Real Estate - Real Module 3

Front 1

Under the Torrens System of Land Titles, ____reflects accurately and completely of the facts about a _____. This exactly correct as to the _____. To sum it up: “____”

Back 1

the current title

person’s ownership of an interest in that land

name of the owner, the estate or interest in land that the owner holds, the legal description, and any encumbrances registered against that property (i.e., mortgages, caveats, utility rights of way, etc.)

What you see is what you get.

Front 2

The Torrens System of Land Titles is based upon the following three principles.

Back 2

Mirror

Curtain

Insurance

Front 3

The second principle of the Torrens System provides that a curtain is brought down on all past dealings with the title. A Purchaser of a parcel of land does not have to be concerned about ____.

The current registered owner is treated as if he or she had ______.

Back 3

any past dealings with that land

received the grant directly from the Crown, without any intervening owners

Front 4

The insurance principle holds that the operator of the system (in Alberta, the Land Titles Office) will _____.The Land Titles Office maintains an ______. Nice Nancy could therefore make a claim against the Assurance Fund for the loss of her land and would be given money equal to the value of the land. The Land Titles Office could attempt to recover from Roberta—if she hadn’t fled the country.

Back 4

compensate for any losses of rights occasioned by the operation of the system.

assurance fund that will compensate someone whose rights have been taken away by the operation of the system

Front 5

The mirror principle and the curtain principle, taken together, create the concept of _____.

Back 5

Indefeasibility of Title

Front 6

Indefeasibility of title

Exception

Back 6

Once a current owner has title in his or her own name, that owner’s title cannot be defeated regardless of any defects in the previous owner’s title. The only exceptionis if the current registered owner participated in fraud when obtaining title. There is an often- quoted extract from the English case, Gibbs v. Messer [1891] A.C. 248:

Front 7

Primary goal of torrents system

Back 7

Certainty of titles

Front 8

In keeping with the concept of indefeasibility of title, and based upon the Mirror Principle and Curtain Principle, ______ is most important. ______ is, for purposes of registration at Land Titles Office, irrelevant.

Back 8

the time of registration of the document at Land Titles Office

The date of execution of the document

Front 9

Registration of documents at Land Titles also accomplishes another vital purpose—upon registration, the interest will “_____.”

Back 9

run with the land

Front 10

The Land Titles Office accepts a document for registration and gives it a registration number. These registration numbers are absolutely ____ so that it can be determined between two documents which was registered first.

Back 10

consecutive

Front 11

The Torrens system does not require that _____. Unregistered documents are still _____

Back 11

documents concerning land be registered to be valid

valid between the persons who signed them.

Front 12

Interests in land can be divided into two categories: .

Back 12

Major Interests or Estates in Land and Minor Interests

Front 13

1. Major interests, such as _____, are characterized by 2 rights:

2. Minor interests in land have no _____, and the holder of a minor interest registers his or her ____

Back 13

fee simple interests

right-of-exclusive possession and the right to obtain a title in the name of the owner of the estate.

right-of-exclusive possession

claim as an encumbrance on the title.

Front 14

Both types of interests can be determined by _____. The Certificate of Title to property (Appendix 3.1 found under Module 3 in D2L) not only describes in detail the ______and gives ______, but also may list a number of _____.

Back 14

Looking at the Title to the property

registered owner of the property the legal description

encumbrances registered against that title.

Front 15

Registration of documents at Land Titles also accomplishes another vital purpose—upon registration, the interest will “_____.”

Back 15

run with the land

Front 16

The Land Titles Office accepts a document for registration and gives it a registration number. These registration numbers are absolutely ____ so that it can be determined between two documents which was registered first.

Back 16

consecutive

Front 17

The Torrens system does not require that _____. Unregistered documents are still _____

Back 17

documents concerning land be registered to be valid

valid between the persons who signed them.

Front 18

Interests in land can be divided into two categories: .

Back 18

Major Interests or Estates in Land and Minor Interests

Front 19

1. Major interests, such as _____, are characterized by 2 rights:

2. Minor interests in land have no _____, and the holder of a minor interest registers his or her ____

Back 19

fee simple interests

right-of-exclusive possession and the right to obtain a title in the name of the owner of the estate.

right-of-exclusive possession

claim as an encumbrance on the title.

Front 20

Both types of interests can be determined by _____. The Certificate of Title to property (Appendix 3.1 found under Module 3 in D2L) not only describes in detail the ______and gives ______, but also may list a number of _____.

Back 20

Looking at the Title to the property

registered owner of the property the legal description

encumbrances registered against that title.

Front 21

Encumbrances are ____. ________is affected by and may be limited by the various encumbrances.

Back 21

registrations against title to property that in some way affect the bundle of rights that the registered owner may have in that property

The use and enjoyment that the registered owner may have in that property

Front 22

As related to real estate and the title thereof, an encumbrance is any ______.

Back 22

claim, lien, charge, or liability attached to and binding real property

Front 23

an encumbrance, in the form of a registered document at Land Titles, can include a: 4

Back 23

Caveat

Mortgage

Restrictive covenant

Easement (Utility Right-of-Way, Pipeline Right-of-Way, Party Wall Agreement),

Front 24

The term “encumbrance” is used to identify _____, but how the encumbrance affects _______can vary greatly depending on the nature of the instrument.

Back 24

any instrument registered on the title of land

any instrument registered on the tile of land

Front 25

If someone claims to have an interest in a property, the Land Titles Act allows that person to _____. The word caveat is short for the Latin words caveat emptor, which means “______.”

Back 25

register a Caveat against title to that property

let the buyer beware

Front 26

A Caveat is a document filed at Land Titles Office that is registered as ______indicating that ______. A Caveat operates as a _______, and anyone dealing with the land must do so only with regard to the rights that may be claimed by the Caveat. The land is now subject to _____ and must be dealt with accordingly.

Back 26

an encumbrance to a property

someone (the Caveator) is claiming an interest in the land

notice to the world of the claim of an interest in land

the interest claimed in the Caveat

Front 27

There are three requirements of a Caveat:

Back 27

1. The Caveat must indicate the nature of the interest claimed. the Caveator may claim an interest “as unpaid Vendor,” “as Purchaser under an Agreement for Sale,” or some other interest.

2 2. The Caveat must outline the grounds on which the claim is made. This is usually the contract or agreement between the Caveator and the registered owner that gives rise to the Caveat.

3 3. A strict Land Titles Act requirement for the registration of the Caveat is that each Caveat must be accompanied by an Affidavit of Bona Fides. This is an Affidavit attached to all Caveats by which the Caveator (or an agent of the Caveator) swears that the Caveator has a good and valid claim upon the lands and that the Caveat is not being filed for the purpose of delaying or embarrassing any person interested therein or proposing to deal therewith. Bona fides means “good faith.” Therefore, a Caveat requires an Affidavit, or sworn statement, either by the person claiming the interest or by an agent of that person who has factual knowledge of the circumstances, indicating that the Caveator has a good and valid claim to the property and is not merely registering the Caveat to harass or inconvenience the registered owner.

Front 28

A Caveat can only be registered by a person who has “______.” This means that the Caveator must _____

The Caveator must claim that he or she ______, not an interest in ____

Back 28

an interest in land

have more than just some sort of contractual or other connection with the registered owner of the property.

has an interest in the land

the registered owner of the land.

Front 29

Under the Land Titles System there are a number of interests in land that support the registration of a Caveat. Generally, one can register a caveat protecting: 6

Back 29

Right of first refusal

An option

Unpaid Vendor's lien

Purchaser's interest in real estate contact

A Residential or commercial lease

An oil and gas lease

Front 30

An easement is a ______.

Back 30

non-exclusive right to use a piece of someone’s property

Front 31

Easements are nonexclusive rights acquired by one person from another person permitting the use of the other person’s land for the benefit of the neighbouring land (not for a particular person) or as part of a building scheme or development. In the circumstance shown in Figure 2, Blackacre will be referred to as the “_____” land, and Whiteacre will be referred to as the “______” land.

Back 31

burdened

benefited

Front 32

The agreement between Farmers Black and White is only an easement if it is stated to be _____. If the agreement only benefits Farmer White and burdens Farmer Black, it is a _____and likely does not constitute _____ under the Land Titles Act since an easement must refer to the _____ and not just to _____. The land burdened is called the “_____” and the land benefited is called the “____.”

Back 32

The agreement between Farmers Black and White is only an easement if it is stated to be to the benefit of Whiteacre and burdening Blackacre. If the agreement only benefits Farmer White and burdens Farmer Black, it is a personal contract between the two and likely does not constitute an easement under the Land Titles Act since an easement must refer to the land and not just to the individuals. The land burdened is called the “Servient Tenement” and the land benefited is called the “Dominant Tenement.”

Front 33

The easement can be registered as _____ to Blackacre at the Land Titles Office, and once so registered, it “_____,” which means that it _____.

Back 33

an encumbrance against title

runs with the land

binds all successive owners of the burdened land

Front 34

A Utility Right-of-Way (Appendix 3.4 found under Module 3 in D2L) is a form of easement by which the municipality indicates that it has been granted a ______, utility lines, underground electrical wiring, etc. These utility rights-of-way are almost always registered against property at the time of development of a subdivision.

Back 34

A Utility Right-of-Way (Appendix 3.4 found under Module 3 in D2L) is a form of easement by which the municipality indicates that it has been granted a right of way onto someone’s property in order to lay down, repair, and maintain gas pipelines, utility lines, underground electrical wiring, etc. These utility rights-of-way are almost always registered against property at the time of development of a subdivision.

Front 35

A pipeline right-of-way is, again, a form of easement, and usually affects a _____. The pipeline right-of-way grants to the operator of the pipeline the right of _____. The owner of the surface of the land must take extreme care when performing any construction and development, all of which are subject to the pipeline easement.

Back 35

A pipeline right-of-way is, again, a form of easement, and usually affects a farm or agricultural land. The pipeline right-of-way grants to the operator of the pipeline the right of access for repair and maintenance. The owner of the surface of the land must take extreme care when performing any construction and development, all of which are subject to the pipeline easement.

Front 36

A party wall agreement is another form of easement, but somewhat different in that it is a _______. A party wall is a ______. Duplexes and townhouses most often have a party wall. The owners of the adjoining properties normally enter into a party wall agreement, which is an easement _______.

Back 36

A party wall agreement is another form of easement, but somewhat different in that it is a mutual easement between two adjoining owners. A party wall is a wall erected on a property line as a common support for structures on both sides. Duplexes and townhouses most often have a party wall. The owners of the adjoining properties normally enter into a party wall agreement, which is an easement burdening and benefiting the owners of both properties.

Front 37

The party wall agreement (Appendix 3.5 found under Module 3 in D2L) gives both adjoining owners ________ for repair and maintenance of the party wall itself and of the roof and any water pipes or wiring within the common wall. A party wall agreement is registered against title to ______, and again runs _____ so that it ____.

Back 37

As you can see in Figure 3, the party wall supports roof, gables, and eaves on both sides. Within the party wall there may be heating ducts, electrical conduits, etc. The party wall agreement (Appendix 3.5 found under Module 3 in D2L) gives both adjoining owners mutual right of access to the other person’s property for repair and maintenance of the party wall itself and of the roof and any water pipes or wiring within the common wall. A party wall agreement is registered against title to both adjoining properties, and again runs with the land so that it binds all subsequent owners of each property.

Front 38

Restrictive covenants are covenants running with the land, i.e., binding upon successive owners and must contain restrictions. Restrictive covenants are all _____ in form and contain, somewhere in the restrictive covenant, “____” or similar words to that effect.

Back 38

negative

thou shalt not

Front 39

an encroachment agreement is an agreement allowing ______for a _____and only while ______.

Back 39

a building on an adjoining property to encroach upon one’s property

A limited purpose

the existing structure remains