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______________________________________________________________________________Stewart McKelveyDoing Business in Atlantic CanadaLand Titles SystemPrince Edward Island and Newfoundland and Labrador still use the registry system. New Brunswick andNova Scotia are currently moving away from the registry system to the land titles system. The land titlessystem simplifies and expedites land conveyances and provides for greater certainty of title. Once landhas been registered in the land titles system, historical searches of title no longer have to be undertakenbefore land is transferred or charged as security. All charges and interests currently affecting theproperty are shown on a certificate issued by the government of the province, and one is entitled to relyon this certificate as guaranteeing the title, subject to the enumerated interests. This is known as theprinciple of indefeasibility. Indefeasible title to land is a right of ownership in land, good against the world,subject to the enumerated exceptions. Generally speaking, no enforceable interests in the land arecreated until they are registered. There are, however, some exceptions to this principle. For example,liens in favour of the government that arise from the failure of present or past owners to pay amountsowing pursuant to various provincial statutes may attach to the property and be effective withoutregistration against the property.To compensate parties for losses suffered due to inaccuracies in the title certificate or a breakdown in theregistration system, an assurance fund is maintained by the province.Failure to register an interest in land may result in serious consequences regardless of which system is inuse in a particular province. As well, the priority of instruments and interests are determined by the orderof their registration, not the date of execution. Thus, it is important to ensure that good title is both givenand received and that all instruments are registered promptly after execution.Related LegislationIn addition to requirements established under provincial land registry and land titles legislation, eachprovince has additional legislation affecting the validity of instruments used to transfer interests in land.For example, in addition to the writing requirements noted above with respect to the transfer of land,provincial legislation also extends writing requirements to many forms of leases. As well, all the AtlanticProvinces have legislation which prescribes standard forms of conveyances such as deeds and leases.See, for example, Nova Scotia’s Conveyancing Act.Ownership RestrictionsGenerally speaking, there are no restrictions on the ownership of land in New Brunswick, Nova Scotia orNewfoundland and Labrador. However, New Brunswick and Newfoundland and Labrador require thatcorporations holding certain interests in land must be registered as extra-provincial corporations undertheir provincial corporations legislation.The situation is different in Prince Edward Island. The Land Protection Act restricts land ownership bylimiting the aggregate amount of land a person (resident or non-resident) may own to 1,000 acres and acorporation to 3,000 acres.In certain circumstances the Lieutenant Governor in Council ("Executive Council") controls the amountof land a non-resident or corporation may acquire. A non-resident or corporation must make anapplication to the Island Regulatory and Appeals Commission ("IRAC") for approval of a land acquisitionif they have an aggregate land holding in excess of five acres or having shore frontage in excess of 165feet. IRAC reviews the application and makes a recommendation to Executive Council. ExecutiveCouncil may decide to approve, approve with identification, approve with conditions, or deny anapplication for land acquisition.Other MattersWhen acquiring property, it is important to be aware of both the nature of the interest being acquired andalso how it is being acquired. With respect to the former, title searches can reveal the practical extent ofthe interest being acquired. Ownership of land may not entail the right to do with it as one pleases, asPage 43