Section 77 of the Manitoba Real Property Act (the “MRPA”) provides, in effect, that where title to land which is subject to a mortgage or an encumbrance is transferred, the transferee is deemed to covenant to the holder of the mortgage or encumbrance that the transferee will pay and perform all obligations contained in the mortgage or encumbrance,and, that the transferee will additionally be deemed to covenant to the transferor that the transferee will so pay and perform and will indemnify the transferor from liabilities sustained by the transferor by virtue of the transferee’s failure to so pay/perform in favour of the holder of the mortgage or the encumbrance.  How does this affect – or may affect – day-to-day real estate transactions?  To read my more detailed memorandum on this matter, please go to my memorandum of Implied Covenants.


For more information about this article please contact Scott Ransom.