If you’re searching for information about encroachment agreements in Calgary, there’s a good chance you’re buying, selling, renovating, or dealing with a property issue that unexpectedly came up during a real estate transaction. For many homeowners, this topic first arises after receiving a real property report (RPR), speaking with a lawyer, or learning that part of a structure on their property extends onto city land, a utility right-of-way, or a neighboring property.

Encroachment agreements can sound technical and intimidating at first. Still, in reality, they are fairly common in Calgary and often involve things like fences, garages, driveways, retaining walls, air conditioners, balconies, or landscaping features that slightly cross property boundaries or extend into your neighbor’s property or areas controlled by the City.

Some encroachments are considered minor and manageable, while others can create issues during property sales, refinancing, development applications, or future renovations. Understanding your options early can help prevent delays, unexpected expenses, and complications later on.

Encroachments on City of Calgary Property

If your encroachment extends onto City of Calgary land or into a City-controlled area, you will need to apply for an encroachment agreement with the City of Calgary. From there, the City will typically review the size, location, type, and impact of the encroachment before deciding how to handle the issue.

Depending on the situation, the City may allow the structure to remain through a formal encroachment agreement, request modifications to reduce the encroachment, or require the structure to be removed entirely. For minor encroachments, the City may require a simpler “Encroachment Consent Letter.”

Encroachments affecting City land often receive additional scrutiny because they can interfere with utilities, drainage systems, public access, roadways, future development plans, or municipal maintenance work. Even relatively minor encroachments can become an issue during property sales or redevelopment projects if they are not properly addressed.

Encroachments on Privately Owned Lands

Encroachments involving neighbouring private property are handled differently than encroachments affecting City land. In these situations, the issue is often resolved directly between property owners through written encroachment agreements, negotiated consent, property line adjustments, or legal arrangements registered on title.

In most cases, property owners will draw up an encroachment agreement if both parties consent to leaving the encroachment in place. However, if an agreement cannot be reached, the encroaching structure may ultimately need to be modified, relocated, or removed.

A basic neighbour encroachment agreement will usually include:

• The legal names of both property owners
• The legal addresses and property descriptions involved
• A description of the encroachment and its location
• Permission for the structure to remain in place
• Responsibility for maintenance, repairs, and liability
• Terms explaining whether the agreement continues after the property is sold
• Conditions for removal or future changes to the structure
• Signatures from both parties

Homeowners should have the agreement drawn up or reviewed by a real estate lawyer and registered on title to help avoid any additional complications during property sales.

City of Calgary Encroachment Agreement Application

The City of Calgary Encroachment Bylaw mandates that formal approval for any existing or proposed encroachments must be obtained from the City. If approved, the private landowner must enter into an encroachment agreement.

There is a formal application process to obtain an encroachment agreement with the City of Calgary. It includes completing the application form, submitting a current Real Property Report, clearly marking all encroachments, providing supporting photographs and documents, and paying municipal fees.

Approval of an encroachment agreement typically takes between 3 and 8 months, and encroachment agreements usually contain ongoing obligations for the property owner. Common terms include responsibility for maintaining the structure, liability for damage caused by the encroachment, potential future removal obligations, and restrictions on rebuilding damaged structures.

If a property owner is unwilling to enter into an encroachment agreement, they are required to remove the encroachment from City lands or interests. Non-permitted encroachments that remain on City lands or interests may incur penalties, including fines ranging from $750 to $10,000 upon conviction, highlighting the risks of failing to address encroachments properly.

Before submitting an encroachment application, property owners should:

• Order a current Real Property Report
• Mark all encroachments clearly
• Take dated photographs
• Confirm property boundaries
• Review easement and utility concerns
• Consult a real estate lawyer

Effective February 1, 2025, the City of Calgary will no longer accept encroachment agreements that are photocopied, scanned, altered, or incomplete, and the original-coloured Real Property Report (RPR) must be included with all encroachments clearly marked in red.

Buying or Selling Property When An Encroachment Exists

At DLegal Law Office, we assist our clients with encroachment agreement Calgary matters involving Real Property Reports, title concerns, compliance issues, city lands, neighbouring property disputes, and real estate transactions. We can help explain legal obligations, assist with applications, and guide buyers and sellers through the process. We know buyers and mortgage lenders typically require a clean RPR with a Certificate of Compliance Stamp, so we will work with you to make that happen.

For a clear, lawyer-prepared review of your encroachment options, contact our lawyers at DLegal Law Office today.

The content of this article is intended to provide a general guide to the subject matter and should not be considered legal or other professional advice. To get detailed information regarding your specific circumstances, please discuss your situation with a lawyer or other professional. Refer to our Legal Notice  for more details.