Legal Blog

Trust Under Land Titles

A purchaser’s solicitor conducts a search of a land titles property. The deed in which the vendor took title refers to the owner in trust and contains a land transfer tax affidavit with the terms of the trust attached. The solicitor requisitions a transfer of the beneficial ownership to the vendor. The reply states that the Land Titles Act (the “Act”) does not recognise trusts and that, therefore, nothing is needed from the beneficial owner. Who is right?

No Caution

The beneficial owner had not registered a caution under the Act. As a result, Chapnik J. held that the vendor had an absolute right to deal with the property: Re Randvest Inc. and 741298 Ontario Limited (1996), 30 O.R. (3^rd) 473. Justice Chapnik referred to section 62 of the Act, which states that notice of an express, implied or constructive trust may not be registered and that the trustee owner of land may deal with it, subject to the registration of a caution or inhibition.