Title

Registration CH 4

GOBC Real Estate/ Mortgage Class Notes

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 CH 4

COMMON LAW DOCTRINE SYSTEM
s DEED By English law- one
cannot give what one

Any document under seal VOID DEED doesn’t have


(conveyance of real estate) Deed that looks valid, but has no
legal effect.

Cannot transfer any title in the land

COMMON LAW DOCTRINE

It conflicts with the Torrens System
Forged Illegal Non Est factum

Land Title Act has abolished it in BC

Purchaser is responsible to discover Under Common Law :
all interests affecting property

The land was not secure for 20 yrs
It is NOT a basis of the BC Torrens

Under void deed the rightful owner could recover his title by
System
proving that he is the rightful owner

TORRENS SYSTEM OF LAND REGISTRATION

1. MUST be _____________________________ Purchaser (bona fide)

2. MUST have paid fair_________________________________ for the house

3. MUST have registered the ____________________ in the Land Title Office

Indefeasibility Principle
Effect of registration Abolition of notice Assurance principle

A purchaser only Intended to compensate

Purchaser in good faith,
Title to land does NOT
needs to be parties who:
named on a Title , will be pass until its

entitled to that fee simple concerned with those
registered. Delivery of 1.Lost interest in land
estate (interest). a deed only transfers a interests contained

right to apply for on the register. 2. as a result of Principle of
Indefeasibility does not
Indefeasibility(if Land Title
registration.
extend to charges, (Charge is Does NOT protect
Act had not been passed)

NOT indefeasible) purchaser
participated in fraud 3. cannot recover by
Only Title is guaranteed under court action
the Act, not charges
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 CH 4

Exceptions to the Principle of indefeasibility
CAVEAT

Reservations in Crown grants
Notice placed on the title to freeze it

Taxes (unpaid taxes)
Lapses in 2 months

Lease where tenant has lived for 3 yrs or less
Documents required to transfer legal title from

Fee simple obtained by fraud
a Seller to a Buyer:

A public right-of-way in favour of BC Hydro and
1) A Freehold transfer
Power Authority
2) Property transfer Tax
Municipal charges
Charges (other interests less then fee simple)
Highways, easements

- Mortgages
Expropriation, escheat - Easements/ restrictive covenants

Caveats, builder’s liens - Building scheme

- Caveat
Incorrect boundaries - Builders lien

- Duplicate certificate of Title

The Form of Documents - Pending litigation (court action on the
property, will hinder the sale)
Unless the Land Title Act specifies the use of a particular
form, an instrument sufficient to pass or create an estate

or interest in land is re g istra b le .
NO Prescribed Form when transferring and charging land Contaminated Sites Registry (CSR)

Information about potentially contaminated sites can
be obtained through the British Columbia Ministry of
Environment’s Site Registry, which is available
Manufactured Homes
through BC Online.

Decals:
CSR does NOT deal with any title matters

2 decals are issued and are good for the lifetime of the It is far more likely that a site profile will exist for
home a commercial rather than residential property.
The decal is not equivalent of a certificate of title, but its

proof of registration under the Act

Has NO TITLE ( no indefeasibility or assurance fund) 5). Which of the following is TRUE with respect to

the Contaminated Sites Registry (CSR) in BC?
You can NOT move Mobile home UNLESS it’s registered in

the manufactured homes registry, and a transport permit (1) The CSR is part of the land title registration
has been obtained from the registrar. system in BC

(2) The CSR was established by the Land Title Act
Before a transport permit is issued – all taxes on the home
(3) It is more likely that a commercial property will
must have been paid. be in the CSR than a residential property.
(4) CSR searches must be done by visiting the CSR
office in Victoria, BC

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Notes Questions: CH 4

1) Which of the following scenarios represents a method for using a manufactured home itself as security for purchase price?
A) Mike transferred ownership of his manufactured home to Paul, who then gave a security agreement on the home in favour
of Mike in exchange for part of the purchase price
B) Alex borrowed money from his sister-in-law in order to pay for his manufactured home. In exchange, Alex has a security
agreement on the home in favour of his sister-in-law.
C) Ivan purchased a manufactured home from Joanne under the condition that he will make biweekly payments to her for the
next 3 years, at which time Joanne will transfer legal ownership of the manufactured home to her
1) A & B only
2) A&C only
3) B & C only
4) all the above

2).Which of the following documents regulated by the Land Title Office is required in order for legal title to be
transferred from the Seller to the Buyer?
1) Income Tax Rates
2) A Title Search Certificate
3) A Freehold Transfer
4) A statement of adjustments for each of the buyer and seller

3). When a licensee searches for the title of a property, which of the following will show or be noted on the title?
A. Joint tenancy B. An easement
C. Restrictive covenant D. A building Scheme

1) B only
2) B and C only
3) A only
4) All of the above

4). Upon satisfactory completion of initial registration of a manufactured home, the registrar issues a decal which
must be affixed to the manufactured home. The decal:
1) must be renewed every year.
2) must be renewed every 3 years.
3) is good for the lifetime of the home.
4) must be replaced upon the sale of the home.

6). Which of the following is an accurate statement about principle of indefeasibility?
1) The principle of indefeasibility operates on the basis that registered owner on title provides conclusive
evidence of that person’s entitlement to the fee simple estate.
2) The principle of indefeasibility means that in no circumstances may the purchaser be set aside, even by
the claims of a previous rightful owner
3) if a registered owner loses an interest in land due to the principle of indefeasibility he or she will
automatically qualify for compensation from the assurance fund
4) the principle of indefeasibility extends to all validly registered charges on title.

7). A Caveat is:
1. A warning issued by a court
2. A specific type of builder’s lien
3. Formal notice to anyone searching title that a court action has been commenced concerning a
property
4. None of the above

Answers:.1 (4), Q.2 (3), Q3.(4), Q.4(3), 5(3), 6(1)

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 CH 4

Practice Questions:

477. Which of the following was NOT considered a void deed at Common Law?
1. A deed executed by a limited company
2. A forged deed
3. A deed given for illegal consideration
4. A deed signed in circumstances where the party could plead non est factum

730. Which of the following statements about the common law doctrine of notice is FALSE?
1. This doctrine holds a purchaser to have notice of all reasonably discoverable interests affecting a
property.
2. This doctrine is the basis of the B.C. Torrens system.
3. Subject to certain exceptions, the Land Title Act has abolished the doctrine of notice in British
Columbia.
4. The doctrine of notice conflicts with the Torrens principle of conclusiveness of the register.

106. The principle of indefeasibility under the Torrens system means:
(1) that a fee simple purchaser, in good faith, is not required to investigate how the owner got
his title.
(2) that no notice of trusts may appear on the title.
(3) an applicant for registration does not need to give prior notice to the registrar.
(4) a purchaser has deemed knowledge of all unregistered interests.

211. The abolition of the doctrine of notice by the Land Title Act is subject to the exception of:

(1) innocent misrepresentation.

(2) fraud.
(3) breach of contract.
(4) quantum meruit.

42. Which of the following statements about the B.C. Torrens system are FALSE?
A. Trustees are shown on title as the registered owners of an estate or interest in land with no indication
of the existence of the trust and beneficiaries are protected only by a caveat registered on title.
B. A charge registered on title is indefeasible.
C. Registered documents must be in the form prescribed by statute law to be enforceable between the
parties.
D. A caveat will automatically lapse two months after it is registered on title.

(1) A, B and C are false.
(2) A and C are false.
(3) A, C and D are false.
(4) B and D are false.

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 CH 4

794. Which of the following is NOT an exception to the principle of indefeasibility under the B.C. Torrens
system of land registration?
(1) a lien for unpaid provincial taxes
(2) a public right-of-way in favour of B.C. Hydro and Power Authority
(3) a registered mortgage where the registered mortgagee effected registration by fraud
(4) a registered claim of builder's lien


555. In order for a person to make a successful claim against the Assurance Fund in B.C., he or she must
prove three of the following. Indicate the EXCEPTION.
(1) He or she has lost an interest or estate in land.
(2) He or she cannot recover that interest or estate by court action.
(3) 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.
(4) If the Land Title Act had not been passed, he or she would have recovered the interest in land by a
court action.

273. 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 of the following statements is true?
1. Royalty is secure in relying on Duke’s title
2. Earl can recover Blackacre but the title to the property will remain encumbered by the Royalty
Trust Co. mortgage
3. Because of the forgery, Earl can recover Blackacre free of the Royalty Trust Co. mortgage
4. Royalty Trust Co. may obtain its $50,000 back from the Assurance Fund

Practice Q. Answers: 42(1), 106(1), 211(2), 273 (3), 477(1), 555(3), 730(2), 794(3),

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