Buyer Beware: What You Need to Know About Land Zoning when Purchasing Property

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

Contacting a Lawyer on this Subject

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. 

Contact Curtis at 1-306-933-1341 or [email protected].

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Do you need a development permit?

Land is zoned to regulate development, ensure public health and safety, and promote the general welfare of the community. The Planning and Development Act (the “PDA”) gives local governing bodies the authority to oversee the planning process. Zoning bylaws dictate the allowable usage of land and often outline the permitted and discretionary uses of the land. These bylaws are essential in managing development and future growth within a community by coordinating local development including the separation of incompatible land uses.

Many zoning bylaws define “development” as the carrying out of any building, engineering, mining, or other operations in, on or over land or the making of any material change in the use or intensity of the use of any building or land.  As such, to construct, erect, place, alter, repair, renovate, or reconstruct a building/structure, a Development Permit is required in almost all cases.

The Saskatchewan Municipal Board’s Planning Appeals Committee (the “Appeals Committee”) recently dealt with the question of what constitutes a “development” under the PDA in the case of Ryan Martin, Leanne Martin, Jason Brittner and Tamara Brittner v Mervin (Rural Municipality), 2020 SKMB 42 [“Mervin”].

In Mervin, two recreational vehicles (“RVs”) were placed on a property without obtaining a development permit, resulting in an “Order to Remedy Development” being issued against the landowners by the Municipality. The landowners appealed the decision, and the Appeals Committee had to determine whether the placement of the two RVs on the land constituted a development that would require a development permit.  

The Appeals Committee found that placing two RVs on the property was a change of use and constituted a development that required a permit. At paragraph 14 of the Mervin ruling, the Appeals Committee found:

[14] Upon consideration, our decision turns on whether the Applicants’ establishment of the two RVs on the subject property constitutes a “development ” as defined under the Bylaw and the Act. We agree with the RMs assertion that placing two RVs on the subject property is a change in use and constitutes a “development’.  We have confirmed with the Appellants that the RVs were brought onto the subject property after purchasing the land. This action resulted in a “change of use” of the subject property as defined in the Bylaw.

As part of their analysis, the Appeals Committee determined that had the landowners been allowed to retain the RVs on the land without a permit, it would have constituted a special privilege inconsistent with the restrictions placed on the neighbouring properties in the Zoning District.

If you start the development process without acquiring the necessary approvals, an Order of Compliance or other enforcement measures may be imposed against you. If you are planning to develop land or are uncertain about whether or not you may require a Development Permit, please don’t hesitate to reach out to one of our lawyers. We would be more than happy to assist you.

Contacting a Lawyer on this Subject

Sarah is an associate lawyer with Robertson Stromberg and was called to the bar in 2023. While at law school, Sarah worked for the Ministry of Justice as a traffic prosecutor. She went on to complete her articles with the Ministry and worked as a Crown Prosecutor before joining Roberston Stromberg. 

Contact Sarah at 1-306-933-1388 or [email protected]. The above is for general information only, and not legal advice. Parties should always seek legal advice before taking action in specific situations.

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Used by the bar, the judiciary, as well as the College of Law, the Builders’ Lien Manual is the definitive legal textbook on the operation and meaning of Saskatchewan’s Builders’ Lien Act.

Congratulations to Jared Epp for his efforts in publishing this textbook which now, for the first time, contains a fully annotated guide to each section of Saskatchewan’s lien legislation.

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Robertson Stromberg welcomes Brittany Bezmutko and Jesse Hayward

Robertson Stromberg is pleased to welcome associates Brittany Bezmutko and Jesse Hayward to the firm.

Called to the bar in June 2022, Brittany Bezmutko has dedicated her practice to Family Law and Employment Law. While attending law school, Brittany volunteered with Pro Bono Students Canada in several capacities, including the Family Legal Assistance Clinics in which she provided legal information to community members regarding family law matters.    

CONTACT

Direct: (306) 933-1358
Main: (306) 652-7575
Fax: (306) 652-2445
Email: [email protected]

Jesse Hayward maintains a general civil litigation practice with a particular interest in Administrative Law, Commercial Litigation, Construction, Insurance, and Labour and Employment Law. He has represented clients in the Court of Queen’s Bench, Provincial Court, and various boards and tribunals.

CONTACT

Direct: (306) 933-1348
Main: (306) 652-7575
Fax: (306) 652-2445
Email: [email protected]

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What if I just don’t? A cautionary tale for those who ignore Saskatchewan’s new prompt payment requirements

For the past several years, we have been presenting to the construction industry the pending (and as of March 1, 2022, now in force) prompt payment provisions, which are now included in The Builders’ Lien Act of Saskatchewan. A common question that arises during every discussion on the topic is “what if I just don’t follow these provisions?” While the answer in many cases is clearly outlined in the legislation, there are many unknowns as well. For example, we know that if an Owner does not formally dispute an invoice within 14 days, the invoice becomes due and payable. However, some wondered about the repercussions of simply ignoring the paperwork or payment requirements along the way.  Surely there would be some second chances? We often rely upon Court decisions to interpret legislation, but since the legislation itself is new, it may be a while before we know how the Saskatchewan Courts will address questions of this nature.

Fortunately, we can now take some guidance from the Courts in Ontario (the first jurisdiction in Canada to enact prompt payment legislation.) Their prompt payment provisions have been in place for over two years, and the related Court decisions are now starting to trickle in. The verdict? The Courts fully appreciate the importance of the prompt payment provisions and will interpret them strictly and to the detriment of those who choose to ignore them.

One such case was very recently reported in SOTA Dental Studio Inc. v. Andrid Group Ltd., 2022 ONSC 2254. SOTA hired Andrid to construct a dental clinic in Vaughn, Ontario. Andrid issued invoices to SOTA, none of which were disputed within 14 days of receipt, making those invoices due and payable. When SOTA did not pay within the required 28 days, Andrid invoked the adjudication process and obtained a decision from the adjudicator requiring SOTA to pay the invoiced amount. SOTA continued to ignore its payment obligations, leaving Andrid to pursue enforcement measures. Andrid was able to garnish a portion of the amount owing from SOTA’s bank account, but the majority of the debt remained unpaid.

Similar to Saskatchewan, Ontario’s prompt payment legislation permits a party to apply for judicial review of an adjudicator’s decision, though in Ontario the parties are required to seek leave of the Court to do so, which is not a requirement in Saskatchewan. However, in both provinces, an application for judicial review does not operate as a ‘stay’ of the adjudicator’s order unless the Court orders otherwise.

SOTA was granted leave to bring the judicial review application but did not seek a ‘stay’ of the adjudicator’s decision in the interim. As such, the adjudicator’s decision remained enforceable until the judicial review application was heard by the Court.

In advance of the hearing, the Court flagged their concern with SOTA’s continued failure to pay the amount owing under the adjudicator’s decision. Notably, the Court outlined the following principles to be understood by all parties in the construction industry:

[12]           …  So that there is no misunderstanding in future cases, we suggest the following principles to be borne in mind.

(a) prompt payment is integral to the scheme of the Construction Act. 

(b) failure to pay in accordance with the prompt payment requirements of the Act may lead this court to refuse leave.  Where leave is granted, an applicant must obtain a stay or must make payment, failing which this court may dismiss the application on motion to quash or at the hearing of the application.

At the hearing, SOTA argued that it had not made payment because “there was no money.” The Court responded sternly:

[13] … If the owner is insolvent, as appears to be the case, it should not be permitted to run up costs and delays through recourse to litigation in the face of the order below and the prompt payment provisions of the Act.  If there are circumstances that should lead the court to grant a stay, in all of these circumstances, these must be established on proper evidence in the context of a motion for a stay.

And with that, the Court dismissed SOTA’s application for judicial review and awarded costs to Andrid in the sum of $10,000.

So, what’s the answer to the question “what if I just don’t?” Well, so far the message appears to be that the Courts will take no mercy upon you. All parties in the construction industry should understand the prompt payment and adjudication requirements that are now in force for non-exempt construction contracts entered into after March 1, 2022. In this case, ignorance will not be bliss!

This article is intended to provide legal information only, not legal advice.  Dividing family property can be quite complicated. It is recommended that you seek the advice of a lawyer when considering the division of family property.

For further information, please contact:

Misty S. Alexandre
Direct: 306-933-1352
Email: [email protected]

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Area of ExpertiseConstruction