Humber/Ontario Real Estate Course 4 Exam Practice

A property listing states that it comes with a right-of-way to access a lake. What does this imply for the buyer?

1. The buyer has ownership of the lake.

2. The right-of-way can be terminated by the seller at any time.

3. The buyer can access the lake but does not own the path or land leading to it.

4. The right-of-way includes rights to build structures on the lakefront.

The correct answer is: The buyer can access the lake but does not own the path or land leading to it.

When a property listing includes a right-of-way to access a lake, it implies that the buyer can access the lake itself but does not own the path or land leading to it. Essentially, the buyer has the legal right to travel across the specified route to reach the lake for recreational purposes or any other permitted uses. The ownership of the lake itself would not be transferred to the buyer through this right-of-way. Option A is incorrect because having a right-of-way to access the lake does not equate to owning the lake. The right-of-way is solely for accessing the lake, not owning it. Option B is incorrect because a right-of-way is a legal right that typically cannot be terminated by the seller arbitrarily. It is designed to provide the buyer with access to the lake, and terminating it without a valid reason could lead to legal complications. Option D is incorrect because the right-of-way specifically grants access to the lake; it does not include rights to build structures on the lakefront. Building structures would require separate permissions and approvals, not granted through a right-of-way.