Humber/Ontario Real Estate Course 3 Exam Practice

When conducting a title search, what information can Lawyer Kim discover about the property?

1. The building's age and structural integrity

2. The amount of property taxes outstanding

3. The exact boundary measurements

4. Financial encumbrances like existing mortgages

5. The owner's usage history

6. Verification of land use compliance

The correct answer is: Financial encumbrances like existing mortgages

When conducting a title search, Lawyer Kim can uncover important financial encumbrances like existing mortgages. This process involves reviewing public records to identify any claims, liens, or financial obligations attached to the property. Understanding existing mortgages is critical for anyone involved in a real estate transaction, as it impacts the property’s ownership and equity. If there are outstanding mortgages, they must be addressed before the property can be sold or transferred. The title search does not provide information about the physical characteristics of the property, such as its age, structural integrity, or exact boundary measurements, as those details are typically found in building permits, surveys, or other documents. While the title might include property tax information, outstanding amounts are not a standard focus of title searches but rather part of property assessments. Owner’s usage history may be evident in certain records but is not a primary focus of a title search. Lastly, while compliance with land use regulations is crucial, verifying this requires a different set of checks, primarily related to zoning laws and local ordinances rather than the title itself.