Properties play a large part in every person’s life. Whether you’re a homeowner, a landowner, a tenant, or someone who wishes to acquire new properties, the laws to know will always be a good place to start. As such, if you’re in British Columbia (BC), one of the best laws to be familiar with is the BC Property Law Act.
What falls under property law in Canada?
Canadian property law defines the relationship between individuals, including the government, and their private or publicly owned properties.
It may pertain to the different kinds of properties, whether tangible or not, such as:
- Real properties: land, buildings, minerals and resources.
- Personal properties: all properties that are not real properties.
- Intellectual properties: intangible or tangible original works and inventions.
Canada’s property laws
Property laws of Canada are governed by numerous statutes, which vary according to its jurisdiction or application:
- Federal statutes: govern properties owned by the government, as defined by federal statutes.
- Provincial/Territorial statues: govern properties owned by the provincial government, or properties privately owned by individuals found in that particular province or territory.
Canada’s property laws are also a combination of common law and civil law, especially for Québec which has its own Civil Code.
British Columbia’s property laws
BC has several laws governing property law or property rights. Some of these laws include:
- Property Law Act: provides for the rights and obligations of property owners.
- Land Title Act: governs BC’s land title system, transfer of ownership, and registering mortgages.
- Residential Tenancy Act: regulates tenancy agreements, rental units, and residential properties.
- Family Law Act: covers division of family properties, aside from provisions on family relations.
What is BC’s Property Law Act?
Aside from governing the rights and responsibilities of property owners, the BC Property Law Act also covers how property owners may use and dispose of their properties.
Some areas of property law that BC’s Property Law Act cover include:
- Relations between seller and buyer
- Leases
- Co-ownership
- Transfers of interests in land
- Mortgages
Seller and Buyer Relationship
A seller must give the buyer an instrument that will allow the buyer to register the land under the Land Title Act. This rule is applicable whether the purchase price is paid in installments or at a future time.
Transfers of Interests
The same is true for transfers of interests. Under BC’s Property Law Act, a transferor of interest must:
- deliver to the transferee a transfer registrable under the Land Title Act; and
- describe the piece of land to be transferred, so that the title to the parcel is registrable under the Land Title Act.
Cooling-off period
The BC Property Law Act has undergone recent amendments through the enactment of the Property Law Amendment Act. One of those amendments was to introduce a “cooling-off period”. Within this specific number of days, buyers of residential real properties may be able to cancel or rescind a purchase or a sale agreement.
Read more about it here:
Will BC’s Property Law Amendment Act make housing less expensive? #UBCSauder associate prof Tsur Somerville weighs in via @CanadianPress: https://t.co/dvD7VKfz7k
— UBC Sauder School (@UBCSauderSchool) April 18, 2022
Consult with a Lexpert-Ranked best property leasing lawyer in BC to know more about BC’s Property Law Act and the Property Law Amendment Act.
Leases
With regards to leases, BC’s Property Law Act provides that a landlord must deliver to the tenant a lease agreement in form registrable under the Land Title Act. This applies when the term of the lease agreement exceeds 3 years and where there is actual occupation.
Compensation
The BC Property Law Act also provides for a legal remedy to co-owners for the unpaid expenses of another co-owner. The law states that a co-owner, who covered another co-owner's unpaid expenses of owning a property, can apply for relief from the Supreme Court of BC.
Unpaid expenses may be any of the following:
- Purchase money instalment
- Mortgage money
- Rent
- Interest
- Taxes
- Insurance
- Repairs
- Required payment under the Strata Property Act or under a term or covenant
- Payment on a charge where the land may be subject to forced sale or foreclosure
After it has determined the amount that the delinquent co-owner owes, the Court will render judgment giving the paying co-owner a lien over the delinquent co-owner's interest over the property.
A “lien” is the right or interest that a creditor (the paying co-owner in this case) has over the debtor’s property (the delinquent co-owner) or interest in a property.
The property or the interest will serve as a security or collateral when the debtor cannot pay the creditor. A lien is also called a “claim” or a “charge” over a property.
After judgment, and if the delinquent co-owner still hasn’t made good on their obligation, the Court can order that their interest in the property be sold. The Court can also order that it be sold to the paying co-owner.
Mortgages
The BC Property Law Act provides for the requirements before any further advances by a mortgagee may take priority over a subsequent registered mortgage:
- That the subsequent registered mortgagee or judgment holder agree in writing that the further advances will be prioritized over them;
- That the mortgagee who made further advances has not received notice in writing of the registration of the subsequent mortgage or judgment at the time the further advances are made;
- That the subsequent mortgage or judgment has not been registered at the time the further advances are made; and
- That the mortgage requires the mortgagee to make further advances.
Want to learn more about BC’s Property Law Act or similar laws in other provinces in Canada? Reach out to any of the best property leasing lawyers in Canada as ranked by Lexpert.