For most Canadians, the idea that someone could show up and challenge ownership of your home or business sounds far-fetched. But that's essentially what happened in Richmond, BC and it started with a question that Canadian courts had never fully answered: what happens when Indigenous people never gave up their land?
In 2019, the Quw'utsun (Cowichan) Tribes launched a legal claim over approximately 1,800 acres along the north bank of the Fraser River. Land that now includes homes, industrial parks, a golf course, Amazon and Canadian Tire distribution centres, and fuel storage tanks serving Vancouver International Airport. The Cowichan argued that this land was their ancestral village, Tl'uqtinus, and that it was never formally surrendered to the Crown through a treaty.
What followed was the longest trial in Canadian history — 513 days over six years, involving more than 80 lawyers and the federal government, the Province of BC, the City of Richmond, and two other First Nations who opposed the claim.
On August 7, 2025, BC Supreme Court Justice Barbara Young ruled in the Cowichan's favour.
She found that the Crown had unjustifiably infringed on Cowichan title by granting fee simple titles — standard private property ownership — over land the Nation never gave up. Some of those Crown-issued titles, she ruled, were "defective and invalid."
The decision sent shockwaves through BC's real estate market. Property deals collapsed. Banks stopped lending. Homeowners learned about the ruling at a City of Richmond town hall, not from their government, not from their real estate agent, and not from the courts. Many had lived in the affected area for years without knowing the claim existed.
Here's Where Things Stand Today
That ruling is now under appeal. But far from settling down, the situation has escalated sharply over the past 60 days. New lawsuits have been filed, the government has announced a financial rescue package, lenders are cutting off mortgages, and a class action against the Crown is moving forward.
This is the most current picture of what's happening — and what it means if you own or want to buy property in BC.
The 6 Biggest Developments Since December 2025
1. BC Officially Files Its Appeal — and Draws a Hard Line
On February 5, 2026, BC Attorney General Niki Sharma confirmed the province is formally appealing the Cowichan ruling and seeking a stay to pause implementation while the appeal works through the courts.
"We disagree strongly with the decision," Sharma said, adding that the ruling "could have significant unintended consequences for fee simple private property rights in BC." The federal government and City of Richmond are also appealing. The case will go to the BC Court of Appeal — a process expected to take at least one to two years — and will almost certainly land at the Supreme Court of Canada after that.
Premier David Eby has been blunt in public:
"For our government, private property is non-negotiable. People's homes and businesses are not bargaining chips. Full stop."
That's a significant rhetorical shift for a government that spent years advancing reconciliation through legislation. Critics have pointed out the province didn't mount a robust defense of private property rights at trial, making the appeal feel reactive. But politically, the line has been drawn.
2. A New First Nation Has Already Filed a Copycat Claim
On January 26, 2026, the Dzawada'enuxw First Nation on BC's central coast filed a new lawsuit directly citing the Cowichan ruling, targeting roughly 650 hectares of fee simple land at Kingcome Inlet, currently owned by forestry company Interfor, the Nature Trust of BC, and the province.
The Nation argues the land was taken from them illegally over a century ago by an Indian Agent and his family. Their lawyer was direct: "In the wake of the Cowichan decision, the legal landscape has changed."
This is not an isolated case.
Legal experts say there are at least half a dozen active Aboriginal title cases in BC alone. A partner at law firm Borden Ladner Gervais told the Globe and Mail:
"I've been fielding calls from banks, credit unions, title insurers, mortgage brokers, real estate agents and regulators asking, 'What direction should we be giving on this?' And I think everybody's holding their breath."
The Cowichan ruling has effectively created a legal template that other First Nations are now using.
3. Banks Are Refusing to Renew Mortgages on Affected Properties
This is the most immediate, ground-level impact: lenders are saying no.
Multiple banks, credit unions, and mortgage brokers have stopped issuing new mortgages and refusing renewals on properties within the Cowichan title area.
At a Town Hall hosted by Richmond Mayor Malcolm Brodie, one property owner reported that his lender had declined to renew his mortgage outright. Property tax expert Paul Sullivan, who represents more than half the property owners in the claim area, said his clients have been told these properties are "not saleable. There's no value."
Real estate deals that were mid-process when the ruling came down were abandoned. A $100 million development project in the area has been shelved. Some owners have filed property tax appeals, arguing their assessed values no longer reflect what the market or any lender is willing to recognize.
4. The Province (of BC) Announced a $150 Million Loan Guarantee Program
In a December 13, 2025 interview with CBC, Premier Eby announced the province is working on a plan to offer over $150 million in government-backed loan guarantees to property owners and businesses in the claim area.
The breakdown: roughly $100 million would backstop financing for Montrose Properties (the largest single landowner, whose lender denied it $35 million in financing post-ruling), and $54 million for smaller owners. The final figure could grow once additional commercial activity is factored in.
Richmond Mayor Brodie called it "a good step forward." The BC Conservatives noted they'd been asking for this for months before being ignored. The loan guarantees don't resolve the legal question, they're a bridge to keep people financially afloat while the appeals process plays out over the next several years.
5. A Class Action Has Been Filed Against the Federal and BC Governments
In November 2025, a proposed class action was filed in BC Supreme Court alleging that both levels of government misled property owners for years — assuring the public that land titles were "safe, marketable and free from material qualification" while internally aware of the risks from unresolved Indigenous land claims.
The suit claims the governments caused "economic and psychological harm" and collected property taxes based on "inflated or misinformed property values." The relief sought includes damages for loss of property value and mental distress, plus restitution of taxes collected under false pretences.
The reach of the claim is significant: it argues the problem isn't just Richmond — it potentially extends to all private property owners in BC whose land may be subject to unresolved Aboriginal title claims.
6. BC and New Brunswick Courts Have Reached Opposite Conclusions
A January 2026 legal analysis by Torys LLP identified what may be the most consequential tension in Canadian property law right now: BC and New Brunswick courts ruled opposite ways on the same core question.
The BC Supreme Court said Aboriginal title can be declared over privately held land, with negotiations to follow. The New Brunswick Court of Appeal (in the Wolastoqey Nation case, decided December 2025) said no. Aboriginal title declarations should not extend to private property; monetary compensation from the Crown is the right answer instead.
Two provincial courts. Two opposite answers. One Supreme Court of Canada showdown almost certainly coming — but not for years.
What This Means for Canadian Homeowners
The immediate crisis is centred in Richmond, BC. But the legal principles at stake reach every Canadian who owns property on unceded Indigenous land — which, outside of the numbered treaty areas of the Prairies and parts of Ontario, includes most of BC and significant parts of the country.
Here's what you need to know right now, in plain terms.
If you own property in the Cowichan claim area in Richmond: Your title has not been automatically taken away. The Cowichan Nation has been consistent that they are not trying to displace homeowners. But your property may be unsellable and unmortgageable until the appeal resolves. Apply to the province's loan guarantee program if you need financing, and consult a lawyer before attempting to sell.
If you own property anywhere else in BC: The Cowichan ruling has not invalidated your title. But it has established that Aboriginal title can coexist with — and take precedence over — fee simple title on unceded land. The legal uncertainty is real, and it's something your lawyer and lender should be factoring in, especially in areas with active claims.
If you're buying property in BC right now: Don't rely on a standard title search alone. Ask your real estate lawyer to specifically check whether the property falls within a known or asserted Aboriginal title claim area. This should now be routine practice for any BC transaction. At Deeded, our lawyers conduct full title reviews as part of every closing — learn what's included here.
If you're selling in an affected area: Disclose. If you know your property falls within a claim area, your lawyer needs to know before you list. Non-disclosure of a material fact affecting title is a serious legal issue.
If you're a lender or investor: The financial sector is already treating claim-area properties as unbankable. Expect more caution province-wide as the Dzawada'enuxw and other new claims are filed. Title insurance policies vary significantly in how they handle Aboriginal title risk — read the exclusions carefully.
If you're anywhere else in Canada: Watch this closely. An Algonquin First Nation has already filed a similar claim in Quebec. The New Brunswick Wolastoqey case is on appeal. Ontario has seen rulings prioritizing treaty rights over fee simple ownership. The Cowichan ruling is a BC case, but the legal principles it set in motion are national.
The Bottom Line
Canada has been quietly carrying a legal contradiction for decades: governments sold land and issued property titles on territory that Indigenous peoples never formally surrendered. Courts are now saying that out loud.
That doesn't mean homeowners are about to lose their houses. The Cowichan Nation, the Haida Nation, and the Wolastoqey Nation in New Brunswick have all been clear they're not trying to displace private residents. The Haida agreement where Aboriginal title was recognized by negotiation rather than litigation, with private property fully protected shows a better path forward exists.
But the path from here to there runs through years of appeals, negotiations, and legal uncertainty. For anyone buying, selling, or financing property in BC, that uncertainty is real and needs to be managed — not ignored.
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