A buyer is purchasing a residential property in Ontario that is registered under the Land Titles Act. To ensure good and marketable title, which of the following is the most crucial step a lawyer performs during the due diligence process?

Question: A buyer is purchasing a residential property in Ontario that is registered under the Land Titles Act. To ensure good and marketable title, which of the following is the most crucial step a lawyer performs during the due diligence process?

Answer options: ✅ Conducting a thorough review of the Parcel Register and any associated instruments to verify ownership and identify encumbrances.

• Obtaining a recent property appraisal to confirm the market value.
• Requesting a zoning certificate from the local municipality to ensure permitted use.
• Performing an environmental assessment to detect potential contaminants on the land.

Correct answer: Conducting a thorough review of the Parcel Register and any associated instruments to verify ownership and identify encumbrances.

Explanation: Under the Land Titles Act, the Parcel Register serves as the definitive record of ownership and interests affecting a property. A detailed review by a lawyer is essential to confirm the seller's right to convey title and to identify any registered mortgages, easements, or other encumbrances that could affect the buyer's interest.