Buying a Cottage in Ontario: Legal Checks Before You Close

A cottage purchase can feel like a holiday decision, but the legal risks are real. Water, septic systems, shoreline and a private road all sit outside a normal city lot.

This checklist covers the main checks to complete before closing in Ontario. It explains how things generally work. Every property is different, so a lawyer should review yours.

Check zoning, permits and existing buildings

Start with what is already on the lot. A municipal building permit is needed to build a new structure over 10 square metres, add to or renovate a building, change its use, or install, alter or repair a septic system. Building without a required permit is an offence under the Building Code Act, 1992.

Zoning matters too. If a project needs a zoning change or minor variance, no permit will be issued until that approval is obtained. Ask the seller for permits and final inspections for any addition, deck, bunkie or boathouse.

Small sheds have a special rule. Under the 2024 Building Code, a shed needs no permit if it is no more than 15 m² in gross area, one storey or less, not attached to any building, used only for storage accessory to a principal building, and has no plumbing. A cabin, or a shed on vacant land with no principal building, does not qualify. Municipal by-laws and zoning still apply to exempt sheds, so check with the municipality.

If the cottage is in unorganized territory, building permits and inspections are not available, but every building must still comply with the Ontario Building Code.

Check the septic system and the water

Every septic installation, repair or upgrade needs a permit and must be inspected. Part 8 of the Building Code covers systems with a design flow of up to 10,000 litres per day, and it is usually enforced by the local municipality, although in some areas a board of health or conservation authority does so.

Clearance distances can matter on small waterfront lots. A treatment unit must be at least 15 m from a well and from a lake, river, stream, pond or reservoir. Distribution piping must be 15 m from those waters and 30 m from a well, and both must be at least 3 m from a property line. If a well has a watertight casing to at least 6 m deep, distribution piping needs only 5 m from it.

Tanks must be cleaned when sludge and scum fill one-third of the working capacity. In areas designated under source water protection, on-site sewage maintenance inspections are mandatory.

• Ask for the septic permit, inspection records and pump-out history
• Ask where the well and septic components sit relative to each other and the water
• Arrange a qualified inspection of the septic system and a water test
• Ask your lawyer to confirm who enforces Part 8 in that area

Check the shoreline and any dock or boathouse

Most lake and river beds in Ontario are Crown land. Shore lands are the lands below the high-water mark or the maximum regulated contour, whichever is higher. A Public Lands Act work permit may be needed to build a structure such as a dock or boathouse that touches more than 15 m² of Crown or adjacent shore lands, or to dredge or fill shore lands.

Structures in contact with 15 m² or less of shore lands are exempt if they meet the conditions in Ontario Regulation 239/13, and a structure floating over shore lands is not treated as touching them. A conservation authority or municipal permit does not replace a Ministry work permit when one is required.

A conservation authority permit is also needed for development in regulated areas, including floodplains, shorelines, wetlands and watercourses. Ask the authority whether the lot falls in a regulated area.

Check that the lot really reaches the water and the road

A shore road allowance is a strip of land one chain (66 feet) wide around some lakes and rivers, set aside in the 1800s for public roads. A cottage lot that fronts one does not reach the water's edge unless the allowance has been closed and conveyed to the owner. Inside a municipality, the municipality controls these allowances unless they were legally stopped up and sold, and an owner who wants to buy one applies to the municipality.

Similarly, a Crown shoreline reserve is ungranted Crown land no more than 30 metres deep between water and private property. Ask your lawyer to review the survey for either.

Road access needs the same care. If the cottage is reached by a private road, confirm the legal right to use it. If the entrance is onto a provincial highway within Ministry of Transportation Controlled Areas, entrance permits do not pass with title, so a buyer must apply to validate an existing entrance.

Tax points and what to do next

A cottage can be designated as a principal residence. A unit counts as ordinarily inhabited even if you live in it for only a short period in the year. However, if the main reason for owning it is to earn income, a short stay will generally not be enough. A family can designate only one home per year, which forces a choice between a city home and a cottage. Land over one-half hectare may not fully qualify.

• Get the title search, survey and zoning confirmation before conditions come off
• Ask for permits, final inspections and septic records
• Confirm in writing who owns and maintains the road you use
• Check shore lands, conservation authority and road allowance issues
• Ask an accountant about principal residence designation and HST on a new or renovated cottage
• Have a lawyer review the agreement before you sign

Frequently asked questions