Vernon & Salmon Arm Real Estate Lawyers Assisting With Examinations of Title

Title searches form a part of nearly every real estate transaction. It is imperative to search the property’s records before a new mortgage can be registered against it or before it changes hands. This helps quickly identify any discrepancies or encumbrances that must be removed to protect a lender’s or new buyer’s interests.

At CM Lawyers, we incorporate cutting-edge technology to provide comprehensive, practical real estate services, including thorough title examinations. Our bank of property plans and knowledge of the Land Title and Survey Authority enables us to advise clients of all impacts an encumbrance or legal description on title will have on their overall use and enjoyment of their property. Our real estate lawyers provide a detailed explanation via a title review letter sent to our clients via DocuSign and ensure they fully understand all implications before proceeding.

What Is the “Title” of a Property?

“Title” refers to the ownership and physical description of the land as registered with the Land Title and Survey Authority of B.C., as well as any encumbrances that may be registered against it. An encumbrance refers to any right against the property held by someone other than the property owner, such as a right-of-way, a mortgage, a lien, or an easement.

What Is “Clear Title”?

“Clear title” refers to a title clear of unnecessary encumbrances. Some encumbrances are required and will remain on title as the property changes hands. For example, the properties in a subdivision may be subject to an easement across a portion of the front lawn in favour of a telecommunications company to allow for access in the event of repair or replacement of underground cables. This cannot be removed when transferring ownership and is considered a necessary encumbrance.

Other encumbrances are unnecessary and hinder clear title. An example would be a construction lien registered against land to secure a contractor’s debt or a private mortgage that must be paid and/or discharged from title before the property is sold. If left on title, these encumbrances would become the purchaser’s responsibility to remove before selling the property. At CM Lawyers, our real estate lawyers flag any such encumbrances on the title and work with the seller’s lawyer to ensure they are paid and removed before transferring ownership of the property to you.

The Importance of an Accurate Legal Description of Real Estate

Ensuring the legal description included in the property’s title is accurate is essential. As opposed to the municipal address, the legal description contains the geographical limits of a property. If not, the rights you actually purchase may be different from appearances. If the legal description has any defects, we will notify you right away and work to rectify the situation with the vendor’s lawyer.

What Is Title Insurance?

Title insurance refers to a policy aimed at protecting mortgage lenders and property owners from a variety of risks, including fraud and hidden defects on title. A careful property search will almost always avoid issues with title arising after a purchase, and as such, the predominant concern for most parties is fraud. It is not difficult for a person to obtain false identification, which allows them to work with a real estate lawyer to fraudulently sell a property or get a mortgage from a lender and register it against a property that does not belong to them. Title insurance protects both lenders and owners in the event of such an occurrence, covering the costs of rectifying the situation and restoring the title to its proper form.

A lender often requires title insurance before authorizing the release of mortgage funds for a purchase. Even if it is not required, we recommend purchasers always obtain a policy to protect their interests, as the cost is far outweighed by the security a policy provides. We will review the benefits of a policy with you and will handle the purchase on your behalf as part of your closing.

Proactive & Comprehensive Title Reviews

Upon receiving your file, our team will carefully search and review the title to the property as soon as possible to identify and address any concerns that may need to be dealt with before closing. Leaving the review of the title to later in the process can result in a scramble to adequately address these issues at the last minute, which we always want to avoid to ensure a timely closing. Most purchases are issue-free with respect to the title, but because issues can require the action of others to address them correctly, we are always careful to prioritize the title search so we have time to handle anything that may come up. 

Contact CM Lawyers for Knowledgeable Real Estate Services in Vernon & Salmon Arm

CM Lawyers provides comprehensive real estate services, including examinations of title and trusted advice on title insurance. We ensure clients understand the implications of their property’s title so they are aware of any potential impacts of encumbrances or legal description discrepancies. Our skilled real estate lawyers also take quick, decisive action to address unnecessary encumbrances or discrepancies in the property’s legal description to avoid last-minute complications in the purchase process.

With convenient locations in Vernon and Salmon Arm, CM Lawyers proudly serves clients in the surrounding areas, including Northern Okanagan and Shuswap. To schedule a confidential consultation with our real estate team, please reach out online or call us in Vernon at (250) 308-0338 or our Salmon Arm office at (250) 803-9171.