Subdivisions with ownership changes

When adjacent land owners come together to subdivide their properties, the lots on the plan of subdivision won’t align with existing title boundaries. This is because some but not all of the lands will be changing hands during the course of the subdivision process. Transfers of land will be required to achieve these changes of ownership.

This section outlines the procedures for registering a plan series where there are ownership changes as a result of the subdivision process. We will focus on transfers, land descriptions, discharges, amending agreements and series order related to these changes in ownership.

Sample series with ownership changes

Scenario

John wants a bigger lot. Larry has agreed to sell John part of his property. John currently owns CT #1, and will be purchasing those portions of CT #2 and CT #3 contained with the limits of Lot 2 shown below.

1 - Owned by John

  Current legal description: Lot 1 Plan 1234 WLTO

2 – Owned by Larry

  Current legal description: Lot 2 Plan 1234 WLTO

3 – Owned by Larry

  Current legal description: Lot 3 Plan 1234 WLTO

The current title boundaries do not align with the boundaries created in the plan

• John and Larry both own a portion of Lot 2 on the new plan
• Larry must transfer part of his titles to John
• The residual portion of Larry’s titles will become Lot 1 on the new plan
• A request to issue title to Larry for Lot 1 is required

Subdivision series requiring ownership changes to support the new lot boundaries will require the following:

• Transfers of land
• Consolidations of land
• Dealing with encumbrances on affected titles
• Title requests

Order of registration for this scenario

The steps used in this example can be applied to plan series where there are ownership changes.

1. Full discharges (DF) and part discharge that affect all of the land (APD)
2. Plan (checklist in place of plan)
3. Part discharge (PD – releasing PART of a title)
4. Transfers to change ownership of parts of lots (with consolidation instructions in box 6 or 14 )
5. Title request (TREQ) to consolidate (if consolidation has not been not set out in the transfer registered prior)
6. Amending agreements adding land
7. Title request (TREQ) for the remaining lots and residual lands
8. Subsequent transfers and encumbranc

Transfers and consolidations

Transfers

A plan of subdivision with boundaries that do not align will require transferring of part of title and consolidation with other title(s) to form each new entire lot(s).

The following land description format is used when describing land being conveyed in a boundary realignment:

ALL THAT PORTION OF

INSERT FULL LAND DESCRIPTION OF THE TITLE AFFECTED BY THE TRANSFER

*including any existing mines and minerals exceptions*                      

CONTAINED WITHIN THE LIMITS OF LOT __ PLAN _______ WLTO (DEP ___/__)

How this relates to the scenario:

A transfer of land from Larry to John will be registered in series with the plan, for the portion of Larry’s titles now contained within the limits of Lot 2 on the new plan.

Using the land description format noted above, the transfer from Larry to John will read as follows:

ALL THAT PORTION OF

Lots 2 and 3 Plan 1234 WLTO in SW ¼ 1-1-1 WPM

CONTAINED WITHIN THE LIMITS OF LOT 2 PLAN _______WLTO (DEP 123/19)

Consolidation

Teranet Manitoba will not issue a title for part of a lot within a new plan. When entire lots are not owned by the same parties, both a transfer and consolidation will be required. As well, encumbrances may have to be amended or discharged to accommodate the new lot lines.

The consolidation can be achieved in the following ways:

1. By indicating a consolidation is required in Box 6 or 14, Title Issuing Instructions of the eTransfer form and adding wording to the effect of: “Please consolidate with all of Title 1234567/1”; or
2. A request/transmission (TREQ) to consolidate. This request will be registered subsequent to the transfer, and will issue title for the entire lot.

How this relates to the scenario:

The title issuing from the transfer must be consolidated with John’s existing title to form all of Lot 2 on the new plan.

The consolidation request will be indicated in Box 6 of the eTransfer form:

This will allow us to issue the title to John Smith for all of the newly created Lot 2.

Fair market value

Where you are only transferring part of a title, the fair market value set forth in the transfer should be for the value of the land actually changing hands. It should not be the value of the land once consolidated nor should it be the value of the all the land in the affected title.