How do I check municipal zoning compliance before buying a business?

Zoning is set by the municipality, so the check starts with the city or town where the business operates, not with the seller or a provincial office. A business can be well run and properly licensed in the seller’s hands and still sit on land whose zoning does not allow what it does. The goal is the municipality’s own written answer rather than the seller’s assurance.

Ask for a written letter

Many municipalities issue a letter for this purpose. Kitchener says you may need a letter of zoning compliance when buying, selling or mortgaging a property, and the letter covers the current zoning, whether the proposed use complies, any pending zoning, and whether there are active zoning or property standards violations. Barrie’s permitted use letter is written confirmation of the zoning and permitted uses at a property. Search the municipality’s website for its equivalent.

Know what a letter does not cover

Read the limits before relying on it. Barrie states that its letter does not confirm compliance with any other regulations in its zoning by-law, so other requirements need their own answers. Kitchener’s letter also reports the status of building and plumbing permits on file, and setback compliance where a current survey is available, which helps if the seller has renovated.

Tie it to the licence and the offer

Zoning can also gate licensing. Edmonton requires zoning approval to obtain a valid business licence, including when a business moves or changes activities, and it encourages owners to get approval before signing a lease or to sign a conditional lease that is not binding until approval is obtained. A buyer can ask for similar protection by making an offer conditional on a satisfactory zoning letter for the intended use. Our page on zoning in a sale that includes real estate covers the property side.