Humber/Ontario Real Estate Course 1 Exam Practice

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Prepare for the Humber/Ontario Real Estate Course 1 Exam with our comprehensive quiz. Test your understanding with multiple choice questions and detailed explanations. Build confidence and knowledge for a successful exam experience!

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What is a primary reason for recording real estate transactions in Ontario?

To comply with federal tax regulations
To provide a clear chain of title
To document ownership for commercial purposes
To establish a history of land use changes

The correct answer is: To provide a clear chain of title

Recording real estate transactions in Ontario serves several important functions, with a primary one being to provide a clear chain of title. This chain of title is crucial because it establishes ownership and confirms the legal rights associated with a property. When transactions are recorded, they create an official public record that others can refer to, ensuring transparency in property ownership. This protects both buyers and sellers by reducing the risk of disputes over who owns the property and verifying that the seller has the authority to sell it. While documenting ownership for commercial purposes, complying with tax regulations, and establishing land use history are relevant aspects of real estate transactions, they are secondary to the primary function of ensuring there is an unambiguous record of ownership. A clear chain of title is foundational in maintaining the integrity of real estate transactions and is essential for the smooth functioning of property transfers and future sales.