OREA Property Rights and Ownership 2 — Questions and Answers
Question 1: What is an 'easement' in Ontario property law?
- A type of mortgage
- A right to use another person's land for a specific purpose, such as access or utilities (Correct answer)
- An option to purchase property
- A type of zoning designation
Correct answer: A right to use another person's land for a specific purpose, such as access or utilities
An easement is a non-possessory right to use another person's land for a specific purpose, such as a right-of-way for access, utility lines, or drainage. It 'runs with the land' and binds subsequent owners.
Question 2: In Ontario, what is the difference between a 'dominant tenement' and a 'servient tenement'?
- The dominant tenement is the larger property
- The dominant tenement benefits from the easement; the servient tenement is burdened by the easement (Correct answer)
- The dominant tenement pays more property taxes
- There is no difference — the terms are interchangeable
Correct answer: The dominant tenement benefits from the easement; the servient tenement is burdened by the easement
In an easement arrangement, the dominant tenement is the property that benefits from the easement (e.g., the property that uses the right-of-way), while the servient tenement is the property over which the easement passes and which bears the burden.
Question 3: What is a 'restrictive covenant' in Ontario real estate?
- A clause in a mortgage agreement
- A limitation on the use of land that binds current and future owners, typically restricting certain activities or uses (Correct answer)
- A requirement to maintain property insurance
- A government regulation on building heights
Correct answer: A limitation on the use of land that binds current and future owners, typically restricting certain activities or uses
A restrictive covenant is a promise registered on title that restricts how the property can be used. Common examples include restrictions on building types, commercial activities, or property alterations. They run with the land and bind future owners.
Question 4: In Ontario, what is 'condominium ownership' and how does it differ from freehold ownership?
- Condominium ownership provides no real property rights
- Condominium ownership includes fee simple ownership of a unit plus shared ownership of common elements, subject to the Condominium Act (Correct answer)
- Condominium ownership is a type of lease
- There is no legal difference between condominium and freehold ownership
Correct answer: Condominium ownership includes fee simple ownership of a unit plus shared ownership of common elements, subject to the Condominium Act
Condominium ownership provides fee simple title to an individual unit plus a proportionate share of the common elements (lobbies, hallways, recreational facilities). It is governed by the Condominium Act and subject to the rules of the condominium corporation.
Question 5: What is an 'encroachment' in Ontario property law?
- A legal right to extend your property boundary
- When a structure or improvement on one property extends onto an adjacent property without permission (Correct answer)
- A zoning violation
- A type of property easement
Correct answer: When a structure or improvement on one property extends onto an adjacent property without permission
An encroachment occurs when a building, fence, driveway, or other structure on one property physically extends beyond the property boundary onto an adjacent property. Encroachments can lead to disputes and may need to be resolved before a property sale.
Question 6: In Ontario, what is the 'bundle of rights' concept in property ownership?
- A package of documents provided at closing
- The collection of legal rights associated with property ownership, including the right to use, enjoy, sell, lease, and exclude others (Correct answer)
- A group discount on property insurance
- The rights given to tenants under a lease
Correct answer: The collection of legal rights associated with property ownership, including the right to use, enjoy, sell, lease, and exclude others
The 'bundle of rights' concept describes ownership as a collection of distinct legal rights including: the right to possess, use, enjoy, dispose of (sell/gift), exclude others from, and encumber (mortgage) the property.
OREA Property Rights and Ownership 2
What is an 'easement' in Ontario property law?