Charge on Title

A charge on title is a registered interest, right, or obligation that affects a parcel of land and is recorded on the title to that property. Charges are distinct from ownership itself — they do not transfer title — but they can significantly shape what an owner can do with their land, what obligations come with it, and how it can be sold or transferred.

In British Columbia, charges on title apply specifically to land: properties registered in the BC Land Title system and lands governed by participating First Nations land registration systems. This is different from personal property. Interests registered against manufactured homes, for example, are governed by the Personal Property Security Act (PPSA) and the Manufactured Home Act (MHA), not the Land Title Act (LTA) — and those registrations appear in the Personal Property Registry, not on a land title.

What Is a Charge on Title?

When a charge is registered against a property, it is endorsed on the title record held at the Land Title and Survey Authority (LTSA). Under Part 14 of the Land Title Act, a broad range of interests qualify as charges — anything that represents an estate, interest, or claim in land less than fee simple ownership. The LTSA’s Land Title Practice Manual (LTPM) confirms that the list of recognized charges and legal notations is not exhaustive; the most common forms are listed alphabetically, and include instruments listed under specific statutes as well as common law instruments such as judgments, leases, and mortgages.

Common charges you might encounter on a BC title include mortgages, easements, rights-of-way, restrictive covenants, caveats, certificates of pending litigation (CPLs), life estates, options to purchase, rights of first refusal, party wall agreements, profits à prendre, royalty agreements, mining agreements, and assignments of rents. That list is drawn directly from the standard BC Contract of Purchase and Sale and reflects the kinds of instruments buyers and sellers routinely encounter.

Financial vs. Non-Financial Charges on Title: Why the Distinction Is Incomplete

Charges are sometimes described in broad terms as either “financial” or “non-financial” — a mortgage being the clearest example of the former, a restrictive covenant the latter. But this framing oversimplifies the picture.

Some charges do involve a direct exchange of funds: mortgages, assignments of rents, judgments, and builders’ liens are straightforwardly financial. Others occupy a grey zone. A statutory right-of-way may require the landowner to maintain a portion of the property for the benefit of a utility or public authority, creating an indirect cost without any direct payment crossing hands. A party wall agreement between two adjoining duplex properties might govern insurance obligations and cost-sharing arrangements for fire or flood damage — no funds are exchanged between the property owners, yet those obligations carry real financial consequence. And some charges, such as a Land (Spouse Protection) Act charge or a certificate of pending litigation, function primarily as litigation tools: mechanisms to protect one party’s interest or compel another to negotiate, settle, or act.

Trying to categorize every charge as simply “financial” or “non-financial” misses the point. What matters practically is understanding the specific nature and extent of each charge on a particular title — what it requires, who benefits, and what it costs.

Charges on Title for First Nations Lands

First Nations land registration systems operate somewhat differently from the provincial Land Title system. Self-governing nations such as Westbank First Nation administer their own land registries and procedures. As reflected in the Westbank First Nation Contract of Purchase and Sale, a title warranty in that context covers the property free and clear of encumbrances except conditions, provisos, restrictions, and exceptions contained in the original grant or any other grant from the Crown, registered or pending restrictive covenants and rights-of-way in favour of utilities and public authorities, and existing tenancies. Buyers acquiring interests on First Nations lands should confirm with their BC Notary or lawyer which charges and interests are recognized and how they are registered and enforced under the applicable Nation’s land governance framework.

Legal Notations: Not a Charge on Title, But Equally Important

In addition to charges, a title can also carry legal notations — endorsements recorded on title that do not fall within the statutory definition of a charge but that can nonetheless affect the property significantly.

Legal notations are not defined in the Land Title Act, but Chapter 70 of the LTPM addresses them alongside charges as registered endorsements on title. Most legal notations are informational: they alert anyone searching the title to the existence of a circumstance affecting the property, such as a pending expropriation notice, an agricultural land reserve notation, or a heritage status notice. Many are mandated by other legislation so that the world at large has notice that something is happening with that property.

However, some notations go beyond providing information — they can effectively constrain what a registered owner may do with the land. A notation might indicate that a particular condition must be met, or that consent from a third party must be obtained, before the property can be dealt with in a particular way. Some reference a restrictive covenant registered elsewhere on the title, meaning the notation and the charge must be read together. The practical effect can be just as significant as a registered charge, even though the legal notation does not itself constitute one.

Priority of Charges on Title

The Land Title Office operates on a general “first in time, first in right” registration principle — charges and interests appear on title in the sequence in which they were registered, not necessarily in their order of legal priority. These are not always the same thing.

For example, a mortgage registered first on title will generally rank ahead of a wildfire covenant registered later. But a regional district or local government granting a development permit may require the landowner to enter into a priority agreement with the existing lender, giving the covenant priority over the earlier mortgage. That priority agreement must itself be registered on title to be enforceable. The sequence in which items appear on a title search is a starting point, not a definitive statement of priority.

Registration itself does not guarantee enforceability. Sections 221(2) and 26(2) of the Land Title Act make clear that registration creates only a rebuttable presumption that the registered owner is entitled to the interest claimed — not conclusive proof that the underlying instrument is valid or enforceable.

Charges on Title and the Contract of Purchase and Sale

Under a standard BC Contract of Purchase and Sale, the seller is required to deliver title free and clear of all encumbrances, except those specifically listed in the agreement — typically Crown grant conditions, rights-of-way in favour of utilities and public authorities, and any other charges the parties have expressly agreed the buyer will accept. Charges not carved out of this obligation must be discharged prior to completion.

This can be more complicated than it sounds. For rural and older properties, antique charges registered to private individuals or defunct companies — particularly undersurface rights charges from the early to mid twentieth century — can be extraordinarily difficult to remove. If the chargeholder has died and no successor in interest can be identified, or if the registering company no longer exists, the legal avenues for clearing the title are narrow and slow. Where a contract fails to expressly exclude these charges, both parties may find themselves in an unintended standoff over whether completion can proceed.

Other charges, such as caveats and certificates of pending litigation, are always supposed to be removed before title passes to a buyer. However, in certain circumstances the parties may agree that the buyer will take title subject to such a charge — for example, where the proceeds of sale are needed to discharge the underlying obligation, and a trust undertaking arrangement has been structured with both parties’ legal representatives. This approach requires careful coordination: the seller’s BC Notary or lawyer must obtain a registerable release or discharge instrument in trust, to be filed only upon confirmation of payment. The buyer cannot be expected to resolve a CPL they had no part in creating.

Charges can also be assigned — transferred to a different chargeholder — but only by registering the assignment on title. The most common example is when a lender sells its mortgage portfolio to another institution; the incoming lender must register an assignment of the mortgage before it can enforce its position.

Charges on Title That Expire

Not all charges are permanent. Part 16 of the Land Title Act (ss. 241–259) provides mechanisms for cancellation of charges, and certain types of charges have defined expiry provisions or cancellation procedures under sections 246 and 252–258. Buyers should not assume that an old charge on title has simply been forgotten — some may remain enforceable notwithstanding their age, while others may have expired by operation of law but simply haven’t been formally discharged.

A Note on Duplicate Certificates of Title

One instrument that occupies an ambiguous space is the Duplicate Certificate of Title (DCT). BC’s land title system maintains a notation on every title search in the provincial system indicating whether a DCT exists and, if it has been removed, where it is being held. A DCT, once issued, effectively freezes the title: no further registrations — whether changes to ownership or to charges — can be made against that title until the original DCT is physically surrendered to the LTSA. This is a topic that deserves its own glossary entry.

Real-Life Examples of Charges on Title

A buyer’s BC Notary reviews the title to a rural acreage in the Okanagan and identifies four charges: a registered mortgage, a statutory right-of-way in favour of the regional district for a water line, a 1938 undersurface rights charge registered to a named individual, and a wildfire hazard covenant required by the regional district. The buyer assumed they were getting a clean title. In fact, the mortgage must be paid out and discharged on completion; the right-of-way and wildfire covenant are among the standard exceptions in the contract; but the 1938 charge is a different matter entirely. With the original chargeholder long deceased and no estate on record, there may be no straightforward path to getting a registerable discharge — which could affect the buyer’s ability to insure or re-finance the property, and potentially gives either party an argument to revisit the transaction.

This kind of confusion also arises in unexpected ways. A widow reviewing the title to her family home may be told by her BC Notary or lawyer that there is a mortgage registered on title — and immediately fear the worst. In many cases, what appears as a “mortgage” is a home equity line of credit (HELOC) or secured line of credit registered years earlier, often as a precautionary measure, and carrying no outstanding balance. Under BC’s Land Title Act, a line of credit secured against real property is registered using a mortgage instrument — because legally, that is what it is. The label on the title search reflects the legal form of the instrument, not necessarily its current status or balance. A registered charge described as a “mortgage” may represent a debt of zero dollars. Confirming the nature and current balance of any registered charge is a routine part of the conveyancing process, and your BC Notary or lawyer will contact the lender to obtain a payout statement or a discharge, as the circumstances require.

See also: Mortgage — including the distinction between a traditional mortgage and a secured line of credit registered in mortgage form; and Home Equity Line of Credit (HELOC).

Similar and Related Terms

Encumbrance is the broader common law term for any right or interest that limits or burdens land ownership; a charge is the registered form of an encumbrance in BC’s land title system. A lien is a specific type of charge that secures payment of a debt or obligation, such as a builders’ lien or property tax lien. A notation — specifically a legal notation — appears on title to provide notice of a circumstance affecting the property but does not itself constitute a registered charge under the LTA.

Frequently Asked Questions About Charges on Title

Related Terms

• Mortgage
• Easement
• Right-of-Way
• Restrictive Covenant
• Certificate of Pending Litigation (CPL)
• Caveat
• Profit à Prendre
• Lien
• Encumbrance
• Legal Notation
• Priority Agreement
• Home Equity Line of Credit (HELOC)
• Duplicate Certificate of Title (DCT)