The Planning Act (Ontario) is the cornerstone of land use planning in the province, establishing a framework to balance development with environmental, economic, and social priorities. For real estate lawyers, its provisions significantly shape transactional strategies, compliance obligations, and dispute resolution processes.

Planning Act, R.S.O. 1990, c. P.13

• Governs official plans (municipal blueprints for growth) and zoning by-laws, which dictate permissible land uses, density, and development standards.
• Requires alignment of development with provincial priorities, such as protecting ecological systems, promoting affordable housing, and ensuring sustainable infrastructure.

• Mandates that planning decisions consider matters of provincial interest (e.g., climate resilience, transit-oriented development, and accessibility).
• Includes inclusionary zoning policies in designated areas, requiring affordable housing units in residential projects.

• Establishes procedures for site plan control, subdivision approvals, and development consents, often involving public consultation.
• Allows appeals to the Ontario Land Tribunal (OLT) if councils fail to act or decisions are contested.

Municipalities wield significant authority under the Planning Act to regulate land use and development, which profoundly impacts real estate transactions involving the division or amalgamation of land/lots. These powers, combined with statutory restrictions, shape the feasibility, compliance obligations, and risk profiles of such transactions.

• Official Plan (s. 16): Municipalities must adopt official plans that set development policies (e.g., density, land use designations, and infrastructure priorities). These plans guide all zoning by-laws and subdivision approvals.
• Zoning By-Laws (s. 34): Councils may restrict land use, building design, and lot configurations (e.g., minimum frontage, floor-area ratios). Zoning can prohibit or permit specific types of land divisions (e.g., subdividing a single lot into smaller parcels).
• Inclusionary Zoning (s. 16.4): In protected major transit station areas or areas with development permit systems, municipalities may mandate affordable housing requirements, which developers must integrate into subdivided lots.

• Subdivision Approvals (s. 51): Municipalities (or approval authorities) must review and approve plans of subdivision (e.g., land splits) under strict criteria:
  • Conformity with the official plan and adjacent subdivisions.
  • Compliance with infrastructure standards (e.g., road widths, stormwater management).
  • Public interest considerations (e.g., environmental impact, accessibility for persons with disabilities).
• Site Plan Control (s. 41): In designated areas, municipalities can impose detailed design requirements (e.g., building placement, parking, and landscaping) for lot amalgamations or developments.