Understanding the Land Titles Act, R.S.O. 1990: An Insight into Cautions

Introduction

Acquiring an interest in land can be a complex process filled with legal intricacies. Among these complexities are the cautions set out in the Land Titles Act, R.S.O. 1990, c. L.5. These cautions act as protective measures for individuals who claim an interest in land. Let's delve into the specifics of these cautions, and understand the potential liabilities involved.

Cautions under Section 71(1)

Section 71(1) provides a cautionary route for those who are entitled to or interested in unregistered estates, rights, interests or equities in registered land. It is a notice that does not prevent future dealings with land and is time-limited to 60 days. This caution can be registered immediately without a court order and can be easily removed. It's especially useful in situations where the registering party doesn't have an interest in the land. However, to delete it from the title, the registering party may withdraw it, or any party with an interest in the land may request its removal, 60 days after closing in an agreement of purchase and sale or 60 days after registration.

Cautions under Section 128(1)

Section 128(1), on the other hand, allows a person claiming to have an interest in registered land or in a registered charge of which the person is not the registered owner, to apply for the registration of a caution. This caution is also a notice, but unlike the caution under Section 71(1), it does prevent future dealings with the land. Consent of the cautioner is required to make a subsequent transfer of the land. This caution is also time-limited for 60 days and does not require a court order for registration or deletion from the title.

Liability for Unreasonable Caution

While these cautions are vital safeguards, they can be subject to potential liability for abuse under s. 132 of the Land Titles Act. If a person registers a caution without reasonable cause, they are liable to compensate any person who may sustain damage by its registration. This compensation is deemed a debt due from the person who has registered the caution to the person who has sustained the damage.

Conclusion

Cautions under the Land Titles Act provide a valuable layer of protection for those claiming an interest in land. However, caution must be exercised when registering these cautions, as unreasonable use can lead to potential liabilities. Understanding the specifics of these cautions, their uses, and potential ramifications are essential for any party interested in land transactions.

THIS BLOG IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT NECESSARILY REFLECT THE VIEWS OF LAILNA DHALIWAL LLP.

The Content is offered free of charge strictly on an "as is" basis and is intended to provide users with general information only. Lailna Dhaliwal LLP does not warrant or guarantee the accuracy, completeness or fitness of the Content for any particular purpose.

The material provided on the Lailna Dhaliwal LLP/JSDLAW PC website is not intended to provide legal advice or opinions of any kind, and does not constitute legal advice.

No one should act, or refrain from acting, based solely upon the materials provided on this website, without first seeking appropriate legal or other professional advice.

Sending or receiving of these materials does not create a lawyer-client relationship.

Do not provide any confidential information to Lailna Dhaliwal LLP unless and until we have given you a written retainer agreement confirming that we can represent you.