An Alberta acreage property has an existing surface lease for an oil company's pipeline. How does this affect the buyer's purchase and future use of the property?
Correct Answer
D) The lease runs with the land; the buyer gets annual rent, cannot build in the lease area, and must allow operator access
A surface lease runs with the land in Alberta and transfers to the new owner upon sale. The buyer inherits the lease terms, receives the annual rental payments, but must accommodate the operator's access rights and cannot develop within the lease area. Buyers should review the lease terms carefully, as they affect property use, and the lease is typically registered as a caveat on the title.
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