Buying Vacant Land in Ontario: Can You Build on It?

A piece of vacant land can look perfect and still be impossible to build on. Rules about zoning, water, sewage, floodplains and road access decide what you can actually do with it, and none of them are visible from the road.

This article walks through the main Ontario checks a buyer of vacant rural land should make before committing. Every property is different, so treat it as a map of the questions to ask, not a final answer.

Start with zoning and the building permit

A municipal building permit is generally needed before you build a new structure, add to or renovate a building, change its use, excavate or lay a foundation, or install, alter or repair a septic system, with limited exceptions such as small sheds that meet strict conditions. Permits come from the municipality's building department.

Zoning is what the law calls applicable law for a building permit. If your project needs a zoning change or a minor variance, no permit will be issued until that approval is obtained. Conservation authority or heritage approvals may also be needed.

In practice, this means a vacant lot is only as buildable as its zoning says. Ask the municipality in writing what uses are permitted, what setbacks apply and whether a house or cottage is allowed on that specific lot.

Confirm the lot can be built on at all

Some lots are not buildable because of how they were created. If the seller is selling only part of a larger property, a consent (severance) under the Planning Act is generally needed to sell part of it, unless the land is already divided by something like a public road or railway.

On farmland, new residential lots may not be created in prime agricultural areas except for a residence that is surplus to a farm operation. If a listing promises a rural residential lot cut from a farm, ask to see the consent and its conditions.

If a building permit is refused, technical Building Code issues can be appealed to the Building Code Commission, while other legal issues, such as how zoning is interpreted, go to a judge of the Superior Court of Justice.

Water, sewage and access

Most rural vacant land has no municipal sewer, so you will need a septic system. 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, though in some areas a board of health or conservation authority does so.

Clearance distances can shrink the usable building area on a small lot. A septic 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. Piping needs only 5 m from a well with a watertight casing to a depth of at least 6 m.

Access matters too. A permit from the Ministry of Transportation is needed to build a new entrance onto a provincial highway, or to change an existing one, within MTO Controlled Areas. Entrance permits do not pass with title, so a buyer must apply to validate an existing entrance. Entrances onto municipal or county roads are handled under that municipality's own by-laws, and requirements vary.

Other approvals that can stop a project

• Conservation authority: a permit is needed for development and some other activities in regulated areas, including floodplains, shorelines, wetlands and watercourses.
• Shore lands: a Public Lands Act work permit may be needed to build a dock or boathouse in contact with more than 15 m² of Crown or adjacent shore lands, and a municipal or conservation authority permit does not replace it.
• Municipal drains: drains under the Drainage Act are not registered on title but can restrict a property, and assessments are charged to whoever owns the property when the bill is issued.
• Unorganized territory: building permits and inspections are not available, but every building must still comply with the Ontario Building Code.

If a conservation authority refuses a permit or adds conditions you do not accept, you can appeal to the Ontario Land Tribunal within 90 days of the decision.

What to do before you remove conditions

• Ask the municipality for written zoning confirmation for your intended use.
• Ask the conservation authority whether any part of the lot is regulated.
• Confirm in writing whether the municipality has any record of a municipal drain affecting the lot.
• Have the septic site assessed against the clearance distances before you rely on the lot.
• Check the road access and any entrance permit status.
• Have a lawyer review the agreement and build the checks into your conditions.

Build enough time into the conditions period for these answers to come back. A lawyer can help you word the conditions so you can walk away if a key approval is not available.

Frequently asked questions