What happens if the zoning bylaw changed since I originally got my licence?
This is a common and important issue in a business sale, since a use that was properly zoned or licensed when you started can become a "legal non-conforming use" if the zoning bylaw changes afterward — meaning your existing operation is generally allowed to continue, but new licence applications or significant changes could be assessed against the new bylaw rather than the old one that originally permitted your business.
This matters enormously for a buyer, because legal non-conforming use protections can be narrower than they first appear — they may not survive a change in ownership the same way they protect the continuing operation itself, or they may be lost if the business ceases operating for a period of time or if the new owner seeks to expand or materially change the use. Whether your buyer's continued operation, or a required new licence application triggered by the sale, is protected by the old zoning or exposed to the new bylaw needs to be checked directly with the municipality.
Because losing non-conforming use protection can be a serious, sale-triggered risk, confirm your specific status with the municipality before closing. A Treadstone business lawyer can help assess this risk.
Key takeaways
- A zoning change after your licence was issued can leave your business as a legal non-conforming use.
- Non-conforming use protections can be narrower than expected and may not survive every change.
- A licence re-application triggered by the sale could be assessed against the new bylaw, not the old one.
- Confirm your non-conforming use status directly with the municipality before closing the sale.