Introduction
Imagine acquiring a tax sale property in Alberta for a surprisingly low price, only to discover that part of the building encroaches on a neighbour's land. This scenario is not uncommon and highlights one of the critical challenges in purchasing tax sale lots. For Canadian real estate investors, understanding encroachments and survey issues can mean the difference between a profitable investment and a costly legal battle.
This article delves into the complexities of encroachments and survey issues on tax sale properties, offering insights into common pitfalls, legal frameworks, and practical strategies for investors.
Understanding Encroachments: Definitions and Implications
Encroachments occur when a property physically extends beyond its legal boundaries, impacting neighbouring lands. This is a crucial consideration for tax sale investors, as overlooked encroachments can lead to disputes and financial liabilities.
Legal Framework in Canada
In Canada, encroachments are governed by provincial laws such as the Municipal Act in Ontario and similar statutes in other provinces. These regulations define property boundaries and outline resolutions for encroachment disputes.
For instance, Ontario's Municipal Act allows property owners to apply for land adjustments through the local land registry office, mitigating encroachment risks.
Survey Issues: Identifying and Resolving Discrepancies
A meticulous survey is paramount when investing in tax sale properties. Surveys delineate property boundaries and identify potential encroachments or discrepancies.
Common Survey Errors
Survey errors may arise from outdated data or incorrect measurements. Investors should scrutinize survey reports from Service Alberta or equivalent provincial offices for accuracy.
Case Study: A Cautionary Tale from British Columbia
A Vancouver investor overlooked a survey discrepancy that placed a fence on the neighbour's property, leading to a costly legal resolution. This example underscores the importance of thorough due diligence.
Practical Steps for Investors
To navigate encroachments and survey issues effectively, investors should follow these steps:
- Conduct a Professional Survey: Hire a certified surveyor to assess property boundaries accurately.
- Review Municipal Records: Access local records through municipal websites such as the City of Toronto's tax sales page to verify the property's legal status.
- Consult Legal Experts: Engage a real estate lawyer with experience in tax sales to interpret survey results and advise on legal implications.
Expert Tips for Navigating Tax Sale Properties
Pro Tips from Seasoned Investors
- Tip 1: Integrate surveys and encroachment checks in your initial due diligence phase to avoid surprises later.
- Tip 2: Utilize tools on platforms like Tax Sales Portal to research property history and assess potential issues.
- Tip 3: Communicate with local municipal offices to understand zoning regulations and encroachment policies.
Common Mistakes and How to Avoid Them
- Failing to review updated survey data before purchase.
- Neglecting to consult with legal experts.
- Overlooking municipal zoning laws that may affect property use.
Conclusion
Navigating encroachments and survey issues in tax sale properties requires diligence, expertise, and strategic planning. By understanding legal frameworks and leveraging professional tools, investors can protect themselves from costly pitfalls and maximize their investment returns.
Explore current listings and utilize our analytical tools by visiting the Tax Sales Portal. Stay informed, strategic, and proactive in your real estate investments.
