With over 250,000 lakes and vast expanses of countryside, Ontario is home to thousands of cottages and other rural properties. Buying a rural property is often an exciting time for purchasers. However, whether you are looking forward to sipping your morning coffee by the lakeside or are interested in buying an investment property on a large piece of land, purchasing a rural property often involves greater due diligence.

Does the property use a well and/or a septic system?

While the majority of urban residential properties operate using their respective municipal sewer and water systems, many rural properties do not have this luxury. Often more isolated and less dense, rural municipalities are unable to construct an efficient system to meet all of their residents’ needs.

For example, to dispose of waste, these properties frequently operate with a septic system or holding tank. When purchasing a rural property with a septic system, it is crucial to ensure that the system is in good working order prior to closing. Requiring the vendor to provide a warranty in the Agreement of Purchase of Sale that survives upon closing relating to the septic system is recommended. It is also advisable to require that the vendor pump the septic system prior to the transaction closing.

Similarly, many rural properties often rely on private wells for their supply of water. To ensure that the water is safe to drink and free from contamination, purchasers should obtain multiple water potability tests from their local Public Health Station. It is also a good idea to make your Agreement of Purchase and Sale conditional upon a satisfactory inspection of the well and related pump prior to closing.

Is this a Waterfront Property?

When you expect a property to give you access to a body of water, it is important to determine whether the property actually includes the shoreline. If your property does include the shoreline, it comes with a set of rights known as “riparian rights”. This means that you will have the right to access the water, the right to the undisturbed natural flow of the water, and the right to withdraw water for your own use.

However, not all rural properties include the shoreline. Many bodies of water in Ontario are surrounded by shoreline reserves, also referred to as “shoreline road allowances.” These are reserves that remain either with the provincial crown in the unincorporated territory or with the municipality in the incorporated territory. If you do not own the shoreline, you do not possess any “riparian rights” and therefore may not have legal access to the water. This further means that any structures that have been built or that you plan to build on this shoreline may not be legal.

If the shoreline allowance bordering the property is not owned, it is possible to make an offer to purchase it from the Crown or municipality, pursuant to the Public Lands Act, RSO 1990 C P.43. This can be a lengthy process so it is important to determine whether a property is affected by a shoreline road allowance prior to making a firm offer to purchase the property.

Does the Property Have a Legal Road Access?

For many urban properties, the road directly leading the property is often a public roadway that is owned by the local municipality. However, for rural properties road access is not always so simple. Many properties are located adjacent to private roadways. If these private roadways are not conveyed with the property, it is vital that your solicitor confirms that you have a legal right of way to access the property through that private roadway by way of ownership or easement.

Building and Zoning Implications

When purchasing a rural property, prospective buyers often have predetermined plans for the use and enjoyment of the land. These can include installing docks, constructing decks, building structures and removing vegetation. Before committing to the purchase of a property, purchasers are encouraged to view the zoning regulations for the property, which will state the permitted uses for that piece of land. Furthermore, before constructing structures, homeowners should review the municipality’s building rules to see if any permits are required.

To ensure the property is in conformance with all building and zoning bylaws prior to closing, your solicitor can obtain and review compliance letters, which can be provided by your local municipality upon request.

Property Boundaries

It may be difficult to visually inspect the boundaries of a rural property, as there is often vegetation between property lines, with no clear boundaries erected. Rural properties are often not registered on plans of subdivision, and therefore may require some extra investigation to determine the exact location of their boundaries.

Maintenance of the Property

Finally, rural properties often demand higher levels of maintenance. Whether it be a larger lawn to mow or a longer driveway to shovel, purchasers should be aware of the significant upkeep levels and costs required to maintain the property. Furthermore, since roads leading into the property are often privately owned, purchasers should be diligent in reviewing any private road maintenance agreements that come with the property.

A good real estate lawyer, knowledgeable in rural property issues, is essential. If you are looking to purchase a rural property or have any questions, please contact Jason Lane, a lawyer at Woitzik Polsinelli LLP at 905-668-4486 ext. 241 or at jason@durhamlawyer.ca.

“This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.”

This blog was co-authored by Jaimin Panesar*