Under Section 23(2) of BC's Land Title Act, which of the following is NOT a statutory exception to indefeasibility of title?

Q: What is the correct answer to: Under Section 23(2) of BC's Land Title Act, which of the following is NOT a statutory exception to indefeasibility of title?

The correct answer is The failure of a previous owner to pay income tax. Option C is correct because a previous owner's unpaid income tax is not listed among the statutory exceptions to indefeasibility in Section 23(2) of the Land Title Act. While statutory charges and liens created by provincial or federal statute are exceptions, a prior owner's personal income tax liability does not attach to the land in a way that overrides the current registered owner's indefeasible title. The tax debt is a personal obligation of the former owner, not an encumbrance that runs with the land under the Torrens system.

Q: What background knowledge is needed for this Real Property Law question?

BC's Torrens system, established by the Land Title Act (RSBC 1996, c. 250), provides that a registered owner holds indefeasible title, meaning their ownership cannot be challenged except in limited circumstances. Section 23(2) lists specific statutory exceptions including: charges or liens created by statute, rights of persons in actual occupation, easements, expropriation rights, and fraud in which the registered owner participated. Understanding these exceptions is essential because they define the limits of the title guarantee that the system provides.

Q: What is a good way to remember the answer to this Real Property Law question?

Remember SAFE for indefeasibility exceptions: Statutory charges/liens, Adverse claims by occupants, Fraud by the owner, and Expropriation rights. If it does not fit into SAFE, it is likely not an exception. When an exam question asks about exceptions to indefeasibility, run through the SAFE acronym. If the option does not match any of the four categories, it is probably not a valid exception.

Q: What exam tip applies to this Real Property Law question?

When answering questions about indefeasibility exceptions, look for the option that describes a personal obligation rather than an interest in the land itself. Personal debts of a former owner generally do not override registered title.

Q: How does this Real Property Law concept apply in real world practice?

A buyer purchases a home and registers title at the Land Title Office. Later, CRA contacts the buyer claiming the previous owner owed $50,000 in income tax and wants to place a lien on the property. The buyer's indefeasible title protects them because the prior owner's personal income tax debt is not a statutory exception to indefeasibility. CRA must pursue the former owner personally, not the property.

Question

Real Property LawBCMEDIUM

Under Section 23(2) of BC's Land Title Act, which of the following is NOT a statutory exception to indefeasibility of title?

Answer Options

A

A charge or lien created by a provincial or federal statute

B

An adverse claim by a person in actual occupation of the land

C

The failure of a previous owner to pay income tax

D

A right of expropriation conferred by an enactment