Practice direction from the Land and Title Survey Authority
The Director of Land Titles has issued a change to the current practice set out in the Land Title Practice Manual regarding the form of a Waiver of Right of First Refusal. Future
waivers should comply with the following practice, although there is a six-month transition period that began August 28, 2008 for any Waiver of Right of First Refusal submitted following the former practice:
Where a title is encumbered by a registered right of first refusal, the registrar must not register a freehold title in the name of a person other than the holder of the right of first refusal unless:
- the registrar receives a discharge of the right of first refusal; or
- the holder of the right of first refusal waives the rights under it to the extent necessary to permit registration of the new freehold title in the name of that other person.
If the holder of the right of first refusal gives a waiver in the manner described in (2) above, the registrar carries forward the right of first refusal to the new title together with an endorsement of the waiver. The waiver receives a running number for this purpose.
The waiver must be in Form C Release and Item 7, Additional or Modified terms must be completed. The Form C must show:
- The description of the interest in Item 3 as "Waiver of Right of First Refusal";
- A selection of Release in Item 4; and
- Waiver language in Item 7 (to be included on a Form E Schedule).
The Form C must be executed by the holder of the right of first refusal and may also be executed by the purchaser. Upon submission the waiver will be noted as a pending "Waiver of Right of First Refusal" on the title to the lands described within the Form C release.
Click here (PDF: 60 KB) to access the full text of the Practice Bulletin, including an example of waiver of right of first refusal language to be included in Item 7 on a Form E Schedule.