Standard 9: Ensuring Sound Transactions
The land trust works diligently to see that every land and conservation agreement transaction is legally, ethically and technically sound.
Background
A land trust usually intends to protect the property it conserves in perpetuity. To help secure the perpetual conservation of land, its transactions must hold up over time and withstand challenges. Sound transactions rely on the land trust performing “due diligence” in its transaction steps. Land trust representatives need not be lawyers, but they must have good legal advice, and they should familiarize themselves with basic principles of real estate and tax law. The land trust should draw a landowner’s attention to issues that must be addressed as the transaction proceeds. However, a land trust should not represent itself as giving specific legal or financial advice; a landowner’s own advisors should do that. A land trust may have to call on other financial and technical experts in order to complete the transaction. Carefully documenting the steps a land trust takes in performing its due diligence can help secure the perpetual conservation of the property.
Relevant Law
- Property Law Act, RSBC 1996, c. 377, s. 35.
- Land Title Act, RSBC 1996, c. 250, s. 218-223.
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I; see:
- Environmental Management Act, SBC 2003, c. 53, s. 40
- Contaminated Sites Regulation, BC Reg. 375/96, as am., s. 3.
- Land Title Act, RSBC 1996, c. 250, Parts 10 and 10.1
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I;
see Income Tax Technical News No. 26 at:
- Taxation (Rural Area) Act, RSBC 1996, c. 447.
- School Act, RSBC 1996, c. 412.
- Police Act, RSBC 1996, c. 367.
- Property Transfer Tax Act, RSBC 1996, c. 378.
- Social Service Tax Act, RSBC 1996, c. 431.
PRACTICE
I. Registration
All land and conservation agreement transactions are legally recorded at the appropriate records office according to municipal and provincial law.
Background
Recording is the process of placing a document on file with a designated local public official for public notice. This is often required by provincial law to effectuate the transfer of property. Land titles are registered in the appropriate manner as required provincially. A land trust should be familiar with the law in its province regarding recording. A land trust should also be aware if their province has a marketable title act that requires periodic re-recording of documents.
Assessment Questions
BC Assessment Questions
- Does the land trust ensure that all land transactions are properly registered at the Land Titles Office by obtaining a title search following the completion of each transaction?
CLTA Assessment Questions
On a scale of 1 to 4, how compliant in the land trust with the following statement:
"All land and conservation agreement transactions are legally recorded at the appropriate records office according to municipal and provincial law."
