Do Mineral Rights Come With Rural Land You Buy in Saskatchewan?

When you buy a farm or acreage, you naturally assume you are buying everything beneath the surface too. In Saskatchewan that assumption is worth checking, because ownership of the surface and ownership of minerals do not always sit together.

This article explains how to find out what you would actually own, what to ask for in your offer, and when to bring in a lawyer.

This article covers the law of Saskatchewan.

Why the question matters

Minerals can include things like oil, gas, potash or other substances. Who holds them under a particular parcel is not always obvious from a listing, so it is worth confirming with a lawyer who reads the title. The answer is not the same for every parcel, and it depends on the title for the specific land.

This matters because the mineral owner may have rights that affect how you use the surface. A lawyer can read the title and explain what that means for your plans.

Reading the title

ISC Quick Search finds currently active titles by parcel number, title number, owner name or land description. It lets you view a title image or request a certified print.

On a title, registered interests are any right, interest or estate, legal or equitable, recognized at law and less than title. Mortgages and liens appear as interests, and a title lock is a prohibition on the title. Judgments are tracked separately in the Judgment Registry.

Quick Search does not show previous owners or interests that were removed; the advanced Search tool covers those. If you need that history, ask your lawyer to run the right search.

You may also see an interest that is on its way off the title. Under the Land Titles Regulations, 2001, the Registrar can issue a notice that a registered interest will lapse 30 days after the notice is sent unless a court order extending the registration is registered. After that, the Registrar registers a discharge on application if no extending order is registered. If you see an interest like this, ask your lawyer what it means for your purchase.

Building protection into your offer

• Ask the seller to confirm in writing what the title includes below the surface.
• Add a condition allowing time to review the title and any registered interests.
• Ask about any leases, agreements or interests that appear on the title.
• Have your lawyer review the offer before you sign.

In a standard Law Society offer-to-purchase template, each party pays their own lawyer, and the purchaser pays the Land Titles Registry fees to register the property in the purchaser's name and to register the purchaser's mortgage.

Saskatchewan has no land transfer tax listed in CMHC's provincial fact sheet. Instead there is a provincial fee to transfer property based on the property's value. The exact rate and schedule change from time to time, so confirm the current fee with ISC before you budget for it.

Other rules for farm land buyers

If the land is farm land, ownership rules apply as well. Only Canadian citizens, permanent residents of Canada, and corporations or membership organizations that are 100 per cent Canadian-owned and not publicly traded can hold an interest in Saskatchewan farm land without an exemption.

Individuals who are not citizens or permanent residents, and entities totally or partly owned or controlled by non-Canadians, must apply to the Farm Land Security Board for an Exemption before acquiring an interest in more than 10 acres of farm land. Non-residents may only acquire 10 acres, and a larger acquisition needs an Exemption obtained by the purchaser.

Under the Act, a resident person is a Canadian citizen or a permanent resident of Canada. A Canadian citizen is treated as a resident even if he or she lives outside Canada. There are also special cases:

• Any amount of farm land can be transferred to a designated relative by a person who has been a resident for five consecutive years and acquired the land while a resident.
• Designated relatives are children, grandchildren, parents, grandparents, brother, sister, nephew, niece and their spouses.
• The Farm Land Security Board has developed exemption categories for non-eligible entities, and applicants use either a corporate or a non-resident exemption application form.
• Individuals with farming experience and capital to invest, for example under the Saskatchewan Immigrant Nominee Program (SINP), may qualify if they are serious about relocating to Canada and have a plan to do so.

The Farm Land Security Board is a quasi-judicial tribunal whose members are appointed by the Lieutenant Governor in Council. It administers Part II (farm foreclosure protection), Part III (home quarter protection) and Part VI (farm ownership) of The Saskatchewan Farm Security Act. The Board can order fines and penalties and issue land divestment orders to non-eligible entities. It can also levy administrative penalties of up to $10,000 per contravention. The rules were amended recently and may change again, so confirm the current position with a lawyer.

What to do next

• Get the title number or parcel number from the listing or seller.
• Request a title image or certified print.
• Look for registered interests, mortgages, liens and any title lock.
• Ask a lawyer to explain who holds the minerals and what rights they carry.
• Confirm farm ownership eligibility before you make an offer.

Frequently asked questions