Laura, a real estate associate, is assisting her client, Mr. Henderson, with the sale of an inherited farm property east of Edmonton. During the process of obtaining an updated Land Titles Certificate, she discovers an old caveat registered 35 years ago by a distant relative claiming a right of first refusal that was never exercised. What professional advice should Laura give Mr. Henderson regarding this caveat?

Question: Laura, a real estate associate, is assisting her client, Mr. Henderson, with the sale of an inherited farm property east of Edmonton. During the process of obtaining an updated Land Titles Certificate, she discovers an old caveat registered 35 years ago by a distant relative claiming a right of first refusal that was never exercised. What professional advice should Laura give Mr. Henderson regarding this caveat?

Answer options:

• Advise Mr. Henderson that the caveat automatically expires after 30 years and does not need to be addressed.
• Tell Mr. Henderson to ignore it, as old caveats are not typically enforced. ✅ Explain that the caveat represents an active claim that must be formally discharged or removed, possibly requiring legal action if the claimant cannot be located or is uncooperative, as it affects the ability to provide clear title.
• Suggest that Mr. Henderson can simply sign a statutory declaration stating the caveat is obsolete, and the Land Titles Office will remove it.

Correct answer: Explain that the caveat represents an active claim that must be formally discharged or removed, possibly requiring legal action if the claimant cannot be located or is uncooperative, as it affects the ability to provide clear title.

Explanation: A caveat, such as one claiming a right of first refusal, remains on title until it is formally discharged or removed, even if old. While the enforceability of such an old claim might be questionable, it still constitutes an encumbrance under the Land Titles Act that must be addressed for clear title.