Chapter 4: Land Registration and Land Title Office Procedure

Question 1

Which of the following is TRUE regarding manufactured (mobile) homes?

1. It is an offence to sell a manufactured home without registering the sale in the appropriate provincial land title office/registry.
2. A manufactured home may only be used as security for a mortgage loan to buy the home itself.
3. An owner of a manufactured home should always register his or her ownership, to ensure his or her title is indefeasible.
4. None of the above are true.

Answer 1

4. None of the above are true.

Question 2

Which of the following statements concerning a recording system of land titles is FALSE?

1. A chain of title going back at least 40 years must be established before title will ordinarily be ensured to be valid.
2. An innocent purchaser of land may be deprived of his or her title if it can be shown that a fraud or forgery took place previously in the chain of title ownership.
3. Local legislation usually provides that actual notice is required for an unrecorded document to affect a purchaser of title.
4. Recording a title in this system guarantees its indefeasibility against other claims to the title.

Answer 2

4. Recording a title in this system guarantees its indefeasibility against other claims to the title.

Question 3

Which of the following is TRUE?

1. In some Torrens systems, registration of a charge does not guarantee its indefeasibility.
2. Where A is the registered owner of the fee simple interest in Whiteacre and became owner by forging a transfer from B to himself, B’s only remedy is against the assurance fund.
3. Where A is the registered owner of a mortgage which she obtained by forging a mortgage document from B, the registered owner, B cannot remove A from the title, but he can receive compensation from the assurance fund.
4. The priority of a certificate of pending litigation registered against land, unlike other charges, is not determined on the basis of the date and time of application for registration in the land title office.

Answer 3

1. In some Torrens systems, registration of a charge does not guarantee its indefeasibility.

Question 4

Under the Torrens system used in many Canadian provinces, registration of a fee simple title:

1. ensure that no other interest in the property affect the title of the registered owner.
2. provides conclusive evidence that the registered owner is indefeasibly entitled to an estate in fee-simple in the property.
3. prevents the registration of any charge that is contrary to the registered owner’s interest.
4. is a requirement for a transfer of land to be lawful.

Answer 4

2. provides conclusive evidence that the registered owner is indefeasibly entitled to an estate in fee-simple in the property.

Question 5

“Indefeasibility” means:

1. that the title of a registered owner cannot be attacked even if that title was acquired by fraud of the part of the registered owner.
2. that a bona fide purchaser of land dealing with the registered owner can be assured of that owner’s title in the land.
3. that no government claims can affect the title of the registered owner.
4. that the registered owner is entitled to all land included in the title, even if it is included by mistake.

Answer 5

2. that a bona fide purchaser of land dealing with the registered owner can be assured of that owner’s title in the land.

Question 6

Orangeacre is a piece of property in a jurisdiction that uses the Torrens system of registration. Kevin is the registered fee simple owner of Orangeacre. David forged a transfer from Kevin to himself and registered the transfer. David then approached ABC Trust Company and arranged a mortgage of Orangeacre. ABC advanced $100,000 to David and registered its mortgage. Kevin has just discovered what has occurred. Which of the following is TRUE?

1. The mortgage held by ABC can be removed and Kevin can recover clear title.
2. Because there is no indefeasibility of charges, David can have ABC’s mortgage removed from the title.
3. ABC can apply to the assurance fund for money to satisfy the mortgage.
4. All of the above are true.

Answer 6

1. The mortgage held by ABC can be removed and Kevin can recover clear title.

Question 7

Which of the following statements are TRUE about the majority of provincial Assurance Funds (based on the materials in Chapter 4)?

A. Whether a claim is allowed where there is contributory negligence varies from province to province.
B. If the person claiming from the Fund would not have had a valid claim under the common law, then that person will not be able to succeed with a claim against the fund.
C. The legislation generally provides that losses caused by the registrar or by the registrar’s employees are not covered by the Fund for compensation.
D. Where a person making a claim against the Fund can recover the interest in land which he or she has lost, the claim against the Fund will not be successful.

1. B and C only
2. A and D only
3. A, B, and D only
4. All of the above statements are true

Answer 7

3. A, B, and D only

Question 8

This story takes place many years ago, in a distant land with the same land laws as British Columbia: Arthur is the registered owner of the castle of Camelot. His best friend, Lancelot, is madly in love with Arthur’s sister Guinevere but cannot afford the huge dowry needed to ask for her hand in marriage. To raise the money, Lancelot forges a mortgage from Arthur into his name and registers in. He then sells the mortgage to Galahad for value and Galahad registers it. Which of the following statements is FALSE?

1. Galahad did not deal with the registered owner of Camelot and he is not entitled to rely on the principle of indefeasibility.
2. The principle of indefeasibility does not protect Lancelot because he obtained the mortgage by fraud.
3. Arthur is entitled to his fee simple interest in Camelot free from Galahad’s mortgage.
4. Galahad can claim against the assurance fund for money to satisfy his mortgage.

Answer 8

4. Galahad can claim against the assurance fund for money to satisfy his mortgage.

Question 9

A caveat is:

1. an interest in land that may be registered.
2. formal notice that a court action has been commenced.
3. valid indefinitely.
4. a notice placed on the land title register at the request of a person who claims an interest in the land.

Answer 9

4. a notice placed on the land title register at the request of a person who claims an interest in the land.

Question 10

Lester owns a condominium, which is leased to Tony under a 28 month lease. Being in desperate need of money, Lester sells the condo to Bruce. Bruce plans to rent the condominium for $150 per night to tourists visiting the city and accordingly, sends an eviction notice to Tony. Tony lives in a jurisdiction with a Torrens registration system. Which of the following statements is correct?

1. Tony does not have any immediate worries as his lease is protected by a statutory exception. Bruce’s indefeasible title is subject to Tony’s tenancy agreement with Lester.
2. Bruce may successfully claim against the assurance fund for any damages suffered as a result of the tenancy agreement.
3. Tony may successfully claim against the assurance fund for his out-of-pocket expenses and the amount of any increased rental payments he incurs because of his eviction.
4. Tony will have to vacate the apartment and sue Lester for any expenses he incurs.

Answer 10

1. Tony does not have any immediate worries as his lease is protected by a statutory exception. Bruce’s indefeasible title is subject to Tony’s tenancy agreement with Lester.

Question 11

In which of the following situations is manufactured home registration NOT required under British Columbia legislation?

1. Where the home is owned by a dealer.
2. Where the home is to be moved.
3. Where the home is to be sold.
4. Where, since 1978, the home has been on land belonging to the owner.

Answer 11

4. Where, since 1978, the home has been on land belonging to the owner.

Question 12

Where a registered owner in a Torrens jurisdiction discovers that his title has been transferred by forgery to another person, and registered in the forger’s name, he should:

1. try to repurchase it from the forger who is now the registered owner.
2. file a caveat to prevent the forger from transferring the property to a bona fide purchaser.
3. register a judgement against the title to recover his title to the property.
4. remove the duplicate certificate of title from the land title office.

Answer 12

2. file a caveat to prevent the forger from transferring the property to a bona fide purchaser.

Question 13

The British Columbia Manufactured Home Act provides that no person shall move a manufactured home UNLESS:

1. the manufactured home is registered in the land titles office.
2. the manufactured home is registered and a permit to move has been obtained from the Registrar.
3. the manufactured home is registered, a permit to move has been obtained and the move occurs during “normal working hours”.
4. he is the registered owner of the manufactured home.

Answer 13

2. the manufactured home is registered and a permit to move has been obtained from the Registrar.

Question 14

Which of the following statements regarding Ontario’s land registration system is TRUE?

1. Ontario uses both a registry system and a land titles or Torrens system.
2. POLARIS was created with one of its goals being to bring the two land registration systems together.
3. The Torrens system is seen more frequently in northern Ontario.
4. All of the above.

Answer 14

4. All of the above.

Question 15

Which of the following statements regarding the priority of charges is FALSE?

1. At common law, interests in land had priority according to their date of execution.
2. Priority is determined by the date and time of registration in the land titles office, under a Torrens system.
3. Under the Ontario Registry Act, instruments are numbered according to their time of registration, which is retroactive to the date and time the instrument was received for registration.
4. A mobile home is deemed to be registered in the land registry at the time of manufacture.

Answer 15

4. A mobile home is deemed to be registered in the land registry at the time of manufacture.

Question 16

Which of the following statements regarding charges is TRUE under a Torrens system?

1. Only persons claiming to be entitled to an interest in land under a document that is incapable of being registered may lodge a caveat against the land.
2. A judgement runs with the land which means that if the land is transferred before the judgement is registered, the judgement will still attach.
3. The registrar cannot deal with applications for registration of a transfer of fee simple of lands affected by a certificate of pending litigation until the certificate of pending litigation has been removed.
4. Priority of charges is determined by the date and time of the application for registration in the land title office and not according to the respective dates of execution of the instruments.

Answer 16

4. Priority of charges is determined by the date and time of the application for registration in the land title office and not according to the respective dates of execution of the instruments.

Question 17

Under the Manufactured Home Act of BC, which of the following manufactured homes must be registered?

A. Bob owns a manufactured home located on a rental pad in a manufactured home park.
B. Tim owns a manufactured home located on land leased under a registered lease with a terms commencing in 1988 and terminating in 1992.
C. ABC Construction Company uses a manufactured home on site as its head office.
D. Percy owns a floating home.
E. Jeff owns a manufactured home and leases a portion of land for it for a period of four years. He then decides to give it to his daughter as a wedding gift.

1. B and C only
2. C and E only
3. A, B, and E only
4. None of the above

Answer 17

3. A, B, and E only

Question 18

What is a “PID”?

1. A computer certificate of title.
2. A list of pending applicants.
3. Property index dilineator.
4. Parcel identifier (or identification) number.

Answer 18

4. Parcel identifier (or identification) number.

Question 19

Which of the following is central to the Torrens system of land registration?

1. The certificate of pending litigation.
2. Indefeasibility of the registered owner’s title.
3. The registration of manufactured homes.
4. An online registration service.

Answer 19

2. Indefeasibility of the registered owner’s title.

Question 20

Marcus owned a building in fee simple in downtown Vancouver in which he operated his hardware business. His employee Irving forged a mortgage document and fraudulently granted a mortgage to the Credulous Trust Co. Credulous provided $75,000 to Irving and registered its mortgage in the LTO against Marcus’ title. Irving moved to Bolivia and soon thereafter, Marcus learned of the mortgage. Marcus has refused to pay any money claimed by Credulous and is demanding that they discharge the mortgage which they caused to be registered against Marcus’ title. Which of the following statements is TRUE?

1. Even though the mortgage was fraudulent, Marcus is liable to the Credulous Trust Co. and will have to seek compensation from the Assurance Fund.
2. Because Credulous was granted a mortgage through a fraudulent document, they cannot enforce their mortgage against Marcus, but instead can make a claim against the Assurance Fund.
3. Marcus will have to pay the mortgage debt to Credulous and will have to try to recover the money from Irving, since he cannot make a claim against the Assurance Fund because he was at fault.
4. Marcus will not be liable to Credulous, and Credulous will not have a valid claim against the Assurance Fund.

Answer 20

4. Marcus will not be liable to Credulous, and Credulous will not have a valid claim against the Assurance Fund.