Liens, Writs and Tax Arrears on Title When Selling in Ontario

You have decided to sell, and then something unexpected turns up on title: a lien, a writ, a tax notice or an old registration you do not remember. Buyers and their lawyers expect title to be clear, so these items can slow or stop a sale if they are not dealt with.

This guide explains in plain terms how to see what is registered against your property and how the common types of claim are usually cleared. It is general information, not advice on your file. Because the details turn on your facts, a lawyer should look at your title before you list or close.

Start by checking what is 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.

ServiceOntario cannot search title, give legal advice or explain property records, and it refers people to a lawyer, title searcher or surveyor. So you can look, but you will usually need a professional to tell you what an entry means and what it will take to clear.

• Search your property on OnLand and save what you find.
• Note each registration, who registered it and when.
• Gather any payout letters, tax bills or contractor paperwork you already have.
• Ask a lawyer to review anything you do not understand.

Property taxes and tax arrears certificates

Unpaid property taxes are a special lien on the land that 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 it by paying the cancellation price. That price covers arrears, current taxes, interest, penalties and reasonable municipal costs.

Cancellation prices are set property by property, so ask your municipality for the current figure rather than adding it up yourself. If a certificate is on title, speak to a lawyer promptly because the one-year period is a deadline.

CRA memorials and writs of execution

If you owe the CRA, it may certify the unpaid tax debt and register the certificate in the Federal Court. A memorial of it may then be registered in the provincial land registry, and once registered it creates a charge on the debtor's land, ranking behind interests perfected before it was recorded.

A writ of execution is a separate kind of claim. A writ binds the debtor's lands from the effective date of the writ, renewal or certificate noted in the sheriff's index. A writ against someone with the same name as you is a common worry. A lawyer can help sort out whether an entry actually relates to you.

Construction liens

If you had work done on the home, a contractor may register a claim for lien on title. Under the Construction Act, a contractor's lien expires 60 days after the triggering event in s. 31(2) unless 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 on title and you dispute it or need to sell, the court must make an order vacating a lien when money or security is paid into court, and the motion can be made without notice. A lawyer can tell you how much is needed and handle the motion.

Timing matters here, so keep the dates of the work and any lien registration handy for your lawyer.

Old NOSIs and mortgages that cannot be discharged

The Homeowner Protection Act became law on June 6, 2024. It bans registering new consumer Notices of Security Interest (NOSIs) 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.

Sometimes an old mortgage has been paid but never discharged, and the lender cannot be found. 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.

What to do next

• Run an OnLand search and keep a copy.
• List every registration and match it to a document or a debt.
• Ask your municipality for any tax cancellation figure.
• Contact a lawyer early, before you accept an offer, so there is time to clear title.
• Tell your lawyer about any renovations, judgments, CRA debts or old mortgages.

Clearing title can take time and each item has its own steps. A lawyer can review your search, explain what each entry means for your sale and arrange for it to be cleared before closing.

Frequently asked questions