Ontario Real Estate Licensing Exam Practice · Question
A land developer is considering purchasing a 5-acre parcel of land zoned 'Agricultural' with the intent to rezone it for commercial retail use. Prior to making an offer, what crucial due diligence step should the developer undertake regarding the zoning?
Before acquiring a commercial property, especially with a change in intended use, a purchaser must conduct thorough due diligence. Consulting the municipal plan
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Question: A land developer is considering purchasing a 5-acre parcel of land zoned 'Agricultural' with the intent to rezone it for commercial retail use. Prior to making an offer, what crucial due diligence step should the developer undertake regarding the zoning?
Answer options:
- Rely solely on the seller's representations regarding future rezoning prospects.
- Submit a formal rezoning application immediately after making an offer to purchase. ✅ Consult with the local municipal planning department to understand the Official Plan and zoning by-laws, and assess the feasibility of rezoning.
- Purchase the property first, then explore rezoning options with the municipality.
Correct answer: Consult with the local municipal planning department to understand the Official Plan and zoning by-laws, and assess the feasibility of rezoning.
Explanation: Before acquiring a commercial property, especially with a change in intended use, a purchaser must conduct thorough due diligence. Consulting the municipal planning department is critical to understand the Official Plan and zoning by-laws, which dictate permitted land uses and the likelihood of successful rezoning, as per municipal planning principles.
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