Land Title

The Core Promise in Section 5

At its core, Section 5 states that title to the property will be free and clear, except for certain permitted registrations. This does not mean the title will be blank. It means the buyer agrees to accept specific types of registrations that are common, lawful, or expressly assumed.

For buyers, this section defines what they cannot object to later.
For sellers, it defines what they are not required to remove.

Items Implied by Law – Clause (a)

Clause (a) allows for encumbrances or interests that exist by operation of law, even if they are not specifically listed.

These may include:

• municipal bylaws

• zoning regulations

• statutory rights or obligations
  
  

How this affects your client:
Buyers cannot later argue that general legal restrictions make title unacceptable. These are part of property ownership in Alberta.

REALTOR® role:
Help buyers understand that not all obligations appear on title — some exist because the law says they do.

Standard Non-Financial Registrations – Clause (b)

Clause (b) is one of the most important — and most misunderstood — parts of Section 5.

Buyers agree to accept non-financial obligations commonly registered on title, such as:

• easements

• utility rights-of-way (URWs)

• restrictive covenants

• architectural controls or conditions
  
  

These are registrations that:

• do not involve money owed, but

• may restrict how the property can be used, altered, or developed
  
  

How this affects your client:
Buyers may be surprised to learn that:

• a garage, shed, or deck sits on a utility right-of-way

• fencing, additions, or landscaping may be restricted

• removal or alteration may require consent — or may not be possible
  
  

Because these registrations are “normally found,” the buyer is agreeing upfront that their existence alone is not a reason to object.

Teaching moment:
This is why reading the actual registered documents matters — not just pulling the title.

Homeowner Association and Similar Registrations – Clause (c)

Clause (c) allows for homeowner association (HOA) caveats and similar registrations.

These may include:

• architectural guidelines

• maintenance obligations

• fees or levies outside of a condominium structure
  
  

How this affects your client:
Buyers may assume HOA rules are only for condos — they are not. These registrations can:

• affect exterior changes

• require participation in shared maintenance

• impose ongoing obligations
  
  

REALTOR® role:
Ensure buyers know these registrations exist and understand where to find the governing documents.

Items the Buyer Agrees to Assume – Clause (d)

Clause (d) covers any registrations or obligations the buyer explicitly agrees to assume in the contract.

This could include:

• encroachments acknowledged by the buyer

• shared access agreements

• specific easements disclosed and accepted
  
  

How this affects your client:
Once agreed to in the contract, these items cannot be raised later as objections. The buyer has accepted them knowingly.

REALTOR® role:
Make sure anything the buyer is assuming is:

• clearly identified

• discussed in plain language

• aligned with the buyer’s intended use of the property
  
  

Why Title Review Often Comes Too Late

In practice, title is frequently reviewed:

• after conditions are removed, or

• close to completion, through the lawyer
  
  

At that stage:

• timelines are tight

• leverage is reduced

• options are limited
  
  

Section 5 explains why many title-related concerns cannot undo a deal once the buyer has agreed to accept certain categories of registrations.

Key Risks for Buyers

Buyers are often surprised to learn that:

• “free and clear” does not mean “no restrictions”

• standard encumbrances are not defects

• objections must be raised early, not at possession
  
  

This section makes early title review a risk-management decision, not just a formality.

REALTOR® Responsibilities in Section 5

REALTORS® are not expected to interpret legal documents, but they are expected to:

• identify when title contains registrations beyond a simple mortgage

• flag potential use or development concerns

• recommend further review or legal advice when appropriate

• avoid downplaying standard registrations without understanding their impact
  
  

Why Section 5 Matters to Your Client

Section 5 determines:

• what restrictions the buyer accepts

• what obligations survive closing

• what cannot be used to renegotiate later
  
  

Understanding this section helps clients:

• avoid unpleasant surprises

• align expectations with reality

• make informed decisions about risk