Certificate Of Lis Pendens CLP In Alberta
Certificate Of Lis Pendens Registrations At Land Titles In Alberta
A Certificate of Lis Pendens is also referred to as a CLP. It is a document registered at the Alberta Land Titles Office. Understanding them is critical if selling or refinancing a home. They also come into play if you need to secure a potential obligation against real property. Read below for a better understanding of Certificate of Lis Pendens. If you require further legal assistance, please feel free to reach out to our real estate lawyer or our real estate litigation lawyers, depending on your situation. With offices in both Calgary and Edmonton, Kahane Law Office is happy to help.
What Is A Certificate Of Lis Pendens
A Certificate of Lis Pendens is a document, a certificate, registerable at the Alberta Land Titles office. The term originate from Latin, meaning “pending suit”. Specifically, it means that there is a pending law suit. The document itself, does not confirm the absolute owing of funds. It similarly does not represent any indication of a successful lawsuit. It merely posts a warning that a law suit is pending.
How To Register A CLP
In Alberta, to register a CLP or Certificate of Lis Pendens, the commencement of a law suit is a prerequisite to filing a CLP. Usually, the filing of both the action itself and the CLP are done at about the same time to protect the Plaintiff’s interest. The form needed to cause the Registrar to add the interest to title is a simple one page form. The page exists as a free down load from the Alberta Land Titles Office Procedure Manual. As below, a Plaintiff’s interest in land requires a tie in or claim to an actual interest in the land the person wishes to register the Certificate of Lis Pendens on. The register a CLP is based on legislation or statue. This mean, for example, that attention to all statutory requirements is an absolute.
When Are Certificate of Lis Pendens Used?
Since a Certificate of Lis Pendens requires a specific interest in the specific property a person wants to register against, certain types of claims make up most of the CLP registrations. For example, matrimonial or divorce law, defaulted on mortgages and Builder’s Liens make up the bulk of these registrations. Other situations also exist, such as promissory notes, and specific claims to a property. The registration acts as a placeholder to secure the interest. This requirement exists since the land titles system uses a “first in time is first in line” basis. This means that a registration on title that is registered before another registration, has priority to the second registration. While some exemptions exist, such as for tax claims to the CRA, it is almost always better to be registered sooner than later. Further details of the common registrations are included below:
Matrimonial Property
In a divorce, either or both parties to the marriage may file a Certificate of Lis Pendens to protect their interest in matrimonial property. It is an unusual registration in that in some instances, people register the CLP against property that they have ownership of. The registration prevents the selling or refinance of the property pending the outcome of negotiation or litigation of the division of matrimonial property assets. Unless a person has a finalized agreement in writing for the division of matrimonial property, it is extremely important for them to consult with their family law lawyer to ensure the sale is possible. Failure to do so, often results in a severely impacted negotiation position.
Builders’ Liens
As a part of the Builders’ Lien legislation a party who registers a lien, has a positive duty to commence litigation within a very specific time frame. Due to the nature of Builders’ Liens, most people have an interest in the property claimed against. Once the builder or supplier of goods starts the claim, the next step is to register the Certificate of Lis Pendens. This then further protects their interest.
Mortgage Foreclosures
Lastly, by way of examples, are foreclosures. Again, when foreclosing against a specific property, the lender, by the very nature of the mortgage, has an interest in the property. The filing of the Certificate of Lis Pendens lets people looking at title know that the property is in foreclosure.
How To Discharge A CLP
Like most registrations at land titles, the form to discharge a CLP is available in the procedure manual. Technically, the form and process is to “withdraw” the CLP. Once a person completes and submits the form for registration at the Land Titles Office then removed the CLP from the title to the property. Of course, this type of discharge occurs once resolution of the matter between the parties occurs. A person lacks the ability to just file a discharge of a CLP on their own property.
Why Dealing With Certificate Of Lis Pendens Is Important
Addressing CLPs on title is important in many situations. If selling a property, it tells potential buyers that their is an ongoing foreclosure. Likewise, it shows that a property is in the process of sale during a divorce, if that is the registration on title. Further, when selling a home, all debts on the property requirement payment in full. This means that to discharge the Certificate of Lis Pendens, a person must either negotiate a way to have it removed or pay the amount claimed in full. If you enter into an agreement to sell your home without the ability to remove the CLP, you face a lawsuit by the buyers for breach of contract.
Legal Law With Certificate Of Lis Pendens
Kahane Law Office is happy to help with both the commencement of litigation, the registration or the defence of Certificate of Lis Pendens. Navigating the law properly is key to maximizing your likelihood of success. Our Calgary and Edmonton lawyers help when you need it. Please feel free to call or email if any questions about Certificate of Lis Pendens come up for you. Our team includes lawyers on the real estate, litigation and matrimonial side of the law. We work together as a time to provide value to our clients.
Please email our lawyers directly anytime here. Email is often the fastest way to connect. It also allows us to provide you information about your situation and / or the process and fees. Alternatively, we also look forward to speaking directly with you in our Calgary office at 403-225-8810. For clients who live in Edmonton or the Edmonton area, please call (780) 571-8463.