Which of the following interests would MOST likely survive a transfer of title under Alberta's Torrens system as a statutory exception to indefeasibility?

Q: What is the correct answer to: Which of the following interests would MOST likely survive a transfer of title under Alberta's Torrens system as a statutory exception to indefeasibility?

The correct answer is A municipal tax lien. Municipal tax liens are a statutory exception to indefeasibility under the Land Titles Act. They bind the land itself, not just the owner, and survive title transfers. This ensures municipalities can always collect outstanding property taxes from the current owner, regardless of when the tax arrears were incurred.

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

Statutory exceptions to indefeasibility protect certain public interests that the legislature deemed too important to subordinate to the registration system. These include municipal tax claims, certain Crown interests, and public highways. These exceptions ensure essential government functions are not defeated by property transfers.

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

Tax liens STICK to the land like glue — no transfer can wash them off. The municipality always gets paid. Think: 'new owner, same tax bill.' Taxes are the stickiest exception. When asked what survives a title transfer, think about what the government absolutely needs to collect. Tax liens are the most common correct answer for statutory exceptions.

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

Among the statutory exceptions to indefeasibility, municipal tax liens are the most frequently tested. They always bind the land regardless of ownership changes or registration status.

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

A buyer purchases a foreclosure property in Fort McMurray at a discount. After closing, they discover $8,000 in outstanding municipal property taxes from the previous owner. As a statutory exception to indefeasibility, the tax lien binds the new owner, who must pay the arrears to avoid tax sale.

Question

Real Property LawABMEDIUM

Which of the following interests would MOST likely survive a transfer of title under Alberta's Torrens system as a statutory exception to indefeasibility?

Answer Options

A

An expired listing agreement

B

A municipal tax lien

C

A personal promise to sell

D

An unregistered verbal lease for two months