Casual legal: Consolidating parcels of land
DISCLAIMER: This article is meant to provide information only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated.
By Ben Throndson
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider
From time to time, municipalities encounter the process of consolidating parcels of land. At a high level, consolidation refers to joining multiple parcels of land into a single title. This article seeks to review the most common ways that titles may be consolidated in Alberta, and how consolidation requirements can be incorporated into municipalities’ real estate contracts.
One option for completing a consolidation is to apply to the Land Titles Office using the “Form A” consolidation process. This process is generally suitable for basic consolidations that do not require a new survey plan. For a “Form A” consolidation for subdivided land, the parcels must be adjacent, originate from the same existing registered survey plan, and be located within the same block. For unsubdivided land, “Form “A” consolidation may be available where the parcels are within the same section (or quarter section). Subdivided and unsubdivided lands cannot be consolidated together using this process. The registered owner must also be consistent across the titles. Where the parcels do not qualify for consolidation using “Form A”, registering a plan of consolidation is the most common alternative. This process generally involves retaining an Alberta land surveyor to prepare a plan showing the consolidated parcel boundaries. The plan is then submitted to Land Titles for registration, and the new title is given a new legal description with a new Plan, Block, and Lot number. Note that subdivision approval is not required for a plan of consolidation, but will be required for any future subdivision of the new plan of consolidation.
Municipalities disposing of land may also choose to address consolidation requirements directly in their real estate purchase and sale agreements. For example, where a municipality sells an undeveloped parcel, a closed road, or a right-of-way adjoining land already owned by the purchaser, the agreement may require the purchaser to consolidate the newly acquired parcel with the adjoining lands within a specified period. A contractual obligation alone, however, may not ensure that the purchaser completes the consolidation. Depending on the circumstances, the municipality may consider registering a caveat protecting an option for the municipality to repurchase the land if the purchaser fails to comply with the consolidation commitment. A caveat regarding an option to repurchase can provide additional security by preserving notice of the municipality’s claimed interest on title.
When including consolidation commitments and options to repurchase in a Purchase and Sale Agreement, municipalities should consider obtaining legal advice on the agreement, including regarding deadlines, responsibility for survey and registration costs of the consolidation, and the circumstances in which the repurchase option may be exercised.
To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1.800.661.7673 or email casuallegal [at] abmunis.ca (casuallegal[at]abmunis[dot]ca) and reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please contact riskcontrol [at] abmunis.ca (riskcontrol[at]abmunis[dot]ca), or call 310.MUNI (6864) to speak to Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.
