EstatePass
Real Property LawLand Registration SystemsABHARD

In Alberta's Land Titles system, a caveat has been registered against a property. What is the primary legal effect of this registration?

Correct Answer

B) It gives notice of the claim, and later registrations take subject to it

A caveat gives notice on title of an interest the caveator claims. Under s. 135 of the Land Titles Act, while the caveat is in force any instrument registered after it is subject to the caveator's claim. It does not transfer ownership, and it lapses only if the caveator fails to start court proceedings within 60 days after being served a notice to take proceedings (s. 138).

Answer Options
A
It freezes the title so no later instrument can ever be registered
B
It gives notice of the claim, and later registrations take subject to it
C
It transfers ownership to the caveator as soon as it is registered
D
It lowers the property's assessed value for municipal tax purposes

Why This Is the Correct Answer

The caveat puts the claim on the public register, so everyone dealing with the land has notice of it. Under s. 135, instruments registered after the caveat take subject to the caveator's claim, which protects the caveator's priority while the claim is resolved.

Why the Other Options Are Wrong

Deep Analysis of This Real Property Law Question

Background Knowledge for Real Property Law

Memory Technique

Exam Tip for Real Property Law

Real World Application in Real Property Law

Common Mistakes to Avoid on Real Property Law Questions

Key Terms

caveatLand Titles Act s. 135notice to take proceedingspriorityTorrens system
Was this explanation helpful?

More Real Property Law Questions

People Also Study

Practice More Real Property Law Questions

Access 540+ Canadian real estate exam questions and pass your licensing exam.

Start Practicing