Navigating Encroachments in Tax Sale Lots: Avoid Survey Pitfalls in 2025
Investment Insights 5 min read

Navigating Encroachments in Tax Sale Lots: Avoid Survey Pitfalls in 2025

Discover how to tackle encroachments and survey issues on tax sale properties. Learn expert strategies to protect your investment in Canada's real estate market.

June 19, 2025
TaxSalesPortal
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Photo by R ARCHITECTURE on Unsplash

Introduction

Imagine securing a tax sale property for a fraction of its market value, only to find out there's a neighbour's shed encroaching on your land. Such scenarios are not uncommon, and understanding how to navigate encroachments and survey issues is crucial for Canadian real estate investors. In 2025, as tax sales continue to be a popular investment strategy, being aware of potential land disputes can save you from costly legal battles and losses. This article will provide you with the knowledge needed to identify and resolve these issues effectively.

Understanding Encroachments and Their Implications

Encroachments occur when a structure or improvement illegally extends onto a neighbouring property. This can include fences, sheds, driveways, or even parts of buildings. In cities like Toronto and Vancouver, where property values are high, resolving encroachments can be both challenging and costly. According to the Municipal Act, property boundaries are sacred, and any encroachment can lead to disputes that may require legal intervention.

For tax sale investors, understanding the specific boundaries of a property is essential. Failing to do so can result in unexpected expenses and legal challenges, undermining the investment's profitability.

Surveying Tax Sale Properties: A Step-by-Step Guide

Step 1: Obtain a Current Land Survey

The first step in addressing potential survey issues is to obtain a current land survey. This document outlines the precise boundaries and any existing encroachments. In Ontario, you can request surveys from Service Ontario, while in Alberta, surveys can be accessed through the Alberta Land Titles Office.

Step 2: Identify Potential Encroachments

With a land survey in hand, identify any structures or improvements that may be encroaching. Common examples include fences that extend beyond the property line or driveways that infringe on neighbouring land.

Step 3: Consult Legal and Municipal Resources

If encroachments are found, consult legal resources such as CanLII for precedent cases and municipal guidelines on resolving such issues. Municipal websites often provide detailed procedures for dealing with encroachments.

Step 4: Negotiate with Affected Parties

Before taking legal action, attempt to negotiate a resolution with the affected parties. This might involve removal, modification, or compensation agreements.

Case Studies: Real-World Encroachment Issues

Consider the case of a tax sale property in Halifax where an investor discovered a neighbour's garage partially extended into the purchased lot. The investor used mediation services provided by the Nova Scotia Land Registry to resolve the issue amicably, thereby preserving the property's value.

In another example, a Calgary investor navigated encroachment issues involving a shared driveway by consulting the city's dispute resolution services, averting potential legal battles.

Expert Tips from Tax Sale Veterans

  • Tip 1: Always conduct thorough due diligence before bidding on a tax sale property. Use tools like the Tax Sales Portal's property analysis tools to assess potential risks.
  • Tip 2: Engage a surveyor and legal expert to assess any encroachments immediately after acquisition.
  • Tip 3: Stay informed about municipal bylaws that can impact property boundaries and encroachments.
  • Tip 4: Utilize resources like Tax Sales Portal's blog for updates and insights.
  • Tip 5: Avoid common mistakes by signing up for alerts on the Tax Sales Portal.

Conclusion

Navigating encroachments and survey issues on tax sale properties requires diligence, legal insight, and negotiation skills. By following the strategies outlined in this article, Canadian investors can safeguard their investments against unforeseen challenges. For those seeking to explore tax sale properties further, visit the Tax Sales Portal to browse current listings, utilize property analysis tools, and access expert resources.

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tax sale real estate investing Canada property survey encroachment

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