A lawyer must search the Land Registration Office for debentures which may affect the parcel.
A lawyer must examine the terms of a floating charge debenture to determine whether the proposed disposition of an interest in real property is permitted. If the lawyer determines that the proposed disposition is permitted, the lawyer should not require a release unless a notice of crystallization has been recorded,1 or the lawyer or the client has reason to believe that the floating charge has crystallized.
When a lawyer is conducting a search of title of a parcel that has been registered pursuant to the Land Registration Act, the lawyer must examine all fixed charges, and all floating charges for which notice of crystallization has been recorded,2 which are contained in debentures recorded against the parcel. The lawyer must obtain and record, in a timely fashion, discharges for those charges being discharged.
- If the proposed disposition is not permitted, then the lawyer must obtain the holder’s written consent to the proposed disposition.
- Land Registration Act, S.N.S. 2001, c. 6, s. 53(3). See also s. 49(1) regarding priorities.
Amended by Council on November 25, 2022