Introduction
In 2023, over 15,000 tax sale properties were listed across Canada, providing lucrative opportunities but also potential pitfalls for real estate investors. Among these challenges are encroachments and survey issues that can significantly impact property value and usability. For Canadian investors, understanding how to handle these complications is crucial to make informed decisions and safeguard investments.
This article explores the intricacies of encroachments and survey issues, offering insights into Canadian legislation, practical advice, and expert tips to navigate these challenges.
Understanding Encroachments: What Are They?
Encroachments occur when a structure or part of a property illegally extends onto a neighbouring parcel. This can include fences, driveways, or buildings that infringe beyond property lines. In Ontario, boundary line disputes are governed by the Municipal Act, R.S.O. 2001.
For investors, purchasing tax sale properties with encroachments can lead to legal battles or costly removal expenses. These issues are prevalent in densely populated urban centres like Toronto and Vancouver, where property lines are tightly packed.
Canadian Legislation and Procedures
- In Alberta, encroachments are addressed under the Land Titles Act.
- British Columbia's Land Survey Act provides guidelines for managing survey discrepancies.
Survey Issues: Identifying and Resolving Challenges
Survey inaccuracies can lead to significant issues when acquiring tax sale properties. These can include misidentified boundaries or outdated surveys that conflict with current land registry data.
Ensuring a precise survey is critical before finalizing any purchase. Investors should seek updated surveys from provincial land registry offices, such as Service Alberta or BC Assessment.
Steps to Address Survey Concerns
- Review the Property's Survey: Obtain the latest survey from the provincial land registry office.
- Consult with Surveyors: Engage a qualified land surveyor to validate boundary accuracy.
- Address Discrepancies: If issues arise, negotiate with adjacent property owners or seek legal counsel.
Real-World Examples and Case Studies
In Calgary, a tax sale investor purchased a lot with a driveway encroachment. The resolution required an agreement with the neighbour, costing $5,000 in legal fees. Meanwhile, in Vancouver, a buyer faced a survey issue which led to a boundary lawsuit, eventually costing $20,000.
These examples highlight the importance of due diligence and proactive communication when navigating these issues.
Expert Tips for Navigating Tax Sale Property Issues
- Tip 1: Always acquire a current survey from provincial sources like Service Ontario.
- Tip 2: Consult with real estate lawyers specializing in municipal tax sales.
- Tip 3: Leverage Tax Sales Portal's property listings for comprehensive property insights.
- Tip 4: Avoid properties with unresolved boundary disputes to minimize risk.
- Tip 5: Use the resources section on Tax Sales Portal for updated legislative information.
Conclusion
Encroachments and survey issues can pose significant challenges for those investing in tax sale properties. By understanding and navigating these obstacles using expert advice and governmental resources, investors can protect their investments and capitalize on lucrative opportunities.
Visit Tax Sales Portal to explore current listings, use our analysis tools, or sign up for alerts today!
