Can You Sell a Saskatchewan House With a Lien or Judgment on Title?

Finding a judgment, a builders' lien or some other registered claim against your property can be alarming, especially if you have already listed the house or accepted an offer. The first question most sellers ask is whether they can still sell.

In general, a claim on title is something to be sorted out, not necessarily a dead end. This article explains where to look, how the different types of claims appear, how they are usually cleared as part of a sale, and what can happen if they cannot be cleared. Your own facts matter a great deal here, so a lawyer should confirm the details.

This article covers the law of Saskatchewan.

Start by reading what is actually on your title

Before you decide anything, find out exactly what is registered. ISC Quick Search finds currently active titles by parcel number, title number, owner name or land description, and lets you view a title image or request a certified print.

Quick Search has limits. It does not show previous owners or interests that were removed, and the advanced Search tool covers those. If you are trying to understand how an old claim came off, or whether it truly did, the advanced search is the one to ask about.

Liens, judgments and title locks are not the same thing

People often use "lien" for any claim against a property, but they show up in different ways. Knowing which kind you have helps you work out who you need to deal with.

This means a clean-looking title search does not by itself tell you whether a judgment exists. Check the Judgment Registry as well as the title.

How claims are usually dealt with when you sell

How a registered claim affects a sale depends on your situation, so it is worth confirming with a lawyer before you list or agree to a closing date. In practice that usually means the claim is paid, settled or otherwise removed from title as part of the closing, with the lawyers on each side handling the paperwork. The exact steps depend on the type of claim, who holds it, and what your sale contract says, so ask a lawyer how it should work in your case.

Some claims can also come off title through a formal process. Under the Land Titles Regulations, 2001, the Registrar can issue a notice that a registered interest will lapse 30 days after the notice is sent unless a court order extending the registration is registered. After that, the Registrar registers a discharge on application if no extending order is registered. Whether this route is open for your claim, and whether it is quick enough for your closing date, is something a lawyer needs to confirm.

Costs are part of the picture too. In a standard Law Society offer-to-purchase template, each party pays their own lawyer, and the purchaser pays the Land Titles Registry fees to register the property in the purchaser's name and to register the purchaser's mortgage. Costs of clearing a claim are a separate matter, so raise them with your lawyer early.

What if the claim can't be cleared?

If a claim cannot be paid out or removed before the closing date, the sale may be delayed, renegotiated or, depending on the contract, may not go ahead. What a buyer can do in that situation depends on the wording of your agreement, so do not assume either side can simply walk away. Get advice before you miss a deadline in the contract.

If the problem is a mortgage in default, selling can sometimes be an alternative to foreclosure. A lender on land in Saskatchewan can foreclose only by an action in the Court of King's Bench, and it must first notify the Provincial Mediation Board by serving the mortgagor and the Board with a notice of application for leave. The lender must wait 60 days after notifying the Board before starting the court foreclosure process.

The Board uses that notice period to talk with the borrower about options such as paying arrears, selling the property, or transferring it to the lender. A foreclosure is unlikely to be completed in under six months from when the lender sends the file to a lawyer. Farm land is different: it follows a separate process under Part II of The Saskatchewan Farm Security Act, where the Farm Land Security Board reviews farm foreclosures and mediation is involved before the creditor can go to court.

What to do next

• Get a current title print and check for every registered interest, including mortgages, liens and any title lock.
• Search the Judgment Registry separately, since judgments are tracked there.
• Gather the documents behind each claim: court papers, lien notices, mortgage statements and any payout letters.
• Find out who holds each claim and whether it is owed, disputed or already paid.
• Check your sale contract for closing and condition dates before you speak to the buyer.
• Speak to a Saskatchewan real estate lawyer early so the claim can be dealt with in time for closing.

If you think a claim is wrong, out of date or already paid, say so to your lawyer right away. The right fix depends on the kind of claim and the facts.

Frequently asked questions