LESSON 2
Estates and Interests in Land and Title Registration
Note: Selected readings can be found under "Online Readings" on your Course Resources webpage
Assigned Reading
1.
UBC Real Estate Division. 2012. Real Estate Trading Services Licensing Course Manual. Vancouver:
UBC Real Estate Division.
Chapter 3: What the Purchaser Buys: Estates and Interests in Land
Chapter 4: Title Registration in British Columbia
Recommended Reading
1.
Case Law:
Aquarius Estates v. Manolakos & Skagos B tenancy in common
Openshaw v. Bhalla et al. B easements
Rogers v. Landmark B easements
Dunromin v. Spallumcheen B exceptions to indefeasibility
Richmond Savings Credit Union v. Nijjer et al. B deficiencies in registration
2.
Websites of Interest.
General Objectives
Real estate licensees must be keenly aware of the exact nature of what they are selling. Chapter 3 introduces
students to the concept of land "ownership" in the form of the fee simple estate and other interests which flow
from it. Students should also be comfortable with the concepts of lesser estates such as the life estate and the
leasehold, with co-ownership of estates, and with burdens on estates such as easements, covenants, and
licenses.
The real estate professional should understand the basics of the land registration system in British Columbia.
The student should also appreciate the importance of searching title in real estate transactions, and understand
how to perform these searches.
Learning Objectives
Upon completion of this lesson a student should be able to:
1.
2.
3.
4.
5.
6.
7.
describe the origins of our real property law and what is included in "land";
understand the scope of and extent of "ownership" of land;
explain the concept of an "estate" in land and be able to describe common types of estates;
explain what it means to say an interest "runs with the land";
describe interests in land which do not amount to estates;
understand and be able to apply the tests which determine whether an item is a fixture or a chattel;
describe the two methods of co-ownership of land and the distinctions between them.
2.1
Lesson 2
8.
1.
10.
11.
12.
13.
describe how the common law dealing with title and transfer of title has been changed by the Torrens
system of land registration;
explain the underlying purpose of the Torrens system and how it is achieved;
list and explain the four components of our Torrens system, namely, the principle of indefeasibility, the
registration principle, the abolition of the doctrine of notice and the assurance fund;
list the differences between our Torrens system and a pure Torrens system;
describe the registration process in British Columbia; and
list those situations where a manufactured home must be registered.
Instructor's Comments
Real estate professionals must be aware of the nature of interests in land so that they know what they are selling
or evaluating. Does "ownership" of land include the air above that land, or the minerals below it? Does the value
of a house include the bronze statue on the front lawn, or the bookcases in the family room? These are questions
that are crucial to a proper valuation, and to an effective contract of purchase and sale.
A proper understanding of the nature of estates and interests in land is crucial for real estate licensees. Chapter
3 essentially answers the question: What is "real property", and what do the common words "land" and
"ownership" mean, in the context of property law?
Chapter 4 introduces the student to the legal system which the province of British Columbia employs to give
effect to real estate transactions. In times when few people could read or write, conveyancing was problematic.
One can imagine, for example, that the holder of a lease or a life estate could pretend to be an owner and attempt
to transfer the fee simple to an unsuspecting purchaser. Alternatively, a vendor's land could be subject to rights
of third parties, easements or restrictive covenants which the vendor might not disclose. At common law the
purchaser would nonetheless be taken to have purchased the land subject to these third-party rights.
At common law, a fee simple owner's title to land or "ownership" of land was proven by producing all the
relevant deeds and other documents affecting a particular piece of real property dating from the original grant
from the Crown. Each new purchaser had to ensure that the chain of title was valid and not likely to be struck
down because of some invalidity in a previous transaction. This system had a number of disadvantages. It made
land transfers very expensive and subject to considerable delays. In some cases, it was necessary to resort to the
courts to settle doubts as to title. There was no system of recording or registering these documents which meant
that mistake or fraud could arise. Few people could afford to safeguard their land title documents. There was the
risk that deeds and other important documents could be lost or destroyed. Finally, the results of a title inquiry
were never completely conclusive of title. There was always the possibility that someone would subsequently
prove that an earlier transaction was tainted by mistake, fraud, etc., thus breaking the chain of title. There was
clearly a need for a more efficient and reliable method of ascertaining title.
British Columbia has attempted to solve this problem by adopting a system under which the actual title to land
is registered, rather than just the documents affecting title. This so-called "Torrens system" is named after an
Australian customs officer who believed that the same system of registration that had been successfully applied
to the ownership of ships could be applied to the ownership of interests in land. The central feature of the
Torrens system is the register of titles which contains the names of the holders of individual parcels of land
within the jurisdiction, the nature of their interests and a full legal description of the property.
As with most property law topics, understanding the historical context of our rules assists us in understanding
our current systems. Keep this in mind while you read Chapter 4, paying particular attention to the discussion
of the common law doctrine of the void deed when you read about the BC Torrens system and the attempt to
solve the problems inherent in the common law system.
2.2
Estates and Interests in Land and Title Registration
Below we will outline the practical aspects of title registration in British Columbia: how do you search a
property's title and how do you interpret the information you find? This information will be important when
completing the course projects.
Land Title Office Search Procedure (British Columbia)
In British Columbia, there are seven land title districts: Victoria, Prince George, Nelson, Kamloops, Prince
Rupert, New Westminster and Vancouver. Administratively, the districts are distributed amongst three Land
Title Offices located in New Westminster (serving Vancouver, New Westminster, Prince George and Prince
Rupert districts), Kamloops (serving Kamloops and Nelson districts), and Victoria (serving Victoria district
only), with each land title office being administered by a Registrar. The Registrars operate under the direction
of the Director of Land Titles.
In 1983, the administrators of the land title system began to convert the system from a manual to a computerized
system. Titles were placed on computer when an application was made to subdivide or transfer property, or as
time permitted staff to update records. The process is now essentially complete, but there are some documents
that are not computerized. For example, charges and titles transferred or cancelled prior to the 1980s may not
be on the computer. This is why both the manual and computer systems are reviewed in this lesson.
Computer Searches B BC OnLine
Prior to the establishment of title search companies, notaries and lawyers did land title searches for their clients.
Where the title to be searched was in another locale, they would use a lawyer or notary in that area to do the
search as their agent. Since the 1960s, title search companies evolved to the point where specialized agents did
almost all of this type of work, regardless of how close the conveyancer was to the Land Title Office. These
companies employed specially trained staff to conduct title searches, obtain copies of charges and plans, register
documents, and discuss their clients' (notaries and lawyers) concerns or questions with registry staff.
This situation changed considerably in 1989 with the introduction of a service called "BC OnLine". Notaries
and lawyers now have access to Land Title Office databases from their offices through the internet, provided
they subscribe to the system. The website for BC OnLine is www.bconline.gov.bc.ca.
Through the BC OnLine service, it is possible to view and print any computer certificate of title in the British
Columbia land title system. The online system is a vast improvement over the manual record system, as it allows
searchers to obtain all of the relevant information in a simple, easy-to-read format. Less space and paper is used
to store and record data and the process of title searching is much simpler.
When a title is computerized, it is given a parcel identifier number or "PID". The PID is an integral part of the
legal description and must be included in the land title documents. It is not possible to search a title using the
civic address. Therefore it is necessary to obtain a legal description corresponding to the civic address. This
legal description includes the 9-digit PID number.
The legal description can be obtained from title search companies (such as "Instant Legal") who have records
of corresponding civic addresses and legal descriptions, or from the municipality in which the land is located.
Some municipalities will provide this information over the phone while some require attendance in person.
Many municipalities have a policy of not providing the legal description to law firms. It is also possible to do
a "BC Assessment Search" on BC OnLine using the civic address to obtain the legal description.
With a PID, the searcher can do a title search of the property on the computer using BC OnLine. The computer
title search contains all the information that is on the certificate of title obtained through a manual search, as well
as the location of the duplicate certificates of title, pending applications, amendments, and corrections.
2.3
Lesson 2
A typical search form contains the following information:
1.
Time: This is the date and time the certificate of title was printed. The name of the company doing the
search is also indicated.
2.
Current certificate of title number: A number is assigned when the transfer is filed. When the new
certificate of title is issued, this is the number it is given.
3.
Previous certificate of title number: This is the number of the previous certificate of title. By working
backwards, one can search the property historically. For example, by searching the previous
certificate of title, one can determine the identity of the previous owner(s).
4.
Application and registration dates: This records the date the transfer was filed, and the date the
certificate of title was issued.
5.
Registered owner: These are the owners of the property. This address is not necessarily the civic
address of the property. Any notices concerning the property will be sent to the address indicated on
the certificate of title.
6.
Taxation Authority: This lists the district or municipality to which the owner is required to pay
property taxes.
7.
Legal description: This is the legal description which is always used when preparing documents
affecting these lots. The PID is part of the legal description.
8.
Pending applications: This indicates that an application has been filed, but has not been approved or
processed yet. Any type of application received by the Land Titles Office will be noted.
9.
Legal notations: This area is for notations of statutes that may affect the property. For example, a
property may have Heritage Status under the Local Government Act s.976.
10. Charges: Current charges, liens, and interests are shown. It is also possible to print the certificate of
title showing cancelled charges.
11. Duplicate titles: The location of the duplicate certificate of title is noted here if it has been issued.
12. Transfers, corrections, amendments: Any transfers of property, corrections, or amendments to the
certificate of title are outlined here.
13. Miscellaneous notes: More information is available on the computer than was available under the
previous manual system. However, one must do more than look at the certificate of title. In all cases,
one must call up the miscellaneous notes. Charges most often appearing here are plans related to
easements and rights of way. If an agent is doing the search, the miscellaneous notes should be noted
on the search and/or the agent's invoice.
14. Common property index: If one is searching a strata lot, it is necessary also to search the common
property index. Although there is no title to the common property, it has its own PID and charges may
be registered against it. Therefore, it is important to check the miscellaneous notes, charges and
pending charges registered against the common property PID. Please note that changes of bylaws and
other detailed information about the common property can only be reviewed by obtaining a copy of the
strata plan.
2.4
Estates and Interests in Land and Title Registration
Manual Searches
A manual search will be required to obtain copies of certificates of title that are not on the computer. In the
Vancouver/New Westminster office it is no longer possible for an individual to go to the Land Titles Office and
do a historical search. When doing a land title search in another land title district, it would be best to contact the
Land Title Office and find out what is the policy and procedure for doing a historical search.
In Vancouver/New Westminster, historical searches may be done by land title agents or by the staff at the Land
Titles Office. A land title agent will charge a flat fee for doing a historical search. The alternative is to write a
letter to the Land Titles Office requesting a historical search. The letter should describe what documents are
needed and should contain a legal description of the property. A blank cheque should be enclosed, and the letter
should state a certain amount that the search should not exceed. The British Columbia Land Titles Office
charges a fee for each title starting at the current title and going back in time. It is possible to include a contact
number in the letter, and to request that the Land Titles Office phone the contact number if it is not possible to
conduct the search within the allotted amount.
Certificates of title obtained through a manual search contain most of the information provided by the computer
title search. The following items are recorded on the certificate of title:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Current certificate of title: This is the assigned number of the certificate of title.
Previous certificate of title: This is the number of the previous certificate of title.
Date of application: This is the date the transfer documents were filed.
Registered owners: These are the owners of the property.
Legal description: This is the legal description which is always used when preparing documents
affecting these lots.
Charges: This is the section for charges, liens, and interests.
Date of issue: This refers to the date of issuance of the certificate of title, which occurs on or after the
date of transfer.
Duplicate certificate of title: Titles issued since 1979 show the location of the duplicate certificate of
title on their face.
Transfers: Transfers may be noted on the front or back of the title, depending on when the certificate
of title was issued.
Appendix A to this lesson provides a copy of pertinent Land Titles Office documents related to the
transfer and ownership of an income-producing property in British Columbia. These documents have
been annotated to indicate where to find the most pertinent information required by the appraiser in
order to validate transaction information, and to identify parties to the transaction who could be
contacted by the appraiser for interviews and verification of pertinent factors that influenced the
transaction.
2.5
Lesson 2
APPENDIX A: Sample Documents from the Land Titles Office in British Columbia
The following five pages show an example of a search of title and transfer document for a commercial property
in British Columbia. These documents were obtained using BC OnLine, but the same documents could also have
been obtained by visiting a Land Title Office in person.
The property illustrated is a 3.5 acre site improved with a multi-tenant industrial building of 55,300 square feet.
The property is located in an industrial park in Delta, BC.
The first document is the "Title Search Print", which is four pages. From this document, you can find the
following information (annotated on the forms):
1.
2.
3.
4.
5.
6.
7.
Certificate of title number: BL420824.
Previous title number: AC11223 (helpful to track down past owners or transactions, should this be
necessary).
Current registered owner(s): Penreal Property Fund II Ltd.
Taxation Authority: Municipality of Delta.
Legal Description of subject property: PID 011-321-750, Lot 241 District Lot 351 Group 1 New
Westminster District Plan 780426.
Municipality in which the property is located: Delta
Encumbrances registered against the subject title: There are several mortgages, restrictive covenants, and
statutory rights of way registered on title, as well as assignment of rents to the mortgagee.
The second document is the one page "Freehold Transfer" form. From this document, you can find the
following information:
8. Date of registration of the most recent transfer document: Stamped December 15, 1997.
9. Transfer document number recording the most recent sale: BL420824 (same as title number).
10. Purchaser's lawyer: Christine MacLean, Lawson Lundell & McIntosh (signed by Karen Harris, who is
likely the junior lawyer in this firm who actually did the conveyancing – a potential contact).
11. Declared value when acquired by current owner: $3,390,000.
12. Vendor as shown on transfer document: Western Opportunities Ltd (Incorporation No. 0338420); signed
by Leslie M. Little and Richard H. Vogel (potential contact at Western Opportunities Ltd.).
13. Vendor's lawyer: Geoffrey Bird.
14. Date of transfer to current owner: December 15, 1997 (formally, the date of registration is when the
document is stamped, not the date the document is executed; same as item 8 above – the date of transfer
to the current owner is the date that the document is stamped).
2.6
Estates and Interests in Land and Title Registration
BC OnLine Sample Forms, Page 1 of 5
Date: 01/07/31
TITLE SEARCH PRINT - NEW WESTMINSTER
Requestor: (PG52245) NILSEN REALTY RESEARCH LTD.
TITLE - BL420824 1
Time: 08:02:40
Page: 001
NEW WESTMINSTER LAND TITLE OFFICE
TITLE NO: BL420824
FROM TITLE NO: AC11223 2
APPLICATION FOR REGISTRATION RECEIVED ON: 15 DECEMBER, 1997
ENTERED: 19 DECEMBER, 1997
REGISTERED OWNER IN FEE SIMPLE:
PENREAL PROPERTY FUND II LTD., INC.NO. A45761 3
700-1090 WEST GEORGIA STREET
VANCOUVER, BC
V6E 3V7
TAXATION AUTHORITY:
MUNICIPALITY OF DELTA 4
DESCRIPTION OF LAND: 5 & 6
PARCEL IDENTIFIER: 011-321-750
LOT 241 DISTRICT LOT 351 GROUP 1 NEW WESTMINSTER DISTRICT PLAN 78042
LEGAL NOTATIONS:
NOTICE OF INTEREST, BUILDERS LIEN ACT (S.3(2)), SEE BM84007
FILED 1998-03-20
ZONING REGULATION AND PLAN UNDER
THE AERONAUTICS ACT (CANADA)
FILED 10.2.1981 UNDER NO. T17084
PLAN NO. 61216
RE PARA. (E) & (F) SEC. 23(1), LAND TITLE ACT DF Y1740 7.1.1985
RE PARA. (E) AND (F) SEC. 23(1) LAND TITLE ACT T28491 06.03.1981
AS TO PART (FORMERLY FIRSTLY: LOT J PLAN 16726 SECONDLY: LOT E
PLAN 907 THIRDLY: LOTS A, B AND C PLAN 883 FOURTHLY: DISTRICT
LOT 257 GROUP 1 (PATRICK ISLAND)
CHARGES, LIENS AND INTERESTS: 7
NATURE OF CHARGE
CHARGE NUMBER DATE TIME
STATUTORY RIGHT OF WAY
286409C
1960-06-24 12:29
REGISTERED OWNER OF CHARGE:
BRITISH COLUMBIA TELEPHONE COMPANY
286409C
REMARKS: PARTS (FORMERLY FIRSTLY: DISTRICT LOT 257
GROUP 1 (PATRICK ISLAND) SECONDLY: BLOCK "E"
PLAN 907 EXCEPT: PART ON PLAN 2431A
THIRDLY: LOT "B" PLAN 883 EXCEPT: PART ON
REFERENCE PLAN 13098, FOURTHLY: LOTS "A"
& "C" PLAN 883 EXCEPT: PARTS ON REFERENCE
PLAN 1934A AND REFERENCE PLAN 1935A AND
PLAN 2431A, FIFTHLY: THAT PORTION OF DISTRICT
REMARKS: LOT 351 GROUP 1 LYING TO THE WEST OF THE
CONTINUES ON PAGE 002
2.7
Lesson 2
BC OnLine Sample Forms, Page 2 of 5
Date: 01/07/31
TITLE SEARCH PRINT - NEW WESTMINSTER
Requestor: (PG52245) NILSEN REALTY RESEARCH LTD.
TITLE - BL420824
Time: 08:02:41
Page: 002
WESTERLY BOUNDARY OF LOT "B" PLAN 883
SIXTHLY: LOT "J" PLAN 16726
INTER ALIA
STATUTORY RIGHT OF WAY
295811C
1961-01-03 16:19
REGISTERED OWNER OF CHARGE:
BRITISH COLUMBIA HYDRO AND POWER AUTHORITY
295811C
REMARKS: PARTS FORMERLY FIRSTLY, THAT PORTION OF DISTRICT
LOT 351 GROUP 1 LYING WEST OF THE WESTERLY
BOUNDARY OF LOT B PLAN 883 SECONDLY, LOTS A AND C
PLAN 883 EXCEPT PARTS ON REFERENCE PLAN 1934A AND
REFERENCE PLAN 1935A AND PLAN 2431A THIRDLY, BLOCK
E PLAN 907 EXCEPT PART ON PLAN 2431A FOURTHLY, LOT
B PLAN 883 EXCEPT REFERENCE PLAN 13098
ASSIGNMENT OF SRW 188034C REC'D. 11.08.55 @ 14:12
REMARKS: AND: PART FORMERLY LOT J PLAN 16726 EXCEPT
REFERENCE PLAN 15585 ASSIGNMENT OF SRW 188035C
(SEE 188034C) REC'D. 11.08.55 @ 14:13
AND: PARTS FORMERLY FIRSTLY, THAT PORTION OF
DISTRICT LOT 351 GROUP 1 LYING WEST OF THE
WESTERLY BOUNDARY OF LOT B PLAN 883 SECONDLY,
LOTS A AND C PLAN 883 EXCEPT PARTS ON REFERENCE
PLAN 1934A AND REFERENCE PLAN 1935A AND PLAN
REMARKS: 2431A THIRDLY, BLOCK E PLAN 907 EXCEPT PART ON
PLAN 2431A FOURTHLY, LOT B PLAN 883 EXCEPT PART ON
REFERENCE PLAN 13098 FIFTHLY, DISTRICT LOT 257
GROUP 1 (PATRICK ISLAND) SIXTHLY, LOT J PLAN 16726
EXCEPT PART ON REFERENCE PLAN 15585.
ASSIGNMENT OF SRW 221000C REC'D. 6.08.57 @ 15:26
AND: PLAN 8557 OVER PARTS FORMERLY FIRSTLY,
LOTS A AND C PLAN 883 EXCEPT PARTS ON REFERENCE
REMARKS: PLAN 1934A AND REFERENCE PLAN 1935A AND PLAN 2431A
SECONDLY DISTRICT LOT 257 GROUP 1 (PATRICK ISLAND)
ASSIGNMENT OF SRW 101349C REC'D. 12.06.46@ 10:10
INTER ALIA
SRW 188034C ASSIGNED TO AB200625
MORTGAGE
G99272
1971-11-15 12:16
REGISTERED OWNER OF CHARGE:
MONTREAL TRUST COMPANY
"IN TRUST" SEE 99804C
AND G99272
G99272
REMARKS: OF 286409C
SUPPLEMENTAL TO 99804C.
INTER ALIA
MORTGAGE
M14714
1976-02-25 11:26
REGISTERED OWNER OF CHARGE:
MONTREAL TRUST COMPANY
CONTINUES ON PAGE 003
2.8
Estates and Interests in Land and Title Registration
BC OnLine Sample Forms, Page 3 of 5
Date: 01/07/31
TITLE SEARCH PRINT - NEW WESTMINSTER
Requestor: (PG52245) NILSEN REALTY RESEARCH LTD.
TITLE - BL420824
Time: 08:02:41
Page: 003
"IN TRUST" SEE 99804C
AND M14714
M14714
REMARKS: OF 286409C
SUPPLEMENTAL TO 99804C
INTER ALIA
COVENANT
AA113652 1987-06-18 14:23
REGISTERED OWNER OF CHARGE:
THE CORPORATION OF DELTA AND
HER MAJESTY THE QUEEN IN RIGHT OF
THE PROVINCE OF BRITISH COLUMBIA
AA113652
REMARKS: INCLUDES INDEMNITY UNDER
SECTION 215 L.T.A.
INTER ALIA
STATUTORY RIGHT OF WAY
AA189308 1987-09-30 14:57
REGISTERED OWNER OF CHARGE:
THE CORPORATION OF DELTA
AA189308
REMARKS: PLAN 75254
INTER ALIA
COVENANT
AA214928 1987-11-09 11:03
REGISTERED OWNER OF CHARGE:
THE CORPORATION OF DELTA
AA214928
REMARKS: SECTION 215 L.T.A.
INTER ALIA
STATUTORY BUILDING SCHEME
AB96886
1988-05-31 13:55
REMARKS: SECTION 216 L.T.A.
INTER ALIA
STATUTORY RIGHT OF WAY
AB159188 1988-08-11 11:35
REGISTERED OWNER OF CHARGE:
THE CORPORATION OF DELTA
AB159188
REMARKS: PLAN 78839
INTER ALIA
STATUTORY RIGHT OF WAY
AB200625 1988-09-30 09:19
REGISTERED OWNER OF CHARGE:
SOUTHERN RAILWAY OF BRITISH COLUMBIA LIMITED
AB200625
REMARKS: ASSIGNMENT OF 188034C RECEIVED 11.08.1955 @ 14:12
INTER ALIA
CONTINUES ON PAGE 004
2.9
Lesson 2
BC OnLine Sample Forms, Page 4 of 5
Date: 01/07/31
TITLE SEARCH PRINT - NEW WESTMINSTER
Requestor: (PG52245) NILSEN REALTY RESEARCH LTD.
TITLE - BL420824
Time: 08:02:42
Page: 004
PARTS FORMERLY FIRSTLY, THAT PORTION OF DISTRICT
LOT 351 GROUP 1 LYING WEST OF THE WESTERLY
BOUNDARY OF LOT B PLAN 883 SECONDLY, LOTS A AND C
PLAN 883 EXCEPT PARTS ON REFERENCE PLAN 1934A AND
REFERENCE PLAN 1935A AND PLAN 2431A THIRDLY, BLOCK
E PLAN 907 EXCEPT PART ON PLAN 2431A FOURTHLY, LOT
REMARKS: B PLAN 883 EXCEPT REFERENCE PLAN 13098
SEE 295811C
STATUTORY RIGHT OF WAY
AC4372
1989-01-09 09:32
REGISTERED OWNER OF CHARGE:
B.C. GAS INC.
(INCORPORATION NO. 74280)
AC4372
REMARKS: ASSIGNMENT OF 220999C REC'D 06/08/1957 @ 15:26
PARTS (FORMERLY FIRSTLY: DISTRICT LOT 257 GROUP 1
(PATRICK ISLAND) SECONDLY: BLOCK "E" PLAN 907
EXCEPT: PART ON PLAN 2431A THIRDLY: LOT "B"
PLAN 883 EXCEPT: PART ON REFERENCE PLAN 13098
FOURTHLY: LOTS "A" & "C" PLAN 883 EXCEPT: PARTS ON
REFERENCE PLAN 1934A AND REFERENCE PLAN 1935A AND
PLAN 2431A FIFTHLY: THAT PORTION OF DISTRICT LOT
REMARKS: 351 GROUP 1 LYING WEST OF THE WESTERLY BOUNDARY
OF LOT "B" PLAN 883 SIXTHLY: LOT "J" PLAN 16726)
INTER ALIA
MORTGAGE
BK409462 1996-12-18 12:52
REGISTERED OWNER OF CHARGE:
BANK OF MONTREAL
BK409462
REMARKS: INTER ALIA
MORTGAGE OF SRW AB200625
EXTENDED BY BN99594
EXTENDED BY BR49802
ASSIGNMENT OF RENTS
BK409463 1996-12-18 12:52
REGISTERED OWNER OF CHARGE:
BANK OF MONTREAL
BK409463
REMARKS: INTER ALIA
SEE BK409462
EXTENDED BY BN99595
EXTENDED BY BR49803
"CAUTION - CHARGES MAY NOT APPEAR IN ORDER OF PRIORITY. SEE SECTION 28, L.T.A."
DUPLICATE INDEFEASIBLE TITLE: NONE OUTSTANDING
TRANSFERS: NONE
PENDING APPLICATIONS: NONE
*** CURRENT INFORMATION ONLY - NO CANCELLED INFORMATION SHOWN ***
2.10
Estates and Interests in Land and Title Registration
BC OnLine Sample Forms, Page 5 of 5
2.11
Lesson 2
Review and Discussion Questions (Not for marks)
1.
The doctrine of privity of contract:
(1)
(2)
(3)
(4)
2.
Ownership in the land includes not only the surface of the land, but also:
(1)
(2)
(3)
(4)
3.
creates the right of a third party to sue on a contract.
only applies to contracts creating an interest in land.
does not apply to bare licences.
does not apply to contracts where an interest in land is created.
the column of airspace above it insofar as the owner can make effective use of it.
the branches of any of the neighbour's trees that hang over the owner's property.
anything that comes over the boundary line.
all of the above aspects.
Robert is dying of a terminal illness. He therefore arranges for his wife Elaine to have a life estate with
respect to his ancestral home with the fee simple to go to his daughter, Whitney, once Elaine dies.
Whitney's interest is:
(1)
(2)
(3)
(4)
4.
In British Columbia there are three basic requirements for an easement. Which of the following is one
of the requirements?
(1)
(2)
(3)
(4)
5.
The easement must be negative in effect.
The easement must have identifiable or defined boundaries.
There must be a servient tenement adjoining a dominant tenement.
The grantor must be in actual occupation of the servient tenement at the time he or she grants
the easement.
Which one of the following is NOT an essential requirement in order to constitute a restrictive covenant
in law?
(1)
(2)
(3)
(4)
2.12
that of a reversioner.
that of a remainderman.
known as rectification.
none of the above.
It must be positive in nature.
It must be negative in nature.
The covenantee must retain property which will itself be protected.
The burden of the restriction must have been intended by the parties to bind the land.
Estates and Interests in Land and Title Registration
6.
A "building scheme" is:
(1)
(2)
(3)
(4)
7.
Which of the following statements about fixtures and chattels is FALSE?
(1)
(2)
(3)
(4)
8.
When a chattel becomes attached, even slightly, to real property, it will "prima facie" be
considered a fixture unless circumstances show that the property was intended to remain a
chattel.
A vendor of real property has the right to detach and remove any fixture after entering the
contract of purchase and sale, if he or she so desires.
When an owner of a house attaches a mirror to the wall, to better use the mirror, he or she
willusually be entitled to remove the mirror when the house is sold and the vendor moves out.
Both (2) and (3) are false.
Which of the following is NOT one of the three main classifications of interests in land that are less than
estates?
(1)
(2)
(3)
(4)
9.
a special example of a group of easements attaching to two or more lots in a development.
used by developers to protect the purchasers' rights to build according to their own tastes.
a set of restrictions on a development used to maintain uniformity.
a document filed with the disclosure statement on a conversion of an existing building to a
condominium.
easements
profits à prendre
restrictive covenants
life tenancies
Burt and Ernie owned, as joint tenants, a revenue-producing property which was leased to Oscar. Ernie
died leaving a will which gave his interest in the property to Grover. Grover is now demanding one-half
of the rent paid by Oscar. Burt refuses this request. One or more of the following statements may be
true.
A.
B.
C.
D.
E.
The property was held in joint tenancy and therefore, Burt, the survivor, owns the
entire property after Ernie's death.
Ernie severed the joint tenancy by bequeathing his interest in the property to Grover;
therefore, Grover is entitled to a one-half interest in the property.
Burt and Grover now own the revenue producing property as tenants in common.
Burt and Grover now own the revenue producing property as joint tenants.
Grover cannot have any interest in the property because the property could not be
disposed of by way of Ernie's will.
Which of the following statements is/are TRUE?
(1)
(2)
(3)
(4)
Only B and D are true.
Only B and C are true.
Only A and E are true.
Only A is true.
2.13
Lesson 2
10.
Ownership of land by two or more persons, where the interest of a deceased owner forms an asset of
the deceased's estate, is known as:
(1)
(2)
(3)
(4)
11.
right of survivorship.
tenancy in common.
joint tenancy.
syndication.
Which of the following statements concerning the common law doctrine of the void deed is FALSE?
A.
B.
C.
D.
(1)
(2)
(3)
(4)
12.
(2)
(3)
(4)
Barney rents a factory from Fred. The lease, which is unregistered, still has four years left
before it expires.
Jack leases a three-bedroom condominium from Rochester for one year.
Hugo rents his office space from Victor. Although the lease was for 3 years, there is only six
months left before it expires.
In both (1) and (3), the tenant would not receive the protection of the Land Title Act.
Earl is the registered owner of Blackacre. Duke forges and registers a transfer of Blackacre to himself.
Duke then borrows $50,000 from Royalty Trust Co. The loan is secured against Blackacre by way of
a mortgage. Which one of the following statements is TRUE?
(1)
(2)
(3)
(4)
2.14
A, B, C, and D
Only B and C
Only B, C, and D
None of the above are false.
In which of the following situations would the tenant's leasehold interest NOT be protected under the
Land Title Act?
(1)
13.
A rightful owner of land whose title deed was "transferred" by a void deed could
recover title if he or she began a court action within the 20-year limitation period and
proved to a court that he or she was, in fact, the rightful owner.
A current fee simple "owner" under a void deed had no remedy other than to seek
compensation from the government and the forger from whom he or she bought the
land, if the rightful owner went to court and recovered the property.
A deed given in exchange for illegal consideration is not a void deed.
There was no certainty of title for a purchaser of land until the 20 year limitation
period for lawsuits to recover a land title transferred by a void deed had expired.
Royalty is secure in relying on Duke=s title.
Earl can recover Blackacre but the title to the property will remain encumbered by the Royalty
Trust Co. mortgage.
Because of the forgery, Earl can recover Blackacre free of the Royalty Trust Co. mortgage.
Royalty Trust Co. may obtain its $50,000 back from the Assurance Fund.
Estates and Interests in Land and Title Registration
14.
In order for a person to make a successful claim against the Assurance Fund in BC, he or she must
prove three of the following. Indicate the EXCEPTION.
(1)
(2)
(3)
(4)
15.
Which of the following statements regarding the effect of registration of a mortgage in a BC land title
office is TRUE?
(1)
(2)
(3)
(4)
16.
registering a caveat against the title.
registering a certificate of pending litigation against the title.
a notation of trust on the title.
none of the above procedures.
A caveat is:
(1)
(2)
(3)
(4)
18.
The registration of a mortgage in the land title office is conclusive evidence that the mortgagee
is entitled to an interest in the land described in the mortgage document.
A mortgage which is not registered in the land title office is unenforceable against the parties
to the mortgage.
Registration of a mortgage raises only a rebuttable presumption that the mortgage is valid; a
registered mortgage is not "guaranteed" under the BC land registration system.
None of the above statements is true.
In British Columbia under the Torrens System of land registration, if property is registered in favour
of a trustee, this is shown by:
(1)
(2)
(3)
(4)
17.
He or she has lost an interest or estate in land.
He or she cannot recover that interest or estate by court action.
The person who deprived the injured party of his or her interest or estate in land has resold the
interest to a bona fide purchaser for valuable consideration.
If the Land Title Act had not been passed, he or she would have recovered the interest in land
by a court action.
a warning issued out of the prosecutor's office.
formal notice that a court action has been commenced.
formal notice that a builder's lien has been filed against property.
a notice placed on the land title register at the request of a person who claims an interest in the
land.
Under the Land Title Act, in British Columbia a mortgage is registered on a fee simple title as:
(1)
(2)
(3)
(4)
a charge.
an agreement for sale.
a caveat.
a restrictive covenant.
2.15
Lesson 2
19.
A clerk in the land title office mistakenly registered a fee simple transfer on the wrong title, with the
result that Lot 5, owned by Michael, was transferred to Scott. Scott discovered this error and, instead
of correcting the error, he sold the property to another person who was unaware of the clerical error
and of Scott's dishonest conduct. Michael discovered the error after the purchaser had registered the
transfer from Scott. He wants his land restored to him and the register corrected. You correctly advise
Michael that:
(1)
(2)
(3)
(4)
20.
because this situation was caused by a clerical error, the Registrar will correct the register and
restore Michael's property to him.
the person who bought the property, bona fide and for value, from Scott is protected by the BC
land title system; as a result, Michael cannot have his property restored to him.
Michael contributed to his own loss by neglecting to register a lien on his title to indicate to
anyone searching title that he was the registered owner; as a result, he cannot recover damages
in a lawsuit against Scott.
None of the above statements is correct.
One or more of the following statements describing the British Columbia land registration system is
FALSE.
A.
B.
C.
D.
Documents which charge or transfer a fee simple title must be registered to be
effective and enforceable against subsequent purchasers or chargeholders of the same
fee simple.
A charge registered against a fee simple title may be removed from the title if it is a
forged document.
The assurance fund will compensate every financial loss incurred as a result of British
Columbia's land registration system except where the claimant has been negligent.
Unless the Land Title Act specifies the use of a particular form, any instrument
sufficient to pass or create an estate or interest in land is registrable.
Which of the following is correct?
(1)
(2)
(3)
(4)
2.16
Statements A, B, and D are false.
Statements C and D are false.
Only Statement C is false.
None of the above statements is false.
Estates and Interests in Land and Title Registration
ASSIGNMENT 2
CHAPTERS 3 & 4: Estates and Interests in Land and Title Registration
Marks: 1 mark per question.
1.
Mike, Dave, John, and Kevin are joint tenants of a very large condominium which they all occupy.
Kevin suddenly dies in an unfortunate accident. In his will, Kevin leaves his interest in the property to
his sisters, Sarah and Jennifer. Upon learning of Sarah's and Jennifer's intention to move into the
condominium, Dave sells his interest in the condo to Fred, without the knowledge or consent of
anyone else. When John and Mike learn of these events they decide not to let Fred, Sarah or Jennifer
onto the property, arguing that the entire tenancy now remains in their hands. John and Mike now
plan to sever their joint tenancy and to create a tenancy in common.
Which of the following statements is/are TRUE?
A.
B.
C.
D.
(1)
(2)
(3)
(4)
2.
Fred, Sarah and Jennifer have each acquired a legal interest in the condominium.
For the transfer to Fred to be valid, he required the consent of John and Mike.
John and Mike are tenants in common with each other in the condominium.
Because neither Fred, Sarah or Jennifer occupy the condominium they have not
acquired an interest in the condominium.
Only A is true.
Only B and C are true.
Only D is true.
None of the above statements are true.
Hiroj dies leaving a will which states: "I leave my property to my brother Hafiz for life without
impeachment for waste, with remainder to my son Rafi." Which of the following statements is
TRUE?
(1)
(2)
(3)
(4)
If Hafiz tears down the garage to make way for a basketball court, he will be liable to Rafi for
voluntary waste.
If Hafiz plants an apple orchard in the back yard, he will be liable to Rafi for permissive
waste.
Hafiz can destroy the buildings on the property so Rafi has nothing of value to inherit because
he is not liable for any category of waste.
If Hafiz decided to destroy the buildings in order to spite Rafi, Hafiz would be liable to Rafi
for equitable waste.
***Assignment 2 continues on next page***
2.17
Lesson 2
3.
When Andy gave up surfing, he decided to sell his beachfront bungalow to Bertrand. Shortly
afterwards, he was struck with remorse and wanted his bungalow back. Checking the state of title at
the land title office, Andy learned that Bertrand had not registered the transfer; he immediately mailed
the purchase monies to Bertrand and demanded that he return the premises to Andy. Which of the
following statements is/are TRUE?
A.
B.
C.
D.
(1)
(2)
(3)
(4)
4.
Only A and B are true.
Only C and D are true.
Only A and C are true.
Only D is true.
Heinrich is developing a 20 lot subdivision in the Fraser Valley in British Columbia. The area is
heavily wooded and Heinrich wants to ensure that it will stay that way. He has included a building
scheme in the development plan that is registered in the land title office. The building scheme limits
the circumstances in which the existing trees on any of the lots can be cut down. Which of the
following statements is TRUE?
(1)
(2)
(3)
(4)
5.
Under the Land Title Act, a conveyance must be registered in order to be
enforceable between the parties to the contract.
The contract of purchase and sale was nullified when Andy mailed the purchase
money back, thus revoking his intention to sell.
If Andy completed a second sale with an unsuspecting third party who registered the
transfer, Bertrand could lose his interest in the property.
Bertrand will be able to enforce the contract against Andy.
This type of provision will not be enforceable unless the original owner reserves the right to
waive it as against individual lots.
This type of provision must apply to at least half of the lots in the development unless certain
lots are specified as exempt at the time of registration of the plan.
For a provision like this one to be valid, all the original purchasers must purchase their lots
from the same vendor.
All of the above statements are true.
After she sold her property, Victoria vacated it, taking with her the following items:
A.
B.
C.
D.
The cues and billiard balls (the contract of purchase and sale provided that the sale
included "the billiard table")
The carpet from the front hall (it was not tacked down)
The 14' x 10' tool shed (it sat by its own weight on the ground)
The brass numbers on the address plate (they were very expensive and her new street
number was the same; she left the screws in the holes so the purchaser wouldn't need
to replace them)
What are the consequences of Victoria's acts?
(1)
(2)
(3)
(4)
She must replace every item she took.
She must replace everything but the carpet.
She is only required to replace the address numbers.
She is not required to replace anything.
***Assignment 2 continues on next page***
2.18
Estates and Interests in Land and Title Registration
6.
When William subdivided his property and sold three lake front lots, he retained a large lot back from
the water, with a panoramic view. To protect the value of the lot he retained, he sold each lot subject
to a restrictive covenant prohibiting any commercial use. These were properly registered. Over the
next ten years, the various owners of lots 1 and 2 had operated a campground and a motel on their
lots, with no objection from William. However, when the new owner of lot 3 opened a marina, which
meant too many boats around for William's liking, he brought an action for an injunction against the
owner of lot 3 to prevent the operation of the marina because it contravened the restrictive covenant.
Which of the following is TRUE?
(1)
(2)
(3)
(4)
7.
Paolo purchased a lake-front property in a tiny village in the interior of British Columbia. The
vendor, who owned several adjacent lots, included a restriction against any commercial use of the
property and the restriction was registered in the Land Title Office. Over the next 20 years the village
grew and grew and several major fishing resorts were built on the same part of the lake. Paolo wants
to open an Italian restaurant on his property to serve the large numbers of tourists and residents, but
the original vendor tells Paolo that he is prohibited from making any commercial use of the property.
Which of the following statements is TRUE?
(1)
(2)
(3)
(4)
8.
William would easily succeed in an injunction against the owners of all 3 lots for the various
commercial enterprises being operated.
William's failure to take action against the owners of lots 1 and 2 has probably released the
restrictive covenants against all three lots.
A restrictive covenant cannot limit a person's ability to make a livelihood.
None of the above.
As long as one of his neighbours insists that Paolo comply with the restriction, Paolo will be
unable to properly act contrary to its terms.
If Paolo were to transfer the property to his wife, it would be free from the restriction and
they could make use of the property for a restaurant.
In these circumstances, where the character of the neighbourhood has changed from rural to
developed, the restriction may be released as no longer consistent with its purpose.
All of the above statements are true.
Archie wished to buy Blackacre. In a conversation with Sid, he discovered that Sid had agreed to buy
Blackacre from its registered owner, Rob. Archie paid Sid the market price of the property, and
received from Sid a transfer of the title signed by Rob. (Sid explained that he and Archie could save
registration fees and property purchase tax by not transferring the title twice.) Archie registered the
transfer he received from Sid. It has now been discovered that Sid forged Rob's signature on the
transfer from Rob to Archie. Which of the following statements is TRUE?
(1)
(2)
(3)
(4)
Since Archie is now the registered owner, Rob's only remedy is against the assurance fund.
Because Archie did not deal with the registered owner, his title is no good, and he cannot
keep Blackacre.
Archie has a remedy against the assurance fund.
Because Archie purchased Blackacre bona fide for value without knowledge of Sid's fraud he
is now the rightful owner.
***Assignment 2 continues on next page***
2.19
Lesson 2
9.
Grandma has entered a contract with Wolf Renovations Inc. to have some improvements made on her
cottage before she sells it. Wolf Renovations Inc. hires the Three Little Pigs Electrical Co. to assist in
the renovations. Ten days after the job is completed, Three Little Pigs Electrical Co. files a builder's
lien on the property, claiming that Wolf Renovations Inc. has not paid them even a penny for their
labour. In response to this lien, when she pays Wolf Renovations Inc., Grandma holds back 5% of the
total contract price for the work done. When Little Red Riding Hood, a prospective purchaser, looks
at the cottage a week later, she expresses a concern over the lien registered on title. Grandma assures
Red that if she buys the house, she will not have to worry about the lien because money has been held
back.
Which of the following statements is TRUE?
(1)
(2)
(3)
(4)
10.
Francois owns a property that Gilles is interested in purchasing. The property is subject to a covenant
prohibiting the operation of any business on the property. This covenant was registered against the
title when it was sold to Francois 20 years ago by Jean, the owner of several properties in the area.
For the last 10 years, however, Francois has operated an antique store on the property. Jean is aware
of the store and has not complained. Now Jean says that he intends to enforce the covenant against
Gilles. Which of the following statements is TRUE?
(1)
(2)
(3)
(4)
11.
Three Little Pigs Electrical Co. could properly file a caveat, thus preventing the transfer of
the property to Red.
If Red buys the property and Wolf Renovations Inc. goes bankrupt, Red may be liable to
Three Little Pigs Electrical Co. for the money owed to them.
If Red decides to buy the property, she has an automatic right to withhold 10% of the
purchase monies since there is a builder's lien registered on title.
None of the above statements are true.
Because the covenant has been registered against the title and Jean has given notice that he
intends to enforce it, Gilles will be bound by the covenant if he buys the property.
Because Francois has openly used the property in a manner inconsistent with the covenant
and Jean has not objected, Gilles will probably be able to get the covenant released so as not
to be bound by the covenant.
Although the covenant was registered against the title, once the property is sold to a
subsequent purchaser, the covenant ceases to be binding.
If the covenant requires the owner of the land affected by the covenant to do some positive
act, the owner will be able to get the covenant released on the basis of hardship.
Sharon, the registered owner of Whiteacre, sold it to Anne. Anne did not register the transfer she
received from Sharon. Some months later Sharon discovered that she was still the registered owner,
so she "sold" the property again to Myron, who registered his transfer. Myron did not know about
Anne's purchase and paid market value for the property. Anne has now discovered what has
happened. Which of the following statements is TRUE?
(1)
(2)
(3)
(4)
Anne is the rightful owner of the property and she can have Myron removed from the title.
Although Anne cannot remove Myron from the title, she has a valid claim against the
assurance fund.
Myron's title is indefeasible because he purchased bona fide for value from the registered
owner.
Both (2) and (3) are true.
***Assignment 2 continues on next page***
2.20
Estates and Interests in Land and Title Registration
12.
Three years ago, Bernard leased a warehouse from Harold for a 5-year term. Although Bernard was
given a properly executed lease agreement, he failed to register it in the land title office. Which of the
following statements is FALSE?
(1)
(2)
(3)
(4)
13.
Which of the following statements about a caveat is TRUE?
(1)
(2)
(3)
(4)
14.
(2)
(3)
(4)
is not required by the Act for a conveyance of land to be enforceable between the parties to
the contract.
is required by the Act for a conveyance of land to be lawful.
renders a charge indefeasible.
does not permit any indication of a trust on a registered title to land.
A, B, C and D are joint tenants in a property. D sells his interest to X. Which of the following
statements is TRUE?
(1)
(2)
(3)
(4)
16.
A caveat may be used for 3 months to protect a claimed interest in land.
A caveat is not of itself a cause of action or an interest in land.
It is usual to register a certificate of pending litigation before a caveat.
The use of a caveat is a good way to tie up any further dealing in land regardless of the
validity of the claim.
Under the Land Title Act, registration:
(1)
15.
Bernard's interest is protected in any event because there are only two years left on the lease.
Therefore, it is a lease for less than 3 years and does not have to be registered.
Harold is prohibited under s.20(1) of the Land Title Act from denying Bernard's leasehold
interest on the grounds that the agreement was not registered.
Bernard's interest is still valid as against Harold.
Bernard can register his interest as long as Harold remains the fee simple owner.
D cannot legally dispose of his interest as it would affect the shares of the others.
A, B, and C are joint tenants while X has a tenancy in common.
The sale destroys the joint tenancy and A, B, C, and X now hold as tenants in common.
None of the above statements are true.
In which of the following situations would someone have a successful claim against the assurance fund?
(1)
(2)
(3)
(4)
Black owns Whiteacre. Mary forges a transfer to herself, registers it, and then obtains a bank
loan for $50,000 giving a mortgage of Whiteacre as security.
Bob owns Blackacre which is worth $1 million. Martin forges a transfer to himself and then
sells the property for $1.2 million to Jim who registers the property and is unaware of the
fraud.
Gerald, the owner of Greenacres, gives a life estate in his property to his companion Jasmine.
Subsequently, Jasmine sells her life estate to John. All necessary documents are registered in
the land title office. In a fit of rage Gerald kills Jasmine to get his property back.
In all of the above situations a successful claim against the assurance fund might be brought.
***Assignment 2 continues on next page***
2.21
Lesson 2
17.
Arthur is the registered owner of the castle of Camelot. His best friend, Lancelot, is madly in love with
Arthur's sister Guinevere but cannot afford the huge dowry needed to ask for her hand in marriage. To
raise the money, Lancelot forges a mortgage from Arthur into his name and registers it. He then sells
the mortgage to Galahad for value and Galahad registers it. Which of the following statements is
FALSE?
(1)
(2)
(3)
(4)
18.
Galahad did not deal with the registered owner of Camelot and he is not entitled to rely on the
principle of indefeasibility.
The principle of indefeasibility does not protect Lancelot because he obtained the mortgage by
fraud.
Arthur is entitled to his fee simple interest in Camelot free from Galahad's mortgage.
Galahad can claim against the assurance fund for money to satisfy his mortgage.
In which of the following examples could a joint tenancy exist between the parties?
A.
B.
C.
D.
(1)
(2)
(3)
(4)
19.
Laura transferred her summer cottage to her 3 children. The eldest received a 2
undivided interest and the two younger children each received a 3 undivided
interest.
Leopold and Nan purchased property as equal owners of an undivided interest.
Later, Leopold gave his share in the property to Wolfgang who then shared the
property equally with Nan.
Robert owned a house. When he married Lina, he transferred the property to himself
and Lina as equal owners of an undivided interest.
Jen and Dawn owned a house together as equal owners entitled to an undivided
interest. Dawn became increasingly jealous of Jen and secretly sold her interest to
her mother who got the transfer registered.
A joint tenancy could exist only in C.
A joint tenancy could exist only in B, C, and D.
A joint tenancy could exist in all of the above.
A joint tenancy could exist in none of the above.
Which of the following individuals holds an interest in land that is less than an estate?
(1)
(2)
(3)
(4)
Meredith has the right to live in Greyacre until the death of her mother.
Avram has a licence to sell popcorn from a street vendor's stall on the Stanley Park seawall.
Under his uncle's will, Ian inherited a remainder interest in a farm after the death of his aunt,
who was left a life interest in the farm.
Hiram has a registered easement over the property of his neighbour granting him access to a
fishing lake.
***Assignment 2 continues on next page***
2.22