Merger of Titles in Ontario

Question:

I understand that if someone purchases adjoining’ land/properties … that the 2 merge “as one” and would eventually need to be severed before any parcel can be sold.

My questions are regarding specifics around this.

For instance:

1)  I heard from another registrant that EVEN if the property is located diagonally across from each other (only touching via common corner post) that this holds true as well.  Is this really the case?  I can see side by side or front and back joining … but touching at a point??

2)  Also, if the 2 adjoining lots have different ownerships (but ONE common owner) does this still hold true?  I am told that it does … but that doesn’t make sense to me.  For instance, SMITH and JONES own 22 ANYSTREET … subsequently SMITH (without JONES) purchases 24 ANYSTREET (adjoining property) OR SMITH and JONES AND DOBSON PURCHASE it … does the addition or removal of an owner change the merging of the 2 lands?  I would be surprised if JONES would be subjected to severance process/costs if 22 ANYSTREET is to be sold.

3)  What if adjoining property is purchased in a Corporation (numbered business) opened by same owner?  Does that matter? Or is the Corporation viewed as a distinct identity and separate owner?

Answer:

1. Checkerboarding is not legal, it runs contrary to the provisions of the Planning Act,
2. Different names will be sufficient to avoid merger. The only problem is identical names.
3. No, this arrangement would avoid merger.

Also, merger doesn’t always occur, noted exceptions include:

1. The whole of a lot on a registered plan of subdivision, so two side by side lots are fine,
2. A parcel which has consent for severance,
3. The remainder after the first parcel was severed.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com