Clearing Liens and Old Charges From Title Before Selling Your Home in Ontario

Sometimes a seller learns, only after accepting an offer, that something is registered against the property. It might be a tax notice, a judgment creditor's writ, a contractor's claim, or an old charge from a lender you have not heard from in years. Any of these can hold up closing if it is not dealt with.

This guide explains the common types of registrations, how each one generally works under Ontario law, and how they are usually cleared. It does not cover closing-day discharge mechanics or mortgage prepayment penalties. Your own title is the only thing that tells you what applies to you.

Start by finding out what is actually on title

Ownership changes and other dealings with land are registered electronically by authorized users, such as Teraview account holders. Anyone can search property records on OnLand for a fee.

Reading the records is another matter. ServiceOntario cannot search title, give legal advice or explain property records, and it refers people to a lawyer, title searcher or surveyor. If you see an entry you do not understand, that is the right next step.

• Search your property on OnLand, or ask a lawyer or title searcher to do it.
• Write down each registration: what it is, who registered it and when.
• Ask what is needed to remove each one, and who has to act.
• Do this before listing if you can, so surprises do not appear after you accept an offer.

Tax-related claims: municipal and CRA

Unpaid municipal property taxes are a special lien on the land. That lien ranks ahead of every other claim, lien or encumbrance except the Crown's.

If tax arrears are still owing on January 1 in the second year after the taxes became owing, the treasurer may register a tax arrears certificate on title. Before the one-year period under s. 379(1) of the Municipal Act, 2001 ends, anyone may cancel the certificate by paying the cancellation price. That price covers arrears, current taxes, interest, penalties and reasonable municipal costs. The amount is worked out property by property, so ask your municipality for the figure.

Federal tax debts work differently. The CRA may certify an unpaid tax debt and register the certificate in the Federal Court, and a memorial of it may then be registered in the provincial land registry. Once registered, it creates a charge on the debtor's land, ranking behind interests perfected before it was recorded. Clearing it generally means dealing with the debt itself, so a lawyer or accountant can help you plan how.

Writs of execution and construction liens

A writ of execution binds the debtor's lands from the effective date of the writ, renewal or certificate noted in the sheriff's index. If a writ shows up against a name matching yours, a lawyer can help confirm whether it is really you and what is needed to deal with it.

Construction liens come from unpaid work on the property. Under the Construction Act, a contractor's lien expires 60 days after the triggering event in s. 31(2) unless it is preserved, and it is preserved by registering a claim for lien on title. A preserved lien expires unless it is perfected within the 90-day period in s. 36(2).

If a lien is registered and you need it off title, one route is to pay money or security into court. Under s. 44(1), the court must make an order vacating a lien when that is done, and the motion can be made without notice.

Old NOSIs and lenders who cannot be found

The Homeowner Protection Act became law on June 6, 2024. It bans registering new consumer Notices of Security Interest and treats all consumer NOSIs already on title as expired. An expired NOSI may still appear on title but does not affect the land. It can be removed through a lawyer with an Application to Amend the Register, a fee and a law statement.

An old mortgage is a different problem. If the mortgagee cannot be found, or a discharge cannot otherwise be obtained, the court may allow the amount owing to be paid into court and order the mortgage discharged. A registered court discharge order has the same effect as a discharge signed by the mortgagee. This needs a court process, so expect it to take time and get advice early.

What to do next

• Get a current title search through a lawyer or title searcher, or search OnLand yourself and bring the results to a lawyer.
• Sort each registration into tax, judgment, construction, NOSI or mortgage.
• Ask your municipality for a tax statement or cancellation price if a tax arrears certificate appears.
• Gather any contractor invoices, payout letters or old mortgage papers you have.
• Raise the issue with your lawyer before you list, since court steps can take time.
• Tell your agent and lawyer about any known registration so it can be handled in the sale terms.

Which route fits depends on the facts of your title, so a lawyer should confirm the right steps.

Frequently asked questions