Chapter 4 - Property Ownership in Ontario Flashcards
Describe the differences between real and personal property
Real property = the land and everything affixed to it
Personal property = everything that is not real property. That includes chattels and other goods
What does a homeowner actually own in relation to his or her property?
The rights to use the land (not the land itself as its owned by the crown)
Describe the term “Fee Simple” and discuss the rights of the fee simple holder
Fee = Refers to the fact that the property can be inherited Simple = Means that there are no inhibitions to who can inherit it
If the fee simple owner dies without a will or heirs, the land goes back to the crown
Describe the term “Leasehold Estate” and discuss the rights of a holder of this type of estate
(i.e., lease) is an interest in land created by a landlord and tenant.
Gives the tenant exclusive use and possession of the property, subject to contractual limits contained in the terms of the lease.
What makes condominium ownership unique?
Combines fee simple ownership of individual units (ie strata lots) + ownership of common areas (i.e., common elements)
What is an encumbrance? How does it impact property ownership?
An encumbrance is an interest in property that has the effect of limiting the rights of fee simple ownership of real property
Give 4 examples of encumbrances
Mortgage
Easements
Restrictive Covenants
Building Scheme
What is an easement?
What is its main condition?
Is an interest in land that passes from one owner to another or as is commonly referred to, “runs with the land”. This is registered on title
Must benefit the real property
(i.e., giving someone access to your sidewalk to access a nearby lake)
What is a restrictive covenant and what are its impacts on property rights?
A restrictive covenant is a restriction of use placed on title of the servient tenement for the benefit of the dominant tenement
(rules of use - i.e., cannot build a home larger than 1 storey)
What does “Runs with the land” mean?
Is an interest in land that passes from one owner to another (i.e., an easement or restrictive covenant)
What does “Servient tenement” mean?
A property giving up a benefit (i.e., the property giving access to the lake)
What does “Dominant tenement” mean?
A property gaining a benefit (i.e., the property gaining access to the lake)
How do you remove an easement?
Both the owner of the dominant and servient tenement must agree
Describe the difference between a restrictive covenant and a building scheme.
Restrictive covenant = rules of use for a single property being sold - i.e., cannot build a home larger than 1 storey)
A building scheme is a group of restrictive covenants registered against several properties in a development plan (i.e., building colors + number of stories on a property, etc)
Discuss the main difference between joint tenancy and tenancy in common
Joint tenancy = co-ownership of real property (i.e., husband + wife equally co-own a house together)
Tenancy in Common = each owner owns a divided share of the property (i.e., 60/40 ownership split)