Glossary
Easement
An easement is a legal right that lets someone else use a specific part of your land for a specific purpose while you keep ownership..
An easement is a legal right that lets another person, utility, or government body use a specific part of your land for a specific purpose, while you keep ownership of the property. The right attaches to the land rather than to a person, so it normally continues when the home is sold.
How easements appear on a Canadian property
Easements are registered against title and usually surface during a title search or on a property survey. Typical examples include:
- Utility easements — corridors for hydro, natural gas, water, sewer, or telecom lines, letting the utility enter to inspect and repair equipment.
- Access easements and rights-of-way — a shared driveway or path that lets a neighbouring property reach a public road.
- Drainage easements — a municipal right to move storm water across part of the lot.
An easement is one kind of encumbrance, meaning it stays with the land and binds future owners.
Why it matters to a mortgage borrower
Lenders want the property to provide solid security for the mortgage. A narrow utility easement along a lot line is usually routine and does not affect approval by itself. An easement that covers much of the lot, blocks access, or prevents construction can lower the appraised value and make financing harder, and a lender may ask for confirmation that it does not interfere with the mortgage.
An easement is not a debt. It differs from a lien, which secures money owed, and it does not transfer ownership. You can still sell, insure, and mortgage the property, subject to the easement's terms.
A short comparison
Picture two similar homes on one street. The first has a narrow utility easement along the rear fence, where a buyer can still build a deck. The second has a wide drainage corridor through the middle of the yard where nothing can be built. The second may appraise lower and attract fewer buyers, even though the homes are otherwise alike.
Before removing conditions on an offer, review the title search and survey with a real estate lawyer or notary, and ask whether any easement restricts your planned use. Title insurance can cover certain defects, but it does not erase an easement that was properly registered.
Frequently asked questions
Does an easement stop me from getting a mortgage?
Usually not. Lenders treat standard utility, drainage, and access easements as routine, and they do not block financing on their own. Problems arise when an easement covers a large part of the lot, blocks access, or prevents building, because that can reduce the appraised value and the security behind the mortgage. A lender may ask for details or a survey before approving.
How do I find out whether a property has an easement?
Check the title search and the property survey, which typically show registered easements and where they sit on the lot. Sellers in most provinces must disclose known encumbrances, and for a condominium you can request the status certificate or estoppel certificate. A real estate lawyer or notary can confirm how an easement affects the property before you remove conditions on an offer.
Can an easement be removed?
Sometimes. An easement can be discharged if the party that benefits from it agrees and the proper documents are registered, which usually involves legal advice and possibly compensation. An easement may also be removed under provincial rules if it is abandoned or unused for a long period. Because rules differ across provinces and municipalities, confirm the process with a real estate lawyer or notary.
Sources
Related terms
- Encumbrance — An encumbrance is a registered claim or right affecting a property — such as an easement, lien, caveat, or mortgage charge — that binds the land itself.
- Title Search — A title search is a review of the public land registry that confirms property ownership and reveals registered claims such as liens, charges, and easements.
- Property Survey — A property survey is a land surveyor's plan showing a property's boundaries, lot dimensions, building locations, and any encroachments or easements.
- Lien — A registered claim against a property that secures a debt, giving a creditor a legal interest in the property until the debt is repaid.
- Title Insurance — Title insurance protects a homeowner or lender against losses from defects in a property's legal title that a records search may not reveal.