Leasehold Purchase Agreements in Jasper National Park

Established in 1907, Jasper National Park is located in Western Alberta, close to the British Columbia border and north of Banff National Park. The nearest major city is Edmonton located 370km east of Jasper townsite but there are several smaller nearby towns, such as Hinton, Valemont and Edson. Jasper National Park is part of the Canadian Rocky Mountain Parks UNESCO World Heritage Site. Attracting visitors from all over the world – up to 2 million visitors per year – it is a picturesque community known for premier outdoor activities such as hiking as skiing, the Columbia Icefield and dark sky stargazing.

For individuals looking to purchase property in the Jasper Townsite there are specific considerations and eligibility requirements that must be met. The supply of homes is very limited, roughly 1,600 housing units total, due to the restrictions within the townsite. It is a very competitive housing market within the national park’s boundaries. Following the 2024 wildfire that severely damaged the Jasper Townsite, leasehold agreements are being closely reviewed with regard to rebuilding or redevelopment in the area.

What is a Leasehold Purchase Agreement?

In Alberta, a Leasehold Purchase Agreement is a contract in which you are purchasing the right use and occupy a property on a specified lease term rather than owning it outright. You own the property, its fixtures and any improvements but not the land on which it sits upon. In Jasper, conditions are set by a landlord and in this instance, the Landlord is the Crown, aka the Federal Government with administration handled by Parks Canada. Residential and Commercial leases in Jasper National Park are set to 42 years. This means that the lease will eventually expire and it must be renegotiated with Parks Canada.

In order to purchase property in Jasper, Alberta there is a strict ‘need to reside’ requirement. This means you must be employed in the park, or operate business there. Full-time students must be registered to an institution within the park’s boundary. It is possible to retire in Jasper National Park as long as you have met the ‘need to reside’ criteria for at least 5 years prior. In addition, these leases have specific terms and conditions, including limitations on the remaining length of time the leaseholder has the legal right to occupy or use the property, any renewal rights, transfer/assignment rules, and fees.

How does buying leasehold property in Jasper National Park work?

When purchasing property in Jasper National Park, a specialized lender may be required due to the nature of the agreement. Securing a mortgage for a leasehold in Jasper is more complex than a typical mortgage because the lender is securing a loan against a lease and not the land. Some banks may refuse to issue a mortgage to prospective buyers if the term on the lease is shorter or approaching renewal. Parks Canada will review the mortgage terms and letters of undertaking before it can be registered with Alberta Land Titles. Current residents, whose homes were destroyed in the 2024 wildfires, are needing to ensure that the rebuilding mortgages are being coordinated between lenders and Parks Canada to ensure the new structure complies with the lease.

An agreement between the federal government and the Municipality of Jasper negotiated a low rental rate of $1.00 per annum. However, this does not apply to all properties and further consideration is required to confirm whether the property falls under the “Jasper Agreement Lands” that qualify for the $1/year rate. It is possible for other leases in the provincial park to be based on land value or revenue. Buyers looking to offer short-term rentals need to be aware that such rentals are heavily restricted as the townsite prioritizes housing for individuals. Airbnb’s and short-term rentals often require special permits and approvals. If buyers are looking to rent out their property, the individuals renting them must abide by the ‘need to reside’ rules as well. This is strictly enforced.

When purchasing property inside Jasper National Park, any changes made to the property such as additions or rebuilds require approval from Parks Canada. You must abide by the building design guidelines, development permits, land-use zoning rules and environmental protection rules. Because of the complexity of leasehold purchase agreements, prospective buyers are encouraged to work with a realtor who has experience reviewing and handling leasehold purchase agreements specific to the Jasper Townsite.

What is the renewal process?

If you plan on selling your property in Jasper National Park, you must submit a request for assignment to Parks Canada. Parks Canada reviews the property’s compliance with land-use rules, the mortgage approval and development restrictions. Parks Canada is required to approve the assignment (sale) which usually takes 10 business days from the time the application is submitted.

Kahane Law Office Can Help!

When in doubt, have a real estate lawyer speak with you about a leasehold purchase so you know your rights and obligations. Often email is the fastest way to reach our team since it allows you to provide details. Email our team directly here. We also love calls. Call us at 403-225-8810 locally in Calgary, Alberta. In addition, feel free to call us toll-free at 1-877-225-8817. No matter how you reach us, we enjoy helping when you need us.

This publication is provided as an information service and may include items reported from other sources. We do not warrant its accuracy. This information is not meant as legal opinion or advice.