Chain of title

A chain of title is the chronological sequence of ownership, transfers, and legal interests affecting a property over time. It establishes the historical record of who owned the property, how ownership changed, and any encumbrances (e.g., mortgages, easements) or legal restrictions (e.g., by-laws, Planning Act controls) affecting the land. In Ontario, a thorough chain of title is critical for real estate transactions to confirm clear ownership and compliance with legal requirements, particularly under the Registry Act, Land Titles Act and the Planning Act.

Before conducting any kind of inquiry into title, you must be sure to know the name and identification number of the land registry office (“LRO”) in which the property is located.

• Chain of title worksheet

1. History of ownership

• Traced back 40 years (or longer) to establish a “clear chain” to the current owner.
• Includes grants, transfers, leases (over 21 years), and other legal documents affecting ownership.

2. Legal descriptions

• Verifies that property boundaries and descriptions in deeds, plans, and abstracts align.
• Identifies discrepancies (e.g., “part of a lot,” “part inal,” or subdivided parcels).

3. Encumbrances and restrictions

• Documents mortgages, liens, easements, restrictive covenants, and Planning Act controls.
• Reviews by-laws, subdivision plans, and validation certificates.

4. Compliance with the Planning Act

• Ensures no illegal subdivision or part lot transfers occurred during the Planning Act period (June 15, 1967, or June 27, 1970, onward).
• Confirms exemptions (e.g., whole lots on registered plans of subdivision).

1. Current owner

• Use the abstract of title or POLARIS parcel register to identify the current registered owner and legal description.

2. Trace back by name and description

• By Name: Follow prior owners in the abstract book or registry index (e.g., “John Smith conveys to Jane Doe”).
• By Description: Reconcile property descriptions in deeds, plans, and by-laws (e.g., “Lot 1, Plan 649”).
• Other documents may affect title but not include a matching name or description for the subject property. Be sure to gather all title documents.

3. Verify legal access and boundaries

• Confirm access to public roads and review road pages in the abstract index for closures or widenings.
• Use subdivision plans, reference plans, and Teraview maps to map abutting parcels.

4. Address complex scenarios

• Intestate Estates: Identify if ownership passed to heirs without a will.
• Name Changes: Account for marriages, divorces, or corporate reorganizations.
• Historical Gaps: Investigate missing links (e.g., deeds dated centuries earlier but recently registered).
• Subdivision and assembly: property owners may subdivide lots into smaller units and sell these units to individuals. Individuals may similarly assemble a group of lots from their individual owners. In these cases, further investigation of each of the lots either subdivided or assembled is required to ensure that no Planning Act violations have occurred.

5. Document findings

• Create a chain of title diagram (or “tree of title”) showing owners, dates, and descriptions.
• Include a sketch of the property and abutting lands with color-coded boundaries.