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Encroachment Agreements with Municipalities


Encroachment Agreements Usually Solve Problems


These are simple agreements between the municipality and a property owner to permit the owner to continue to have an “encroachment” stay on the municipal lands.

There are no standard forms and the type of agreement varies from one municipality to the next.

There are several issues:

·        The specific encroachment must be defined

·        How long can it stay?

·        Is the agreement to be registered on title?

·        May the agreement be assumed by subsequent purchasers?

·        Are there any annual fees?

·        Are there renewal fees for the agreement?

·        Is insurance to be obtained?

·        If so, what amount etc?

All of these matters must be identified and resolved before the property can be sold to a new purchaser.

Agents are required to resolve these matters with the client directly or through the client’s solicitor.

All these questions require answers. Once the answers are obtained, the listing can make reference to them so that they are part of the sale disclosures and the purchase negotiations. This isn’t something to be left to the lawyers to sort out afterwards. This is an issue to be identified, investigated, verified and resolved, right at the outset.

These steps will protect everyone involved in the transaction.

Brian Madigan LL.B., Broker is a Manager at RE/MAX West Realty Inc., Brokerage 416-745-2300.




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