BC Real Estate Trading Services Course Land Title and Registration in BC 1 — Questions and Answers
Question 1: Under BC's Torrens system, what does 'indefeasibility of title' mean for a registered owner?
- The registered owner's title cannot be defeated by interests not shown on the register (Correct answer)
- Title must be re-registered every 10 years to remain valid
- Title can be challenged by adverse possession after 20 years of occupation
- The registered owner must carry title insurance to maintain valid title
Correct answer: The registered owner's title cannot be defeated by interests not shown on the register
Indefeasibility means the registered owner holds title free from any interest not shown on the register, providing certainty of ownership.
Question 2: Which organization is responsible for administering land title registration in British Columbia?
- BC Assessment Authority
- Land Title and Survey Authority (LTSA) (Correct answer)
- Real Estate Council of British Columbia (RECBC)
- BC Registry Services under the Ministry of Finance
Correct answer: Land Title and Survey Authority (LTSA)
The LTSA is the statutory authority responsible for operating land title registration and survey systems throughout BC.
Question 3: How is a mortgage typically registered against a property in BC under the Land Title Act?
- As a caveat that alerts buyers to the lender's interest
- As a transfer of legal title to the lender until the loan is repaid
- As a mortgage charge registered against the property's title (Correct answer)
- As a certificate of pending litigation filed with the courts
Correct answer: As a mortgage charge registered against the property's title
In BC, a mortgage is registered as a charge against the property's title rather than as a transfer of ownership to the lender.
Question 4: What is a 'Form A Transfer' in a BC real estate transaction?
- The standard form used to register a new mortgage charge against a property
- The prescribed form used to transfer freehold ownership of land from seller to buyer (Correct answer)
- A form used to register a lease agreement on title
- A form filed with the LTSA to discharge an existing encumbrance
Correct answer: The prescribed form used to transfer freehold ownership of land from seller to buyer
Form A is the standard LTSA-prescribed form used in BC to transfer freehold (fee simple) ownership of property from one party to another.
Question 5: The 'mirror principle' of the Torrens system in BC means that:
- Each registered property must have an identical neighbouring lot for comparison
- The land register accurately reflects the true state of title, allowing buyers to rely on it (Correct answer)
- All title documents must be mirrored in both paper and electronic form
- Title transfers are only valid if witnessed by two parties simultaneously
Correct answer: The land register accurately reflects the true state of title, allowing buyers to rely on it
The mirror principle means the register is a complete and accurate reflection of the state of title, so a buyer can rely on what is shown.
Question 6: What is a restrictive covenant as it appears on a BC land title?
- A restriction imposed by the municipality limiting density under zoning bylaws
- A registered agreement that limits how a property owner can use or develop their land (Correct answer)
- A financial charge registered by a creditor against the property
- A right granted to a neighbour to cross the property for access purposes
Correct answer: A registered agreement that limits how a property owner can use or develop their land
A restrictive covenant is a registered encumbrance that restricts the use or development of the land and binds all subsequent owners.
Question 7: What is the effect of registering a Certificate of Pending Litigation (CPL) against a BC property?
- It immediately transfers ownership of the property to the litigant
- It cancels any existing mortgage charges on the title
- It alerts potential buyers that a court action affecting the property is currently before the courts (Correct answer)
- It prevents the registered owner from residing in or using the property
Correct answer: It alerts potential buyers that a court action affecting the property is currently before the courts
A CPL (formerly lis pendens) notifies the public that litigation affecting the property is pending, warning prospective purchasers of the legal dispute.
BC Real Estate Trading Services Course Land Title and Registration in BC 1
Under BC's Torrens system, what does 'indefeasibility of title' mean for a registered owner?