What permits and licences do I need to buy a golf course in Ontario?

A buyer asking what permits are needed to buy a golf course in Ontario should start with the activities on the property. Three that the sources below cover are pesticide use, taking water and selling liquor. Each can matter at closing, and the answer can differ between an asset purchase and a share purchase. Other provinces run their own regimes, so this page covers Ontario only.

Pesticide accreditation

Ontario Regulation 63/09, made under the Pesticides Act, says that if an unlisted pesticide is used on land that forms part of a golf course, the owner or operator must ensure the course is accredited by an integrated pest management body approved by the Director, subject to a temporary exemption in section 20(2) for a course that is registered with such a body but not yet accredited. An unlisted pesticide is one containing an active ingredient that is not a listed active ingredient. Section 19 also requires the owner or operator to ensure an annual report on unlisted pesticide use is prepared, and kept for at least five years. Ask the seller for the accreditation record and recent reports, and ask who holds the accreditation.

Water-taking permits

Under the Ontario Water Resources Act, a person must not take more than a stated daily volume of water except in accordance with a permit, subject to exceptions in the Act. Courses that irrigate from a pond, stream or well should ask whether a permit exists. The Act states that a permit is not transferable without the Director’s written consent. A buyer relying on a seller’s permit should confirm that consent is available before closing.

Liquor service

If the clubhouse serves alcohol, the Alcohol and Gaming Commission of Ontario says a transfer of the liquor sales licence is required if there is a prescribed change of ownership of a business carried on under a licence, or if the licensee changes, or if a different person wishes to acquire the licence. Its list of prescribed changes includes an individual becoming or ceasing to be an officer or director of a corporate licensee, and an acquisition of shares that reaches a stated level of ownership. The AGCO says an officer or director ceasing to act needs no transfer if the licensee gives the Registrar notice within 30 days. A share purchase can therefore trigger a transfer.

What else to confirm

Ask your lawyer to check municipal approvals and any environmental conditions that attach to the land. For the wider picture, read buying a golf course in Canada and the licence transfer answer.