Purchasing real estate can be an exciting opportunity, but it is also a complex and layered process. Buyers may not always anticipate that issues can arise just before and after closing, which could create complications or even imperil the transaction. With support from a real estate lawyer, understanding and avoiding such complications is simpler. A lawyer does more than serve as a resource to guide you through the procedure of buying a property: they also work to protect your interests.

With Edmonton real estate lawyers, doing the necessary due diligence on a transaction can be less stressful and more straightforward. Legal support can help buyers avoid long-term disputes and legal processes that can lead to frustrating experiences. Let’s consider some issues to understand and examine how a lawyer can help.

What are Encroachments and What Should You Know?

An encroachment is any structure that belongs to one property owner, but whose physical presence occupies land belonging to an adjacent property owner. Essentially, an encroachment occurs when a structure on the property is encroaching upon the neighbour’s land.  It is possible that only a part of the structure encroaches onto the neighbour’s land, or the entire structure may do so. Some common encroachments include:

• Fences;
• Walls;
• Driveways or paths;
• Decks; and
• Structures, such as sheds, garages, and more.

Encroachments can lead to disputes between property owners as well as potentially significant costs for the buyer, who may be required to rectify the encroachment and remove the encroaching structure in the future. With a lawyer’s support, you can negotiate with other property owners before closing the sale to resolve the issue. For example, a lawyer may negotiate for the seller to move or remove the structure to resolve the encroachment prior to closing. They may also help you craft encroachment agreements, which clearly define who is liable for the structure, its upkeep, and its future.

Understanding Easements

An easement (also called an encroachment agreement) is a legal allowance that allows individuals or organizations who are not the property owner to use portions of the land in a predefined manner. One of the most common types of easements is a utility easement, allowing for utility companies to build new or repair existing utility infrastructure on the property, such as power lines, underground lines, and more. Other types, such as access easements, may allow vehicles to pass over portions of the land.

There are many types of easements, and a surprising number of properties are subject to them in one form or another. Understanding what easements may apply to your property is essential for understanding who may use portions of the land and what rights or responsibilities you have.

With support from a lawyer, you can obtain a detailed review of what each easement means to you in practice. Sometimes, old easements may no longer be necessary, and a lawyer can demonstrate proof of that fact and work on your behalf to have the easement removed from the title. Because easements can limit how you may use portions of the property, identifying them early in the buying process is essential.

Specifically with respect to encroachments, it is important to obtain an encroachment agreement prior to closing the sale. Such an agreement will provide assurance that there will be no disputes with the neighboring property-owners and surprising costs for the buyers in the future. This encroachment agreement would be registered against title and would run with the property.

The Problem of Outstanding Liens

Liens are a legal tool used to recover money owed to third parties by registering the debt against the title to the property until the debt is repaid. Many types of liens may exist against a property title, such as those obtained by a contractor for unpaid work or those imposed as a result of a court judgment and a resulting fine. In order for a buyer to obtain clean title to the home, liens must be resolved before a seller can transfer the title, and the burden for satisfying the lien rests with the seller.

Lawyers can conduct title searches on your behalf, revealing all liens that may exist against the property title. They can then negotiate with the seller to work toward a resolution, where possible. Understanding liens early matters because a seller may not be able to resolve them, and thus cannot complete the transaction. Discovering these issues before closing protects your interests and allows you to walk away from a transaction sooner rather than later.

Enjoy a Smoother, Safer Property Investment Process

From encroachments and easements to title liens, there are many concerns buyers must understand and appropriately address to complete a property transaction. As we’ve seen, there is much to know beyond the basic steps of buying a property. With Edmonton real estate lawyers on your side, protecting your interests and securing a smarter investment is much simpler. At Lypkie Henderson, you can find experienced and trusted support from a real estate lawyer today to better understand what’s at stake in a property transaction. Connect with our team today to learn more and secure the support you need to carry out due diligence.