What pesticide, water-taking and liquor duties matter when selling a golf course in Ontario?

A golf course can carry three Ontario obligations for which a seller should have records ready: how pesticides are managed, whether water is taken under a permit, and whether the clubhouse sells liquor under a licence. Each one sits with a different body of law. Ontario Regulation 63/09 under the Pesticides Act deals with golf course pesticide use. The Ontario Water Resources Act governs taking water. The Liquor Licence and Control Act, 2019 and the AGCO deal with the licence. This page covers Ontario only and is written for a seller preparing records. A buyer’s side of the same question is covered in what permits and licences do I need to buy a golf course in Ontario.

Pesticide accreditation

Under O. Reg. 63/09, if an unlisted pesticide is used in, on or over 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. Under O. Reg. 63/09, a course that is registered with such a body, but not yet accredited, before the first day unlisted pesticides are used is exempt from that requirement until the second anniversary of that day, if the registration is maintained. Where registration in time would cause undue hardship, the regulation lets the Director, in writing, specify a later registration date for the exemption. A seller should be able to show the buyer the current accreditation, or the registration if the course is still inside that exemption.

The annual report

The regulation also requires the owner or operator to ensure an annual report is prepared if an unlisted pesticide is used on the course. Under O. Reg. 63/09, the report covers use from January 1 to December 31 and is prepared before January 31 of the following year. Because a golf course is involved, the report must also set out extra items, including the name, contact information, registration number and signature of the course’s integrated pest management agent (or another person the body approves in writing), and confirmation by the owner or a representative that the report is complete. Gather the reports now; as the next section explains, the regulation already requires a copy to be given to any person who asks.

Keeping, posting and handing over the report

O. Reg. 63/09 requires that, for at least five years after a report is prepared, a copy be kept at the head office of the owner or operator and, on request, given to any person free of charge within seven days. For a golf course, the regulation also requires the report to be posted on a website approved by the Director for at least five years, and a copy to be displayed in a prominent place on the property for at least one year. Ask your lawyer who will hold the file and keep the website posting in place after closing.

Taking water

Section 34(1) of the Ontario Water Resources Act says that, despite any other Act but subject to section 47.3 of the Environmental Protection Act, a person shall not take more than the daily volume of water set in that subsection by any means except in accordance with a permit issued under section 34.1. Subsection 34(2) lists takings to which this does not apply. Ontario’s guidance says a Permit to Take Water is required for that volume unless the activity is exempt or requires an Environmental Activity and Sector Registry registration. Section 34.1(11) says a permit is not transferable without the Director’s written consent. If the course irrigates from a pond, stream or well, find out whether a permit exists and how consent would be sought.

The clubhouse liquor licence

The AGCO’s guide to transferring a liquor sales licence says a transfer is required if there is a prescribed change of ownership of a business carried on under a licence, if the licensee changes, or if a different person wishes to acquire the licence. Its licence-management page says a transfer is subject to the approval of the AGCO. A clubhouse bar or restaurant that sells liquor therefore needs to be treated as its own item in the sale timeline. For the national picture, see selling a golf course in Canada.

A seller’s document list

• The current pest management accreditation or registration, and the approved body’s contact details.
• Each annual report on unlisted pesticide use, with proof of the website posting and the on-site display.
• Any Permit to Take Water, or the basis on which the course says it is exempt or registered instead.
• The clubhouse liquor sales licence, its expiry date and any conditions on it.
• A note of who will keep the head-office copies after closing.