ESTATES & INTERESTS IN LAND

„ LESSON #3

Instructor: Larry Wosk

PROPERTY
„ REAL

„ PERSONAL

PROPERTY OWNERSHIP
ENGLISH LAW – FOCUS NOT ON
OWNERSHIP OF LAND BUT ON
POSSESSION OF IT

„ CROWN HAS OWNERSHIP OF ALL LAND

IN CANADA

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OWNERSHIP OF LAND IS
DIVISIBLE
„ CROWN GRANTS CERTAIN “BUNDLE OF
RIGHTS” IN LAND TO BE HELD BY
PRIVATE INDIVIDUALS

„ THOSE RIGHTS ARE DIVISIBLE

ESTATES IN POSSESSION
„ RIGHT TO OCCUPY AND USE
„ FREEHOLD
„ FEE SIMPLE
„ LIFE ESTATES
„ LIFE ESTATES PUR AUTRE VIE
„ LEASEHOLD

FEE SIMPLE
„ or “FREEHOLD” ESTATE

„ THE GREATEST “ESTATE” THAT A

PERSON CAN HAVE IN LAND

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LIFE ESTATES & ESTATES PUR
AUTRE VIE
„ LIFE ESTATE - AN ESTATE IN LAND THAT
LASTS FOR THE LIFETIME OF THE
HOLDER (LIFE TENANT)

„ ESTATES PUR AUTRE VIE - AN ESTATE

BASED ON THE LIFE OF ANOTHER
PERSON

LEASEHOLD ESTATES
„ LEGAL INTEREST IN LAND CREATED
THROUGH A “LEASE”
„ EXISTS FOR A DEFINED PERIOD OF TIME

INTERESTS LESS THAN AN

“ESTATE”
„ MORTGAGE
„ EASEMENTS
„ RESTRICTIVE COVENANTS
„ BUILDING SCHEMES

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MORTGAGE
(AN INTEREST IN LAND LESS THAN AN
ESTATE)
„ CREATED AS A SECURITY FOR A LOAN
MADE BY A LENDER

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EASEMENTS

„ A PRIVILEGE ACQUIRED BY A
LANDOWNER FOR THE BENEFIT OF HIS
OR HER LAND OVER THE LAND OF
ANOTHER

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EASEMENT REQUIREMENTS

„ IN ORDER TO CONSTITUTE AN EASMENT

AT LAW THERE ARE THREE (3) BASIC
REQUIREMENTS

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 EASEMENT

Easement
LAKE

LOT 1 LOT 2 LOT 3

PUBLIC
ROAD

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SOME SPECIAL KINDS OF

EASEMENTS
„ RIGHTS OF WAY
„ RIGHTS TO LIGHT
„ RIGHTS TO SUPPORT

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RESTRICTIVE COVENANTS
„ IMPOSES A RESTRICTION ON THE USE
OF ONE PERSON’S LAND FOR THE
BENEFIT OF ANOTHER PIECE OF LAND.

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BUILDING SCHEME
„ ATTACHING TO TWO (2) OR MORE,
(USUALLY) RESIDENTIAL LOTS
„ DEVELOPER MAY WISH TO MAINTAIN
SOME DEGREE OF UNIFORMITY IN THE
USE OF LOTS TO PROTECT THEIR VALUE

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CO-OWNERSHIP OF LAND
„ JOINT TENANCY

„ TENANCY IN COMMON

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JOINT TENANCY
„ JOINT TENANCY – EACH CO-OWNER
OWNS AN UNDIVIDED INTEREST IN THE
WHOLE PROPERTY. MAIN FEATURE –
RIGHT OF SURVIVORSHIP

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FOUR UNITIES REQUIRED
FOR JOINT TENANCY
„ UNITY OF TIME
„ UNITY OF TITLE
„ UNITY OF INTEREST
„ UNITY OF POSSESSION

SEVERANCE OF JOINT TENANCY

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TENANCY IN COMMON
„ ONLY ONE UNITY – POSSESSION
„ NO RIGHT OF SURVIVORSHIP
„ TENANTS IN COMMON MAY HAVE
DIFFERENT SHARES IN THE PROPERTY

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TITLE TO LAND
HISTORICALLY
AT COMMON LAW PROBLEMS DEVELOPED

DEED REGISTRATION DEVELOPED TO

SOLVE THE PROBLEMS OF THE OLD
SYSTEMS

21

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REGISTRY SYSTEM
„ CENTRAL OFFICE FOR EACH LAND
DISTRICT
„ MAY REGISTER ANY INTEREST IN LAND
„ REGISTERED TITLE PREVAILS OVER
UNREGISTERED TITLE
„ DOMINANT IN EASTERN CANADA

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LAND TITLE SYSTEM

„ TORRENS SYSTEM

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INDEFEASIBILITY PRINCIPLE
„ SOMETHING THAT CANNOT BE
DEFEATED OR MADE VOID
„ GUARANTEES THE REGISTERED TITLE
OF AN INNOCENT PURCHASER WHO
PAYS FOR THE PROPERTY –
“INDEFEASIBILITY”

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REGISTRATION OF CHARGES
„ INDEFEASIBILITY DOES NOT EXTEND TO
CHARGES

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DOCTRINE OF NOTICE
„ NOTICE ORIGINALLY REQUIRED

„ TORRENS SYSTEM IMPACT

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ASSURANCE FUND
„ CREATED TO DEAL WITH ERRORS OR
THE OPERATION OF THE SYSTEM ITSELF

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OTHER ITEMS APPEARING ON
TITLE
„ CAVEAT
„ LIS PENDENS
„ LIENS
„ JUDGMENTS

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B.C. PROPERTY TRANSFER TAX

„ 1% ON THE FIRST $200,000

„ 2% ON THE BALANCE

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THE STRATA CONCEPT

„ SIMILAR TO OWNERSHIP OF ANY FEE
SIMPLE LOT
„ COMBINED WITH TENANCY IN COMMON
WITH THE OTHER OWNERS IN THE
COMMON PROPERTY

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UNIT ENTITLEMENT
EACH STRATA LOT’S SHARE OF
OWNERSHIP OF THE COMMON
PROPERTY

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SOURCES:
„ Baxter, D., Hamilton,S.W., & Ulinder, D.D.
Real Estate Finance in a Canadian Context
(1998) UBC Real Estate Division

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