Buying a Water Access Only Cottage in Ontario: Key Issues

A cottage you can reach only by boat can be a wonderful place. It can also raise questions that a road-access property never does. Where do you leave your vehicle? Who owns the dock? What happens if an ambulance or fire truck is needed?

This article explains the legal pieces that usually come up in Ontario. These include shore lands, road allowances, access roads, docks, permits and some tax points. Mortgage and insurance terms depend on the lender and insurer, so the article explains what to ask and when to get advice.

Start with what you actually own

Many buyers assume a waterfront cottage includes the water's edge. That is not always so. 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.

Some lots also front a shore road allowance. This is a strip of land one chain (66 feet) wide around some lakes and rivers, set aside in the 1800s for public roads. A lot that fronts one does not reach the water's edge unless the allowance has been closed and conveyed to the owner. A Crown shoreline reserve is a similar strip of ungranted Crown land, no more than 30 metres deep, between the water and private property.

If you are buying, a survey and a lawyer's title search will help show where your lot ends and what lies between it and the water.

Parking, landing and docking rights

A boat-access cottage usually depends on a mainland parking spot and a place to leave the boat. Check whether you own that land, whether it is leased, or whether you rely on a right-of-way or an informal arrangement. An easement such as a right-of-way can be acquired by prescription through 20 years of continuous, uninterrupted, open and peaceful use 'as of right', which means the owner knowingly put up with it rather than merely giving permission. Land Titles land is different. A prescriptive easement over it must be based on 20 years of use completed before the land entered the Land Titles system.

If the route is a privately owned road that serves as a motor-vehicle route to one or more parcels, the Road Access Act may apply. A landowner generally cannot close such an access road without a court order, apart from limited listed exceptions. One exception lets the owner close it for one period of no more than 24 hours a year to prevent prescriptive rights from being acquired.

Whether a verbal arrangement to park or cross a neighbour's land will continue after the sale is something a lawyer can help you confirm before you close.

Docks, boathouses and permits

A Public Lands Act work permit from the Ministry may be needed to build a structure, such as a dock or boathouse, in physical contact with more than 15 m² of Crown or adjacent shore lands, or to dredge or fill shore lands. Doing that work without a required permit is an offence.

There are exceptions. Structures in contact with 15 m² or less of shore lands are exempt if they meet the conditions in Ontario Regulation 239/13. A structure floating over shore lands is not treated as touching them, and removing a dock or boathouse without dredging needs no permit.

Other approvals may also apply. 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 seller whether the existing dock and boathouse were permitted.

Mortgage, insurance and emergency access

Lenders and insurers each set their own rules for properties without road access. Some may ask for more information, require a larger down payment, or decline altogether. These terms vary, so speak to your lender and insurer early and get answers in writing before you remove your financing and insurance conditions.

Emergency access is a practical question as much as a legal one. Ask what the local fire and ambulance services say about reaching the property, and what the winter and ice-over arrangements are. Also ask about the condition of the building and the septic system.

• Every septic installation, repair or upgrade needs a permit and must be inspected.
• A septic treatment unit must be at least 15 m from a well and 15 m from a lake, river, stream, pond or reservoir, and both treatment unit and distribution piping must be at least 3 m from a property line.
• In unorganized territory, building permits and inspections are not available, but every building must still comply with the Ontario Building Code.

If a past owner built or renovated without a required permit, that can cause problems later. Building without a required permit is an offence under the Building Code Act, 1992.

Tax points and what to do next

A cottage can be designated as a principal residence under the Income Tax Act. A seasonal cottage can qualify because a unit counts as ordinarily inhabited even if a person lives in it for only a short period in the year. If the main reason for owning it is to earn income, a short stay generally will not be enough. A family can designate only one home as its principal residence for each year, so you may have to choose between a city home and the cottage. Where the land is larger than one-half hectare, the excess generally does not qualify unless the owner shows it was needed for using the home as a residence. An accountant can explain how this applies to you.

• Get a current survey and confirm what lies between your lot and the water.
• Confirm in writing how you will reach the property, where you will park and who owns that land.
• Ask for proof that docks, boathouses and buildings were permitted.
• Check whether the shore road allowance has been closed and conveyed.
• Ask your lender and insurer about water access before you remove conditions.
• Ask a lawyer to review the title, easements and agreement of purchase and sale.

Frequently asked questions