Humber/Ontario Real Estate Course 4 Exam Practice

Which term refers to a right-of-way over one property, for the benefit of another?

1. Encumbrance

2. Mortgage

3. Easement

4. Servitude

5. Lien

6. Covenant

The correct answer is: Easement

The term that specifically refers to a right-of-way over one property for the benefit of another is known as an easement. An easement grants one property owner the right to use a portion of another property for a specific purpose, such as access to a road or utility installation. This legal tool allows for the necessary access or use without transferring ownership of the property itself. In real estate transactions, easements are vital as they help establish rights that can significantly affect property use and value. For example, a property may have an easement allowing the neighboring property owner to cross it to access a public road, which can impact both properties' functions and desirability. Other terms associated with property rights and obligations do not specifically address the concept of a right-of-way. For instance, although encumbrances relate to claims or liabilities on a property that may affect its value, they are broader and do not solely define the right of way. Mortgages and liens pertain to financial interests in property, while covenants refer to obligations or restrictions placed on property owners. Servitude, while it can sometimes mean similar rights in certain legal contexts, is often considered less specific than easements in the real estate domain, especially in Ontario law, where easements are more