When buying or selling land in Alberta, it is always beneficial to have a good understanding of how mineral and surface rights work, and the specific bearing they can have on property use, value, and potential future development. Here we will explore what these rights are and what you need to know as a landowner to avoid unforeseen and costly issues that may arise.

What Are Surface Rights?

Surface rights refer to the legal rights to use and control the surface of the land for various purposes such as agriculture, residential development, or commercial use. The person who holds surface rights has the right to build structures, cultivate crops, and otherwise use the land for activities that occur on top of it. They also own the substances of the surface such as sand, soil, and gravel.

What Are Mineral Rights?

Mineral rights, on the other hand, give ownership of all mineral substances found on and under the property. The person or organization that owns mineral rights also has the legal authority to extract and sell these resources, regardless of who owns the land above, but must do so in such a way as to not significantly affect the use of the surface.

Mineral ownership is defined in detail by the Mines and Mineral Act and mineral rights are registered in accordance with the Land Titles Act.

How Mineral and Surface Rights Impact Landowners

In Alberta, approx. 81% of mineral rights are owned by the Crown, roughly 10% are federal lands, and the remaining 9% are mainly held by companies. Less than 1% of mineral rights in Alberta are owned by private individuals. As most often is the case, the landowner holds surface rights and the Crown owns mineral rights, but it always recommended that a potential buyer of a property performs a land title search to confirm.

 As a landowner, you may have little or no say if the province chooses to explore or extract oil, gas, or other minerals from your land. However, you will always be compensated for disturbance, and paid rent for surface land use when initial development is completed.

 Most commonly the process would go something like this:

1.        The province (Crown) will lease the mineral rights to an operator (company or individual), commonly through a closed auction.

 2.        Since the operator now requires access to the land, they will employ a land agent to negotiate a surface lease and/or pipeline easement with the property owner, which would subsequently be registered on the land title. It is always recommended that a landowner hires an experienced surface rights consultant or lawyer to assist in negotiating with a land agent. A detailed survey plan should be presented by the operator during the negotiation process to illustrate clearly how the exploration and extraction process will take place.

 3.        Going forward, the landowner will receive compensation based on the agreement. With a surface lease, operators generally make annual payments until the lease is terminated. A pipeline right-of-way is most often a one-time payment. The Surface Rights Act requires a review of compensation every 5 years, and operators must continue to make payments until the lease is terminated and reclamation certificate is issued.

 Since compensation is negotiable, if the landowner and operator can’t agree on an amount, the property owner can appeal to the Land and Property Rights Tribunal for assistance. The Tribunal will hold a hearing and assess certain local factors like land value and recent crop sales to determine reasonable compensation.

How to Protect Yourself in Real Estate Transactions Involving Mineral and Surface Rights

For both buyers and sellers, it’s essential to do thorough research and due diligence when mineral and surface rights are involved in a real estate transaction. Here are some basic guidelines to protect yourself:

 Always Pull Title: A title search will reveal who owns the surface and mineral rights and if any leases or rights of entry are associated with the property. This is a critical step before proceeding with a real estate transaction. Problems can arise when an oil company or utility provider have already paid the seller an entry fee for access to the land but have not yet begun construction.

Consult with Legal and Real Estate Professionals: Whether you are buying or selling property, it’s always a good idea to consult with a real estate lawyer or agent who understands mineral and surface rights. They can help you navigate the legal aspects and ensure all relevant agreements are in place. If there are existing mineral leases on the land, make sure you understand the terms and whether they will continue after the sale. This includes any royalty arrangements, timeframes, or access provisions.

Water Testing: Property owners should have their well water tested for quality and flow rate before any operator drilling begins. These test results could be very helpful should water issues arise in the drilling process.

Conclusion

Surface and mineral rights are important considerations for landowners in Alberta. Considering most landowners only have surface rights, it’s important to understand how the holder of mineral rights can affect your land’s use, value, and potential income opportunities. By conducting due diligence, working with legal experts, and staying informed, you can make better decisions that will protect and enhance your property investment in the long term.

 As a landowner, or buyer or seller of land, knowledge is power. Understanding the complexities of surface and mineral rights will help you manage your land effectively and avoid unexpected surprises down the road.

When buying property in smaller communities and rural areas, understanding the difference between a Real Property Report (RPR) and Title Insurance is essential for making informed decisions. Both are tools that protect your investment, but they serve distinct purposes and offer different kinds of protection. Here we will explore those differences and their common standing within a real estate transaction in the Lakeland area.

What is a Real Property Report (RPR)?

A Real Property Report is a detailed survey of a property that shows its boundaries, structures, and any potential issues, such as encroachments. Essentially, it provides a clear snapshot of the property’s legal description and layout at a specific point in time. The key elements of an RPR include:

• Property Boundaries: The RPR clearly defines where a property begins and ends, ensuring that there are no misunderstandings with neighboring landowners.

• Structures: The RPR identifies the location of buildings, fences, driveways, and other structures to ensure they are positioned correctly within the property’s boundaries.

• Encroachments: The report can reveal if any part of the property or neighboring property crosses over into someone else's land, which can prevent future disputes.

What is Title Insurance?

Title insurance protects against legal issues related to the ownership of a property. It is generally a one-time premium paid that covers risks that could affect the validity of the title, including:

• Unpaid Liens or Debts: If the previous owner left unpaid property taxes or debts tied to the property, title insurance ensures you're not held responsible for them.

• Fraud or Forgery: Title insurance also protects against any fraud or forgery in past property transactions that could affect your ownership.

• Unresolved Ownership Disputes: In rural areas, properties might have complex histories or ownership disputes, and title insurance can protect you from legal challenges or claims on the property.

What’s best for you?

While neither a Real Property Report nor title insurance are legally required for a real estate transaction in Alberta, both are commonly used, and it’s generally recommended that a buyer obtains at least one of these two options to protect themselves from unforeseen Land Title issues.

In rural and small community settings like we have in the Lakeland, where properties may have been in the same family for generations or developed over time without modern surveys, it is very common for a property to not have an up-to-date RPR, if there’s one at all. In addition, because of limited access to professional surveyors, an RPR can be costly and time-consuming to obtain. For this reason, it has become common practice for a seller to include a term in a purchase contract where they pay for title insurance on the property in lieu of the RPR. This is often a much more convenient and cost-effective way to guarantee protection for the seller.

While an RPR addresses physical and boundary issues, title insurance ensures that the buyer is legally protected in the event of a dispute over ownership, which can be particularly valuable in areas where property transactions may not always be well-documented or where old records might be missing or unclear.

A buyer may see it in their best interest to obtain both an RPR and title insurance from the seller to have a clear understanding of what they’re buying coupled with the protection against title discrepancies, but in practice, it is most commonly a one or the other scenario. Regardless, it is a great benefit to have a clear understanding of the two options and the role they play in a successful real estate transaction.

When it comes to buying or selling property, the process can feel overwhelming. Whether you're a first-time seller, a seasoned investor, or just looking to relocate, having a dedicated real estate team to guide you through every step is crucial. At Property Plus Realty, we pride ourselves on offering a full range of services designed to make your real estate experience as seamless and stress-free as possible. Here's why listing your property with us is a decision you won’t regret:

1. Full-Service Brokerage

At Property Plus Realty, we are more than just a real estate agency, we are a full-service brokerage. Our dedicated team of real estate professionals works tirelessly to help both buyers and sellers achieve their goals. With expertise in residential, rural, commercial, property management, and recreational properties, our REALTORS® provide unparalleled attention to detail and keep you updated regularly, ensuring your listings receive maximum exposure and a smooth transaction process.

2. Competitive Rates

We understand the importance of getting the best value when selling your property. That’s why we offer competitive commission rates while working hard to ensure that we negotiate the best deal for you. Our goal is to provide you with the smoothest possible transaction at an affordable cost.

3. Strategic Locations

Property Plus Realty is conveniently located in Elk Point, the heart of the Lakeland area. We proudly serve the surrounding communities of St. Paul, Bonnyville, Cold Lake, Two Hills, and all areas in between. While we have a strong local presence, our services extend throughout the entire Province of Alberta.

4. Multiple Listing Service®

Trademark owned by The Canadian Real Estate Association (CREA)

When you list your property with us, it will be featured on www.realtor.ca—Canada’s most comprehensive list of residential and commercial properties. This platform connects sellers with over 160,000 brokers, agents, and salespeople working through 65 real estate boards and associations across Canada.  The MLS® system is among the most effective tools to find potential buyers, increasing your property’s exposure and boosting the likelihood of a timely sale.

5. Additional Online Exposure

In addition to the MLS® system, we enhance your property’s visibility through a range of other platforms. Property Plus Realty showcases all listings on www.propertyplusrealty.ca, where you can find office and personal listings, as well as surrounding properties. We also leverage social media channels like Facebook, Instagram, and Kijiji, ensuring that your property reaches as many potential buyers as possible.

6. Extensive Referral Network

Our extensive network of experienced REALTORS® spans across Alberta, enabling us to connect you with the right professional to meet your needs. At Property Plus Realty, we collaborate with other REALTORS® to ensure that you receive exceptional service and complete customer satisfaction.

7. Up-to-Date Real Estate Forms

We use the most current forms available through the Canadian Real Estate Association (CREA). These forms are created by a team of real estate lawyers, ensuring your interests are protected and that the transaction process is efficient and up to date with legal standards.

8. Your Security Comes First

At Property Plus Realty, we take your security seriously. When your property is listed with us, we ensure that your personal information and personal property are always protected.

9. Free, No-Obligation Evaluations

One of the first steps in selling your property is understanding its value. We offer a free, no-obligation property evaluation. Our experts will use a comparative market analysis to provide you with an honest, accurate price that helps maximize your return.

10. Our Team: Your Team

Property Plus Realty is a 100% Canadian owned & operated family of professionals who are devoted to our customers and our community. Our team consists of Desiree Maas (REALTOR® & Broker), Justin Anderson (REALTOR® & Property Manager), Richard Thir (REALTOR®), Evan Reynar (REALTOR®), and our dedicated support staff. We also work closely with professional mortgagors, lenders, inspectors, appraisers, and lawyers—all working toward one goal: to get the deal done effectively and efficiently for you.

When undertaking construction projects in Alberta, it is essential to understand the permitting process required to ensure projects are safe, legal, and compliant with local regulations.

Development Permits vs. Building Permits

In Alberta, two primary permits govern construction projects: development permits and building permits. Though they are often spoken of interchangeably, they serve different purposes and must be obtained at different stages of the construction process.

A development permit is required for any change in land use or a development that could impact the community, the environment, or surrounding properties. Essentially, it’s the approval to proceed with a project on a specific piece of land, confirming that the proposed development aligns with municipal zoning bylaws, land use regulations, and planning policies.

Development permits are often required for projects such as:

• New buildings or structures

• Changes in land use (e.g., converting a residential property to commercial use)

• Significant renovations or additions

• Demolitions or removals of structures

• Any development affecting natural resources (e.g., wetlands or wildlife habitat)

Once approved, the development permit ensures that the project complies with city or regional planning objectives and minimizes negative impacts on the community.

A building permit, on the other hand, focuses on the technical aspects of construction. It ensures that the design and construction of the building comply with Alberta’s Building Code and other safety standards. While a development permit addresses whether a development can take place, a building permit ensures that the structure is safe, durable, and suitable for occupancy.

Building permits are typically required for:

• New construction (homes, commercial buildings, etc.)

• Major renovations, additions, or structural modifications

• Electrical, plumbing, or mechanical installations

• Any project that alters or adds to a building’s load-bearing elements

The Permitting Process

1. Pre-Application Consultation: Before applying, consult your local municipality to understand zoning requirements and community plans.

2. Development Permit Application: Submit detailed project plans, including site layouts and elevations, to the local authority. Approval can take weeks to months.

3. Building Permit Application: After receiving the development permit, submit detailed architectural and engineering plans for review. Inspections may be required during construction to ensure compliance.

4. Final Inspection and Occupancy: Once construction is complete, a final inspection will confirm everything meets building codes. A Certificate of Occupancy will be issued if all requirements are met.

Why Permits Matter

Permits ensure safety, compliance, and environmental protection, helping avoid legal and financial issues down the road. Building without permits can result in fines, forced demolition, or trouble when selling the property. In most cases, a lack of proper permitting would be considered a material latent defect and must be disclosed when selling a property.

Common Mistakes to Avoid

• Not Getting Both Permits: A development permit does not replace the need for a building permit.

• Skipping Consultation: Avoid unnecessary delays by understanding zoning and regulatory requirements early.

• Neglecting Inspections: Inspections are crucial for compliance and final approval.

A Note on Secondary Suites

As secondary suites become more popular as a source of generating income for Alberta homeowners, it is important to be aware that they require a building permit for construction. When buying or selling a property that includes a secondary suite it is in the best interest of all parties to be aware of the applicable permitting and municipal zoning bylaws. Existing suites are categorized as:

• Legal: proper compliance with zoning and building codes.

• Illegal: without permits and/or in non-permitted zoning.

• Non-Conforming: was legal at time of construction but does not meet current regulations.

Conclusion

Navigating Alberta’s development and building permit process ensures your project is safe, legal, and up to code. While it may seem complex, obtaining the right permits is crucial to the success of your construction project. Always consult with your local municipality early and follow the process to avoid costly mistakes.

We’re thrilled to announce the newest member of our team, Evan Reynar! Evan recently made the move to Elk Point with his partner Natalie, a proud hometown girl with deep roots in our community. Their journey to Elk Point is a homecoming of sorts, and we couldn’t be more excited to have them here.

Evan joins Property Plus Realty with an impressive background that sets him apart in the real estate world. Originally from Calgary, Evan has lived in various parts of Alberta and even spent time in Oklahoma. His experiences across diverse communities have shaped his perspective and make him uniquely attuned to the needs of buyers and sellers alike.

A Unique Skill Set
With a marketing degree and over 10 years of hands-on experience as a journeyman electrician in residential construction, Evan brings a rare combination of technical expertise and marketing savvy to the table. Whether it’s understanding the finer details of a property’s structure or crafting a standout marketing strategy, Evan’s well-rounded skill set is a tremendous asset to our team—and to you!

More Than Real Estate
When Evan isn’t helping clients navigate the real estate market, you’ll find him indulging in his favorite hobbies. He’s passionate about music, enjoys experimenting in the kitchen, keeps an eye on smart investment opportunities, and loves spending time outdoors—especially on the golf course.

Committed to Community
Evan is excited to represent buyers and sellers in the Lakeland and can’t wait to immerse himself in our close-knit community. Whether you’re buying your first home, upgrading to your dream house, or selling a beloved property, Evan is here to guide you every step of the way.

Please join us in giving Evan a warm Elk Point welcome! If you’re ready to start your next chapter in real estate, give him a call or stop by the office to say hello.

Welcome to the Property Plus Realty family, Evan!