Humber/Ontario Real Estate Course 1 Exam Practice

What does the term "police power" refer to in real estate?

1. The right of a municipality to levy taxes on properties within its boundaries

2. The right to create and enforce a provincial building code

3. The right to expropriate land

4. The right of the government to take title to land when a property owner dies with no will or heirs

The correct answer is: The right to create and enforce a provincial building code

The term "police power" in real estate refers to the right to create and enforce a provincial building code. This means that the government has the authority to establish regulations and standards regarding the construction and maintenance of buildings to ensure public safety, health, and welfare. By having this power, the government can set guidelines for things like structural integrity, fire safety, sanitation, and other aspects crucial for maintaining safe and habitable properties. This is an essential aspect of real estate regulation to protect the well-being of the community and its residents. Option A is incorrect because the right of a municipality to levy taxes on properties within its boundaries refers to the power of taxation, not police power. Option C is incorrect because the right to expropriate land is known as the power of eminent domain, not police power. Option D is incorrect because the right of the government to take title to land when a property owner dies with no will or heirs is known as escheat, not police power.