Selling a House With a Lien on Title in Ontario

Finding out that something is registered against your home can be stressful, especially when you have a buyer and a closing date. A registration on title is a claim by someone else against the property. A buyer, and the buyer's lender, will usually expect those claims to be dealt with so that clean title passes on closing.

Not every registration works the same way. Some are paid off, some are removed by a court order, and some turn out to have no effect at all. This article walks through the most common ones in Ontario so you know what you are looking at and when to get a lawyer involved.

How title works and how to see what is on yours

Ownership changes and other dealings with land are registered electronically by authorized users, such as Teraview account holders. How a particular registration on your title gets dealt with depends on your situation, so it is worth confirming with a lawyer.

ServiceOntario cannot search title, give legal advice or explain property records, and it refers people to a lawyer, title searcher or surveyor. Anyone can search property records on OnLand for a fee. A search will show what is registered, but reading it correctly is where a lawyer helps.

Taxes: municipal arrears and CRA debts

Unpaid property taxes are a special lien on the land that ranks ahead of every other claim, lien or encumbrance except the Crown's. How tax arrears are handled on a particular sale depends on your situation, so it is worth confirming with a lawyer.

If 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) 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 the municipality for the figure.

For federal tax debts, the CRA may certify an unpaid 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.

Judgment creditors 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. How a writ against you would show up and be dealt with on a sale depends on your situation, so it is worth confirming with a lawyer.

Construction liens have tight time limits. 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 then expires unless it is perfected within the 90-day period in s. 36(2).

If a lien is blocking your sale, the court must make an order vacating it when money or security is paid into court, and the motion can be made without notice. This lets the sale proceed while the dispute with the contractor continues.

Old NOSIs and mortgages with a missing lender

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.

Sometimes a 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.

Quick comparison and what to do next

• Search title on OnLand, or ask a lawyer or title searcher to do it.
• List every registration and who registered it.
• Ask the municipality for current tax figures and any arrears.
• Check dates on any construction lien, since the 60-day and 90-day windows matter.
• Speak to a real estate lawyer early, before you commit to a closing date.

Frequently asked questions