When Does a Property Transfer Claim Prescribe? A Hard Lesson in Timing

Imagine buying a property, paying the full purchase price, and waiting patiently for the transfer… only for years to pass with no transfer taking place. You finally decide to enforce your right to transfer, only to discover that it’s too late—the claim has prescribed.  

This is exactly what played out in a recent High Court matter, where the court had to decide when a property transfer claim becomes enforceable and, importantly, when prescription begins to run. The decision highlights just how crucial it is to act quickly when contractual obligations aren’t met.  

What Happened?  

The buyer paid the full purchase price back in 2014. The deed of sale included a transfer clause, requiring the seller to pass transfer once certain obligations—such as municipal charges and bond costs—were settled. Despite this, no transfer was effected. Almost ten years later, the buyer finally demanded transfer and instituted legal proceedings.  

The seller argued that the claim had prescribed under the Prescription Act, which generally allows a three-year period to enforce debts. The buyer countered, saying the obligation to transfer wasn’t immediately enforceable and that certain payments had interrupted prescription.  

The Court’s Reasoning  

The court carefully examined the deed of sale and found that:  

The obligation was due immediately:

Because no specific transfer date was set, and there was no explicit clause delaying enforcement until a later event, the obligation became enforceable right after the deed was signed.  

The clock started in 2014:

Prescription began running as soon as the buyer had paid the price and the contractual obligations were in place.  

No interruptions applied:

The buyer’s own payments toward municipal costs did not amount to an acknowledgement by the seller, and therefore could not interrupt prescription.  

By the time the buyer demanded transfer nearly a decade later, the three-year prescription period had long expired. The court dismissed the claim.  

Key Lessons  

This case serves as a timely reminder for buyers, sellers, and legal practitioners:  

Be clear about timing

If a contract doesn’t specify when an obligation must be performed, the law assumes it’s enforceable immediately.  

Don’t wait to enforce rights

If transfer is delayed, make a formal demand without hesitation. The three-year prescription period moves quickly.  

Understand what interrupts prescription

Not all payments or actions stop the clock. Only acknowledgements of liability or certain legal actions will suffice.  

Draft with precision

Ambiguity in contracts can have devastating consequences. Ensuring clear, enforceable terms from the outset is vital.  

Final Thought  

Prescription law is unforgiving. A right to transfer property isn’t open-ended—it must be enforced within the statutory period, or it may vanish entirely. For buyers, this means acting swiftly when transfer is delayed. For sellers, it’s a reminder that obligations don’t fade simply because time passes—they may come back to bite if not properly managed.  

The safest course? Seek legal advice early, demand performance promptly, and never assume you have unlimited time to enforce your rights.