Judgments, Liens and Charges on Title Before a Sale in British Columbia

You are selling or buying a home in British Columbia, and the title shows something you did not expect: a mortgage you knew about, or perhaps a lien or a court judgment you did not. It is natural to worry that the sale is in trouble.

This article explains what a title shows, how registered judgments work, and how some charges are removed. Every property and every charge is different, so a lawyer or notary should review the actual title before you rely on any of this.

This article covers the law of British Columbia.

What a title shows, and how to get one

A title shows the registered owner or owners in fee simple, the legal description, the PID, and the charges, liens and interests registered against the property. It does not show past owners, and it reflects the register at a specific point in time.

The Land Title and Survey Authority (LTSA) says the best way to search is with the nine-digit Parcel Identifier (PID), and that a civic address cannot be used to search. If you do not have the PID, you can look it up in ParcelMap BC, in BC Assessment's Assessment Search (which needs a civic address), or on a property tax notice.

To see the contents of a title you must order a copy, and a fee applies. Fees change from time to time, so check the current amount with the LTSA before you order.

Common things you may find registered

Not everything on a title is a debt. Some entries are rights or restrictions that run with the land. The table below shows a few of the kinds covered in this article.

A statutory right of way binds and benefits the grantor, the grantee and their successors in title, unless a contrary intention appears. A section 219 covenant is enforceable against the covenantor and the covenantor's successors in title. That means a buyer takes the land subject to these entries.

How a registered judgment works

A judgment entered in BC may be registered against the title to specified land, and from registration it forms a lien and charge on the judgment debtor's land. Registration is made by application under the Land Title Act.

A registered judgment ceases to be a lien or charge on the debtor's land after 2 years unless it is renewed before the 2 years end. A judgment cannot be registered against unsurveyed Crown land or Crown land not under the Land Title Act.

If you share a name with the judgment debtor, you can dispute the registration. The registrar investigates, and if the registrar finds you are not the debtor, the registration is cancelled unless the creditor appeals to the Supreme Court within 21 days. The creditor must then pay you $25 for expenses, and you may seek further compensation if the creditor registered without reasonable cause.

Can a charge be removed or challenged?

Registering a charge is not a determination by the registrar that the charge is enforceable. So an entry on title may be open to question, though that is a legal analysis for a lawyer.

• A section 219 covenant can be modified by the holder and the landowner together, or discharged by the holder alone, by a written instrument witnessed or proved in accordance with the Act; the landowner cannot discharge it alone.
• A person interested in land may apply to the Supreme Court to modify or cancel an easement, a statutory right of way, or a restrictive or other covenant.
• The court may make that order if the application is not premature and a listed ground applies, such as the charge being obsolete or the benefited parties having agreed.
• The court may require the applicant to pay compensation to anyone damaged by the order.

How a mortgage or a paid judgment is discharged, and what a builders lien involves, depends on the documents and the circumstances. A lawyer or notary can confirm the steps and the timing for your sale.

What to do next

• Order a current copy of the title using the PID.
• List every charge, lien and interest and note who holds each one.
• Check whether any registered judgment names you, and whether it is really your debt or a name match.
• Ask your lawyer or notary how each entry will be cleared or accepted before completion.
• After completion, a State of Title Certificate can confirm that a change to the registered title, such as a sale or a paid-off mortgage, has been recorded.

Raise any unexpected entry early, ideally before the sale closes, so there is time to deal with it.

Frequently asked questions