September 9, 2026 · Buying Farmland
Easements, covenants and rights of way are legal interests registered against a property's title that can limit what the owner can do with the land — sometimes severely. They survive the sale, which means a buyer inherits them along with the property. On farmland, these encumbrances can affect access, drainage, building sites, subdivision potential and even what crops can be grown. Finding them before closing is a core part of title due diligence.
Title review is one of the most important steps in the Due Diligence Checklist. A clean-looking property can carry hidden legal interests that only a title search reveals, and some of them can make a parcel unsuitable for the buyer's intended use.
The three encumbrances buyers encounter most
| Encumbrance | What it does |
|---|---|
| Easement | Gives someone else the right to use part of your land for a specific purpose — a neighbour's driveway, a utility line, or a drainage ditch. |
| Covenant | A promise registered on title that restricts or requires certain uses of the land — often limiting buildings, subdivision or non-farm activity. |
| Right of way | A specific type of easement granting passage over the land — an access road, a pipeline corridor, or a utility right of way. |
These are legal categories with overlapping features, and the practical effect on a farm depends on the specific wording of the registered document. An easement for a neighbour's access road across your best field is very different from a utility easement along a fence line — but both are binding.
Why encumbrances matter on farmland specifically
Farmland is more likely than residential property to carry encumbrances that affect its agricultural use. Irrigation ditch rights, drainage obligations, riparian setbacks along watercourses, utility corridors crossing fields, and conservation covenants can all restrict what the owner can do. In the Fraser Valley, drainage and ditch obligations are common on lowland farms. In the Interior, access rights over private roads and grazing-related easements appear frequently.
A conservation covenant — sometimes held by a land trust or government body — can permanently restrict development, drainage changes, or even certain farming practices to protect habitat or riparian areas. These covenants are designed to last and are not easily removed. A buyer should understand exactly what a covenant permits and prohibits before assuming the land can be used as planned.
How to find encumbrances before you buy
- 1Order a current title search and review all registered charges, easements, covenants and rights of way.
- 2Obtain the actual legal documents behind each charge — the title reference alone does not tell you the terms.
- 3Review a survey or reference plan to see where easements and rights of way physically sit on the property.
- 4Check for any unregistered interests — some statutory rights (like riparian setbacks) apply without being on title.
- 5Have a real estate lawyer interpret the encumbrances and explain their practical effect on your intended use.
- 6Cross-reference encumbrances with ALR status, zoning and water rights for the complete picture.
The title search is not optional
A title search is not a formality — it is the only reliable way to discover the legal interests that bind the property. Reviewing the title reference without obtaining and reading the underlying documents is not enough. Have a lawyer explain what each encumbrance means for your specific plans before you remove conditions.
What to do if encumbrances affect your plans
If an encumbrance limits your intended use, you have options — but none are guaranteed. Some easements can be modified or discharged with the agreement of the benefiting party. Covenants are typically much harder to remove, especially conservation covenants held by third parties. In some cases, the encumbrance is permanent and the buyer must either accept the limitation or walk away.
The safest approach is to make your offer subject to a satisfactory review of title and encumbrances, so you can assess their impact before you are committed. If an encumbrance is a deal-breaker, discovering it during the condition period lets you renegotiate or withdraw. Discovering it after closing does not.
Encumbrances interact with other factors — ALR status, Water Rights & Irrigation, zoning — to shape what a parcel can actually do. Review them together, not in isolation, as part of a complete Understanding the ALR and due-diligence process.
Important: This information is educational only and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property and circumstances. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Frequently Asked Questions
- What is the difference between an easement, a covenant and a right of way?
- An easement gives someone else the right to use part of your land for a specific purpose, like a neighbour's driveway or utility line. A covenant is a registered promise that restricts or requires certain uses of the land, often limiting buildings or subdivision. A right of way is a specific type of easement granting passage over the land, like an access road or pipeline corridor. All three survive the sale.
- Do easements and covenants transfer to the new owner when farmland is sold?
- Yes. Easements, covenants and rights of way are registered against the property's title and survive the sale. The new owner inherits them along with the property, which is why a title search is essential before closing. Some encumbrances can permanently restrict what the land can be used for.
- Can I remove a covenant from BC farmland?
- It depends on the covenant. Some easements can be modified or discharged with the agreement of the benefiting party. Conservation covenants held by land trusts or government bodies are typically much harder to remove and are designed to be permanent. Never assume an encumbrance can be removed — assess its impact before making an offer.
- How do I find easements and covenants on a farm property?
- Order a current title search and review all registered charges, then obtain the actual legal documents behind each charge — the title reference alone does not tell you the terms. Review a survey to see where encumbrances physically sit, check for unregistered statutory interests like riparian setbacks, and have a real estate lawyer interpret their practical effect on your intended use.
- Should I make my farm offer conditional on title review?
- Yes. Making your offer subject to a satisfactory review of title and encumbrances lets you assess their impact before you are committed. If an encumbrance is a deal-breaker, discovering it during the condition period lets you renegotiate or withdraw. Discovering it after closing does not.