A Caveat was registered against a property 5 years ago by a former contractor for an unpaid balance of $5,000. The current seller is unaware of the contractor's current contact information. What is the seller's most effective action to clear this caveat before selling the property?

Question: A Caveat was registered against a property 5 years ago by a former contractor for an unpaid balance of $5,000. The current seller is unaware of the contractor's current contact information. What is the seller's most effective action to clear this caveat before selling the property?

Answer options:

• Simply ignore it, as caveats automatically expire after a certain period if not renewed.
• Sign a statutory declaration stating the debt is paid and submit it to the Land Titles Office for removal. ✅ Apply to the Court of King's Bench for an order to discharge the caveat, or follow the process under the Land Titles Act to compel the caveator to take action or have the caveat discharged.
• Ask the buyer to assume the debt, and the caveat will transfer to their name.

Correct answer: Apply to the Court of King's Bench for an order to discharge the caveat, or follow the process under the Land Titles Act to compel the caveator to take action or have the caveat discharged.

Explanation: Under the Land Titles Act, a caveat does not automatically expire and must be discharged. If the caveator cannot be located or refuses to discharge it, the owner must apply to the Court of King's Bench for an order to discharge, or initiate the process outlined in the Act whereby a notice is sent, compelling the caveator to commence an action to prove their interest, failing which the caveat is discharged.