The crackling and scent of burning wood at the campfire as the kids roast marshmallows, the loons calling into the night as the stars sparkle overhead. Sauntering down to the dock or boathouse for a relaxing morning by the lake with your golden retriever, a coffee and a book. A rite of passage of our youth, a seasonal pilgrimage, a dream retirement home or simply a respite from the bustle and density of city life – cottage life inhabits an almost sacred place in the cultural psyche of Ontarians. And with the run-up in cottage values throughout the pandemic, regardless of where this market is headed for the foreseeable future, it’s an asset that’s costlier than ever, and one that may come with some issues unanticipated by those accustomed to dealing with their real estate in the city. Issues that bear some consideration, and perhaps proactive planning.

Let’s consider some basics: What constitutes a cottage can really run the gamut. It could be a humble cabin or a lavish modern construction. It could be a condominium townhouse or an apartment condo in a resort. It could have water frontage – more on that in a moment – or reside in a landlocked retreat in the woods. Looking deeper, the land could be on a plan of subdivision, just like your home in the suburbs, or it could be on a plan of survey. It could be connected to municipal water and sewage, or on a well and septic. Does the building have a foundation in the ground? Is it winterized, and is there all-season access to the property?

What are the practical legal implications of all these details, and more? The following is only the tip of the iceberg. Buying a cottage requires speaking to your lawyer before you make an offer, so you cover off all of the exigencies. Here are a few:

Septic

If a new building or expansion of an existing structure will be on septic, such systems need approval from the Ministry of Natural Resources or the municipality. Ensure that your Agreement of Purchase and Sale contains a condition on septic health. Septics need to be scaled to service the buildings they are connected to, and there needs to be the space in the appropriate type of ground for them.

Well

Does the property you’re eyeing have a well? Aside from whether there’s adequate safety testing to determine if the water is potable, if that well is supplying multiple properties in the area, there may be conflicts between pipeline easements and Ontario’s Planning Act. There are costs and considerations associated with the upkeep and approval of all these systems.
Is it a four-season cottage? Whether a cottage you’re putting an offer on is winterized, and has a foundation in the ground, could impact lenders’ willingness to offer financing to close the purchase.

Can you remove the shoreline vegetation to make way for a dock? Was the dock that exists built having obtained the appropriate federal and provincial permits, or is there a risk you will be asked to remove it?

Access

Is the road to the cottage private? Does it provide year-round access? There could be zoning questions, and there could be additional maintenance fees to maintain winter access. Are you depending on an easement on a neighbouring property to access your own? Is that easement on title, or is it just “how things have been done” between the previous set of neighbours? Is there a hydro easement that wouldn’t appear on title running through that ideal patch of land on which you were planning a new structure? Only your lawyer can guide you through these issues.

As you can see, there are many reasons to involve a lawyer who is experienced in the ins of outs of rural recreational properties, in your planning before you purchase or sell. In fact, there are so many issues, that we’ll address the remaining considerations in Part II in the next issue.