Land Registration Systems in Ontario
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Land Registration and 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 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
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 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
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
◦
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.
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 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 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
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
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
Online registration is POLARIS and TERAVIEW
together
The software used to complete online
registrations is called TERAVIEW
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…
The Reform Act consists of 5 forms
Schedule 5 is a standard attachment
Crown land is land which is owned by the
government
Crown land may not be traded between
private individuals
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
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”
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 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 for foreclosure of property)
Explore the two main land registration systems in Ontario - Registry System and Land Titles System. Dive into the differences, processes, and key principles of each system, including the importance of title searches, chain of titles, and the assurance provided to property owners. Gain insights into the evolution from paper-based to online registration systems and the implications for property ownership in Ontario.
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Presentation Transcript
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 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
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 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
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
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.
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 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 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
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
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
Online registration is POLARIS and TERAVIEW together The software used to complete online registrations is called TERAVIEW
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
The Reform Act consists of 5 forms Schedule 5 is a standard attachment
Crown land is land which is owned by the government Crown land may not be traded between private individuals
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
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
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 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 for foreclosure of property)
