There’s a Charge on the Title — Should You Still Buy the House?

You’ve found a Victoria home you love. The layout works, the neighbourhood feels right and you can already picture yourself living there.

Then we review the property title and discover several charges registered against it.

One says statutory right-of-way. Another says covenant. There may be an easement or another registered document with a number beside it.

For many buyers, this is the moment when the title suddenly looks intimidating.

But the existence of a charge does not automatically mean there is something wrong with the property. What matters is understanding what the charge is, where it applies and whether it could affect the way you intend to use the property.

First, What Is a Charge on a Property Title?

A land title identifies the registered owner of a property, but it can also show interests, restrictions and rights that have been registered against the land.

These registrations are commonly referred to as charges or encumbrances.

Depending on the property, a title might reference an easement, covenant, statutory right-of-way, mortgage, lien or another registered interest.

The wording shown on the title itself may only tell us the type of charge and its registration number. To understand what it actually says, we may need to obtain and review the underlying registered document.

A Statutory Right-of-Way Is Worth Understanding

Statutory rights-of-way are common and can allow a municipality, utility or other authorized organization certain rights over a portion of private property.

For example, underground services may run through part of a lot.

That doesn't automatically make the property undesirable. But if you are considering an addition, garage, garden suite, major landscaping project or redevelopment, the location and terms of that right-of-way may become very important.

In Saanich, for example, the municipality notes that rights-of-way can affect land development and the issuance of building permits.

What About an Easement?

An easement generally provides a right relating to the use of another property.

A familiar example is access. One property might have a registered right to use a portion of another property for access to a driveway or another area.

The important part isn't simply seeing the word easement on the title. I want to understand:

• Who benefits from the easement?
• Which part of the property does it affect?
• What rights does it provide?
• Could it affect privacy or access?
• Could it interfere with the buyer's future plans?

Those questions are much more useful than assuming every easement is either harmless or problematic.

Covenants Can Affect How Land Is Used

A covenant can place obligations or restrictions on the use of land.

In British Columbia, you may also encounter a Section 219 Covenant. These can be registered in favour of certain public authorities and can address matters involving the use of land or the construction and use of buildings and structures.

Again, the important question for a buyer is not simply whether a covenant exists.

It's whether the covenant contains something that matters to your intended use of the property.

The Title Is Only the Starting Point

This is something buyers don't always realize.

The title may identify that a charge exists, but it may not contain enough information on its face to explain exactly how that charge affects the property.

That's why the next step may be to obtain the registered document associated with the charge.

Depending on what we find, other information may also be relevant, such as:

• Municipal property information
• Permit history
• Survey or site-plan information
• Utility information
• Development or subdivision records
• Legal advice from the buyer's lawyer or notary

What I Do When I Find a Charge on Title

My job as your REALTOR® isn't to provide a legal interpretation of a registered document. That's an important distinction.

My role is to help identify the issue, gather the available information, understand why it may matter to your purchase and recognize when another qualified professional should be involved.

Depending on the situation, that may mean recommending that you discuss the document with your lawyer or notary before removing subjects.

Why This Is Particularly Important With Larger Saanich Lots

Buyers looking in areas such as Gordon Head, Cadboro Bay, Cordova Bay and Royal Oak are often attracted to properties because of the land as much as the house.

A larger lot may create ideas about an addition, garage, garden suite, landscaping changes or other future improvements.

That's precisely when I don't want a buyer looking only at the existing house.

We need to investigate the property itself—including zoning, municipal information, services and relevant registrations on title—before assuming a future project will be possible.

Don't Confuse “Registered on Title” With “Something Is Wrong”

This is probably the most reassuring point for buyers.

Many perfectly good properties have registered charges on title.

Discovering an easement, covenant or statutory right-of-way does not automatically mean you should walk away from the house.

It means we have information that deserves to be understood.

Once you know what the charge means and how it relates to your plans, you are in a much better position to make an informed decision.

Frequently Asked Questions

Is it bad if a property has charges on title?

Not necessarily. Many properties have registered charges. What matters is understanding what each charge represents and whether it affects the property's use, the buyer's plans or the transaction.

What is a statutory right-of-way on a BC property title?

A statutory right-of-way can give an authorized organization certain rights over a portion of private property, often in connection with infrastructure or utilities. The registered document should be reviewed to understand the specific rights and affected area.

What is an easement on a property?

An easement generally provides a right relating to the use of another property. Because easements vary, buyers should understand who benefits from the easement, what area it affects and what rights are provided.

Can a covenant affect renovations or a garden suite?

Potentially. Some covenants can affect land use or construction. Buyers considering additions, garden suites, redevelopment or other significant changes should investigate relevant title documents and municipal requirements before relying on those plans.

Can my REALTOR® explain the legal meaning of a title charge?

Your REALTOR® can help identify registered charges, gather information and flag issues that deserve further investigation. Legal interpretation of registered documents should come from a qualified lawyer or notary.

Should I review title charges before removing subjects?

If a title charge could affect your use of the property or your decision to purchase it, it should be investigated during your due-diligence period so that you can make an informed decision before removing applicable subjects.