Humber/Ontario Real Estate Course 1 Exam Practice

Which statement is NOT correct about the land titles system?

1. It involves a government registration system guaranteeing land title

2. Each parcel is individually identified using a parcel register

3. The certificate of title reflects current title facts

4. Compensation is limited to loss due to recording errors

5. The title is guaranteed only up to a certain extent

6. It records all ownership and interest in land

The correct answer is: Compensation is limited to loss due to recording errors

The statement about compensation being limited to loss due to recording errors is not correct in the context of the land titles system. The land titles system is designed to provide a high degree of certainty and security to property owners regarding their ownership rights. In this system, the government not only guarantees the title but also ensures that any losses due to an error in the registration of the title will be compensated. This means that if a mistake occurs in the registration process that results in a loss for a property owner, the government will typically provide compensation beyond just recording errors. This assurance encourages confidence in property transactions and promotes stability in land ownership. The other statements accurately reflect key aspects of the land titles system, including its government-backed guarantee of title, the use of parcel registers for identifying properties, current facts being reflected in the certificate of title, and the comprehensive recording of ownership and interests in land. The guarantee of title is also robust, ensuring that, in case of disputes or issues arising from recorded information, there are protections and compensations in place for landowners.