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Zoning

Learn what zoning means in Canadian real estate, how it governs land use, and why checking zoning laws is essential before buying or building.

Zoning
Escrow – Definition, Meaning, and Examples in Canadian Real Estate

May 22, 2025


What is Zoning?

Zoning refers to municipal laws that regulate how land and buildings can be used within specific geographic areas.

Why Zoning Matters in Real Estate

Zoning bylaws are established by local governments to organize urban development, protect property values, and promote safety and livability.

Zoning laws determine:

  • Permitted property uses (e.g., residential, commercial, industrial)
  • Building height and setbacks
  • Density and lot coverage
  • Whether certain businesses or structures are allowed

Before buying or developing a property, buyers must confirm the zoning designation and understand what is allowed on the site. Zoning also affects property value, development potential, and the approval process for renovations or additions.

In some cases, buyers may apply for a zoning variance or change if their intended use doesn’t align with existing regulations.

Understanding zoning is crucial for homeowners, investors, and developers alike to ensure compliance and make informed decisions.

Example of Zoning

A buyer wants to operate a home daycare but learns the property is zoned strictly residential, requiring a zoning change to proceed legally.

Key Takeaways

  • Regulates land use and development.
  • Dictates what can be built and where.
  • Impacts property value and usability.
  • Must be checked before buying or renovating.
  • Changes require municipal approval.

Related Terms

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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