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:
- Checkerboarding is not legal, it runs contrary to the provisions of the Planning Act,
- Different names will be sufficient to avoid merger. The only problem is identical names.
- No, this arrangement would avoid merger.
Also, merger doesn’t always occur, noted exceptions include:
- The whole of a lot on a registered plan of subdivision, so two side by side lots are fine,
- A parcel which has consent for severance,
- The remainder after the first parcel was severed.
Brian Madigan LL.B., Broker
Comments 30
We own two side by side lots in Muskoka and we are in the midst of negotiations for a new mortgage with the TD Bank. They are claiming that the lots are merged yet they have separate titles and we pay taxes on both. MPAC tells us they are separate properties.
These lots are part of a registered subdivision ( registered in 1972) and we believe that this is an exemption from the planning act.
How do we prove this to the bank?
Author
What is the legal description for each of the two lots?
If you are concerned about this website being “public”, then please email me at BRMadigan2rogers.com
Can a commercial and residential property by automatically merge if own side by side by one person?
Author
Use is not a relevant consideration in the determination of a merger of titles.
If 2 rural adjoining lots are owned by one person can they be amalgamated into one parcel so you only have one tax bill
Author
In most cases, but that doesn’t necessarily mean the tax bill would be less.
We have 2 adjoining lots which are held separately in title.Would an amalgamation of the 2 lots trigger an updated tax assessment and increase the property taxes we now pay? One lot has a house and one lot is vacant.
Author
Two lots would actually be worth more than one.
Good day sir. I have continually landed on your insightful threads. As such, thought to reach out to your knowledge base as as both a Realtor and LLB.
I have executed a real estate deal , representing myself as a buyer while being the real-estate sales representative. The Seller, chose to list two separate properties in one real estate listing. Each property has its own PIN, MPAC, Survey, Structure of record, 911 Identifier, Driveway, Utilities Etc. All indicators of separate properties. The combined market value of this offering was very high. As such, I partnered with a Buyer Partner. I , via a separate agreement will take Property A and Buyer partner will convey Property B. Both properties appear to have merged on title requiring a technical severance. Recent changes in the planning act allow a purchaser to request a technical severance before closing with the Sellers consent. They properties do not seem to be on a “R” plan, as an exemption would apply to severance in my favour. Properties were surveyed lastly in 1969. Q: Are they in any way exempt from requiring technical severance ?
Author
You should secure legal advice.
If you do not have anyone, send me a note and I can provide some recommendations.
Hello,
I live in rural Yukon. What are the pros and cons of merging/ amalgamating two lots?
They are side by side and we own both.
One lot has our residence and the other a cabin.
The lot with the cabin has few trees and receives lots of sun. We would like to install solar panels to power our residence on the adjacent lot.
What are the pros and cons of merging the two lots?
Thanks,
ML
Author
The merger of lots in Ontario takes place rarely and often by accident. Then, it will require rectification.
You will have to contact a lawyer practicing in the Yukon to receive a correct response.
Will there be merger if title to one property is owned by one spouse and title to the adjoining property is owned as tenants is common e.g. 99% and 1% as opposed to joint tenancy?
Author
The answer in Ontario has traditionally been “no” merger in this instance.
Hello
Is there a way to merge two lots (owned by the same owner) in a Registered Plan of Subdivision that is less than 8 years old? Are there any ways around it?
Author
Usually, it’s better if the are separate. Why would you want them to merge?
Mr. Madigan, a most excellent discussion piece and hats off to you.
My parents own three residential lots side by side. One person each owns one of the outside lots, and joint tenants of the centre lot.
I understand from other reading that recent Ontario Planning Act revisions (s.50(3)(a.1) and s.50(5)(a.2)) mean that abutting properties no longer merge on the death of a joint tenant. Is that your understanding, too?
If I was to buy these three lots and own them solely, would they merge into one lot automatically? Is there anything I can do to prevent that?
Thank you
Author
John,
There are complications and numerous exemptions. It would be best to consult a lawyer and obtain advice in advance of the acquisitions.
Brian
Good Morning Brian Madigan
With the consent of the City of Toronto, the owner severed the lot into two parts and the transferred ownership to her. She mortgages both properties together as collateral. In this instance, are the two part lots merged?
Author
No, it only depends on the way she took title.
Individual owns a semi-detached house. The individual wants to buy the other half of the semidetached on the other side. The individual does not want the property to merge.
Is there a way to avoid merging?
The individual does not have anybody else. No family to put title into, no wife. And the lender will not take corporation as an owner.
Why and what is the reasoning for properties to merge anyways?
Author
It is important to ensure that the two properties do not nerge, otherwise they are less valuable together.
You should consult a real estate lawyer. You may need a new Lender.
If lots were merged (Date Unknown) then later severed in 2022, how can i find out the date they were merged? and what would be the purpose of creating a numbered company in the middle of a listing to complete the sale? both lots sold one vacant and one with a home. can GST be charged again if GST was charged on the original purchase?
Author
You should contact a real estate lawyer to search the title.
Hello Mr Madigan
I own a one acre site divided into four 1/4 acre lots
The property has one address
I have one tax bill for lot 1&2
I have one tax bill each for lots 3&4
Legal description example
Range Gr PT Lot 15 Plan 46 lot 4
Do you think these lots have merged into one parcel or are they separate lots
MPAC says they are separate lots
Thank you
Author
You will have to have a real estate lawyer review this for you.
Even if you severed them at one time, you run the risk of having them merge if they are all registered in the name of one Owner.
Can a tax sale property be sold through the MLS or only through tender or public auction?
Author
MLS is fine
I own a block X on a registered plan of subdivision Z, lying adjacent to a larger adjacent block Y of land.
If I purchase that larger block Y and apply for a new plan of subdivision Q on it, including the block X I own on the registered subdivision Z, does the new registered subdivision Q plan automatically erase the Block X from my registered plan Z or do I need a deeming bylaw to first remove block X from Z, so it can be merged with Block Y and then subdivided by Q.
I have been told that I just need approval for subdivision Q and plan and it will erase the existing lot fabric of the land on Z, but I think a revised plan would also be required an registered for Z.
Author
I would suggest that you run this by a real estate lawyer.