Waive Of Right Of First Refusal (Page 2 of 3) in pdf

Waive Of Right Of First Refusal Page 2

Background

Waiver of Right of First Refusal - Land Title Practice Manual Volume 1

paragraph 16.50

The current practice as set out in the Land Title Practice Manual states a waiver of right of first

refusal must be in the form of a Form C charge and contain Part 2, Terms of Instrument. A

change to this practice is required and future waivers should comply with the following practice.

This new instruction will be incorporated into the Land Title practice manual in the next update.

There will be a 6 month transition period from the date of this bulletin for any Waiver of Right of

First Refusal submitted following the former practice.

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:

1. the registrar receives a discharge of the right of first refusal; or

2. 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.

Form of Waiver of Right of First Refusal

The waiver must be in Form C Release and Item 7, Additional or Modified terms must be

completed. The Form C must show

1. the description of the interest in Item 3 as “Waiver of Right of First Refusal”;

2. a selection of Release in Item 4; and

3. 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.

Waive Of Right Of First Refusal Page 2