The council of each municipality within the regional county municipality has the power to adopt zoning, subdivision and building bylaws, but these bylaws must be consistent with the objectives of the development plan. Municipal councils may impose certain conditions for the approval of subdivisions, such as minimum lot areas, and dimensions and provisions for rights-of-way. Similarly, metropolitan communities in Québec adopt metropolitan land-use and development plans setting out general policies that cities implement in detail. Title Insurance, Title Opinions and Due Diligence When an agreement of purchase and sale is signed, the purchaser (through its lawyer) is responsible for conducting due diligence on the property. This generally includes title and land use/zoning searches, certain corporate and litigation searches and off-title searches and inquiries. The lawyer should review all leases, surveys and other agreements associated with the property. The traditional approach in most commercial real estate transactions in Canada was for purchasers and lenders to receive title opinions from their lawyers in respect of any property that was being acquired or mortgaged. A title opinion would be based on the title search, off-title inquiries and other due diligence investigations conducted by the lawyer. If a defect in title was not addressed in such an opinion and a loss was suffered, the purchaser or lender could sue its lawyer for negligence or breach of contract, in addition to its remedies against the vendor or mortgagor.
of buildings and related facilities, such as landscaping, services, driveways and parking spaces. Municipalities also require the developer to enter into an agreement ensuring construction and ongoing maintenance in accordance with the site plans. Site plans take into consideration environmental sensitivities, use of water resources, municipal infrastructure and waste management. Under Ontario’s Planning Act, any subdivision of land requires the consent of the relevant municipality. This requirement also applies to a mortgage or the grant of certain other interests in land (such as a lease for 21 years or more, inclusive of all renewals) when the mortgage or interest is granted over only part of a parcel of land. If such consent is not obtained, the transfer, mortgage or lease will not be legally effective. Although there are a number of exemptions to the requirement for consent, contracts for the purchase of real property in Ontario are made subject to any required consent. A developer wishing to subdivide land and sell lots may be required to submit a draft plan of subdivision for approval. Normally, the municipality will require the developer to enter into development agreements with it, whereby the developer agrees to provide sewers, roads and other infrastructure for the subdivision and to dedicate certain lands for public use and certain other public benefits. All of the common law provinces in Canada have similar land division restrictions. In Québec, under An Act respecting land use planning and development , each regional county municipality adopts a development plan setting out general land- development and land-use policies.
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Doing Business in Canada
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