CHAPTER 3 Land Registration and Title Registration Land

CHAPTER 3 Land Registration and Title Registration

Land Title Registration � There are two systems in place 1. Registry Act (Registry System) – old system 2. Land Titles Act (Land Titles System) – new system � Both these systems used to be paper-based but they are now online � The registry system will ultimately disappear from Ontario because it is being converted to Titles System

� Land Registry System is registered either under Land Titles Act or Registry Act but never both in Ontario � Land registry typically takes time ◦ Lawyers must go through at least 40 years of history in abstract books ◦ They must consider the chain of titles to see history of the property ◦ This involves looking at previous owners, the seller of the property, the number of liens, whether they have been paid etc. ◦ Chain of titles should trace back to the crown patent (root of title) because the crown used to own all land

Registry System � The Registry System adopts what is called the tract indexing system ◦ This entails recording all property interests on a geographic basis ◦ Registration is based on location � The Registry System is not guaranteed by the Registrar

Land Titles System � Land titles are quick � Land Title System is based on 3 principles: 1. Mirror • “What you see is what you get” • Land Titles Register is the ONLY information source used by purchasers of property • The title, like a mirror, “reflects” current facts about a property • If you cannot see a fact on the title, you need not concern yourself about it

Land Titles System 2. Curtain • A curtain lies between now and 40 years of history • You don’t need to concern yourself with what lies behind the curtain, so long as you have insurance 3. Insurance • The Registrar guarantees or insures title • The register has been insured under the Land Titles Assurance Fund • Fraud and selected errors protected if compensation cannot be obtained through other means

Land Titles System ◦ Example: �Ben owns a house which has not occupied for a long period of time. �John, who Ben does not know, forges papers and registers the property in his name. �He goes ahead and sells it to an innocent buyer Terry, who constructs a modern house on the property. �Ben discovers this and undertakes legal action against both John and Terry. �If John has disappeared or does not have money to compensate Ben, Ben may turn to the Land Titles Assurance Fund for settlement.

Land Titles System � All land title entries are allotted PIN numbers while registration is based on Parcel Numbers (since Registry Act uses geographic location) � Most provincial Crown patents (titles) need to be filed under the Act

Land Titles System � Land Titles Absolute (first time application) ◦ This designation is given to parcels brought under the Land Titles System as a first time application ◦ Such property must never be registered in Land Registry ◦ It must be registered first in Land Titles System � Land Titles Converted Qualified (converted from registry to titles) ◦ This designation is given to parcels brought from the Land Registry into the Land Titles

� An RECAP abstract book tracks the history of a property by looking at its chain of titles in the registry �A land titles register is an abstract book equivalent for titles � The curtain principle applies if registration is done based on only today’s information � The Land Registry System is used if a property is not on Land Titles

Registration of Property � Land titles registration can be done online through a system called POLARIS ◦ POLARIS = Province of Ontario Land Registration and Information System ◦ This system uses property mapping databases (plans and surveys) along with a title index (description of ownership of property) ◦ POLARIS registers property based on parcels, much like the land titles system ◦ When properties are converted to land titles under POLARIS, they are assigned a Property Identification Number (PIN) ◦ Properties can then be found using their PIN

Registration of Property � TERANET is a company that works with the Ontario government to help improve POLARIS � TERAVIEW is a software that facilitates online registrations ◦ It acts as a gateway to the online system, enabling real estate practitioners and lawyers to perform research online

RECAP � Online registration is POLARIS and TERAVIEW together � The software used to complete online registrations is called TERAVIEW

The Land Registration Reform Act � There are 5 standard documents: 1. Transfer deed of land (FORM 1) 2. Charge of mortgage (FORM 2) 3. Discharge of mortgage (FORM 3) • Seller is discharged from mortgage once all dues are paid 4. Document General (FORM 4) • Standard document that consists of information about power of attorney, survivorship, liens and their discharge etc. • Schedule (FORM 5) • General attachment containing explanation of documents which require further details • It is a standard attachment to the four other forms, i. e. Schedule A, B, C…

RECAP � The Reform Act consists of 5 forms � Schedule 5 is a standard attachment

Crown Land � Crown land is land which is owned by the government � Crown land may not be traded between private individuals

Native Lands � Native Lands or Native Reserves are lands that are regulated by the Federal Government � These lands have been given to Native Indians for them to use and develop them � RECAP: Which government is responsible for maintaining Native Reserves? ◦ The Federal Government

Power of Attorney �A power of attorney is written authorization granted by one party to another to act on their behalf in legal matters, including private affairs and businesses � The party who gives power of attorney is called “grantor”, and the party to whom power of attorney is given is called “attorney”

Types of Power of Attorney � There are 3 types of power of attorney 1. Power of Attorney for Personal Care (Personal) � Deals with medical care decisions 2. Power of Attorney (General) � Deals with property and other matters, but is not commonly used since it cannot be exercised during grantor’s incapacity 3. Continuing Power of Attorney (Continuing) � Preferable since it is most powerful of the 3 � It continues to operate even during grantor incapacity � If you become mentally incapable of managing your own properties, your attorney will be authorized to do so on your behalf

Implied Covenants � Implied covenants are promises that are implied from the existence of a relationship � Example: A mortgage borrower enters an implied covenant that he will pay off the mortgage amount, pay property taxes and insurance premiums and keep the property in good condition � In the event of a breach of the implied covenant, the lender may take legal action against the borrower (i. e. file foreclosure of property)