What does an option to purchase or a right of first refusal on a BC title mean?

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Someone holds a registered right to buy the land, at their choice or before anyone else can; it binds whoever owns the land until it's exercised, ends on its terms or is discharged. An option to purchase lets its holder buy the land on agreed terms if they choose to; a right of first refusal lets its holder match an offer before the owner sells to anyone else. Either can be registered on the title as a charge, and once registered it binds every later owner until it's exercised, ends on its terms or is discharged. Look up the address or PID on PlaceDossier to see the record for that lot. What each is: An option to purchase gives its holder the right to buy, on the terms it sets, within its time. A right of first refusal, also called a right of refusal or of pre-emption, is an equitable interest in land, whenever it was created (Property Law Act s. 9): it gives its holder first chance to buy when the owner decides to sell, most often by matching an offer (our reading). Both are often found in a lease, a sale to a neighbour or family, or a development deal (our reading). On the title: A charge is any estate or interest in land less than the fee simple (Land Title Act s. 1), and an option or right of first refusal is registered as one, listed on the title search with the other charges. A tenant under a lease of 3 years or less who is in occupation may register an option or right of first refusal in the lease without registering the lease itself (s. 156 (5)). If it isn't registered: Apart from fraud the buyer takes part in, someone taking a transfer or a charge from the registered owner isn't affected by notice of an unregistered interest, except one whose registration is pending, a lease of 3 years or less with someone in occupation, or a void title (Land Title Act s. 29 (2)). So an unregistered option binds the seller who granted it, not usually a buyer of the land (our reading): the holder's claim is against the seller. Part of a lot: Granting an option or other charge over part of a parcel that could let its holder demand the fee simple is a subdivision: it needs the approvals of the Act's Part 7 (Land Title Act s. 73 (2)) (our reading). Mortgaging the land: An owner whose title is subject to a registered option or right to purchase can mortgage their interest, subject to it, unless the instrument creating it says otherwise (Property Law Act s. 29). A lender may ask the holder to agree that the mortgage ranks ahead (our reading). When it ends: An option or other right to acquire land for value, including a right of first refusal, is void 80 years after it was created if it could be used later than that (Perpetuity Act s. 21 (1), (3)); most set a much shorter time of their own. A tenant's option to buy the reversion, exercisable only by the tenant and ending within a year after the lease, is outside that rule, as is an option to renew a lease (s. 20). Once it has ended or been waived, the owner applies to discharge it, most often with a release from the holder (our reading). What it means for a buyer: A registered option or right of first refusal stays with the land: buy subject to one and the holder may still exercise it against you. In a sale the seller's lawyer or notary usually gets a written waiver or a discharge from the holder before completion, or the holder's right is offered first (our reading). A seller with one on title should read its terms before listing. Other interests on title have their own pages: see charges on title, covenants and life estates.

What does an option to purchase or a right of first refusal on a BC title mean?

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