Sarah is considering purchasing a rural property in Prince Edward County that her salesperson, David, informs her is described as 'part of Lot 15, Concession 3, being 5 acres more or less.' This sounds like a severance, but she cannot find any record of the severance in the public registry. What could be the most significant implication if this property was severed from a larger parcel without municipal approval?

Question: Sarah is considering purchasing a rural property in Prince Edward County that her salesperson, David, informs her is described as 'part of Lot 15, Concession 3, being 5 acres more or less.' This sounds like a severance, but she cannot find any record of the severance in the public registry. What could be the most significant implication if this property was severed from a larger parcel without municipal approval?

Answer options:

• The municipal property taxes will likely be higher. ✅ The severance may be deemed illegal, making the title unmarketable and potentially preventing future development or resale.
• The property's assessment value will be significantly reduced.
• The owner could be required to pay additional land transfer taxes.

Correct answer: The severance may be deemed illegal, making the title unmarketable and potentially preventing future development or resale.

Explanation: The Planning Act requires municipal approval for most severances of land, and an illegal severance can lead to serious title issues, making the property unmarketable or uninsurable.