TRENDING: H&R REIT Sells Canadian Pacific Building For $20.2M

Official Plan

Explore what an official plan is in Canadian real estate, how it guides municipal growth, and why it’s essential for development and land use planning.

Official Plan

May 22, 2025


What is an Official Plan?

An official plan is a long-term policy document created by a municipality that outlines its vision for land use, growth, and development over a set planning horizon.

Why Official Plans Matter in Real Estate

In Canadian real estate, an official plan guides decisions about zoning, infrastructure, housing, transportation, environmental protection, and economic development. These plans are approved by municipal councils and reviewed by provincial authorities.



Key elements of an official plan may include:


  • Designated land uses (residential, commercial, industrial)
  • Areas for intensification or urban expansion
  • Policies on heritage conservation or environmental protection
  • Future road networks, transit corridors, and amenities

Developers and investors consult official plans to assess the long-term potential of a site. Landowners may apply to amend an official plan if they seek to change how their property is used. Public consultation is usually required for major updates.

Understanding a municipality’s official plan helps homeowners and stakeholders anticipate changes, navigate development approvals, and align projects with local planning objectives.

Example of an Official Plan

A developer proposes a mid-rise apartment project on land zoned for single-family homes. They must request an amendment to the city’s official plan to proceed.

Key Takeaways

  • Guides land use and development policy.
  • Adopted by municipalities and approved provincially.
  • Impacts zoning, transportation, and housing.
  • Required reading for developers and planners.
  • Can be amended through public process.

Related Terms

  • Zoning
  • Land Use Bylaws
  • Municipal Planning
  • Variance
  • Urban Growth Boundary

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

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TRENDING: H&R REIT Sells Canadian Pacific Building For $20.2M
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