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In a previous blog post, we considered a few factors to keep in mind when purchasing a multi-dwelling unit. In this post, we will cover additional points to consider before purchasing a multi-unit dwelling while also considering what it means to purchase a legal non-conforming multi-unit dwelling.
Legal Multi-Unit Dwelling
1) Location:
In order for a property to be a legal multi-unit dwelling (duplex; triplex; etc.) it must be located in a zoning area where construction and operation of such dwelling units is allowed by the municipality. Being mindful of the overall urban planning needs of the citizens, a municipality usually zones specific areas of the city for certain types of multi-unit dwellings.
2) Adequate work orders:
The dwelling unit being located within a specified zoning region is not enough on its own. Construction of the dwelling has to be done by obtaining proper building and zoning work orders from the appropriate governing bodies. Examples include but are not limited to compliance with the Planning Act; receiving the greenlight from the applicable fire department verifying that all construction is on par with the Ontario Fire Code; meeting other criteria of the Ontario Building Code such as proper ventilation, minimum ceiling heights etc.
Legal Non-Conforming Multi-Unit Dwelling
Municipalities often amend and introduce new guidelines regarding approved zoning criteria for a certain region of a city. Implementation of these changes could and often does result in some existing multi-unit dwellings not being in compliance with the new guidelines. However, provided that these dwellings were legally conforming under the old guidelines, their continued use is grandfathered in irrespective of the changes to the guidelines.
One issue to keep in mind however is that if significant structural changes take place to the grandfathered dwelling after the introduction of the new guidelines, for example in case of a severance, as part of granting its consent for the severance, the municipality can make it mandatory for the dwelling to be brought up to code in order to meet the new guidelines.
Please feel free to contact one of our lawyers should you have questions about this topic.
Good news for first-time home buyers! On May 27, 2025, legislative proposals were introduced in the Parliament to amend the Excise Tax Act by creating a new GST rebate specifically for first-time home buyers.
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