Planning Fundamentals
These are the planning concepts that influence what can be built on a property and how land can be used. Understanding these terms can help realtors interpret development potential, identify opportunities, and communicate more confidently with clients.
Zoning By-laws
What it means
A zoning by-law sets the rules for how land can be used and developed.
Zoning may regulate: Permitted uses, Building height, Density, Setbacks, Lot coverage or Parking requirements
Realtor takeaway
Just because a property owner wants to build something doesn't mean the zoning allows it.
Official Plan
What it means
An Official Plan is a municipality's long-term vision for how a community should grow and change over time. It contains policies related to housing, transportation, employment, parks, environmental protection, and growth management.
Realtor takeaway
If a client asks what may happen in an area over the next 10–20 years, the Official Plan is often a good place to start.
Land Use Designation
What it means
A land use designation is a category assigned through a municipality's Official Plan that identifies the intended long-term use of land.
Examples may include Residential, Mixed Use, Employment, Commercial, and Open Space.
Realtor takeaway
A property's designation can provide insight into how an area may evolve over time, even if current zoning permits something different today.
Permitted Use
What it means
A permitted use is an activity or land use that is allowed under the zoning by-law.
Examples may include:
• Single detached dwelling
• Retail store
• Restaurant
• Office
Realtor takeaway
Always confirm zoning before assuming a property can be used for a specific purpose.
Height and Density
What it means
Height refers to how tall a building is.
Density is a calculation used to measure the amount of development permitted or proposed on a property.
Depending on the context, density may be expressed in different ways, such as the number of units on a site, floor space, or the number of people and jobs an area can accommodate.
While height and density are often discussed together, they are not the same thing.
A development can be:
• Tall but relatively low density
• Short but relatively high density
Realtor takeaway
When reviewing a development proposal, avoid focusing on height alone.
A better question would be "What does this proposal mean for the neighbourhood as a whole?".
Height and density provide useful context, but neither term tells the complete story on its own.
Holding Symbol
What it means
A Holding Symbol, or Holding Provision, often shown as "(H)" on zoning maps, temporarily limits development until certain requirements have been satisfied.
These requirements may relate to:
• Servicing
• Transportation improvements
• Environmental or planning studies
• Infrastructure upgrades
Realtor takeaway
Seeing an "(H)" on a property does not necessarily mean development cannot occur—it may mean additional requirements must be addressed first.
Zoning By-law Amendment (ZBA)
What it means
A Zoning By-law Amendment, or a rezoning application, requests permission to change the zoning on a property. This may include changes to the permitted uses on the site and/or the specific regulations (such as height, density, etc.).
Realtor takeaway
A rezoning application means the proposal is not currently permitted as-of-right.
Official Plan Amendment (OPA)
What it means
An Official Plan Amendment is an application to change a municipality's Official Plan policies.
Realtor takeaway
An OPA application usually signals a significant planning change is being requested.
Setback
What it means
A setback is the required distance between a building and a property line.
Municipalities typically regulate:
• Front yard setbacks
• Rear yard setbacks
• Side yard setbacks
Realtor takeaway
A property's lot size does not necessarily determine what can be built. Setback requirements may significantly affect development potential.
As-of-Right Development
What it means
As-of-right development refers to development that complies with existing planning policies and zoning regulations.
Realtor takeaway
Not every new development requires a planning application. Some projects can proceed because the permissions already exist.