Remedies if Title is Defective

Defective land title and its remedies under RERA

Question:

If there is a matter of title which the Seller can’t remove, for example like previous owner gives a right of way, is Buyer obligated to buy?

Answer:

Any title objection must be submitted within the requisition period. Afterwards is too late.

Even “in time” might not be good enough. The Buyer agrees to accept title insurance instead of “good title”, so if the Seller can obtain title insurance and provide that to the Buyer then the Buyer has to take it.

If title insurance is not available then the Buyer is obligated to proceed. The agreement comes to an “end”. Please note this is not the same as the contract being declared “null and void”.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com

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