When subdivisions are created from raw land, municipalities often require reserves of land for municipal purposes. Those purposes can include what are known as 'utility lots,' where the city might run their pipes and wires.

Utility lots are separate bits of land meandering through a subdivision, often with a home on either side.

In the City of Edmonton, utility lots can be leased or purchased, and they often are purchased by one of the adjoining neighbours. Sometimes, the utility lot is used by a homeowner without any arrangement with the City.

Recently, our client was purchasing a home. When the real property report showed up, it indicated that there was an adjoining utility lot which the Seller was using. The listing did not mention the utility lot, and the offer to purchase did not deal with it. The lot being purchased and the utility lot were both enclosed by a fence that made it appear they were one piece of property owned by the Seller.

The Buyer's Realtor indicated that the buyer believed he was purchasing the fence-enclosed area, which included the utility lot. The depth of the side yard plus the utility lot equalled 28 feet! Our client was not a happy camper when he found out that his side yard was 10 feet and the other 18 feet was owned by the City.

This deal closed, but with a lot of stress on all fronts. Plus, there's more to this story, which will carry on in our next email. 

As a Buyer's Realtor, if a lot appears to be bigger than normal, you have to dig deeper. Ask the Seller's Realtor if there is a utility lot and get a copy of the subdivision plan from Land Titles. The cost is the same as a title. Print it big and determine why the lot is larger than it should be. Is there an adjoining utility lot? 

As a Seller's Realtor, I think your listing should reference the utility lot. For the above matter, our Buyer client wanted to sue the Seller's Realtor for misrepresentation. Don't let that happen to you.

Protect yourself.

Cheers,

Barry

I'm taking on new clients. Please consider me and

Field Law when you write your next deal.