The Alberta land titles system is based on the system called the Torrens system, where the Government of Alberta guarantees all land titles in the province. The Torrens system is arguably the best of all possible systems for the management of real property ownership rights, and Alberta is fortunate to have it. As the owner and operator of the system, the provincial government experiences some long lag times for title transfers and other important registrations when the market is busy. The Government recognizes the challenges this lag can cause and has implemented a system to address these concerns called the Pending Registration Queue (PRQ). Let's look at some things you need to know about the PRQ in Alberta.
What issue does it address specifically?
In the land titles system the priority of a registration on the title – for example a mortgage or easement – is determined by the position of that registration on the title itself. The higher up the list of registrations on the title, the higher priority that registration has in charging that property. Before recent amendments, the priority of registration was guaranteed upon the REGISTRATION of that interest, but after April 1, 2021, a registration’s priority is guaranteed upon the SUBMISSION of that registration. This is an important distinction because it gives a lender, for example, the security of knowing they are protected in their priority without needing to wait the eight or ten weeks it could take to register that mortgage on the title.
How can I tell if there are pending registrations on a title?
The land titles office has changed the formatting of land titles, which now shows a section at the bottom of a land title called “Pending Registrations." This section will show the pending registrations that are guaranteed on the title and their priority of submission in order.
Do I need to do anything to use the PRQ?
No, the PRQ is an automatic addition to the land titles Document Registration Request (DRR) process, so all DRR requests will be pending registrations until the registration is processed. Consumers can help bring attention to the new program by discussing it with their lawyer or lender when transacting real estate. Lenders and lawyers need to know that the PRQ system is guaranteed by the Government of Alberta and can be relied upon to close the transaction without waiting for the final registration.
The Government of Alberta has indicated they are continuing work in other areas to modernize the Alberta Land Titles system and streamline the process of registrations without changing the Torrens system we all rely upon. The Pending Registration Queue is a valuable tool for the continual spikes in real estate activity we see in Alberta, which causes the land titles system to experience these backlogs. A better understanding of this process helps REALTORS®, their clients, and other stakeholders keep the economy moving despite the challenges of a brisk real estate market.