ADVERSE POSSESSION AND LASTING 2020 CanLIIDocs 1431 IMPROVEMENTS TO WRONG LAND FINAL REPORT 115 APR 2020 2020 CanLIIDocs 1431 2020 CanLIIDocs 1431 ADVERSE POSSESSION AND LASTING IMPROVEMENTS TO WRONG LAND FINAL REPORT 115 APRIL 2020 ISSN 0834-9037 ISBN 978-1-896078-80-9 ALRI claims copyright © in this work. ALRI encourages the exchange of public information. You may copy, distribute, display, download and otherwise freely deal with this work on the following conditions: (1) You must acknowledge the source of this work, (2) You may not modify this work, and (3) You must not make commercial use of this work without the prior written permission of ALRI. 2020 CanLIIDocs 1431 All reports published since ALRI’s establishment in 1967 are available on our website, www.alri.ualberta.ca. This report can be found at www.alri.ualberta.ca/images/stories/docs/FR115.pdf To ensure our reports are available as widely as possible – Final Reports, Reports for Discussion and Consultation Memoranda are available on the Canadian Legal Information Institute [CanLII] website: www.canlii.org/en/commentary/reports/145/ Table of Contents Alberta Law Reform Institute ............................................................................. i Acknowledgments ............................................................................................ iii Summary ........................................................................................................... v Recommendations .......................................................................................... vii List of Abbreviations ......................................................................................... ix CHAPTER 1 Introduction ................................................................................... 1 A. The Law of Adverse Possession ............................................................... 1 B. Basis for the Current Project .................................................................... 3 2020 CanLIIDocs 1431 1. ALRI’s previous work on adverse possession .................................. 3 a. Before 2003 ................................................................................. 3 b. The 2003 Report ......................................................................... 4 2. Events in the Legislature ................................................................... 5 C. The Current Project ................................................................................... 7 D. Aboriginal Title .......................................................................................... 8 E. Natural Boundary Changes ...................................................................... 9 F. Objectives of Proposed Reforms ........................................................... 10 1. Protecting future ownership ............................................................ 11 2. Ensuring transferability .................................................................... 12 3. Promoting effective and equitable resolution of disputes ............ 12 4. Preventing the case of the “deliberate trespasser” ....................... 13 G. Structure of this Report .......................................................................... 14 CHAPTER 2 Consultation Results ................................................................... 17 A. Consultation Process .............................................................................. 17 1. Media coverage and online publications ........................................ 17 2. Canadian Bar Association (CBA) presentations ............................. 18 3. Ministerial meetings ........................................................................ 19 4. Other contacts .................................................................................. 19 5. Online survey .................................................................................... 20 a. Survey demographics ................................................................ 21 b. Commissioned survey comparison ........................................... 22 CHAPTER 3 Adverse Possession..................................................................... 25 A. Adverse Possession in Alberta ............................................................... 25 1. Historical purposes .......................................................................... 25 2. Elements of the claim ...................................................................... 26 3. Adverse possession disputes .......................................................... 30 B. Facilitating Equitable Dispute Resolution ............................................. 32 1. Elements of a section 69 claim ....................................................... 32 2. Claims that would be excluded if section 69 replaced adverse possession ......................................................................... 33 3. Remedies .......................................................................................... 34 C. Adverse Possession and Principles of Limitations Legislation ............ 34 D. Adverse Possession in Other Provinces and Territories ....................... 35 E. Indefeasibility under the Land Titles Act ............................................... 35 F. Consultation Results .............................................................................. 36 1. Survey results ................................................................................... 36 2. Other consultation feedback ........................................................... 40 G. Conclusion ............................................................................................... 42 CHAPTER 4 Abolishing Adverse Possession ................................................... 47 A. Preventing Claims by Adverse Possession ............................................ 47 B. Exempting Claims to Recover Possession of Real Property from the Limitations Act .................................................................................. 48 1. Current framework under the Limitations Act ................................ 48 2. The rationale underlying limitations legislation ............................. 49 a. Survey results ............................................................................ 49 b. Other consultation feedback .................................................... 51 c. Conclusion .................................................................................. 51 C. Transitional Issues .................................................................................. 52 1. Existing adverse possession claims ................................................ 52 2020 CanLIIDocs 1431 a. Prospective abolition ................................................................. 53 b. Retrospective abolition.............................................................. 54 2. Renewed claims to recover possession ......................................... 55 3. Previously resolved claims............................................................... 56 CHAPTER 5 Lasting Improvements to Wrong Land ........................................ 59 A. What is a Claim Regarding Lasting Improvements? ............................. 59 B. Exception to Indefeasibility .................................................................... 63 C. Elements of the Claim ............................................................................ 63 1. Lasting improvements ..................................................................... 63 2. Mistaken belief by the person who made the improvement ......... 65 3. Who can bring the claim? ................................................................ 68 a. Who is an assign? ...................................................................... 68 b. Assigns and belief ...................................................................... 71 c. Consultation results................................................................... 72 d. Aligning section 69 with court interpretation ........................... 73 D. Remedies ................................................................................................ 73 E. Planning Law Implications ..................................................................... 75 1. Land use planning ............................................................................ 75 2. Lasting improvements and planning law ........................................ 76 3. Judgments and subdivision approval ............................................. 82 a. Consultation results................................................................... 83 4. Conclusion ........................................................................................ 84 CHAPTER 6 Limitation Periods for Claims Regarding Lasting Improvements ............................................................................................ 85 A. Introduction ............................................................................................. 85 B. Current Situation..................................................................................... 85 C. Previous Report ...................................................................................... 85 D. Section 69 is an Exception to Indefeasibility ........................................ 86 E. What Limitation Period Might Apply? .................................................... 87 1. Two-year period based on discoverability ......................................