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Zoning, Land Use & Official Plans What Every Property Buyer Must Check

Ontario

Zoning dictates what you can legally do with a property. A commercial buyer who fails to verify that their intended use is permitted or a residential buyer who doesn't check severance restrictions can find themselves owning a property that simply doesn't work for their purpose.

What Is Zoning?

Zoning is a land use regulatory system that divides a municipality into zones and prescribes, for each zone, what uses are permitted, what buildings can be constructed, and what development standards apply (setbacks, height limits, lot coverage, parking requirements). In Ontario, zoning is established through municipal Zoning By-laws passed under the Planning Act.

Every property in Ontario falls within a specific zoning designation. Common designations include residential (low density, medium density, high density), commercial, industrial, agricultural, employment, and various mixed-use categories but the specific designations and their permitted uses vary significantly by municipality.

The Official Plan

Above the Zoning By-law sits the municipal Official Plan a long-range policy document that establishes the municipality's vision for land use across the entire territory. The Official Plan designates broad land use categories (residential, commercial, employment areas, natural heritage, etc.) and sets out the policies that guide development decisions.

Zoning By-laws must conform to the Official Plan. If a property's zoning permits a use that conflicts with the Official Plan designation, the Official Plan prevails and a development application will likely be refused unless the Official Plan is amended.

For development projects, understanding the Official Plan designation is as important as understanding the zoning it tells you what the municipality will likely approve and what it will resist.

Permitted Uses vs. Non-Conforming Uses

A permitted use is an activity explicitly allowed in the zoning designation. Before purchasing a property for a specific purpose, confirm the intended use is listed as a permitted use in the applicable zoning by-law not just that it "seems like" the right zone.

A legal non-conforming use is a use that was lawfully established before the current Zoning By-law came into effect, but that would not be permitted if established today. Non-conforming uses can continue but they cannot typically be expanded or changed to another non-conforming use. If a non-conforming use is discontinued, the right to continue it is usually lost.

Buyer's risk: If you purchase a property relying on a non-conforming use and later discover the use was discontinued before you purchased, you may not be able to resume it. Confirm the continuity of a non-conforming use with the municipality before relying on it.

Minor Variances and Zoning By-Law Amendments

If a property's zoning does not precisely permit your intended use or development, there are planning approval processes:

A Minor Variance (decided by the Committee of Adjustment) grants relief from specific technical requirements of the Zoning By-law for example, a minor reduction in required side yard setback. Minor variances must satisfy a four-part test under the Planning Act (consistent with intent of Official Plan and Zoning By-law, desirable development, minor in nature).

A Zoning By-law Amendment (decided by municipal council) changes the zoning designation of a property or adds permitted uses. This is a more significant approval process involving public notice, public hearing, and council deliberation. It can take many months and is not guaranteed.

What to Check When Buying Commercial or Investment Property

Zoning due diligence checklist:

  • Current zoning designation obtain a copy of the applicable zoning by-law provisions
  • Confirm the intended use is listed as a permitted use (not just "similar to" a permitted use)
  • Review development standards: setbacks, height limits, lot coverage, parking requirements
  • Check Official Plan designation is the long-range policy consistent with the use?
  • Check for any outstanding Zoning By-law Amendments or Official Plan Amendments affecting the property
  • Review any site plan agreement registered on title this may impose restrictions on development
  • Confirm there are no outstanding work orders, zoning orders, or provincial notices
  • Check whether the property or surrounding area is subject to a Heritage designation
  • For development: confirm whether environmental assessment requirements apply
  • Check Natural Heritage features does the property have regulated wetlands, watercourses, floodplains, or other Conservation Authority regulated areas?

Conservation Authorities and Environmental Regulations

Properties within or near regulated areas floodplains, wetlands, shorelines, ravines may be subject to regulation by the applicable Conservation Authority (such as TRCA in the Toronto area). Development, grading, or alterations within regulated areas require a Conservation Authority permit. These restrictions are not always apparent from a zoning check alone a mapping search against Conservation Authority regulated areas is essential for properties that may be affected.

Heritage Designations

Properties designated under Part IV of the Ontario Heritage Act are subject to significant restrictions on alterations, demolition, and changes of use. Heritage designation can substantially affect the development potential and the cost of ownership. Check both the provincial Heritage Register and the municipal heritage register before purchasing any property of historical character or in an established neighbourhood.

Bottom line: Zoning and land use due diligence is non-negotiable in any commercial or development property acquisition. A zoning compliance letter from the municipality, a review of the Official Plan designation, and a check of any site-specific restrictions are the minimum steps. Engage a real estate lawyer and, for development projects, a land use planner, before committing to any purchase that depends on a specific use or development approval.

References & Resources