Humber/Ontario Real Estate Course 1 Exam Practice

What happens to an easement for power lines when it is no longer needed by the utility company?

1. The easement is automatically transferred to new owners of the land

2. The easement can be terminated if the need for that easement ceases to exist

3. The easement can only be terminated if the residents on that street agree to the termination

4. The easement cannot be terminated for any reason

5. The utility company must get a Court Order to terminate the easement

6. The easement can be extended to other utility services

The correct answer is: The easement is automatically transferred to new owners of the land

When a utility company no longer needs an easement for power lines, the easement is typically automatically transferred to the new owners of the land. This is because easements are often attached to the land itself rather than to the utility company, so when ownership of the land changes, the easement rights usually transfer along with it. Option B is incorrect because while easements can be terminated if the need for them ceases to exist, the termination process would need to be legally executed and may not be automatic. Option C is incorrect as terminating an easement typically involves legal procedures rather than simply requiring the agreement of residents on that street. Option D is incorrect because easements can be terminated under specific circumstances, including when they are no longer needed. Option E is incorrect as getting a Court Order is not always necessary to terminate an easement, although legal procedures may be involved. Option F is incorrect as the extension of an easement to other utility services would typically require a separate legal process rather than being automatically extended.