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Squatters Rights in Ontario
Getting Rich by occupying other people’s property
This ancient remedy was helpful in resolving disputes in the latter part of the Middle Ages. If one farmer continued to cultivate a piece of land at the back of his farm and the farmer’s neighbor did not object, then after 7 years, he owned the land. At the time of course, it was not worth much.
What is the purpose of squatter rights?
The purpose of squatter rights was to regularize the boundaries of the properties. The added value of the cultivation of the property over a period of years was considered to be an investment and an improvement of the land. Be careful of your neighbors taking over your land, it could cost you a lot of money and possibly losing your ownership. Most of us think that squatter rights were abolished many years ago. This is true to some degree.
In Canada, we have two systems to register the ownership of land. Under the land title system, squatter rights were abolished. However, under the registry system, these rights have been preserved and accorded a rather exalted status.
What happens to your land?
1. Loss of your land.
2. Liability issue.
Both hurdles have serious consequences due to the laws of the land. Liability: if somebody gets hurts on the land you own, it can affect your insurance rate and you can be held liable even though somebody else has the rights to use your land. The squatter rights are a big issue when thy neighbour has claim acquire rights. It has the effect of a double-edge sword, like losses to you. First, you lose part of your property. Secondly, it reduces the value of your property.
How do you protect yourself from Squatter’s?
As shrewd professional real estate investors, you only have one choice, which is to sign an agreement. The agreement will waive any claim to the land and indemnify you from any lawsuits or liabilities. When you have an agreement signed, sealed and delivered, you can then consider yourself to be safe to a certain degree. There is an alternative choice to tell your neighbor or occupant to get off your land and bite the bullet.
What is the time period to implement Squatter’s rights?
In accordance with the old common law rules, an individual who occupies a piece of property for a period of seven years of more may be declared to be the owner. In England, this was later changed by legislation to 12 years. In Ontario, it is 10 years. Other common law jurisdictions use other time periods but the basic rules are the same.
Do you need to occupy the land for Squatter’s rights?
The occupation of the land must be open; it cannot be a secret or surreptitious in any way. It must be peaceable that no one is trying to throw you off the property, either physically or through the court. It must be continuous; otherwise the time period starts all over again. It does not mean that you can never leave the property. You may do so, so long that you leave enough of your belongs, you are still considered to be there.
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An article by Navtaj Chandhoke
Navtaj Chandhoke, Co-Founder of Canadian Wealth Builders. Navtaj is full time Real Estate investor, consultant, Master Coach/Mentor, and author in the field of real estate for more than 30 years in Canadian real estate. Navtaj is also the Founder of Professional Real Estate Investors Group (PREIG) Canada To read more articles by Navtaj Chandhoke |
Topics: Land Ownership | 2 Comments »
2 Responses to “Squatters Rights in Ontario”
Comments
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July 5th, 2009 at 9:57 pm
Another great article Navtaj! You always seem to find topics that expand my thinking! Many Thanks!
July 10th, 2009 at 7:09 pm
Wow! Navtaj, this is a great article! Another mind-boggling strategy that empowers us and perhaps 99.99% of the real estate investors don’t know about! Thank you for sharing!