I Pulled the Title on the House You Want to Buy. Now What?

A title search can look like a fairly unremarkable legal document. But some of the most important information isn't the owner's name — it's what appears under the charges, liens and interests registered against the property.

When I'm helping a buyer investigate a property in Victoria, reviewing the title is an important part of the due diligence process.

Sometimes the title is straightforward. Other times I may see an easement, covenant, statutory right of way or another registered charge that deserves further investigation.

Seeing one of these entries doesn't automatically mean there is a problem with the property.

It means I have another question to ask.

What Is a Property Title?

In British Columbia, the Land Title and Survey Authority of British Columbia (LTSA) maintains the land title system.

A current title identifies information such as the registered owner, legal description and Parcel Identifier (PID). It also identifies charges, liens and interests registered against the property.

Those registered interests are sometimes referred to collectively as encumbrances.

You can learn more through the Land Title and Survey Authority of British Columbia .

What Might Appear Under Charges, Liens and Interests?

According to LTSA, common registered charges can include mortgages, statutory rights of way, easements, covenants, judgments, leases and claims of builders liens.

They don't all mean the same thing, and their presence doesn't automatically make a property undesirable.

That's why simply reading the name of a charge on the title isn't always enough.

Easements

An easement generally provides a legal right for someone to use a portion of another person's land for a specific purpose.

The important issue for a buyer is understanding where the easement is located, who benefits from it and what rights it provides.

This can become particularly important if you're buying a property because you hope to build an addition, construct an accessory building, change the driveway or otherwise develop part of the lot.

Statutory Rights of Way

A statutory right of way gives an authorized party rights to use part of a property according to the terms of the registered document.

Rights of way are often associated with infrastructure and services. Depending on the document, they may relate to things such as water, sewer, drainage, utilities or access.

In Saanich, for example, the municipality notes that rights of way and easements are used in connection with municipal infrastructure.

If I see one on title, I don't simply assume what it means based on its name. The registered document and, where relevant, its location need to be understood.

Covenants

Covenants can place restrictions or obligations on a property.

Depending on the particular covenant, it might address development, environmental considerations, building requirements or other matters.

This is another situation where the actual registered document matters.

A line on the title telling us that a covenant exists doesn't necessarily tell us everything a buyer needs to know about it.

Builders Liens, Judgments and Other Charges

Titles can contain other registrations as well.

A builders lien, for example, can be registered against land in relation to unpaid labour or materials. LTSA notes that a builders lien can interfere with selling a property or obtaining financing.

These are situations where appropriate legal advice can become especially important.

Why Your Plans for the Property Matter

This is where title review becomes much more meaningful.

Imagine you're buying a home in Gordon Head with a large backyard.

Part of the property's appeal is the possibility that one day you might add a garden suite, build an addition or substantially change the landscaping.

Now imagine there is an easement, statutory right of way or covenant affecting the area where you're thinking about building.

That doesn't necessarily mean your plan is impossible.

But it certainly gives us something worth investigating before you buy the property assuming you can do it.

The District of Saanich specifically advises property owners that covenants, easements and rights of way registered against title can affect planned building designs. Saanich also requires copies of certain registered encumbrances when assessing proposals such as garden suites.

I Don't Stop at the Words on the Title

If something potentially relevant appears on title, the next step may be obtaining the underlying registered document.

That's because the title itself generally identifies the registration. The associated document contains the details that can help establish what rights, restrictions or obligations were actually registered.

Depending on what we find and how important it may be to your purchase, I may recommend that you have your lawyer or notary review it with you.

That distinction is important.

My role as your REALTOR® is to help identify issues, gather relevant information and make sure important questions aren't overlooked. When a registered legal document requires legal interpretation, I want the appropriate legal professional advising you.

This Matters Even More if You're Planning Changes

I pay particular attention to title issues when buyers tell me they have plans for the property.

For example:

• “We'd eventually like to build a garden suite.”
• “We want to add another bedroom to the back of the house.”
• “We'd like to put a garage here.”
• “Could we subdivide this lot one day?”
• “We want to completely redo the backyard.”

Those comments tell me something important: you're not only buying the property as it exists today. You're also buying it based partly on what you hope to do tomorrow.

That makes investigating potential restrictions even more important.

Frequently Asked Questions About Property Titles in BC

What information is shown on a BC property title?

A current BC title identifies information including the registered owner, legal description, Parcel Identifier (PID), and charges, liens and interests registered against the property.

Is an easement on title a problem when buying a house?

Not necessarily. An easement may have little practical impact on how you intend to use a property, or it may be relevant to future plans. The important step is understanding the particular easement rather than assuming that every easement is either harmless or problematic.

What is a statutory right of way?

A statutory right of way is a registered interest that allows the party benefiting from it to use the affected land according to the terms of the registered document. They are commonly associated with infrastructure and utility purposes.

Can a covenant affect what I build on a property?

Potentially. Covenants can impose restrictions or obligations affecting property use or development. If you're planning an addition, garden suite or other development, relevant covenants should be investigated before assuming your plans are possible.

Should my REALTOR interpret legal documents registered on title?

Your REALTOR can help identify registered charges, obtain information and flag issues that deserve investigation. Where a registered document requires legal interpretation or could materially affect your purchase, advice from a lawyer or notary may be appropriate.