Title Security in British Columbia
BC's land titles are secure:
- Our land title system is regarded as among the very best in the world. Land purchasers, sellers and owners can be confident that their rights and interests are protected.
- Registered title offers assured ownership and allows for simple, quick and inexpensive land transfers.
- We have an Assurance Fund available to compensate property owners in the very unlikely case that they are financially affected by a title registration error or become the innocent victim of title fraud.
- At the end of 2009, the LTSA maintained a record of nearly two million land titles and an equivalent number of active registered charges on those titles. In the past 20 years, the land title system processed nearly 16 million transactions - yet only three claims related to land ownership fraud and only 14 fraud claims related to lesser interests in land such as discharges of mortgage were paid from the Assurance Fund.
Torrens Principles
Land title in BC operates under a system which is based on the principles of the 'Torrens' registry system. Sir Robert Torrens was an Australian politician and civil servant who in the 1850s was unhappy with the land conveyancing system. Based on his experience in registering the ownership of ocean vessels, he devised a method of making land registration conclusive. The Colony of Vancouver Island adopted a Torrens system of land title registration in 1861, the second jurisdiction in the world to do so. The Torrens system is now used by countries around the world.
Only a person registered as owner has the right to transfer or otherwise deal with their legal title to land. Registered title also allows for simple, quick and inexpensive land transfers.
Assured Title
Under the Torrens system, legal title to land can only be changed by the act of registration on a public register, and the issuance of a certificate of indefeasible title. A title that is indefeasible cannot be defeated, revoked or made void. The person who has legal title to land has a right, good against the world, to the land. Registration vests title in the land and certifies the indefeasibility of the title. A registered title includes the name of the owner and a listing of any mortgages, agreements for sale, leases, easements, covenants, rights-of-way or other registered charges which may pertain to the title. There are a limited number of exceptions to the principle of indefeasibility which are set out in the Land Title Act, the statute which governs BC's land title system.
The strength of the BC system is that it eliminates the need for exhaustive and expensive searches back through the historical chain of ownership to prove that legal title to land is valid and unencumbered. A prospective purchaser need only examine the current title to obtain a full list and description of all interests that affect the title.
Assurance
Registered titles are 'assured'. This protection is offered by the Land Title Act which provides that, should an individual suffer a loss of their title as a result of administrative error or fraud, compensation will be paid. A special Assurance Fund is maintained for this purpose, even though it is very seldom drawn upon. In the past 20 years in BC, there have been nearly 16 million land title transactions and only three claims related to land ownership fraud and only 14 fraud claims related to lesser interests in land such as discharges of mortgage were paid from the Assurance Fund.
The public is able to rely with confidence upon the records of the Land Title Office. Once an owner's legal title to land is registered, it cannot be overturned so long as the owner acquired his or her interest in good faith and for valuable consideration.
Identity Theft
As with any area of commerce, there may be people who want to misrepresent ownership of land. Identity theft is a concern these days and people should always ask for identification when dealing with any individual with regard to land title to ensure that they are dealing with the true owner of the land. Lawyers and notaries check their clients' identities before submitting documents to the LTSA. FINTRAC rules require real estate brokers and agents to verify their clients' identities following specific guidelines, and to keep a client information record for every purchase or sale of real estate. If some parties in a real estate transaction are not represented by a real estate broker, the broker/agent will need to verify those parties' identities. Financial institutions are also required to verify their clients' identities for certain transactions following specific FINTRAC guidelines.
Mortgage Fraud
In April 2009, the BC Court of Appeal held that unless a mortgage is granted by the true owner of a property, the mortgage is invalid and the owner's title will be returned to its original state. The decision provided clarity about a registered owner's security of legal title to land.
Steps an Owner Can Take for Additional Peace of Mind
If you still feel that your legal title to land is at risk, there are a number of steps you can take.
- Through your lawyer, notary, land surveyor or registry agent, you can use the LTSA's Activity Advisory Service accessed through BC OnLine. This service will provide an e-mail notice to the lawyer, notary, land surveyor or registry agent when an application is made that may affect your title.
- Registry agents can conduct title searches for homeowners wishing to check the status of their titles.
- If you want to obtain a copy of your title for your personal records, for a fee your lawyer, notary, land surveyor or registry agent can apply for a State of Title Certificate, which is a certified true copy of your title. Please review the more detailed information on obtaining a State of Title Certificate.
- For a less formal printout of your title, you may obtain a computer-generated 'title search print' from the Land Title Office for a nominal fee.
Continuous Improvement
The LTSA is responsible for managing the land title and survey system in a manner that protects and maintains the security of land ownership records and documents. British Columbia's land title system includes numerous checks and balances to identify and prevent fraud. We constantly monitor the land title system to make sure it meets current needs. We work closely with the Law Society of British Columbia, Society of Notaries Public of British Columbia, the Association of British Columbia Land Surveyors, lenders, and real estate professionals to ensure that the system remains secure, fair and cost-effective for users.
For more information on title security and the specific steps that property owners can take to protect themselves against identity theft and title fraud, please read:
