Can you access your cottage dreams?
(NC)—What better way to spend the Canadian summer than at your own cottage or cabin? Breathing in the fresh air, walking through breathtaking scenery, or jumping into crisp lake waters off your own private dock.
But before diving head first into summer home ownership, consider some legal issues that may not be immediately obvious.
“One of the most important issues around ownership of a cottage or rural home is legal right of access. It can be a tricky area to navigate and can seriously affect the value of the property,” says Ray Leclair, an experienced real estate lawyer and vice-president of TitlePLUS at Lawyers' Professional Indemnity Company. “Unsuspecting purchasers can find themselves footing some serious legal bills if the property is lacking a legal right of access over land or to the water.”
Leclair points out a number of access issues that can affect the value of the property, the way it's used and your own personal enjoyment of the cottage:
• Road access: Is access to the property via a municipally maintained road, or will the owner need to cross over privately owned or Crown land? Is the actual road located over the legal right-of-way? This can affect the mortgage, future sale and use of the property.
• Seasonal constraints: If access is via a municipally maintained road, does the municipality maintain it throughout the entire year? Some rural residential properties are zoned “seasonal”, meaning that the municipality does not maintain the roadways and may not provide emergency services in the winter.
• Shoreline allowance: Many lakes and rivers have a road allowance along their shoreline which is owned by the municipality. These are part of the underlying legal description, and are not visible when you inspect the property. Do you actually own the land on which your cottage is built, or the land between your cottage and the shore? A shoreline road allowance can negatively affect a cottage owner's use and enjoyment of the property and have implications for a future sale or refinance.
• Rights to build in the water: Did the Ontario Ministry of Natural Resources or the local Conservation Authority give permission for the construction of the boathouse or dock? Before building many types of structures in the water or changing the layout of the shoreline, cottage owners must get proper consent.
• Your land: Is the general public, or a neighbour, entitled to walk or drive through your property as part of the road or to get to the water? Can they park a houseboat next to your dock? Understand the parameters of your property to avoid future problems.
Working with an experienced real estate lawyer will help you know what you are walking into when purchasing a vacation home so that your time at the cottage can be devoted to the rest and relaxation you intend.
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