Archives for: March 2009, 31

03/31/09

PROPERTY RIGHTS- what every Buyer should know

Once again, I’d like to chat about Property Rights… it’s one of my pet peeves…. I’m no expert… but it is important for people to know what rights they have when they purchase a property.

Ownership is the highest form of control one can exercise over any type of property, including intellectual property. Ownership in fact consists of a bundle of many rights that together comprise the concept of being an owner. For example, you can count on having the right to possess the property, use it, enjoy the property, mortgage it and to transfer or sell the ownership.

There are a variety of other rights- some that can be divided up by the owner and may result in a variety of different parties deriving particular rights in specified circumstances. Any number of variations that subdivide the bundle of owner rights are possible.

Real Estate value considers the combination of the tangible and intangible attributes of land, improvements and the rights that are or are not included.

When you purchase a property, ask which rights are included…. And they’re not just limited to the following list:

Shoreline & Road Allowance:
Most waterfront property in Ontario has a standard 66-foot Shoreline Reservation, unless otherwise transferred to the Deed. This part of the property is owned and controlled by the Ministry of Natural Resources. Usually, no permanent development or shoreline development is allowed on this reservation. In many cases the shoreline reservation may be purchased from the Ministry of Natural Resources. The purpose of a Shoreline Reservation is to preserve the natural habitats and environments of aquatic creatures, birds and plants.

Riparian Rights:
If riparian rights are included it means that the owner of lands on the banks of watercourses are entitled to take advantageous use of the water on, under or adjacent to the land- including the right to acquire accretions (Slow addition to land by deposition of water-borne sediment), wharf slips and to fish there on.

Appurtenance:
Something outside of the property that belongs to the property and adjoins thereto and adds a greater enjoyment of the property- a right of way is a good example of this.

Mineral Rights & Surface Rights:
There are parcels of land in Ontario where landowners may own the surface rights but not the mineral rights in, on or below their land. The Ontario Mining Act provides a statutory right to stake mining claims on Crown mineral rights and to conduct assessment work on the mining claims even if the surface rights are privately owned.

Simply put, mining (mineral) rights are the rights to the minerals located in, on or under the land. Surface rights refer to any right of land that is not mining rights. The deeded property owner will have the legal right to walk & enjoy the surface of the property and to build or construct a dwelling on the surface of the property- subject to local regulations, of course.

Mineral Rights include all precious metals, ores, sand & gravel. When a Mining Company, Prospector or other Individual owns the mineral rights, they do not need the owner's permission to go on the property and do exploration work. The Mining Company, Prospector or other individual only needs to inform you in writing the day before of their intent to perform work.

If the deed says “All Mining Rights are Included” it means that the Property Owner owns the minerals above & below the surface.

This short video about Mineral Rights is well worth watching:

http://watch.ctv.ca/news/w-five/w-five-fight-for-rights/#clip116218

Timber Rights:
Timber rights reserved means that all the timber (trees) standing on the property are not included with the property. These trees are reserved to the Provincial Government- or to an individual. This includes all tree species except Pine trees. Although the Government owns the trees they do require the permission of the property owner to harvest those trees. If the property owner wishes to harvest the trees on the parcel, the owner must call the Ontario Ministry of Natural Resources District Office for further details. A stumpage fee is owed to the Ministry of Natural Resources when harvested.

When timber rights are included, the property owner owns the trees- except the Pine- unless the deed states, “all pine rights are included”.

Pine trees are reserved to the Crown- meaning that all Pine trees standing on Ontario property are owned by the Provincial Government. The property owner does not own these trees. To harvest Pine trees you must contact the Ontario Ministry of Natural Resources. The Pine rights can be purchased from the Government.

Here are a couple of sites that may be of interest:

The Conservation Land Tax Incentive Program (CLTIP) is designed to recognize, encourage and support the long-term private stewardship of Ontario's provincially significant conservation lands by providing property tax relief to those landowners who agree to protect the natural heritage values of their property.

http://www.mnr.gov.on.ca/en/Business/CLTIP/index.html
Conservation Land Tax Incentive Program (CLTIP)

The Ontario Landowners Association appears to be in favour of having the
Government cease the violation of property rights. Signs - seen all over the Ontario countryside, posted on farm gates, fences, and in fields- particularly in Eastern Ontario - shout: “This is our land. STOP. BACK OFF GOVERNMENT”. Their website is
http://ruralrevolution.com/website/

Real Talk!

Jody

Welcome and thanks for visiting the blog of Jody Didier, real estate agent, mom, and general all around Bancroftian! This blog contains her thoughts on being a real estate agent, real estate information in general, and occasional rants and raves about life in general...

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