Encumbrances

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A transmission and transfer by a licensed insolvency trustee (formerly called a trustee in bankruptcy) must be made subject to those encumbrances registered by secured creditors. A receiving order does not have precedence over the rights of a secured creditor. The holder of a judgment (including a judgment for support or maintenance) is not a secured creditor.


Where the trustee intends for title to issue free and clear of encumbrances registered by unsecured creditors like judgments, those encumbrances must not be listed in the transmission or transfer. Title will issue subject to all encumbrances registered by secured parties, and also to all encumbrances listed in the transfer or transmission.


The district registrar will not lapse a judgment or similar encumbrance that has been carried forward to a title created by a transfer from a licensed insolvency trustee (formerly called a trustee in bankruptcy) where the transfer was made subject to that encumbrance. Such encumbrances can be removed by way of a discharge from the registrant, or, where they were extinguished by the bankruptcy and the creditor is not willing to provide a discharge, by way of the thirty day notice process.

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