Which of the following interests would MOST likely survive a transfer of title under Alberta's Torrens system as a statutory exception to indefeasibility?
Correct Answer
D) Unpaid municipal property taxes
Land Titles Act s. 61(1)(b) makes every certificate of title subject, by implication, to all unpaid taxes, so unpaid municipal property taxes bind the land even though they are not shown on title. A lease survives under s. 61(1)(d) only if it is for 3 years or less and the tenant is in actual occupation, so an unregistered five-year lease does not qualify.
Why This Is the Correct Answer
All unpaid taxes are an implied condition of every certificate of title under s. 61(1)(b). A buyer takes the land subject to them even if they are not on the title, which is why buyers' lawyers obtain a tax certificate before closing.
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