Indefeasible Title and Good Safe Holding Title in BC Explained

If you are buying or owning land in British Columbia, you may hear that a title is indefeasible, or that a property has good safe holding title. These phrases sound reassuring, but they do not mean a title is free of every risk.

This article explains what the law says about indefeasible title, what good safe holding title generally means in practice, and the limits and exceptions to keep in mind.

This article covers the law of British Columbia.

What indefeasible title means

Under Land Title Act s. 23(2), an indefeasible title, while in force and uncancelled, is conclusive evidence at law and in equity of the registered owner's title. In plain words, the register is generally what the law relies on to say who owns the land.

The protection is subject to listed exceptions, such as existing grant conditions, highways, and fraud in which the registered owner participated.

What good safe holding title means

Good safe holding title is a phrase used in practice rather than a guarantee. It generally describes a title that a buyer and lender can reasonably rely on without undue risk of a challenge. Whether a particular title meets that standard depends on its facts, including what is registered against it, so a lawyer reviewing the title is the usual way to confirm it.

Your lawyer will look at the current title, since a title reflects the register at a specific point in time. A title shows the registered owner, legal description, PID and the charges, liens and interests registered against the property.

Limits on the protection

• Exceptions listed in the Act, including grant conditions, highways and fraud in which the registered owner participated.
• Errors: the registrar may correct an instrument issued in error or containing a misdescription, but not so as to prejudice rights acquired in good faith and for value.
• Contested rights: the registrar cannot decide them, and only a court action can.
• Enforceability: registering a charge is not a determination that it is enforceable.

A corrected register has effect as if the error had not been made. Even so, a correction that would prejudice a good-faith purchaser or lender is not permitted.

Registered charges that still bind an owner

Indefeasible title does not mean the land is free of registered burdens. A statutory right of way creates a charge on the land in favour of the grantee, and its terms bind and benefit the grantor, the grantee and their successors in title unless a contrary intention appears. A covenant about use of land, building, subdivision and separate sale may be registered and is enforceable against the covenantor and the covenantor's successors in title.

A registered court judgment forms a lien and charge on the judgment debtor's land from registration. A person claiming an interest in land through a court proceeding may register a certificate of pending litigation, and once registered it effectively freezes the register against further registrations, with some exceptions.

These burdens can sometimes be changed. 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, on grounds listed in the Property Law Act. A s. 219 covenant can be modified by the holder and the landowner together, or discharged by the holder alone, but the landowner cannot discharge it alone.

What to do next

• Get the PID and order a current title copy before you commit to a purchase.
• Read each registered charge, covenant, right of way and lien.
• Ask a lawyer whether the title is one a lender will accept and what each charge means for you.
• Order a State of Title Certificate if you need a copy certified correct at the time of issuance.
• Raise any apparent error or misdescription early, with a lawyer's help.

Frequently asked questions