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An easement is a registered right allowing someone other than the property owner to use a defined part of the land for a specific purpose — such as a utility line, shared driveway, or right-of-way — that continues to bind the property no matter who owns it.
Easements show up routinely on a title search or real property report, and most — a standard utility easement along a property line, for example — have no effect on financing at all. They're a normal, expected part of how registered land works in Canada.
Problems arise when an easement is unusual: one that restricts where a structure can be built, limits access to part of the lot, or otherwise materially affects the property's use or value. In those cases, a lender may ask for more information before removing a financing condition, and title insurance can sometimes protect against certain undisclosed easement-related issues discovered after closing.
Registered under provincial land systems: easements are registered through each province's land titles or registry system (for example, Ontario's electronic land registry or Alberta's Land Titles system) and run with the land.
A right to use, not a promise: an easement grants someone a right to use part of the land for a stated purpose, which is different from a restrictive covenant (a promise about how the land may be used) or an encroachment (an unauthorized physical intrusion).
Usually financing-neutral: routine utility and municipal easements typically don't affect a lender's willingness to finance a property, unlike ones that restrict building placement or access.
Title insurance can help: some title insurance policies cover losses arising from certain easement or encroachment issues that weren't disclosed at the time of closing.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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