Humber/Ontario Real Estate Course 4 Exam Practice

What type of real estate document ensures compliance with a certain code?

1. Restrictive Covenant

2. Zoning Ordinance

3. Deed of Trust

4. Bill of Sale

5. Building Permit

6. Foreclosure Notice

The correct answer is: Restrictive Covenant

The document that ensures compliance with a certain code is a zoning ordinance. A zoning ordinance is a law enacted by a local government that specifies how land within its jurisdiction can be used. It establishes regulations on land use that help dictate the types of structures allowed, their height, density, and other factors concerning property development. This ensures that land use is in line with community planning and development goals, helping to maintain safety, aesthetics, and functionality within a community. Restrictive covenants, in contrast, are private agreements often included in property deeds that restrict the ways in which a property can be used. While they can enforce compliance with property use standards, they do so at a private level rather than being a public code. A deed of trust is a financing tool that involves three parties and secures a loan with real estate as collateral, while a bill of sale is utilized for the transfer of personal property, not real estate compliance. A building permit is also relevant to construction, ensuring that building plans comply with city codes and regulations, but it does not serve as the overarching code itself. Lastly, a foreclosure notice pertains to the process of seizing a property due to non-payment on a mortgage, which is unrelated to compliance with land use regulations.