Key Considerations for Purchasing a Heritage Property in Ontario

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Heritage properties are a desirable purchase for buyers where architectural charm, cultural significance, and character are valued, making them an enticing opportunity. When purchasing a designated heritage property, additional considerations should include the maintenance, alteration or demolition, finances, and insurance aspects of the property.

What is a Heritage Property?

Heritage properties are governed by the Ontario Heritage Act. In order to be designated as a heritage property, there are particular factors, called heritage attributes that determine whether a property is designated with heritage status. Heritage attributes are defined as the attributes of the property, buildings and structures that contribute to their cultural heritage value or interest. Heritage attributes mean:

  1. The property has design value or physical value.
    • Rare, unique, representative or early example of a style, type, expression, material or construction method
    • Displays a high degree of craftsmanship or artistic merit
    • Demonstrates a high degree of technical or scientific achievement
  2.  The property has historical value or associative value.
    • Has direct associations with a theme, event, belief, person, activity, organization or institution that is significant to a community
    • Yields, or has the potential to yield, information that contributes to an understanding of a community or culture
    • Demonstrates or reflects the work or ideas of an architect, artist, builder, designer or theorist who is significant to a community
  3. The property has contextual value.
    •  Important in defining, maintaining or supporting the character of an area
    •  Physically, functionally, visually or historically linked to its surroundings
    • A landmark

Municipalities and the provincial government are given power to protect Ontario’s heritage. Specifically, municipalities can pass bylaws to designate properties to be of cultural heritage value or interest, which is one way to publicly acknowledge a property’s cultural heritage value to a community. Designation also helps to ensure the conservation of these significant places for the benefit and enjoyment of present and future generations.

What does designation mean?

Designation serves as a legal tool to protect cultural heritage, encourages positive stewardship and conservation, and promotes overall increased general knowledge and understanding of the property to the local community.

Designation under the Ontario Heritage Act applies to real property including:

-          Single buildings or structures

-          Groups of buildings

-          Manufactured components

-          Cemeteries

-          Natural heritage features, cultural heritage landscapes or landscape features

Designation not only publicly recognizes and promotes awareness of these properties, but it also provides a formal process for ensuring that changes to the property are appropriately managed and respect the cultural heritage value and interest.

How do I know I am purchasing a heritage property?

To determine if a property is designated as a heritage property, you can check the Ontario Heritage Act Register or the Municipal Register of Heritage Properties such as the Oakville, Burlington, or Milton Registers. These registers provide information about properties that have been designated under the Ontario Heritage Act. You can also contact the Provincial Heritage Registrar or your local municipality's heritage office for assistance.

What are the implications of a property being designated as a heritage property?

If a property is designated as a heritage property, the owner of the property must abide by the following:

  • Maintenance costs: The owner of the property is required to maintain the property and keep it in a state of good repair in order to preserve the heritage attributes. Should this not occur, the municipality may be authorized to enter the property to carry out restorations and charge the cost back to the property owner.
  • Municipal taxes and grants: Designation may provide the property owner with tax relief and grants. Municipalities can provide tax relief to owners of eligible heritage properties by passing a by-law creating a heritage property tax relief program
  • Required approval for alterations, renovations, or demolition: Unless consent has been given, the owner cannot carry out or permit an alteration, demolition, or removal of the property’s heritage attributes to the property.
  • Insurance: Heritage property owners may face more difficulty in obtaining insurance as these are considered high-risk properties.

 Conclusion

If you are considering purchasing a heritage property, looking to sell your current heritage property or have general questions about heritage designation, please feel free to reach out to the real estate team at O’Connor MacLeod Hanna.

The foregoing should not be considered to be legal advice and should not be relied upon as such. Please consult a lawyer to get advice and an opinion on your unique circumstances.

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