WHAT IS A SUBDIVISION?

Almost all new homes are built in a subdivision and it is common to hear the word subdivision used to describe where most of us live. When you really think about it, that is a pretty odd way of describing where we live. So what is a subdivision and why do we call where we live a subdivision?

The word subdivision is defined as the division of a lot, tract or parcel of land into two or more lots, tracts or parcels of land for sale or development. The term subdivision as we have come to know it, refers to the end product of the most common way to divide land in Ontario. Drive through any Town or City and you will see orderly development of housing with streets designed to accommodate many houses. The process, which leads to this orderly development, is why we say that we live in a subdivision.

Ontario requires people who own land to have the approval of the local municipality before that owner can slice the land into smaller units. If the owner wants to slice the land into two or three units it may be possible to submit the plan to the committee of adjustments. The process is relatively easy and speedy.

If, however, an owner wants to slice a piece of land into many pieces the Planning Act requires that the local municipality scrutinize the process closer. An agreement will be entered into between the owner of the land and the municipality, which will govern all aspects of the development process. This Subdivision Agreement will endorse a building scheme including the actual location of the pieces of land which will be created at the conclusion of the development process. When finalized as to form, and signed by all parties, the Agreement will be registered on the title to the whole tract of land and will then be referred to as a Registered Plan of Subdivision.

The whole process can take seven years (or longer) and during the proceedings all parties will describe the land being dealt with as the subdivision. When the marketing campaign starts it will be for the newest subdivision in whatever municipality it is located in. Sales agents will speak to purchasers about the advantages of living in this subdivision and eventually the people living there refer to their home as being in a subdivision.

So the next time you refer to where you live as being in a "subdivision" you can say it with conviction and knowledge.

This article is intended to provide general advice only and if you have specific questions about an issue raised by this article, please contact your real estate lawyer.

Bernie Jankowski practices real estate, corporate and estates law in Barrie, Ontario. If you have questions about this article or real estate law in general, write to That's The Law, c/o Toronto Sun, 333 King St. E., Toronto, M5A 3X5.

Email: bernie@bjankowski.com