Mortgage Certificate
A Mortgage Certificate may be required in various situations involving financing or property ownership in British Columbia
A Mortgage Certificate is a legal document prepared by a licensed British Columbia Land Surveyor that confirms the location of existing structures—such as houses, garages, and outbuildings—in relation to the property boundaries. Often required by financial institutions during property purchases or refinancing, this certificate ensures that improvements on the land comply with local zoning bylaws and are situated within the legal boundaries of the parcel.
Unlike a full legal survey or Posting Plan, a Mortgage Certificate is typically a visual representation based on a field visit, existing plans, and title records. It is not registered at the Land Title Office but serves as a valuable tool for lenders, lawyers, and property owners in verifying the current condition of a property from a boundary and structure placement perspective.
Here are instances when you would need a Mortgage Certificate :
1. Home Purchase or Sale: Lenders often require a Mortgage Certificate before approving a mortgage to confirm that the home and other structures are within property boundaries and not violating local bylaws.
2. Refinancing a Property: Financial institutions may request an updated Mortgage Certificate to reassess the value and compliance status of a property when refinancing.
3. Title Insurance Requirements: Lawyers or notaries involved in the conveyancing process may recommend or require a Mortgage Certificate to reduce legal risks and satisfy title insurance requirements.
4. Zoning Bylaw Compliance: The certificate verifies that buildings comply with local setback requirements and do not encroach onto adjacent properties or public land.
5. Property Improvements or Additions: Prior to obtaining financing for renovations or additions, a Mortgage Certificate may be used to confirm the current layout and compliance status of the existing structures.
6. Peace of Mind for Buyers and Owners: Even when not required by a lender, property owners or buyers may request a Mortgage Certificate to understand the exact position of improvements on the lot and avoid future issues.
7. Legal Disputes or Clarifications: In cases where building location or land use is questioned, a Mortgage Certificate can help provide independent confirmation of the current conditions.
8. Municipal Requirements: Some municipalities in BC may ask for a Mortgage Certificate when issuing permits, especially if no recent survey is available.
In summary, a Mortgage Certificate provides a cost-effective and practical way to confirm the position of structures in relation to property lines. It supports real estate transactions, financing, and compliance with local regulations—helping protect both the lender and property owner’s investment in British Columbia.