When purchasing a property many people forget one important thing: how is the land I am purchasing zoned?  This is relatively simple to find an answer for, and the answer can have important consequences for your ownership of the property.

In many cases the answer may seem obvious.  For example, if you are purchasing a residential home in a residential neighbourhood then the land is probably zoned for residential purposes.  However, the answer is not always so obvious, such as in cases involving smaller towns and villages or in rural municipalities.  This is even more so the case when bare land is at issue.

Let’s consider an example: you find a bare piece of land in a small town you would like to build a home on.  However, the land is zoned for commercial purposes and you do not know this.  Under the municipality’s zoning bylaw residential properties are not allowed to be built in commercial zones.  You have now purchased a property which you cannot use in the way you wanted.  While the municipality may rezone the land to residential so that you can build your home this is not a guarantee nor is it a cheap application process for you.

Another example: you purchase a bare piece of land in a residential area intending to build a new business on it.  However, if the land is zoned residential the municipality’s zoning bylaw may provide that you cannot build or operate a business in the residential zone.  Again, you have now purchased a piece of land that you cannot use as you intended.

Finally, a third example: you purchase a home in a residential area intending to operate a business from the home.  However, the municipality’s zoning bylaw might provide that your business can only be secondary to the use of the property as a residence.  This would mean that you need to actually live in the home yourself and then you can operate your business out of the home as well.  You may not have intended to live in the home at all, which will result in a property you cannot use as intended.

The above examples demonstrate why it is always important to check the zoning for the land you are purchasing with the municipality to confirm that you can use the property as you intend.

Other items to watch out for include any debts, easements, or right of ways registered against title to the property which may impact your ability to use the property. Any debts registered against the property will become your liability if the seller does not pay the debts off.  A tax search for the property is also important to determine if there are any tax arrears owed. Tax arrears run with the land and would also become your obligation if you purchase the land and the seller has not paid the arrears off.

Given these risks it is always recommended that you retain a lawyer to help with your real estate transactions.

An associate at Robertson Stromberg, Curtis focuses primarily in the areas of family law, municipal law, and real estate/real property law. Curtis is a collaboratively trained and certified lawyer skilled in resolving disputes outside of the courtroom. He takes a pragmatic, no-nonsense approach to resolve disputes as efficiently and cost-effectively as possible.

The above is for general information only, and not legal advice. Parties should always seek legal advice before taking action in specific situations