Understanding Title In British Columbia Real Estate
Whether you are buying or selling a property in British Columbia, its title will play an important role. It is a legal document establishing your ownership of your property (or land).
A title also has other important details, including interests, rights, and restrictions on the concerned property. You should thoroughly understand land or property title before buying a property or selling it.
Moreover, such purchases and sales require trusted property lawyers in BC. Hire a lawyer with the right experience and expertise to help you in your transaction. They will help you draft a title, review it, conduct a real estate title search, and guide you throughout your deal.
As you begin understanding titles in British Columbia real estate, here are a few important basics you should keep in mind:
The Torrens System
The land title system BC follows is the Torrens System. It gives title owners various guarantees after claiming land/property ownership. For instance, it gives you indefeasibility as a title owner. This implies that all registered owners have guaranteed legal ownership of the properties they own.
This land title system in BC also gives owners a certainty of title. The BC LTSA (Land Title Survey Authority) will have an updated and accurate record of your land or property ownership.
Moreover, the Torrens System ensures simple and seamless title transfers when a property is bought or sold in British Columbia.
What Are The Elements Of A Property Title In BC?
While you and your lawyer review a property title, here are the key elements you should focus on:
- Description: Every title has a legal description of the concerned property.
- Number: A title carries a unique number that makes a property effectively identifiable.
- Owners’ Names: The title will contain the full names of all the owners of the concerned property.
- Charges: You may find various charges, interests, and liens on the title of a property. Titles often have unpaid mortgage claims from lenders, easements allowing other parties to use parts of the property, or restrictions on them. You can also find existing financial claims or right of way in the title.
Conducting Title Search
A real estate title search is an important step in buying a property in British Columbia. It involves reviewing the current property ownership and everything related to the same. It is a part of the due diligence your property lawyer will conduct with you.
You can also perform the title search on your own or with a realtor’s help. However, a lawyer will guide you thoroughly as they are also responsible for drafting title documents.
Understanding Title Insurance
If you are planning to buy a property in BC, you should also get yourself title insurance. Like any other insurance, it protects your property ownership and safeguards your financial interests.
Title insurance keeps you and your property safe from any forgery that may affect your ownership. It also safeguards you against any unknown liens or public record errors that are otherwise difficult to navigate.
Freehold And Leasehold Titles
You may own a freehold or leasehold title depending on your ownership’s nature. A freehold title denotes complete property ownership. A leasehold title, on the other hand, denotes ownership of a land/property leased from another party. This may also be applicable for government-owned and First Nations land properties.
How Is A Title Transferred In BC?
A title transfer occurs during a property deal. If you buy a property, you receive the title. If you sell it, you will need to transfer it to the buyer.
The process starts when a Property Purchase Agreement is drafted and signed by both parties. A lawyer then prepares a Form A – Freehold Transfer document for freehold titles. Finally, the title is registered with the Land Title Office after paying the required fees.
Common Title-related Issues In BC
You may encounter certain unexpected title-related issues while buying or selling a property in BC. Many property buyers get to know about the undisclosed liens way too late. Their property purchases may also be affected by survey errors. There are several instances of buyers not being aware of restrictive covenants until they move in.
This is why it is important to hire a trusted property lawyer in BC and follow all the necessary steps calmly. Your lawyer will help you at every stage, from title search to title transfer.
Conduct Property Deals And Title Transfers Seamlessly With Cube Law
If you are planning to make a real estate purchase or sale in BC, Cube Law will help you with all title-related matters. Our property lawyers know the BC land title system and all its provisions. They will draft the necessary documents for you, review titles, conduct title searches, and help you with title transfers. Contact us today to learn more about our services and get started.