Ontario Real Estate Licensing Exam Practice · Question
If a fraudulent transfer of property occurs under the Land Titles system, which principle of land registration offers protection to the innocent party or compensation for loss?
The insurance principle (or indemnity principle) provides for compensation from the Land Titles Assurance Fund for anyone who suffers loss due to errors or omis
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Question: If a fraudulent transfer of property occurs under the Land Titles system, which principle of land registration offers protection to the innocent party or compensation for loss?
Answer options:
- The mirror principle ✅ The insurance principle
- The perpetuity principle
- The indemnity principle
Correct answer: The insurance principle
Explanation: The insurance principle (or indemnity principle) provides for compensation from the Land Titles Assurance Fund for anyone who suffers loss due to errors or omissions in the land titles register, including losses from fraudulent transfers. This provides security to registered owners.
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