When reviewing a property title, you’ll likely come across registered instruments, such as restrictive covenants, encumbrances, or caveats.

Understanding these instruments is a crucial part of due diligence, helping to minimize risks and ensure smooth transactions. If you’ve ever pulled a title but skipped reviewing the registered documents (or read them without fully understanding their implications), it’s worth reconsidering your approach.

Learn from the experiences of a REIX-insured licensee—click here to read more. 

For buyer’s agents 

Registered instruments can have long-lasting impacts on a property, so it’s essential to understand their implications. For instance, your buyers may love a home but dislike the chain-link fence between properties. They might plan to replace it with something taller or more private. However, it’s not always that simple. 

Some registered instruments, like restrictive covenants, are tied to multiple properties in a neighbourhood. If your buyers want to remove a covenant, such as one dictating fence styles, it would need to be removed from all the properties it applies to—not just theirs. 

This process could involve getting agreement from many property owners. For example, a covenant registered on five properties might seem manageable, but if it’s tied to 110 neighbouring properties, it could turn into a deal-breaker for your buyers. 

To help your clients understand the scope of these restrictions, SPIN 2 (the platform for searching and ordering land titles and documents) can provide critical information. Here’s how to use the search function: 

1. Log in to SPIN 2. 

2. Navigate to the Search section. 

3. Select Titles and Registered Documents. 

4. Choose Registered Documents and then Document Current Title List. 

5. Enter the document’s registration number. 

The results will show how many titles the instrument is registered on, along with the specific title numbers. This knowledge can help your clients make informed decisions about moving forward with a purchase. 

For listing agents 

As a listing agent, it’s vital to understand the registered documents tied to a property when creating the listing on the MLS^® System. If the property has a restrictive covenant, take the time to read and confirm whether the restrictions are still in effect. Make sure to select the appropriate option(s) in the “Restriction” field when entering the listing details. 

Additionally, remember that registered instruments on a title can change during the course of a listing. Stay up-to-date on these changes to avoid unexpected surprises during the transaction. This simple step not only reduces risks but also reinforces your role as a trusted advisor to your clients. 

By being proactive and knowledgeable about what’s on title, both at the time of listing and offer, you’ll enhance your client’s experience and demonstrate the value you bring to the table. 

Check out the SPIN2 Search video under the Business Building category of CREB^®’s microlearning series for a step-by-step guide to pulling title.

Hot tip

Updates are coming to the Alberta Registry for Land Online (ARLO) in late February! These enhancements will improve search functionality, streamline client service, and provide more valuable information for real estate transactions.

• Improved search options – In addition to searching by plan/block/lot details, you’ll now be able to search by title number and LINC (Land Identifier Numeric Code) number. Purchased titles will be sent directly to your email as a PDF.
• Enhanced client service – A new, streamlined contact form will make it easier to submit inquiries and receive timely responses.
• Pending Registration Queue (PRQ) update – Titles will now include additional details relevant to real estate transactions.

Stay tuned for more details in the next CREB^®Talk title update!