OREA Ontario Real Estate Law 6 — Questions and Answers
Question 1: Under Ontario law, what is the 'Fraudulent Conveyances Act'?
- It regulates the sale of vehicles
- It allows creditors to set aside transfers of property made with the intent to defraud creditors (Correct answer)
- It prevents real estate agents from misrepresenting property
- It governs electronic document fraud
Correct answer: It allows creditors to set aside transfers of property made with the intent to defraud creditors
The Fraudulent Conveyances Act allows creditors to challenge and set aside transfers of property that were made with the intent to defeat, hinder, or defraud creditors. Such transfers can be declared void.
Question 2: In Ontario, what is the purpose of a 'compliance letter' from a municipality?
- To confirm the real estate agent is licensed
- To confirm that a property complies with local by-laws, building codes, and zoning requirements (Correct answer)
- To certify the property's market value
- To approve a change in property ownership
Correct answer: To confirm that a property complies with local by-laws, building codes, and zoning requirements
A compliance letter from a municipality confirms whether a property conforms to local by-laws, zoning requirements, and building standards. It may reveal outstanding work orders or violations that could affect the transaction.
Question 3: What is the 'Accessibility for Ontarians with Disabilities Act' (AODA) requirement for real estate?
- All homes must have wheelchair ramps
- Certain commercial and public buildings must meet accessibility standards, which can affect property development and renovation (Correct answer)
- It only applies to government buildings
- It requires all properties to have elevators
Correct answer: Certain commercial and public buildings must meet accessibility standards, which can affect property development and renovation
AODA requires that certain commercial and public buildings meet accessibility standards. This affects real estate development, renovation, and property management, as non-compliance can result in penalties and required modifications.
Question 4: Under Ontario law, what is the significance of 'Teranet' in real estate?
- It is an internet service provider for real estate agents
- It is the company that manages Ontario's electronic land registration system and provides title searching services (Correct answer)
- It is a mortgage lending institution
- It is a real estate brokerage franchise
Correct answer: It is the company that manages Ontario's electronic land registration system and provides title searching services
Teranet manages Ontario's electronic land registration system, providing access to property records, title searches, and document registration services. It operates the POLARIS (Province of Ontario Land Registration Information System) database.
Question 5: In Ontario, what is the 'Clean Water Act' and its impact on real estate?
- It requires all properties to have water filtration systems
- It protects drinking water sources and may impose restrictions on land use in designated vulnerable areas (Correct answer)
- It only applies to waterfront properties
- It regulates swimming pool water quality
Correct answer: It protects drinking water sources and may impose restrictions on land use in designated vulnerable areas
The Clean Water Act protects municipal drinking water sources by establishing source protection plans. Properties within designated vulnerable areas may face land use restrictions that affect development potential and property value.
Question 6: What is the 'Personal Property Security Act' (PPSA) and its relevance to real estate in Ontario?
- It governs home security systems
- It provides a system for registering security interests in personal property, which can affect fixtures and chattels in real estate transactions (Correct answer)
- It only applies to vehicle financing
- It governs the security of personal information
Correct answer: It provides a system for registering security interests in personal property, which can affect fixtures and chattels in real estate transactions
The PPSA creates a registration system for security interests in personal property. In real estate, it is relevant when determining whether chattels or fixtures are subject to third-party security interests (such as a leased furnace or rented water heater).
OREA Ontario Real Estate Law 6
Under Ontario law, what is the 'Fraudulent Conveyances Act'?