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Glossary
Legal

Severance

The legal process of dividing a single property into two or more separate parcels, each with its own legal title. In Ontario, severance applications go through the local Committee of Adjustment and must meet planning criteria including zoning compliance, lot size requirements, access to roads and services, and compatibility with the surrounding neighbourhood. The process can take several months and may include conditions such as parkland dedication or cash-in-lieu payments.

Why It Matters

Severance can unlock significant value from a property by creating additional building lots. If you own a large lot in the GTA, severing it could mean building and selling a second home on the new lot. However, the approval process is complex and not guaranteed. Municipal planning policies, neighbourhood opposition, and servicing requirements can all affect the outcome.

Real-World Example

An investor owns a 50-by-150-foot lot in East York with a detached bungalow. They apply to the Committee of Adjustment to sever the lot into two 25-by-150-foot lots. The application includes a planning justification report, a survey, and engineering studies for servicing. After a hearing where two neighbours object, the committee approves the severance with conditions including parkland dedication of $45,000 and cash-in-lieu for a second water and sewer connection. The investor sells the vacant severed lot for $600,000, more than covering the costs of the severance process.

Ontario & GTA Context

In Ontario, severance (also called consent to sever) is governed by the Planning Act and requires approval from the local Committee of Adjustment or Land Division Committee. Applications must demonstrate that the proposed lots meet zoning requirements for minimum lot size, frontage, and setbacks. The municipality can impose conditions such as parkland dedication fees, cash-in-lieu payments, road widening, and servicing upgrades. Toronto's Committee of Adjustment has become increasingly stringent, and applications in established neighbourhoods often face neighbour opposition.

How It Works in Practice

Before purchasing a property with severance potential, consult a land use planner to assess feasibility. Check the municipal Official Plan and zoning by-law for minimum lot sizes and frontages. Factor in the full cost of the severance process: planning reports ($5,000 to $15,000), survey ($2,000 to $4,000), application fees ($3,000 to $5,000), and any conditions imposed by the committee. The process typically takes 3 to 12 months.

Common Questions

How much does it cost to sever a lot in Ontario?
The total cost of severing a lot in Ontario typically ranges from $15,000 to $50,000 or more, including application fees, planning reports, surveys, legal fees, and any conditions imposed by the committee such as parkland dedication. The cost depends on the municipality and the complexity of the application.
Can any lot be severed in Ontario?
No. The proposed severed and retained lots must both meet the minimum zoning requirements for lot size, frontage, and setbacks, and the severance must be consistent with the municipal Official Plan. Some areas have minimum lot sizes that make severance impractical, and the Committee of Adjustment can refuse applications that do not meet planning criteria.

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