Adverse possession

How BC law treats it

BC uses a Torrens land title system under the Land Title Act, RSBC 1996, c 250. Section 23(3) provides that after an indefeasible title is registered, no title adverse to or in derogation of the registered owner's title is acquired by length of possession. There is no 10 year rule, or any other period, that lets an occupier take registered land in BC. Section 24 of the Land Title Act abolishes title by prescription, so a person also cannot acquire an easement, such as a right of way or a right to drain water, simply through long use. A right of way must be granted and registered, or created as a statutory right of way. The real disputes in BC are encroachments: fences, driveways, retaining walls or parts of buildings that cross a boundary. Section 36 of the Property Law Act, RSBC 1996, c 377 lets the BC Supreme Court resolve an encroachment by declaring an easement over the land, vesting title to the encroached area in the encroaching owner, ordering the encroachment removed, and ordering compensation. The court weighs factors such as the cost of removal and the value of the land affected. Searchers often rely on Ontario or US rules, where adverse possession can still apply in some situations. Those rules do not apply to registered land in BC.

What it means for your business

A BC business that owns land does not lose it because a neighbour has used part of it for years. The practical risk is different: an encroaching structure can delay a sale, a refinancing or a development permit, and resolving it may require a survey, an agreement with the neighbour or a Property Law Act application. Buyers of commercial property should order a current survey before closing, and owners should deal with encroachments in writing before they become disputes. Example: A buyer's surveyor finds that a neighbouring warehouse's loading dock sits two metres over the boundary of a Delta industrial lot. The neighbour cannot claim the strip by adverse possession, so the parties negotiate a registered easement with compensation rather than litigate under section 36 of the Property Law Act.

Risks and common mistakes

Assuming a neighbour gains ownership after 10 years of use, which is not BC law for registered land. Believing long use of a driveway or path creates an easement, when Land Title Act s. 24 abolishes prescription. Buying commercial land without a current survey that would reveal encroachments. Ignoring an encroachment until a sale or financing, when it becomes most expensive to fix. Removing a neighbour's structure without agreement or a court order.