In a property and secured-transactions appeal, the Court considered whether municipal heritage incentive payments registered in an agreement by caveat ran with land, passed in a judicial sale, or remained personal property subject to priority rules.
The Court held that s. 29 of Alberta’s Historical Resources Act allows positive covenants to run only where they are in favour of listed public entities, not in favour of a landowner claimant to payment.
The Court further held the agreement and sale documents did not transfer the payment right to the purchaser and that awarding those payments to the purchaser would create a windfall without commercial rationale.
The payment right was characterized as a chose in action assigned as security, with priorities governed by the Personal Property Security Act and any residual priority dispute remitted to a master.
