Ask a Wahi REALTOR®: Are There Specific Local Bylaws or Regulations That Can Limit a Buyer’s Renovation or Improvement Plans?

Wahi Realtor Barb Funt shares three kinds of rules homebuyers should be aware of before making an offer on a property.

By Josh Sherman | 2 minute read

Rules and regulations can have a big influence on a homebuyer’s future renovation plans.

There’s lots for homebuyers to decide before making an offer on a home. They’ve got to pick a Realtor, decide whether to buy or sell first (if they already own property), and narrow down neighbourhood options, to name just a few.

Among these considerations, homebuyers should also pay attention to regulations that may apply to any given property. These include everything from heritage designations to zoning bylaws. Depending on the rules, these regulations can dramatically limit what can and cannot be done to a property in the future.

Here are three types of regulations homebuyers should consider before putting in an offer on a property.

1. Heritage Designations  

If the home you plan to buy is a designated heritage property, you should expect limitations in terms of what you can change about its appearance. “You can’t change the outside of the property,” says Funt of strict heritage rules. In fact, in certain cases, interior elements could be protected, too. 

Such rules aren’t limited to historic homes. Funt notes that in some newer subdivisions, there are architectural protections that are meant to keep a uniform look to a neighbourhood. “Sometimes you can’t make changes unless you get approvals,” she adds.

2. Building Permits 

The majority of reno, construction, or demo projects require building permits, though rules may vary locally. At a minimum, a permit will cost you hundreds and multiple permits for a larger project could add up to thousands of dollars.

Building permits are particularly important to keep track of if you’re looking at a home that has an apartment you can use as a so-called mortgage-helper. You’ll want to make sure that the apartment is, in fact, a legal dwelling unit. If it isn’t, your lender won’t consider your potential rental income during the mortgage-qualification process. “I just had a deal fall apart because of that,” says Funt. “You want to make sure that you’ve got documentation when you put an offer in,” says Funt.

3. Zoning By-Laws 

Local zoning laws will limit what you can do with your property, particularly if you plan on a major expansion, such as adding a laneway suite or constructing a different type of home than what currently exists on the site.

If your proposed project mostly adheres to the current zoning for the lot, you may still need to seek what’s known as a minor variance.

For condo buyers, looking up local zoning rules can help you determine whether or not your view is protected. “The parks are safe, but anything that’s not a park is not safe,” says Funt. “Even buildings in Toronto… you just never know, so you want to look and see if there’s anything in the planning department.”