Humber/Ontario Real Estate Course 3 Exam Practice

When the lawyer for the buyer objects to title issues, what is one example of such an objection?

1. A zoning conflict

2. An outstanding utility bill

3. A severance not complying with the Planning Act

4. An outdated land survey

5. A neighbor dispute

6. Expired building permits

The correct answer is: A severance not complying with the Planning Act

The correct response pertains to a severance not complying with the Planning Act. When a lawyer assesses the title for a property transaction, they must ensure that all aspects of the title adhere to relevant legal requirements. A severance that is not compliant with the Planning Act suggests that the division of land does not meet provincial regulations, which could have significant implications for property usage, planning permissions, or future developments. This raises issues of legality and can affect the buyer’s rights to use or develop the property as intended. Other options, while they might raise concerns during the transaction, do not typically directly involve title issues impacting compliance with specific regulations. For example, a zoning conflict may affect how the property can be used, but it isn't a direct title objection. Similarly, outstanding utility bills represent financial obligations rather than title defects. An outdated land survey might pose questions about property boundaries but does not inherently present a legal challenge to title compliance. Neighbor disputes arise from relationship issues rather than title legality, and expired building permits indicate a compliance issue with construction rather than a direct issue tied to the property title itself.