What is a zoning compliance letter and when would a buyer want one before closing?

A zoning compliance letter is a written confirmation obtained from a municipality's planning or zoning department stating how a specific property is zoned and whether its current use and structures appear to comply with the applicable zoning bylaw, based on the municipality's records at the time the letter is issued. It gives a buyer a level of comfort beyond simply looking at the zoning map, since it reflects the municipality's own position on the property's specific compliance status.

A buyer would generally want one before closing on a property where the intended use is uncertain, where existing structures look like they might not conform to current setbacks or other requirements, where a legal non-conforming use is being relied on, or on any commercial or income property where continued permitted use matters significantly to the purchase's value and financing. Because a zoning compliance letter is based on municipal records and reflects the situation at the time it's issued, rather than guaranteeing future compliance or accounting for undocumented conditions, buyers should still combine it with their own inspection and, where relevant, a lawyer's broader title and municipal search rather than treating the letter alone as complete assurance.