chapter 2 land title office

Question 1

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. Under the Land Title Act, a conveyance must be registered in order to be enforceable between the parties to the contract.

b. If before Bertrand registers the transfer, Andy sells the property to Clara for valuable consideration (and she is unaware of the earlier sale to Bertrand), and she registers the transfer, she would take title subject to Bertrand’s superior right to the property.

c. If Andy completed a second sale with an unsuspecting third party who registered the transfer before Bertrand, Bertrand could lose his interest in the property.

d. Bertrand will be able to enforce the contract against Andy.

1. A and B only
2. C and D only
3. A and C only
4. D only

Answer 1

Correct Answer: 2

Under the Land Title Act, registration is not required for a conveyance of land to be enforceable between the parties to the contract; therefore, Bertrand will be able to enforce the contract against Andy. However, once the property is sold to a good faith purchaser for valuable consideration, an individual may lose their interest in the land if they have not registered.

Question 2

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. This type of provision will not be enforceable unless the original owner reserves the right to waive it as against individual lots.
2. 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.
3. For a provision like this one to be valid, all the original purchasers must purchase their lots from the same seller.
4. All of the above

Answer 2

Correct Answer: 3

A building scheme is a group of restrictive covenants attaching to two or more lots within a particular development plan.

To be valid, the restrictions in the building scheme must apply to all of the lots equally.

Furthermore, all the initial buyers of the development must receive their title from the same seller.

Question 3

Which of the following statements about the subdivision of land is TRUE?

(1) Land can only be subdivided in compliance with section 73 of the Land Title Act, and regulatory approval is required.

(2) The common law rules for subdividing land continue to govern. Fee simple owners can subdivide their land as they please, without any requirement to seek government or regulatory approval.

(3) While fee simple owners can subdivide their land without regulatory approval, persons with life estate interests may not do so.

(4) Land can no longer be subdivided.

Answer 3

Correct Answer: 1

The Land Title Act provisions on the subdivision of land, including section 73, replace the common law right to subdivide at will. Subdivision of land requires regulatory approval, which takes into account several considerations, including whether the subdivision is in the public interest.

Question 4

Alex owns real property in Vancouver, British Columbia. Wishing to improve his property, Alex hired Bill as a contractor to complete some renovations.
Bill, in turn, hired Catherine as a subcontractor to help with some of the renovations.
The renovations are done and Catherine is upset because Bill refuses to pay her for her work.
Catherine registers a lien against Alex’s property through the Land Title Office.

Which of the following is TRUE regarding the lien that Catherine registered?

1. The registration of the lien will impact Alex’s ability to sell the property, but will not impact Alex’s ability to mortgage the property.
2. To enforce the lien, Catherine must begin a lawsuit and separately file a certificate of pending litigation.
3. The lien will be valid for a period of six months.
4. The lien is not legally binding, as subcontractors do not have lien rights in British Columbia.

Answer 4

Correct Answer: 2

Option (2) is correct because it is a true statement. To enforce the lien, Catherine must begin a lawsuit and separately file a certificate of pending litigation against Alex’s property. Option (1) is incorrect because once registered, a builders lien will impact the owner’s ability to sell or mortgage the property. Option (3) is incorrect because a lien is valid for a period of one year. Option (4) is incorrect because it is a false statement. Subcontractors do have lien rights in British Columbia, and Catherine’s lien is legally binding.

Question 5

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. 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.
2. Harold is prohibited under section 20(1) of the Land Title Act from denying Bernard’s leasehold interest on the grounds that the agreement was not registered.
3. Bernard’s interest is still valid as against Harold.
4. Unregistered leases greater than 3 years in length are not protected from third party buyers.

Answer 5

Correct Answer: 4

Option (1) is false because the length of Bernard’s lease is measured at the beginning of the lease. A lease for five years remains a lease for five years although there may be less than five years left in the term. An unregistered lease greater than 3 years in length can only be enforced against the person making it (i.e. Harold) due to section 20 of the Land Title Act.

Option (2) and (3) are true because section 20 of the Land Title Act clearly says that any document dealing with or affecting real estate will be enforceable between the parties whether or not the document is registered.

Option (4) is true because an unregistered lease greater than 3 years in length does not form a charge on the title of the property and is therefore not protected from third party buyers claiming the property free of the unregistered lease.

Question 6

Question 14
Under the Land Title Act, registration:

1. is NOT required by the LTA for a conveyance of land to be enforceable between the parties to the transfer.
2. is NOT necessary for leases for terms of greater than five years, as they are effective against all parties even if they are unregistered.
3. renders a charge indefeasible.
4. does NOT permit any indication of a trust on a registered title to land.

Answer 6

Correct Answer: 1

Only fee simple interests are indefeasible under the Act, not charges. Trusts are noted on the certificate of title. Although registration is required if one wants protection against claims of third parties, it is not required to validate a conveyance. Registration of a lease is not necessary for leases of terms not exceeding three years as long as there is actual occupation.