A property's certificate of title, registered at Alberta's Land Titles Office, tells a much bigger story than most buyers realize. Here are the title issues that come up most often — and what usually needs to happen to resolve them before closing.
Caveats
A caveat is a registered notice protecting someone's legal or financial interest in a property — it could relate to an unregistered agreement, a builder's lien, a matrimonial property claim, or an easement. Not every caveat is a problem, but each one needs to be identified and understood before you close.
Encumbrances and Registered Interests
Utility right-of-way agreements, restrictive covenants (common in newer Calgary communities with architectural or landscaping controls), and easements can all be registered against title. Most are routine, but some can meaningfully limit what you can do with the property.
Liens
Unpaid contractors can register a builder's lien against a property under Alberta's Prompt Payment and Construction Lien Act. If the seller has done recent renovations, confirming there are no outstanding liens — or that they'll be discharged at closing — is an important step.
Encroachments
Where a fence, deck, or other structure crosses a property line, this typically surfaces through a Real Property Report or survey. Depending on severity, this might require a simple encroachment agreement, a boundary adjustment, or — in rare cases — become a deal-breaker.
Judgments Against the Seller
A court judgment against a seller can attach to their property. A proper title search and, where needed, a personal property registry search help confirm the seller can actually deliver clear title at closing.
Frequently asked questions
Do all title issues need to be fixed before closing?
Not necessarily — some encumbrances (like standard utility right-of-ways) are normal and don't need to be removed; others must be resolved or negotiated before you proceed.
Who pays to resolve a title issue discovered before closing?
This is typically negotiated between buyer and seller, often with the seller responsible for clearing issues that existed before the sale, but the specific resolution depends on your purchase contract.
Can I still get financing if there's an unresolved caveat on title?
Most lenders require clear title (or specific accepted exceptions) before funding, so unresolved caveats often need to be dealt with before your mortgage can close.
This article provides general information about Alberta real estate law and is not legal advice. Book a consultation with GSD Law Group to review your title search results.
Related reading: Title Insurance in Alberta · What Happens If a Real Estate Deal Falls Through in Alberta?
Contact GSD Law Group: Westwinds (403) 455-2151 · Savanna (403) 475-2157
