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Income and Employment Supports Act

Published Date: January 01, 2004
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Part 6 Recovery and Offences (Sections 34-42)

Section 40 Caveat to secure payments

  1. When assistance is provided under Part 2, Division 1 to meet

    1. the payments on a land mortgage,

    2. the payments under an agreement for sale of land, or

    3. the costs of repairs to buildings or other improvements to land,

    the Director may cause a caveat in a form prescribed by the Director to be registered in the land titles office against the certificate of title for the land.

  2. On the registration of the caveat, the Director has a charge on the land equal to

    1. the amount by which the principal sum of the mortgage or agreement for sale has been reduced since payments referred to in subsection (1) were commenced, or

    2. the costs of repairs made to buildings or other improvements to the land referred to in subsection (1).

  3. On receiving the caveat, the Registrar of Land Titles shall send a notice of the caveat to

    1. the mortgagor, when payments are made for a mortgage,

    2. the purchaser, when payments are made under an agreement for sale, if the purchaser’s address can be ascertained from the certificate of title, and

    3. the person who has received assistance, when payment of the costs of repairs to buildings or other improvements to the land has been made.

  4. Notwithstanding section 138 of the Land Titles Act, a caveat registered pursuant to this section does not lapse and shall not be cancelled or withdrawn except on the Director’s request to withdraw the caveat.

  5. No fees are payable to the Registrar for the registration or withdrawal of a caveat under this section.

  6. The Director may waive the rights given by this section, in whole or in part, for the purpose of any proceedings or for any other reason the Director thinks is proper.