Certificate of Pending Litigation on BC Title: How to Remove It

Finding a certificate of pending litigation, usually called a CPL, on your property title can be alarming. It signals that someone has started a court proceeding that says they have a claim to the land itself, and it can stop you from selling or refinancing while the dispute continues.

This article explains who can register a CPL in British Columbia, what it does to your title, and the routes for having it cancelled. It focuses on the owner's application under section 256 of the Land Title Act. Every situation turns on its own facts, so treat this as a map and not a substitute for advice.

This article covers the law of British Columbia.

Who can register a CPL, and for what kind of claim

Under Land Title Act s. 215(1), a person who has commenced or is a party to a proceeding claiming an estate or interest in land may register a CPL against the land in the same manner as a charge. The same applies to a person given a right of action in respect of land by another enactment. The land must be described to the registrar's satisfaction, and the registrar sends a copy to the registered owner.

The claim must concern an interest in land. A debt claim, such as one for an automobile price or a real estate commission, does not qualify, and the registrar rejects CPLs based on a Personal Property Security Act notice of security interest. If a CPL has been registered over what is really a money dispute, that may be something to raise with a lawyer.

How a CPL is filed and what it does to your title

A CPL is filed on a Form 17 Charge, Notation or Filing, selecting 'Certificate of Pending Litigation' and attaching the approved Form 31, 32, 33 or 34 and the originating process. The originating process is the document that started the court case, so it can tell you what is being claimed.

Once registered, a CPL effectively freezes the register against further registrations, except those allowed under s. 216 and the s. 217 'Rudland rule'. Section 216(2) lists exceptions to the freeze, including caveats, priority or postponement agreements, and certain involuntary charges.

In practice, this is why a CPL can hold up a sale or a new mortgage. What can still be registered in your situation depends on the exceptions and the facts, so a lawyer can confirm.

The routes to cancel a CPL

Land Title Act ss. 252 to 257 deal with cancelling a CPL. They are organized as follows:

Which route fits depends on what has happened in the underlying case. The headings are a guide only, so check the Act itself or ask a lawyer which section applies to you.

Applying under section 256

Under s. 256(1), a registered owner, or a person claiming an estate or interest in the land, may apply for an order cancelling a CPL. The application needs an affidavit that gives particulars of the registration, states that hardship and inconvenience are or are likely to be experienced, and gives the grounds.

The application goes to the court where the proceeding began. If you are a party to that proceeding, it is made in that proceeding. Otherwise it is made by petition.

There is an extra route in s. 256(2). An owner whose indefeasible title or charge was registered subject to a CPL under s. 217(2)(a) or (c)(ii) may also apply to cancel it. The affidavit must address whether the pleading alleges the owner is not a good-faith purchaser for value, and the dates and times of the owner's application.

Practical steps to take next

• Confirm the CPL is on title. To see the contents of a title you must order a copy, and a fee applies.
• Search using the nine-digit Parcel Identifier (PID), because a civic address cannot be used to search. If you do not have it, you can find it in ParcelMap BC, BC Assessment's Assessment Search or on a property tax notice.
• Obtain the originating process named in the CPL and read what is claimed.
• Gather your title documents, purchase or mortgage papers and any court documents you have received.
• Speak with a lawyer about which cancellation route applies and about the affidavit.
• After the CPL is cancelled, order a State of Title Certificate to confirm it has been removed.

A State of Title Certificate is a copy of the title certified correct at the time of issuance by the land title office. It can be used to confirm that a change to the registered title has been recorded. It can be requested through an LTSA Explorer account or by mailed request form, and the LTSA does not process requests by telephone or email.

Frequently asked questions