Most people know what a subdivision is in general, understanding that it's a large piece of land that has been broken up into multiple lots and sold off. Many times, those who own these lots will sell them to people who want to build their own homes, and they'll even use specific builders and contractors to do the work. But what is a subdivision in a legal sense?
Basically, it is just the dividing of one lot into at least two new lots. It does not have to encompass numerous lots, despite this common usage, and could be as simple as buying one lot, splitting it in half, and then selling each one.
However, it's important to note that small divisions like this may not always have to be referred to as subdivisions. Instead, you may be able to ask that the action be considered a land severance. Approval is not always given, but this is a common way to address selling part of a single lot.
For any subdivision, the Planning Act will need to be considered and approval will have to be given. Approval is not granted until it is shown that the land will work as it is intended to be used and that the new use fits within the different regulations for zoning. For example, you could not sell off lots for homes in an area that was zoned strictly for business.
It's very critical that both parties -- buyers and sellers -- know exactly what legal steps have to be taken when land is being split up and used in this manner in Ontario.
Source: Ontario Ministry of Municipal Affairs and Housing, "Subdivisions," accessed May 14, 2015
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