Registering a judgment against land
I have previously written about pre and post judgment garnishing orders as well as the types of funds subject to garnishment. However, there are other methods of enforcing a judgment beyond garnishing the debtor's wages or bank accounts.
If the person or company whom the creditor has a judgment against owns real property in British Columbia, that creditor can register the judgment against that property (s.210 Land Title Act RSBC 196 ch. 250). This applies to both judgments obtained in the Supreme Court and Provincial Small Claims Court. The registered judgment will show up as a charge against the title to the debtor's land. If the creditor is uncertain as to whether or not the debtor owns land, the creditor can do a name search at a land title office for a modest fee. Alternatively, the creditor may wish to have a lawyer or notary provide the same service. By having the judgment registered against the debtor's land, it makes it very difficult for the debtor to sell, mortgage or re-mortgage that property without first paying the judgment.
However, if the debtor does not plan on selling or mortgaging their property, the creditor will not be able to realize on their judgment unless positive steps are taken to force the sale of the property. Discussing the forced sale of the property will be left for another day, but suffice it to say it is an expensive and time consuming process with no guarantee of the desired outcome.
The registered judgment is good for two years and can be renewed every two years. Judgments are effective for 10 years at which point they can also be renewed. There is a greater likelihood that the debtor may sell or re-mortgage their land over a long period of time, therefore it is a good idea to renew the judgment when required.
Where the debtor's property is owned jointly with someone else, certain complications can arise that can limit the effectiveness of the judgment. The judgment can still be registered against the debtor's interest in the property; however, if the debtor passes away, the creditor's claim may vanish due to the right of survivorship.
In conclusion, it is prudent to register a judgment against a debtor's land. It is a simple and inexpensive process and can be very effective when the debtor wishes to sell or re-mortgage their land. In my next blog, I will discuss examining the debtor under oath as to their ability to pay the judgment and seizing assets to satisfy the judgment.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
