Alberta Seniors Property Tax Deferral Caveat on Title

When you are approved for Alberta's Seniors Property Tax Deferral Program, the government registers a caveat on your property's Certificate of Title at the Land Titles Office. That word — "caveat" — worries homeowners who picture losing control of their home. Here is what the registration actually means, what it does not mean, and what title problems can block your application entirely.

What the Government Caveat Does

A caveat is a legal notice filed against your land title under the Land Titles Act (R.S.A. 2000, c. L-4). It tells anyone searching the title — a buyer, a lender, a title insurer — that the Government of Alberta has a financial claim against the property equal to your deferred tax balance plus accrued simple interest.

The caveat does not transfer ownership. It does not give the government power of sale while the loan is in good standing. It does not prevent you from living in or maintaining the home. You remain the registered owner with full use of the property.

The caveat is discharged (removed from title) once you fully repay the principal and accrued interest. The program issues a formal discharge document and files it at the Land Titles Office.

Why It Matters for Selling or Refinancing

If you sell the property, the buyer's lawyer will see the caveat on the title search and the deferred balance must be paid from the sale proceeds before the title can transfer clean. Similarly, if you refinance your mortgage, the new lender may require the caveat to be paid off and discharged as a condition of the new loan.

This is routine — it works the same way as any other registered charge like a mortgage or HELOC.

Disqualifying Title Charges

Certain registered encumbrances make the province's security position unworkable. If any of these appear on your land title, the application will be declined until they are formally discharged:

• Reverse mortgages — the province will not take a junior position behind a reverse mortgage lender
• Certificate of lis pendens — indicates pending litigation over the property
• Maintenance Enforcement Program (MEP) filings — court-ordered support payment enforcement
• Bankruptcy registrations — signals potential insolvency
• Foreclosure proceedings — the property is already at risk of forced sale
• Consumer proposals — a structured debt settlement under insolvency legislation

Standard mortgages and HELOCs are not disqualifying — they are simply included in the 75% loan-to-value calculation. The distinction is important: a $300,000 mortgage on a $500,000 home is fine (60% LTV), but a reverse mortgage of any size is an absolute blocker.

What to Do About a Disqualifying Charge

If your title carries one of the six blockers listed above, you must have it formally discharged at the Land Titles Office before applying. This may involve paying out a reverse mortgage, settling or withdrawing litigation, completing a consumer proposal, or resolving enforcement filings.

For bankruptcy and foreclosure situations, the program is not the right solution. Homeowners facing those circumstances should contact Money Mentors (1-888-294-0076) or the Credit Counselling Society (1-888-527-8999) for free, accredited debt counselling.

Checking Your Title

You can order a current Certificate of Title from the Alberta Land Titles Office. Reviewing it before applying lets you confirm what charges are registered, calculate your equity position against the 25% threshold, and identify any disqualifying encumbrances that need to be cleared.

For a structured walkthrough of the equity calculation and a disqualifying-charges checklist, see our Alberta Seniors Property Tax Deferral guide.

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