Land subdivision is the process of splitting a parcel of land into smaller sections with separate titles. Before listing a subdivided section of land on the MLS^® System, members must consider the stage that the subdivided property is in. Members must also and learn if is officially subdivided, registered at the Land Titles Office and if the title has been issued.

Selling a section of land that has not been officially subdivided and registered at Land Titles is illegal.

Section 94(1) of the Land Titles Act states that: “No lots shall be sold under agreement for sale or otherwise according to any townsite or subdivision plan until a plan creating the lots has been registered.”

It is best practice to ensure the title registration is complete before listing subdivisions for sale on the MLS^® System for numerous reasons including:

• Transferring ownership may be rejected at Land Titles Office and this could have legal implications for the seller and their agents.
• Applying for a plot of land to be subdivided does not guarantee that the application will be approved.
• There are different kinds of subdivisions, and each application goes through several stages that may include referrals to, and feedback from, other government agencies or departments. It can take several months before a final decision is made and the subdivision is registered at Land Titles (if approved).

Please ensure the following minimum requirements are met prior to listing subdivided properties on the MLS^® System:

• The property has final municipal approval for the subdivided parcels awaiting registration at land titles.
• There is awareness about navigating potential transactions when title registration is not complete.
• Once title registration is complete, the MLS^® System Listing is updated to reflect what is on title such as the LINC number, the legal description and any restrictions on the title.

If the property has not received final unconditional approval from the municipality finalizing the subdivision, it can not be listed on the MLS^® System.

Tips to successfully subdividing land

If your clients are interested in having their land subdivided and sold, check out the following tips:

Contact a professional
Speak to a professional and/or contact your local planning authority to get a better understanding of how long the process will take, what it will entail and how much it will cost.

Start early
Successfully completing the subdivision process can take anywhere from three months to over a year. If your client intends to market and/or sell any portion of land once it has been subdivided, they will need to start this process well in advance of the proposed sale date.

Be prepared                          
The amount of information needed to complete this process will depend on the complexity of the application, but usually the more information provided on features such as existing property lines, proposed plans, existing and proposed water/sewage disposal plans, locations of existing buildings etc., the better.

Inform the neighbours         
Although the support of neighbouring landowners is not strictly required, if public hearings are held, they may be invited to speak and provide their opinions about any subdivision application. Having their support, if possible, might be helpful for the applicant.

For more information on subdivisions, check out The Alberta Land Surveyors’ Association subdivision brochure and the City of Calgary’s website.

If you have additional questions about this topic, please contact CREB^® Member Practice at crebmp@creb.ca.

*Please note that this article was originally posted on May 31, 2022, but was revised on June 1, 2022.