Monday, January 14, 2013

Indefeasibility of title is an essential feature of the land titles system established by the Land Titles Act

 719083 Ontario Limited v. 2174112 Ontario Inc., 2013 ONCA 11 is a source  for the principle that indefeasibility of title is an essential feature of the land titles system established by Land Titles Act, R.S.O. 1990 subject to limited exception:

[12]       The parties accept that indefeasibility of title is an essential feature of the land titles system established by the Act.  However, as the application judge recognized, the statutory protection of indefeasibility of title is available only to bona fide purchasers for value without notice: see for example, Durrani v. Augier (2000), 50 O.R. (3d) 353 (S.C.), at para. 49.  The application judge put it this way, at para. 34:

[T]he rights of a bona fide purchaser trump those of an innocent party deprived of an interest in the property by registration in the land titles system where there is a meeting of the minds between buyer and seller and an agreement supporting the registration of title at issue.

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