What happens to a mortgage when property ownership is transferred through Alberta's Land Titles system?
Correct Answer
D) The mortgage stays on title unless specifically dealt with
Under Alberta's Land Titles Act, mortgages are registered against the property, not the owner. The mortgage remains on title unless it is specifically discharged, assumed, or otherwise dealt with during the transfer process.
Why This Is the Correct Answer
Option D is correct because under Alberta's Land Titles Act, mortgages are registered as encumbrances against the property, not the owner. The Torrens system used in Alberta ensures that all interests in land, including mortgages, remain registered on title regardless of ownership changes. The mortgage stays as a charge against the property until it is specifically discharged by the lender, assumed by the new owner through proper legal process, or otherwise dealt with according to the terms of the mortgage and applicable legislation.
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