242 Application To Cancel Mortgage Created By Vendor

• 242 (1) If application has been made to the registrar to register a transfer of land

• (a) from a registered owner in fee simple, in this section called a “transferor”, to the holder of a registered charge by way of an agreement for sale, in this section called the “purchaser”,
• (b) from a registered owner in fee simple, in this section called a “transferor”, to the holder of a registered charge by way of an option to purchase, in this section called the “optionee”, or
• (c) from a registered owner of a charge by way of agreement for sale, in this section called a “transferor”, to the holder of a registered charge by way of a subagreement for sale, in this section called the “subpurchaser”,

• and there is registered against the title to the land a mortgage created by a transferor referred to in paragraph (a), (b) or (c) and registered after the registration of the agreement for sale, option or subagreement for sale, as the case may be, the registrar may give notice to the mortgagee of the registrar’s intention, on the expiration of the time set by the notice, being not less than 14 days from the service of the notice on the mortgagee, to register the transfer free from the mortgage.
• (2) If the mortgagee disputes the right of the purchaser, optionee or subpurchaser, as the case may be, to registration free of the mortgage, the mortgagee must file with the registrar a notice of objection in the form approved by the director within the time set by the registrar’s notice.
• (3) If no notice of objection is filed by the mortgagee, the registrar may effect registration pursuant to the application free from the mortgage and the mortgage no longer forms a charge on the land.
• (4) If a notice of objection is filed by the mortgagee, the registrar must give notice of a hearing before the registrar to the applicant for registration, the mortgagee and to any other parties who have an interest, and on the hearing, the registrar must determine the issue and give notice in writing of the registrar’s decision, with reasons, within 14 days after the date of the hearing.
• (5) If no notice of appeal to the Supreme Court of the registrar’s decision is served on the registrar within 14 days after the date of the registrar’s decision, the registrar must effect registration pursuant to the application free from the mortgage, or subject to the mortgage, in accordance with the registrar’s decision.
• (6) Section 309 applies to an appeal to the court from the registrar’s decision.

1979-219-221; 2004-66-114, effective January 20, 2005 (B.C. Reg. 16/2005).