Leasehold Estate

Leasehold properties can include:

• Offices

• Retail spaces

• Residential homes

• Condominiums

• Raw land

Leasehold Titles

If a lease exceeds 3 years, the tenant may obtain a leasehold title, which is registered against the property's title. This registration provides additional legal protection for the tenant. Real estate professionals must be aware of the lease's remaining term since the property's value is often influenced by the number of years left on the lease.

Examples of Leasehold Developments

Some properties are only available through leasehold ownership, particularly in areas like:

• Canada's National Parks (e.g., Banff, Jasper, Waterton)

• First Nations Land (e.g., Redwood Meadows, Hidden Valley Resort)

Practice Tip

Under the Land Titles Act (s. 61(1)(d)), leases with a term of 3 years or less don’t need to be registered at the Land Titles Office to be valid. Most residential leases fall into this category.

If you’re dealing with a leased residential property, ensure you understand the Residential Tenancies Act. This legislation outlines the rights and responsibilities of both tenants and landlords, ensuring all parties are treated fairly.

By understanding leasehold estates, you can provide better guidance to your clients and navigate these unique property types with confidence!