Humber/Ontario Real Estate Course 1 Exam Practice

In real estate, what is the purpose of a Land Titles system?

1. To ensure accurate boundary surveys

2. To record all mortgage details

3. To guarantee clear title to property

4. To assess property tax values

5. To determine zoning laws

6. To collect sales data

The correct answer is: To guarantee clear title to property

The purpose of a Land Titles system primarily revolves around guaranteeing clear title to property. This system provides a government-backed registry of land ownership, which reduces disputes and confusion regarding property rights. When a property is registered in a Land Titles system, it typically includes assurances that the designated owner has a rightful claim to the property free from any encumbrances or competing claims. This certainty of ownership is fundamental in real estate transactions, as it protects both buyers and sellers. The other options, while related to aspects of real estate, do not capture the primary function of the Land Titles system. For example, ensuring accurate boundary surveys, recording mortgage details, assessing property tax values, determining zoning laws, or collecting sales data are handled through other mechanisms and government processes, rather than being the primary goals of a Land Titles system. Thus, the correct focus is on how this system supports clear title guarantees, making option C the most fitting choice.