Casual Legal: Alternatives to subdivision

By Jeffrey Daniels
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider

Land ownership in Alberta is primarily governed by the Land Titles Act (LTA) and managed by the Land Titles Office (LTO). Section 94(1) of the LTA prohibits the sale of a parcel of land unless a plan creating the parcel has been registered at the Land Titles Office.

In most instances, the Municipal Government Act (MGA) requires that a subdivision is approved by the subdivision authority for the municipality where the land is located before a subdivision will be registered by the LTO.  

To sell or acquire a portion of an existing parcel of land, three steps are generally required:

1. Subdivision Approval: The subdivision must be approved and endorsed by the subdivision authority for the municipality.
2. Registration: The subdivision plan must be registered at the LTO to create a new title.
3. Title Transfer: A transfer must be registered at the LTO to transfer the new title from the current owner to the new owner.

There are exceptions in the MGA which allow municipalities to acquire a portion of an existing parcel of land without a traditional subdivision and title transfer. Two common examples are an acquisition of land for a road and dedication of a portion of land as a reserve or public utility lot. 

Road Acquisitions (Section 16.1)

When a municipality makes an agreement with the owner of land to acquire land for the purpose of a road, culvert, ditch or drain, the municipality can complete the acquisition by submitting to the LTO:

• a survey of the area to be acquired
• a certificate from a designated officer confirming the agreement and that required notifications have been made.

Reserve or Public Utility Lots (Section 665)

A municipality may, by bylaw, designate all or a portion of land it is in the process of acquiring as a reserve or public utility lot, and complete the acquisition by submitting to the LTO:

• The bylaw
• A survey of the area to be designated
• Consents from all parties with an interest in the land.

Acquisitions under sections 16.1 and 665 of the MGA are exempt from the requirement to obtain subdivision approval and can be quicker and more efficient than the traditional subdivision and transfer processes.

To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or send an casuallegal [at] abmunis.ca (email) to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or send an riskcontrol [at] abmunis.ca (email) to speak to Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.

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.