The Ramblings of a Title Man

Land in Canada

My family enjoyed a vacation in the Canadian Rocky Mountains this year. Some of the pictures are below. During my time in Canada, I wondered, “How does land ownership work in Canada?” Here is what I found:

?A short history of the Nation of Canada shows that both France and Brittan made claims to the country that is now Canada during the colonialization period in the 16th, 17th and 18th centuries. In 1763, France ceded all if its claims to Brittan after the Seven Years War between the two countries. In 1867, Canada was formed between the four British colonies of Quebec, Ontario, Alberta and British Columbia. From 1867 until 1931 Canada’s defense and foreign policies were set by the British Parliament. In 1931, Canada became independent from Brittan and later added additional territories in North America to its boarders.

Land use and land law comes entirely from the British system. Land is freely alienable, can be mortgaged and sold, passed to heirs, etc. Because of the development of the land system and original clams by the King of England, all lands that were owned by the government were called “Crown Lands.” This term survives today, and 89% of the land mass (more than 3.5 million square acres) is Crown Land.?

Crown Land can describe any type of government ownership or control over land. It can include the federal government owning land (about 41% of Crown Land) or the provincial government owning land (about 48% of Crown Land). The vast amount of this land is located in the aboral forest areas of Manitoba and Northwest Territories.?

Land ownership in Canada is an extremely high rate, with 68% of Canadians owning a home. One of the biggest differences between Canada and the United States is the type and terms of mortgages available. In the U.S., we have the very popular 30-year, fixed rate, fully amortized mortgage. In Canada, they have what would essentially be called an adjustable-rate mortgage system, where a new mortgage can be re-negotiated several times during the life of the mortgage. Additionally, mortgage interest is not tax deductible in Canada.?

The mortgage industry and the title industry are less regulated compared to the United States. Mortgages require less paperwork, and banks typically hold their mortgages, since they are not as prone to interest rate risk as they adjust over the life of the mortgage. The title insurance industry participates in the real estate process in Canada, and several major title insurance companies from the U.S. have opened in Canada.?Fees for title insurance are very low in Canada. A policy for a purchase transaction may cost as low as $400 in some providences. It appears that an owner’s and loan policy are issued simultaneously for one flat fee in some parts of Canada.?

The most curious land ownership fact I found for Canada is that several cities have implemented ordinances and controls that limit who can own land. Instead of excluding certain people from various countries, as some states in the U.S. have done, the cities of Jasper and Banff Alberta have work requirements to buy a home or commercial property. If you do not work in those locations, you can’t buy land there. This was implemented in these tourist areas many years ago due to short supply of housing and rising cost from people buying homes for vacation properties. It was quite impressive to think that every single property in Jasper, Alberta is owned by a local person who works there and has a reason to live there. I suspect that has a lot to do with the high percentage of Canadians who own a home and serves as a measure to keep homes more affordable.