April 24, 2025
Owning a cottage in Ontario- or we in Northwestern Ontario call them, a “camp”- is a dream for many, offering a peaceful retreat from city life. However, purchasing a seasonal property comes with unique legal and financial considerations. Prospective buyers must be aware of zoning laws, access rights, environmental restrictions, and potential liabilities before making a purchase. Here’s what you need to know when buying a cottage in Ontario.
- Road and Water Access Rights
Not all cottages have year-round road access. Some properties are accessible only by seasonal roads or by water, which can affect financing, insurance, and resale value. Buyers should check if the road is municipally maintained or privately owned, as private roads may require annual fees and maintenance agreements. Water access properties require additional considerations, such as docking rights and seasonal limitations.
- Zoning and Land Use Regulations
Municipal zoning bylaws or Provincial zoning orders may determine what you can and cannot do with your cottage. Before purchasing, confirm whether the property is zoned for seasonal or year-round use. If you plan to renovate, expand, or rent out the cottage on platforms like Airbnb, check local bylaws and short-term rental regulations to ensure compliance.
- Water and Septic Systems
Unlike city properties, many cottages rely on wells, lakes, or other private water sources. Buyers should conduct water quality testing to ensure the supply is safe for consumption. Septic systems should also be inspected to confirm they meet current environmental and municipal regulations. Repairs or replacements can be costly and may require government approval.
- Environmental Considerations
Some cottage properties are subject to conservation authority regulations, especially those near lakes, rivers, or wetlands. These restrictions may limit development, tree removal, or shoreline modifications. Additionally, buyers should investigate flood risks and whether the property is in a designated floodplain, as this can impact insurance and financing.
- Financing Challenges
Cottage properties often require different mortgage terms than primary residences. Many lenders require a higher down payment (typically 20% or more) and impose stricter conditions on seasonal-use properties. Buyers should consult mortgage specialists experienced in cottage financing to explore available options.
- Property Insurance
Cottages can be more challenging to insure due to risks such as seasonal occupancy, fire hazards, and extreme weather conditions. Buyers should obtain insurance quotes early in the process to understand potential costs and coverage limitations. Some insurers may require additional measures, such as security systems or winterization, to minimize risks.
- Title and Ownership Issues
A title search is essential to identify any outstanding liens, easements, or rights-of-way on the property. In some cases, cottages may be built on leased land rather than owned outright, requiring additional legal review. Buyers should work with a real estate lawyer to ensure a clear title and resolve any legal concerns. Title insurance may offer protection, but coverage for cottages differs from urban properties, so it is especially important to understand the coverage.
Takeaways
- Buying a cottage in Ontario can be a rewarding investment, but it’s crucial to conduct thorough due diligence.
- Consulting legal and financial professionals before purchasing can help avoid costly surprises and ensure compliance with all relevant regulations.
- By taking the right steps, you can enjoy your cottage with confidence for years to come.
How Weilers LLP can help you
Our team of real estate lawyers and clerks are experienced and knowledgeable about the particular issues that may arise in purchasing a camp property in Northwestern Ontario.
If you are considering a purchase, or discover an issue after you buy, give us a call. We might be the right lawyers for you.