During a routine title search for a commercial property in Toronto, a lawyer discovers a 'Writ of Seizure and Sale' registered against the current owner. How does this encumbrance typically impact the sale of the property?

Question: During a routine title search for a commercial property in Toronto, a lawyer discovers a 'Writ of Seizure and Sale' registered against the current owner. How does this encumbrance typically impact the sale of the property?

Answer options:

• The writ automatically expires upon the property being listed for sale. ✅ The seller is legally required to resolve the debt associated with the writ before or at the time of closing for the title to be clear.
• The buyer automatically assumes responsibility for the debt associated with the writ upon closing.
• The writ only affects the personal assets of the seller, not the specific property being sold.

Correct answer: The seller is legally required to resolve the debt associated with the writ before or at the time of closing for the title to be clear.

Explanation: A Writ of Seizure and Sale (also known as a Writ of Execution) allows a creditor to force the sale of a debtor's property to satisfy a judgment. For a clear title to be conveyed, any such writ must be satisfied and removed from title before or at the time of closing.