BC Property Title Issues and Liens: What Realtors Must Know (2026)
A clean title is the foundation of every real estate transaction. When title issues arise — liens, easements, covenants, or encroachments — they can delay or kill deals. Realtors who understand title are better equipped to advise clients, prevent surprises, and navigate problems effectively.
How BC Title Searches Work
In BC, all land title information is maintained by the Land Title and Survey Authority of BC (LTSA). The LTSA is the official, definitive record of who owns property and what charges are registered against it. Title searches are conducted electronically through myLTSA (for lawyers/notaries) or publicly at a lower access tier.
A full title search produces a Title Search Report showing:
What Title Discloses
- ✓Registered owner(s) — legal names
- ✓All registered mortgages (charges)
- ✓Builders liens, judgment liens
- ✓Easements and rights-of-way
- ✓Restrictive covenants (Section 219)
- ✓Building schemes (statutory)
- ✓Caveat/pending litigation notice
- ✓Life estate, matrimonial rights
- ✓Heritage designation
- ✓Agricultural Land Reserve (ALR) status
What Title Does NOT Disclose
- ✗Physical encroachments (requires survey)
- ✗Unregistered agreements or options
- ✗Unpaid strata fees (Form B needed)
- ✗Unpaid property taxes (separate search)
- ✗Environmental contamination
- ✗Zoning compliance (bylaw search needed)
- ✗Unpaid utility bills
- ✗Latent defects in the property
- ✗Oral agreements between neighbours
Types of Title Encumbrances in BC
Registered Mortgage
LOW (routine)The most common encumbrance — a lender's security interest in the property. The seller's mortgage must be discharged (paid out and removed from title) at completion. The buyer's lawyer coordinates this through the Land Title Office.
Realtor Note: Always confirm the seller can discharge their mortgage at completion. If the outstanding mortgage balance is close to or exceeds the sale price (negative equity), the seller may not be able to close without additional funds. Identify this early.
Resolution: Discharged at completion by seller's lawyer. Funds flow from buyer's lawyer to seller's lawyer, who pays out the mortgage lender.
Builders Lien
MEDIUM-HIGHA charge registered by an unpaid contractor, subcontractor, or materials supplier under BC's Builders Lien Act. Any person who supplied work or materials to a property improvement can file a lien within 45 days of completion of their work.
Realtor Note: Builders liens are common on recently renovated or constructed properties. If there's been recent work, ask the seller directly: 'Have all contractors and trades been paid in full?' Then advise the buyer to make this a subject condition or require confirmation from the seller.
Resolution: Paid and discharged by the lienholder executing a release. If disputed, the lien is 'bonded over' (a security deposit posted to allow the title to transfer while the dispute continues).
Judgment Lien
HIGHA court judgment against the property owner, registered as a charge on title. Creditors can register judgments against a debtor's real property. The property cannot be sold with clear title until the judgment is satisfied.
Realtor Note: Judgment liens sometimes appear mid-transaction (after offer accepted but before completion). This is why buyers need a title search before completing — not just before the offer. Ask sellers about any pending litigation early.
Resolution: Settled and discharged by the judgment creditor. If the seller lacks funds, may delay or kill the deal. Sometimes negotiated as part of the sale proceeds distribution.
Easement / Right-of-Way
MEDIUM (permanent but disclosed)A registered right for someone else to use part of the property (e.g., a utility company's right to access power lines, a neighbouring property's right to use a driveway, a registered access route to a landlocked property).
Realtor Note: Easements run with the land — they don't go away when the property sells. They affect what the buyer can do with the property. Make sure buyers understand the nature and extent of any easements before removing subjects. An easement that prevents building in a particular area can significantly affect value.
Resolution: Not discharged (they're often permanent). Buyer must accept them or not proceed. Negotiate price if they materially affect use.
Restrictive Covenant (Section 219)
MEDIUM-HIGH (depends on plans)A binding restriction on land use registered under Section 219 of the Land Title Act. Restricts how the land can be used by this and all future owners. Common types: no subdivision, height limits, setback requirements, heritage preservation, no commercial use, environmental protection.
Realtor Note: Section 219 covenants can significantly restrict what the buyer can do with the property. Critically, they can prevent development that the buyer intended. If the buyer's plan depends on something the covenant prohibits, this is a deal-breaker — identify it during due diligence, not after completion.
Resolution: Generally permanent. To discharge, the covenantee (often a municipality) must consent. In practice, rarely discharged. Buyer must accept and factor into decision.
Statutory Building Scheme
LOW (usually benign)A set of uniform restrictions registered over an entire neighbourhood or subdivision — maintaining consistent standards (e.g., single-family only, minimum home size, no commercial vehicles). Common in older planned subdivisions.
Realtor Note: Most buyers accept building schemes as they're protective of neighbourhood character. Issues arise if the buyer wants to do something the scheme prohibits. Confirm the building scheme doesn't conflict with the buyer's plans.
Resolution: Permanent and neighbourhood-wide. Enforcement by neighbours with standing. Rare to discharge.
Caveat / Pending Litigation
HIGHA formal notice that someone claims an interest in the property — or that litigation involving the property is pending. Prevents title transfers until resolved. Can be filed by former owners, estranged family members, business partners, or purchasers under unregistered contracts.
Realtor Note: A caveat is a serious red flag. It means someone believes they have an unregistered interest in the property. Do not proceed without legal advice. The caveat may need to be resolved before the property can be sold.
Resolution: Removed by the person who filed it (if claim is abandoned), or by court order. Can delay transactions significantly.
Title Insurance in BC
Title insurance is a one-time premium insurance policy that protects buyers (and their lenders) against specific title-related risks. Unlike property insurance (which covers ongoing events), title insurance covers risks that existed before the policy was issued.
What Title Insurance Covers
- ✓Title fraud (identity theft used to sell your property)
- ✓Undisclosed registered encumbrances missed in title search
- ✓Errors in public records (wrong PID, transcription errors)
- ✓Survey errors — matters a survey would have revealed
- ✓Zoning bylaw non-compliance for existing structures
- ✓Unregistered easements or rights-of-way
- ✓Legal access to the property
- ✓Encroachments (shed over property line)
What Title Insurance Does NOT Cover
- ✗Physical property defects (that's property insurance)
- ✗Environmental contamination
- ✗Matters disclosed in the policy or title search
- ✗Zoning issues the buyer knew about
- ✗Future changes in zoning or bylaws
- ✗Native land claims (some policies now include)
- ✗Tax arrears — varies by policy
- ✗Disputes over property value
| Provider | Typical Premium | Notes |
|---|---|---|
| FCT (First Canadian Title) | $200–400 (one-time) | Most common in BC; lender's policy often included |
| Stewart Title | $200–400 (one-time) | Competitive option; similar coverage |
| Chicago Title | $200–450 (one-time) | Commercial properties often use; extensive coverage |
How Title Encumbrances Are Discharged at Completion
At completion, the seller's lawyer is responsible for ensuring all financial charges are discharged from title. Here's how the process works:
Title search before completion
Buyer's lawyer conducts a final title search 1-2 days before completion to confirm all expected charges and identify any new registrations.
Statement of adjustments prepared
Both lawyers prepare statements of adjustments calculating the exact amounts to be paid at completion, including mortgage payout, property tax adjustments, and legal fees.
Funds transferred
Buyer's lawyer transfers completion funds to seller's lawyer. These funds must cover the purchase price, all mortgage payouts, and any other charges to be discharged.
Mortgage payout
Seller's lawyer pays out the seller's mortgage using the sale proceeds. The lender provides a payout figure (including penalties, if any) in advance.
Discharge documents filed
Once paid, the lender files a Discharge of Mortgage at the LTSA. This removes the charge from title. New construction mortgages may have multiple charges to discharge.
Title transfers to buyer
Seller's lawyer files a transfer form at the LTSA. The title registers in the buyer's name. This is the moment of legal completion.
New charges registered
If the buyer has a mortgage, the buyer's lender registers their new mortgage charge simultaneously with the title transfer.
Realtor Advisory: Title Red Flags
These title situations require immediate escalation to your managing broker and the client's lawyer:
Registered owner does not match the seller
Do not proceed without explanation. Could be title fraud, estate situation, power of attorney, or corporate ownership. Verify through lawyer before anything else.
Multiple mortgages exceeding estimated property value
Calculate if the sale can close with enough proceeds to discharge all mortgages. If not, seller needs a plan (bring cash to close, negotiate with lender for short sale, etc.).
Caveat from unknown third party
Stop and advise client to get legal advice. The caveat means someone believes they have a claim. This must be resolved before closing.
Builders lien filed after offer accepted
Find out immediately what work was done, who filed the lien, and whether the seller can resolve it before completion. Buyer's subject conditions should cover this.
Easement that affects buyer's planned use
Ensure the buyer's lawyer reviews the easement in full. If the buyer planned to build where an easement exists, they may need to change plans or renegotiate.
Section 219 covenant preventing subdivision
If the buyer purchased with subdivision intent, this is a deal-breaker. Ensure buyer's lawyer reviews covenants during subject period.
Property in Agricultural Land Reserve (ALR)
ALR restricts non-agricultural use. Confirm the buyer understands: no subdivision, no foreign buyer ownership (restrictions apply), limited development rights.
Frequently Asked Questions
What shows up in a BC title search?+
A BC title search (through the LTSA) shows: registered owners, all registered charges (mortgages, liens, judgments), easements, rights-of-way, covenants, building schemes, and caveat/litigation notices. It does NOT show unpaid utility bills, unregistered agreements, or physical encroachments.
What is a builders lien in BC?+
A builders lien is a charge registered by an unpaid contractor, subcontractor, or materials supplier under the Builders Lien Act. It must be paid and discharged before the property can be sold with clear title. Always ask sellers if all trades have been paid on any recent work.
What does title insurance cover in BC real estate?+
Title insurance covers title fraud, undiscovered encumbrances, public record errors, survey errors, and certain zoning compliance issues. It does NOT cover physical property defects, environmental contamination, or issues the buyer knew about.
What is a Section 219 covenant in BC?+
A Section 219 covenant is a restrictive covenant that limits how land can be used — running with the land and binding all future owners. Common examples: no subdivision, height limits, heritage restrictions, or environmental protection. They are generally permanent and bind future buyers.
Never Miss a Title Issue
Magnate360's compliance workflow automatically prompts realtors to verify title status, check for liens, and confirm discharge at key listing and transaction milestones.