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BC Real Estate Trading Services Licensing Exam Practice · Question

Maria is purchasing a unit in a newly constructed strata building in Squamish. Her real estate licensee, Ken, reviews the Contract of Purchase and Sale, which includes a clause stating that the developer reserves an easement for access to a rooftop amenity for a neighbouring property they also own. This easement is not yet registered on the strata plan, which is still undergoing final approval. What advice should Ken provide Maria regarding this situation?

While the Torrens system emphasizes registered interests, contractual agreements indicating an intent to create an interest, like an easement, are serious. The

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Question: Maria is purchasing a unit in a newly constructed strata building in Squamish. Her real estate licensee, Ken, reviews the Contract of Purchase and Sale, which includes a clause stating that the developer reserves an easement for access to a rooftop amenity for a neighbouring property they also own. This easement is not yet registered on the strata plan, which is still undergoing final approval. What advice should Ken provide Maria regarding this situation?

Answer options:

  • Advise Maria that the easement, being unregistered, will not be binding on her or the strata corporation once the strata plan is filed.
  • Inform Maria that unregistered easements are typically unenforceable and she should not be concerned. ✅ Caution Maria that even if the easement isn't yet registered, the contractual clause indicates the developer's intent, and it will likely be registered, potentially affecting her interest or the strata's common property.
  • Recommend Maria proceed without concern, as the Land Title Office would reject an easement that impacts strata owners without their explicit consent.

Correct answer: Caution Maria that even if the easement isn't yet registered, the contractual clause indicates the developer's intent, and it will likely be registered, potentially affecting her interest or the strata's common property.

Explanation: While the Torrens system emphasizes registered interests, contractual agreements indicating an intent to create an interest, like an easement, are serious. The developer's reservation in the contract clearly signals their intention to register the easement, which, when registered, will become a charge against the strata lots and common property, affecting Maria's ownership interest.

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