How does a court judgment registered on title affect selling my BC home?
This answer covers the law of British Columbia.
A court judgment registered against your title becomes a lien and charge on your land, so it will show up when a buyer's lawyer checks the title. In plain terms, a buyer will expect it to be dealt with, and how it is paid out and removed on completion depends on your situation.
A judgment entered in BC may be registered against the title to specified land, the registration is made by application under the Land Title Act, and the lien applies from registration. A title lists the charges, liens and interests registered against the property as of a specific point in time. A registered judgment generally ceases to be a lien or charge after 2 years unless it is renewed before the 2 years end, but some judgments are treated differently, so a lawyer can confirm whether yours still binds your home.
If the judgment was registered against you by mistake because of a name match, the registrar investigates under s. 89, and if the registrar finds you are not the judgment debtor, the registration is cancelled unless the creditor appeals to the Supreme Court within 21 days. Beyond that, the steps for payout and removal at completion depend on your facts, so confirm them with a lawyer before you list.
Key takeaways
- A judgment registered against your land forms a lien and charge on it from registration, and it shows as a lien on the title a buyer reviews.
- A registered judgment generally stops being a lien or charge after 2 years unless it is renewed before the 2 years end, though some judgments are treated differently.
- If a judgment was registered against you because of a name match and you are not the debtor, the registrar investigates, and the creditor has 21 days to appeal a finding in your favour.
- How a judgment is paid out and removed on completion depends on your facts, so speak with a lawyer before listing your home.