Registering a Judgment Against Land in BC

Getting a money judgment does not put money in your account. If the person who owes you owns real estate in British Columbia, registering the judgment against their title is often one of the most practical next steps.

Registration creates a charge on the land, but it has a shelf life and it does not sell anything by itself. Here is how the process works, what keeps it alive, and when a court application is needed.

What registering a judgment does

Under the Court Order Enforcement Act, a judgment entered in British Columbia can be registered against the title to specified land in the land title office. From the time it is registered, the judgment forms a lien and charge on that land, as if the debtor had signed a charge in writing (s 86).

The charge attaches to the debtor's beneficial interest in the land. The Act's definition of land is wide: it includes the interest of a joint tenant or tenant in common, a mortgagor's interest, and a buyer's or seller's interest under a subsisting agreement for sale (s 81). If the debtor co-owns a home, the registration reaches the debtor's share, not the co-owner's. Our article on joint tenants and tenants in common explains the two forms of co-ownership.

Registration is one tool among several. For the wider picture, including garnishment and examinations, see enforcing a judgment in BC and garnishing wages and bank accounts.

How registration works

The judgment creditor applies under the Land Title Act to register the judgment against title, in the same manner as a charge, by delivering a certificate of judgment to the registrar (s 88(1)). A few points matter in practice:

• Which judgments qualify. Judgments and orders for the payment of money from the Court of Appeal, the Supreme Court, the Provincial Court and the Federal Court are included (s 81).
• The certificate. A Supreme Court certificate of judgment must be sealed and signed by the court registrar; a Provincial Court judgment is sufficient if certified as a true copy by the clerk or a judge (s 88(3) and (4)).
• Timing and priority. The time of registration is the day and hour the application is received (s 86(4)). Earlier registered charges, such as an existing mortgage, are already on title.
• Interests acquired later. If the debtor later acquires a further registered interest in the same land, a subsisting registration is treated as enlarged to cover it (s 86(5)).

Two limits are worth knowing. A judgment creditor is not treated as a good-faith purchaser for value (s 86(7)), and the registration is subject to the rights of someone who, before the judgment was registered, acquired an interest in good faith and for value under an instrument not yet registered (s 86(3)(c)).

Make sure you have the right owner

After registration, the registrar sends the owner a notice with a copy of the certificate of judgment by registered mail (s 89(2)). If the owner says they are not the judgment debtor, the registrar can inquire, take evidence and decide the question (s 89(5)). Where the registration is cancelled because the owner is a different person, the creditor must pay the owner $25 (s 89(11)), and the owner may apply to court for further compensation if the creditor registered without reasonable cause (s 90).

Common names make this a real risk. A title search, and a careful match between the judgment, the debtor's full name and the registered owner, should come before the application.

The two-year clock and renewal

A registration does not last indefinitely. Except for a non-expiring judgment, it stops being a lien and charge on the land two years after the application to register, or after the last application to renew, unless an application to renew is made before the two years run out (s 91(1) and (2)).

Missing the renewal date can be costly. A judgment can be registered again (s 86(10)), but a fresh registration takes its time from when the new application is received, so other charges registered in the meantime may now rank ahead of it. Diarise the renewal date the day you register, and renew for each title you have registered against.

A separate limit applies to the judgment itself. The Limitation Act generally bars a court proceeding to enforce a BC money judgment more than 10 years after it became enforceable (s 7). Long-running files need both dates tracked.

Forcing a sale of the debtor's property

A registered judgment often gets paid when the owner sells or refinances, because the charge must be dealt with to give clear title. If that does not happen, the creditor can apply to the Supreme Court in chambers, calling on the debtor and anyone holding the legal estate to show cause why the land, or the debtor's interest in it, should not be sold to pay the judgment (s 92).

• The court's inquiry. The court can decide the matter summarily, by trial of an issue or by inquiry before a court officer (s 93). An order typically refers the matter to a district registrar to find the land and the debtor's interest, identify other registered judgments and their priorities, and say how the sale proceeds are to be distributed (s 94).
• Order for sale. If the land is found liable to be sold, the court orders a sale by the sheriff (s 96(1)). Where the property is the debtor's home, the court may defer the sale on terms, such as payments (s 96(2)).
• Notice and timing. The sheriff cannot offer the land for sale less than one month after receiving the order, and must advertise the sale in the Gazette (ss 100 and 101).
• Costs. Costs of the application are in the court's discretion, and the creditor who first takes proceedings is generally entitled to costs in priority unless there is good reason otherwise (ss 94(3) and 99).

Whether a forced sale makes sense depends on the debtor's equity after mortgages and other charges, the debtor's share if the property is co-owned, and the cost and time of the application.

New legislation has been passed but is not yet in force

In 2023 the Legislature passed the Money Judgment Enforcement Act, which will replace much of this system when it is brought into force by regulation. As of the current BC Laws consolidation, it is not in force, so the Court Order Enforcement Act rules described here still apply. Because the change could affect how and when you register, renew or sell, check the status before you act.

Holding a judgment against a property owner? Get the registration and renewal right

Our litigation lawyers can confirm the judgment qualifies, search title, register and diarise renewals, and advise on whether an application for sale is worth pursuing, working with our real estate team where title questions arise.

Call 604-259-2844 or send us a message to arrange a consultation at our Vancouver office.