to assist with property purchase.

Signup and view all the flashcards

Property Condition Questions

Asking specific questions on structural, mechanical, water issues and past notices.

Signup and view all the flashcards

Contractual Assurances

Including guarantees in the purchase contract concerning property features.

Signup and view all the flashcards

Conditional Offer

Making the purchase offer dependent on factors like zoning, inspections, and audits.

Signup and view all the flashcards

Mortgage Contract

A legal agreement between a borrower and a lender, outlining terms like interest rates and repayment schedules.

Signup and view all the flashcards

Mortgagor

The person or entity borrowing money to buy property.

Signup and view all the flashcards

Mortgagee

The lender providing the funds for the property purchase.

Signup and view all the flashcards

Security Interest

The lender's right to take the property if the borrower defaults on payments.

Signup and view all the flashcards

Registered Mortgage

A mortgage officially recorded in a public system, giving notice to everyone of the lender's claim.

Signup and view all the flashcards

Secured Status

The lender's priority claim to the property, even if the borrower faces financial difficulties.

Signup and view all the flashcards

Priority Claim

The lender's right to be paid first from the proceeds of the property sale if there are other creditors.

Signup and view all the flashcards

Commercial Lease

A legally binding agreement outlining the terms of renting commercial property between a landlord and tenant.

Signup and view all the flashcards

Lease Covenants

The rights and obligations of both the landlord and tenant outlined in a commercial lease.

Signup and view all the flashcards

Tenant's Responsibility for Repairs?

Generally, the tenant is responsible for repairs unless the lease states otherwise.

Signup and view all the flashcards

Exclusive Possession

The tenant has the right to use the property exclusively for the term of the lease.

Signup and view all the flashcards

Rent Payment

The tenant is obligated to pay rent as agreed in the lease.

Signup and view all the flashcards

Breach of Lease

When one party fails to fulfil their obligations as stated in the lease.

Signup and view all the flashcards

Tenant's Remedies

Actions a tenant can take when the landlord breaches the lease, such as seeking compensation.

Signup and view all the flashcards

Termination of Lease

The lease can end before its term if the premises become uninhabitable due to landlord's fault.

Signup and view all the flashcards

Force Majeure Clause

A contract clause that excuses parties from performance due to unforeseen events beyond their control, such as natural disasters or government actions.

Signup and view all the flashcards

Frustration of Contract

A legal doctrine where a contract becomes impossible or radically different to perform due to an unforeseen event, rendering it unenforceable.

Signup and view all the flashcards

COVID-19 Impact on Leases

The COVID-19 pandemic and government restrictions significantly impacted commercial leases, raising questions about force majeure clauses and frustration of contract.

Signup and view all the flashcards

Lease Interpretation

When interpreting a lease, courts prioritize the contract's overall meaning, considering the plain language and intended purpose.

Signup and view all the flashcards

Tenant's Obligations During Force Majeure

Whether a tenant is excused from rent payments during a force majeure event depends on the specific wording of the clause and its application to the situation.

Signup and view all the flashcards

Triggering Event

The specific event that activates the force majeure clause, causing obligations to be excused.

Signup and view all the flashcards

Government's Restrictive Laws

Laws or regulations that restrict operations or activities, potentially triggering a force majeure clause.

Signup and view all the flashcards

Doctrine of Frustration

A legal concept where a contract is rendered impossible or fundamentally different due to unforeseen events.

Signup and view all the flashcards

Supervening Event

An event that occurs after the contract is formed and significantly alters the contract's purpose.

Signup and view all the flashcards

Radical Alteration

A significant change to the contract's terms, making it fundamentally different from what was originally intended.

Signup and view all the flashcards

Expressly Provided

Clearly stated or defined in the contract, leaving no room for ambiguity.

Signup and view all the flashcards

Inability to Operate Business

When a business is prevented from operating due to external factors, such as government restrictions or unforeseen events.

Signup and view all the flashcards

Study Notes

Chapter 19: Real Property

  • Real property refers to land and interests like mineral rights and leases, having constitutional, statutory, and common law features

  • Real property law in Canada is governed by provincial statutes, which determine registration systems, use, and development.

  • Private property ownership encompasses the surface, airspace, and subsurface (e.g., minerals).

  • Ownership types include fee simple (maximum ownership), life estate (ownership for a lifetime), and condominium (shared ownership of a unit and common areas).

  • Key interests in land include mineral rights, leases, and easements.

  • There are two main systems for registering land interests in Canada: registry and land titles. Land titles systems offer more certainty and less potential for competing claims.

Business Law in Practice

  • Ashley Bishop, a furniture store owner, is expanding to a new strip mall.

  • Ashley wants to know the legal aspects of purchasing the mall, the financing implications, and duties to tenants.

  • The listing price is 2million,andAshleyandherbusinesspartner,AndrewDoncasterplantoraise2 million, and Ashley and her business partner, Andrew Doncaster plan to raise 2million,andAshleyandherbusinesspartner,AndrewDoncasterplantoraise800,000 and borrow the rest.

  • Legal issues for Ashley in the mall purchase include ensuring clear title, identifying existing interests (e.g., leases), and assessing environmental hazards.

  • Risks of borrowing 60% include potential financial issues during adverse market conditions, and possible loss of the mall if the loan cannot be repaid.

  • Ashley needs to understand her current lease agreement, and the rights and obligations of other tenant leases in the mall.

Quiz Questions

  • Question 19.1: Fee simple confers most comprehensive ownership.

  • Question 19.2: The distinction between tenancy in common and joint tenancy is that in a tenancy in common, the interest of a deceased tenant passes to their heirs, whereas in a joint tenancy, the interest passes to the surviving joint tenant.

  • Question 19.3: A registry system does not inherently provide the same level of certainty as a land titles system. It requires investigation of the "chain of title".

  • Question 19.4: The sequence of registration is a critical aspect in a registry system, but not in a land titles system.

  • Question 19.8: Caveat emptor is the "buyer beware" principle.

  • Question 19.9: The Jardins have a positive duty to disclose the hidden sewer-line defect to the potential buyer.

  • Question 19.10: A sale of a property previously used as a gas station requires an environmental audit.

  • Question 19.11: In a registry system, a mortgage usually transfers legal ownership to the lender during the borrowing period.

  • Question 19.12: Financing conditions create a contractual obligation on the seller or land.

  • Question 19.13: Preserving land value is the primary concern for lenders when considering mortgages.

  • Question 19.14: Prime can likely sue Dally for the shortfall related to the outstanding mortgage.

  • Question 19.15: The three common stages involved in a real estate transaction are: agreement of purchase and sale, investigations, and closing.

  • Question 19.16: Confirms the boundary of the land is done when closing is complete.

  • Question 19.17: The seller (Martina) will receive an adjustment in taxes from the purchaser. ($1200)

Obligations of Sellers

  • Sellers have a duty to disclose known material defects, especially latent defects.

  • Misrepresentations, whether spoken or written, can potentially lead to legal repercussions.

  • Accurate disclosures of property conditions are important in transactions, including legal descriptions and disclosures of potential issues.

Managing Risk

  • The risks in real estate transactions are complex. This includes assessing potential tax implications, environmental issues, and legal conflicts when interacting with relevant parties.

  • Thorough investigation by the buyer, including legal and financial due diligence, is critical for mitigating risks.

Financing the Purchase of Real Estate

  • Mortgage transactions involve a contract for credit extension (loan).

  • A mortgage creates a security interest in the property for the lender (bank).

Termination of the Lease

  • Leases often have clauses to address events like defaults which lead to termination of the lease.

  • A landlord might terminate the lease for major breaches, or a tenant may claim the premises are uninhabitable (frustration principle.)

Retail Leases in a Changing Marketplace

  • The retail industry is subject to significant changes in trends and consumer behaviours.

  • Retailers are making use of online sales and other digital means to bolster sales.

  • The changing marketplace is making terms and negotiations in lease contracts complex.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Real Property Chapter 19 PDF

Description

This quiz covers essential concepts of property law as it pertains to the land titles and registry systems in Canada. Test your knowledge on property ownership, title validity, and the responsibilities of buyers and sellers in property transactions. Explore key issues such as title defects and squatters' rights that can impact real estate dealings.

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser