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ARTICLE · 12 MARCH 2024

Not All That Glitters Is Gold: Lease vs. Subdivision

McCarthy Tétrault
McCarthy Tétrault
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In the application of Alberta's Torrens-style Land Titles Act, RSA 2000, c. L-4 (LTA), a persistent uncertainty lingers amongst clients and real estate lawyers alike: when does a lease...

CanadaReal Estate and Construction
The Lay Of The Land
The Lay Of The Land
Jessie Bachinsky
Jessie Bachinsky
Mark Risebrough
Mark Risebrough
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In the application of Alberta's Torrens-style Land Titles Act, RSA 2000, c. L-4 (LTA), a persistent uncertainty lingers amongst clients and real estate lawyers alike: when does a lease of part of a land parcel become an invalid subdivision of the land parcel? A valid lease may be successfully registered. An invalid subdivision may not. Successful registration is at stake. Successful registration is often the end-all, be-all in Torrens-style systems. Unsuccessful registration can create expensive and permanent issues.1

Applicable Law

The touchstone is found in s. 652 of the Municipal Government Act, RSA 2000, c. M-26 (MGA): "[a] registrar may not accept for registration an instrument that has the effect or may have the effect of subdividing a parcel of land unless the subdivision has been approved by a subdivision authority." This provision of the MGA can make it difficult to ascertain what type of instrument requires subdivision approval before registration can

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