BCLI Issues First Report in Phase 2 of Real Property Reform Project

March 18, 2011

Last week the BC Law Reform Group of the BCLI released its Report on Section 29(2) of the Land Title Act and Notice of Unregistered Interests, the first report in a series to be published in Phase 2 of the Institute’s Real Property Reform Project.

The following is an excerpt of the release announcement, explaining the background of the report and project:

BCLI has issued the first in a series of reports that will be published in connection with Phase 2 of the Real Property Reform Project.  The Report on Section 29(2) of the Land Title Act and Notice of Unregistered Interests is concerned with resolving  uncertainty resulting from conflicting lines of authority on whether registration under the Land Title Act of British Columbia will confer priority over a competing unregistered interest if the holder of the registered interest had actual notice of the unregistered interest beforehand.

Vancouver City Savings Credit Union v. Serving for Success Consulting Ltd., 2011 BCSC 124 was decided in February 2011 after this report was written.  In the judgment, , the trial court commented upon the existence of two arguably divergent lines of authority on the effect of actual notice of an unregistered interest under British Columbia’s land title system.  The analysis of the present state of the law in the judgment coincides substantially with the analysis in our report.  The report contains recommendations for amendments to the Land Title Act intended to resolve an uncertainty in British Columbia law that has persisted for well over a century because of differing interpretations at the trial level of the effect of a key provision of the Act.

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