Lesson 2 - Test Flashcards
Mike, Dave, John and Kevin are joint tenants of a very large condominium which they all occupy.Kevin suddenly dies in an unfortunate accident. In his will, Kevin leaves his interest in the property to
his sisters, Sarah and Jennifer. Upon learning of Sarah’s and Jennifer’s intention to move into the condominium, Dave sells his interest in the condo to Fred, without the knowledge or consent of anyone else. When John and Mike learn of these events they decide not to let Fred, Sarah or Jennifer onto the property, arguing that the entire tenancy now remains in their hands.
Which of the following statements is/are TRUE?
A. Fred, Sarah and Jennifer have each acquired a legal interest in the condominium.
B. For the transfer to Fred to be valid, he required the consent of John and Mike.
C. John and Mike are tenants in common with each other in the condominium.
D. Because neither Fred, Sarah, nor Jennifer occupies the condominium, they have not acquired an
interest in the condominium.
(1) A only
(2) B and C only
(3) D only
(4) None of the above
4
Hiroj dies leaving a will which states: “I leave my property to my brother Hafiz for life without impeachment for waste, with remainder to my son Rafi.” Which of the following statements is TRUE?
(1) If Hafiz tears down the garage to make way for a basketball court, he will be liable to Rafi for voluntary waste.
(2) If Hafiz plants an apple orchard in the back yard, he will be liable to Rafi for permissive waste.
(3) Hafiz can destroy the buildings on the property so Rafi has nothing of value to inherit because
he is not liable for any category of waste.
(4) If Hafiz decided to destroy the buildings in order to spite Rafi, Hafiz would be liable to Rafi for
equitable waste.
4
When Andy gave up surfing, he decided to sell his beachfront bungalow to Bertrand. Shortly afterwards, he was struck with remorse and wanted his bungalow back. Checking the state of title at
the land title office, Andy learned that Bertrand had not registered the transfer; he immediately mailed the purchase monies to Bertrand and demanded that he return the premises to Andy. Which of the following statements is/are TRUE?
A. Under the Land Title Act, a conveyance must be registered in order to be enforceable between
the parties to the contract.
B. If before Bertrand registers the transfer, Andy sells the property to Clara for valuable
consideration (and she is unaware of the earlier sale to Bertrand), and she registers the transfer, she would take title subject to Bertrand’s superior right to the property.
C. If Andy completed a second sale with an unsuspecting third party who registered the transfer
before Bertrand, Bertrand could lose his interest in the property.
D. Bertrand will be able to enforce the contract against Andy.
(1) A and B only
(2) C and D only
(3) A and C only
(4) D only
3
Heinrich is developing a 20 lot subdivision in the Fraser Valley in British Columbia. The area is heavily wooded and Heinrich wants to ensure that it will stay that way. He has included a building scheme in the development plan that is registered in the land title office. The building scheme limits
the circumstances in which the existing trees on any of the lots can be cut down. Which of the
following statements is TRUE?
(1) This type of provision will not be enforceable unless the original owner reserves the right to
waive it as against individual lots.
(2) This type of provision must apply to at least half of the lots in the development unless certain
lots are specified as exempt at the time of registration of the plan.
(3) For a provision like this one to be valid, all the original purchasers must purchase their lots from
the same seller.
(4) All of the above
3
Alana owns an old marble statue that has been firmly affixed to the floor of the largest room in her house for nearly 50 years. She is planning on selling her house, but she wants to make sure that she can take the statue with her when she leaves. How should Alana proceed?
(1) The statue is a fixture, so Alana can be certain that it will remain her property following the sale
of her house.
(2) The statue is a chattel, so when Alana sells the house, the statute will become the property of the
new owners.
(3) Alana should ensure that the contract of purchase and sale makes it clear that the statue will remain Alana’s property following the sale of the house.
(4) Alana should wait until after the contract of purchase and sale is completed, and then mention that she wants to keep the statue.
3
When William subdivided his property and sold three lake front lots, he retained a large lot back from the water, with a panoramic view. To protect the value of the lot he retained, he sold each lot subject to
a restrictive covenant prohibiting any commercial use. These were properly registered. Over the next 10 years, the various owners of lots 1 and 2 had operated a campground and a motel on their lots,
with no objection from William. However, when the new owner of lot 3 opened a marina, which meant too many boats around for William’s liking, he brought an action for an injunction against the owner of lot 3 to prevent the operation of the marina because it contravened the restrictive covenant.
Which of the following is TRUE?
(1) William would easily succeed in an injunction against the owners of all 3 lots for the various
commercial enterprises being operated.
(2) William’s failure to take action against the owners of lots 1 and 2 for 10 years may give a court
grounds to cancel or modify the restrictive covenant.
(3) A restrictive covenant cannot limit a person’s ability to make a livelihood.
(4) None of the above
2
Which of the following statements about the subdivision of land is TRUE?
(1) Land can only be subdivided in compliance with section 73 of the Land Title Act, and regulatory
approval is required.
(2) The common law rules for subdividing land continue to govern. Fee simple owners can subdivide their land as they please, without any requirement to seek government or regulatory approval.
(3) While fee simple owners can subdivide their land without regulatory approval, persons with life
estate interests may not do so.
(4) Land can no longer be subdivided
1
Which of the following is an example of a restrictive covenant that is positive in nature and, as such, will NOT run with the land and NOT bind subsequent owners?
(1) No trees shall be planted on the northern 10 feet of the property.
(2) Every subsequent owner must paint the fence once per year.
(3) No pesticides shall be used on the property.
(4) If a shed is built on the property, it shall not be taller than 10 feet.
2
Grandma has entered a contract with Wolf Renovations Inc. to have some improvements made on her cottage before she sells it. Wolf Renovations Inc. hires the Three Little Pigs Electrical Co. to assist in the renovations. 10 days after the job is completed, Three Little Pigs Electrical Co. files a builder’s lien on
the property, claiming that Wolf Renovations Inc. has not paid them even a penny for their labour. In response to this lien, when she pays Wolf Renovations Inc., Grandma holds back 5% of the total contract price for the work done. When Little Red Riding Hood, a prospective purchaser, looks at the cottage a week later, she expresses a concern over the lien registered on title. Grandma assures Red
that if she buys the house, she will not have to worry about the lien because adequate money has been
held back.
Which of the following statements is TRUE?
(1) Three Little Pigs Electrical Co. could properly file a caveat, thus preventing the transfer of the
property to Red.
(2) If Red buys the property and Wolf Renovations Inc. goes bankrupt, Red may be liable to Three
Little Pigs Electrical Co. for the money owed to them.
(3) If Red decides to buy the property, she has an automatic right to withhold 10% of the purchase
monies since there is a builder’s lien registered on title.
(4) None of the above statements are true.
2
Which of the following properties could be converted into a strata development pursuant to the Strata Property Act?
(1) An existing apartment building with no strata plan currently filed
(2) 10 acres of bare land with several buildings constructed upon the land
(3) A newly created duplex with two separate entrances and separated living spaces
(4) All of the above can be converted into strata developments.
4
Sharon, the registered fee simple owner of Whiteacre, sold her interest to Anne. Anne did not register
the transfer she received from Sharon. Some months later Sharon discovered that she was still the registered owner, so she “sold” the property again to Myron, who registered his transfer. Myron did not know about Anne’s purchase and paid market value for the property. Anne has now discovered
what has happened. Which of the following statements is TRUE?
(1) Anne is the rightful owner of the property and she can have Myron removed from the title.
(2) Although Anne cannot remove Myron from the title, she has a valid claim against the assurance
fund.
(3) Myron’s title is indefeasible because he purchased bona fide for value from the registered owner.
(4) Both (2) and (3) are true.
3
Three years ago, Bernard leased a warehouse from Harold for a 5-year term. Although Bernard was given a properly executed lease agreement, he failed to register it in the land title office. Which of the following statements is FALSE?
(1) Bernard’s interest is protected in any event because there are only two years left on the lease.
Therefore, it is a lease for less than 3 years and does not have to be registered.
(2) Harold is prohibited under section 20(1) of the Land Title Act from denying Bernard’s leasehold
interest on the grounds that the agreement was not registered.
(3) Bernard’s interest is still valid as against Harold.
(4) Unregistered leases greater than 3 years in length are not protected from third party buyers.
1
Which of the following statements about a caveat is TRUE?
(1) A caveat may be used for 3 months without removal to protect a claimed interest in land.
(2) A caveat is not of itself a cause of action or an interest in land.
(3) It is usual to register a certificate of pending litigation before a caveat.
(4) The use of a caveat is a good way to tie up any further dealing in land regardless of the validity of
the underlying claim.
2
Under the Land Title Act, registration:
(1) is NOT required by the LTA for a conveyance of land to be enforceable between the parties to the
transfer.
(2) is NOT necessary for leases for terms of greater than five years, as they are effective against all
parties even if they are unregistered.
(3) renders a charge indefeasible.
(4) does NOT permit any indication of a trust on a registered title to land.
1
Alvin, Boris, Claus and Daria are the joint tenants of a property. Daria sells her interest to Xander.
Which of the following statements is TRUE?
(1) The sale destroys the joint tenancy and Alvin, Boris, Claus and Xander now hold the property as
tenants in common with each other.
(2) Daria cannot legally dispose of her interest without the permission of the other joint tenants, as
it would affect the interests of the others.
(3) Alvin, Boris and Claus remain joint tenants with each other, but become tenants in common
with Xander.
(4) None of the above
3
