Do a seller's site plan agreement obligations with the municipality transfer to a new commercial property owner?

Generally, yes. A site plan agreement, entered into with the municipality under the Planning Act as a condition of developing or altering a commercial property, typically sets out ongoing obligations, such as landscaping standards, servicing requirements, parking layout, and similar site conditions. Because these agreements are usually registered on title or otherwise structured to run with the land rather than being personal to the original owner, a new owner generally does take on the outstanding obligations when they buy the property.

The practical risk for a buyer is that these obligations aren't always obvious from simply looking at the property. A site plan agreement might require specific landscaping maintenance, stormwater management features, or other conditions that aren't apparent on a walk-through, and non-compliance can create issues with the municipality after closing even though the buyer had nothing to do with the original commitment.

Because of this, a buyer's lawyer should specifically search for and review any registered site plan agreements affecting the property during due diligence, confirming exactly what obligations remain outstanding, rather than assuming a clean-looking property has no lingering municipal commitments attached to it.