Execution Search

[Gmangg]

Is an execution search the same as a title search? Should you have both of these done or just the title search?

[Rob]

They are two different searches.  An execution search finds any court proceedings filed against the property.  A title search finds any outstanding mortgages.  A place that provides a title search often includes an execution search for the same cost.

Execution Search

An execution is a judgment issued by a court of law against a person or a corporation and filed with the local Sheriff’s Office. The execution states that the person or corporation owes a certain amount of money to another party (the “Execution Creditor”). Often, the Execution Creditor is the “Crown”, for example, Canada Revenue Agency or the Minister of Finance. It is vitally important to find out if there are any executions in favor of the Crown against the owner of a tax sale property.  If there are, and you buy the property, you will be responsible to pay the amounts owing under those executions. If you do not pay those amounts, the Execution Creditor could seize the land you just bought and sell it. If the Execution Creditor is not the “Crown”, the execution will not affect the property after the tax sale, so you do not have to be concerned with it. In order to find out if there are any executions against the owner of a property it is necessary to conduct an execution search for that particular county, region or regional municipality.


Title Search

A title search is a search of the records of the title to a particular parcel of land. A title search will reveal vital information about the property, including, but not limited to, who owns the property, what mortgages, easements, restrictive covenants or other interests affect it, and if there are any surveys registered on title.

[jreist]

OK, What does this mean.  I went to the registers office and did my title search myself. They showed me the books and I searched them to see if there was any charges against the land and there were discharged.  Did that tell me what I need?  How do I do an Excution search?

[Frank]

Once you have done your title search, you will have everything you need to do a sherrif's office search of the owner to ensure that there are no crown executions against them.  Go to the local sherrif's office (usually in the same building as the Registry office, and provide them with the exact name of the owner, they will (for a small fee) then run that name through their computer and provide you with the results.

[jreist]

I just phone up the local register office and they told me that I can do the excution search there and the search is against the person name. So you would be searching to see if there is any exuctions on that person personally. 

Question?  A company can register a lean on a property against money owed, but a excution is against the person. When you buy the the land is that person name taken off that property?  Looking at it, if afterwards if the crown goes after that persons assets it would not include that property for he does not own it. Would that not be so???

[jreist]

Question?  Just phoned the township office to confirm the names. They where both from the states, who bought this land back in the early 60's. Would there be crown leans against them?

[Rob]

Basing a decision on whether they are from the United States and bought the property in the 60s would not necessarily tell you if there is a crown lien on the property.  You could make a guess based on that information but it would be the same as me saying, the owners have lived in the property for 1 year so there should be no crown lien against them.

[jreist]

Question?  A company can register a lean on a property against money owed, but a excution is against the person. When you buy the the land is that person name taken off that property?  Looking at it, if afterwards if the crown goes after that persons assets it would not include that property for he does not own it. Would that not be so???

[Frank]

If there is a writ of execution that is in favour of the crown or any of its agencies against the individual(s), or corporate entities which own the property.  And - if that writ is against them -and- their 'assets' - then it is automatically also against the property which they own.  Crown liens against a property - whether registered on title or otherwise (as in writs of execution at the Sherrif's office) remain as a liability after a tax sale.  I've seen it happen and you won't have a chance in hell of getting the crown to remove it.

[bearowski]

Frank is absolutely correct.... I had convo with my Real Estate Lawyer on a recent opportunity and the feedback was exactly as Frank suggests..... 

[Gmangg]

So just to be on the safe side of an example here.

If the person who owns the property has a crown lien (ex. owes $10k in personal income tax) then if you win the tax sale you will owe $10k to revenue canada as the have put a crown lien on property. Now if you do a execution search on the person and it shows they owe let's say $10k for a mechanic's bill (mechanic liens are usually put on vehicle's but you catch my drift) then this judgement against this person's assets (home is this case) has nothing to do with your tax sale.

I just want to be 100% sure this is the case.

Thanks,

[Frank]

George

Yes, the crown lien stays with your property - as well as any other assets of the former owner, it may be your luck that the crown gets settled through some other forclosure or payment from those assets, however don't bank on it - ultimately you are also on the hook through this property acquisition.

Any other lien (mechanic's for example) disappears with the tax sale, just as any financial charges on the property from mortgage companies disappears through the process.

ps. Bear, thanks for the vote of confidence.   I pulled a muscle in my back a couple of days ago (golfing) and it needs a good rub.

[mwarrior]

Hmmm not sure if this comes under Liens but what if the property owner has a non-crown Writ against him? So it IS a writ of execution filed with the Sheriff, but it is by an individual and not the crown. Would that also survive a tax sale?? I know a writ prevents a property owner from selling the property themselves unless they've satisfied the judgment, but Tax sale I'm just looking into now so I'm very curious.

[Frank]

Only crown liens, encroachments, and easements survive a tax sale.  Other writs are gone, they have to go to court after the sale to compete for any 'excess proceeds' from the sale.  Don't forget all interests in these properties were served with notice before the sale, and they had the opportunity to come forward with the amount of taxes owing and return they would have received a secured interest in the property.