Sep 2025
Do You Own Abutting Land in Ontario?
Understanding Severance and Title Merger
By Slonee Malhotra
Owning side-by-side parcels of land can offer great flexibility, but it also comes with legal and practical considerations that many property owners overlook. Whether you're planning to sell, mortgage, or develop these parcels, it's crucial to understand how title registration impacts your ability to later transact with the property.[1]
To own “abutting land” means to own land that shares a common boundary (the most common example is two side by side parcels of land). The general rule is that you cannot sell less than all of what you own.The exception to this rule is that you can sell less than all of the land that you own IF the affected land that you are selling is a whole lot within a registered plan of subdivision.
As an experienced real estate lawyer in Ontario, the two most common scenarios that I come across are where land owners:
- own two adjoining lots within a registered subdivision.
- own one registered lot and another unregistered parcel directly beside the lot in the registered subdivision.
In the first case, the land owner is likely in the clear. But in the second case, we may run into “merger”. Merger is a dirty word in the land development realm. Under the Ontario Planning Act, if one of the parcels is not part of a registered plan, the titles can automatically merge, even if you acquired the parcels separately or at different times. This means the properties are legally treated as one parcel and cannot be sold, mortgaged, or transferred separately unless severance is granted.[2]
In a recent Ontario case, Canadian Imperial Bank of Commerce v. Lightfoot, a couple jointly owned two adjoining parcels in Dunnville, Ontario. Though the parcels were acquired under a single instrument, only one was used to secure a mortgage in favour of CIBC. The second parcel was later transferred to one party without formal severance. The court ruled that the properties had merged under the Planning Act, rendering the transfer invalid.[3]
This case is a strong reminder: failure to recognize automatic merger can lead to significant legal and financial complications.
How to Sever a Property:[4]
If your parcels have merged, or if you wish to sell or mortgage only one parcel, you'll need to apply for severance through your municipality, in conjunction with a surveyor and a land use planner or your legal representative. Here's an overview of the process:
1. Pre-Application Consultation
You’ll meet with the municipality to review your proposal. Departments such as Planning, Engineering, and Building will flag potential issues and identify if additional documents (like a planning justification or Minor Variance) are needed.
2. Application Submission
Submit the completed application with required documents and fees. Public notice must be issued at least 14 days before a decision, and all property owners within 60 metres are notified.
3. Recommendation Report
Planning staff will prepare a formal report that includes feedback from departments, public comments, and their recommendation. The Committee of Adjustment is not obligated to follow it but heavily weighs it in their decision.
4. Public Meeting and Decision
At the public meeting, the Recommendation Report is presented, followed by input from the applicant and the public. The Committee of Adjustment then makes a final decision. Of importance, many committees meet only once monthly or once every other month, so this process of attending the public meeting can be lengthy.
Costs Considerations:[5]
It is important to note that severing title has a variety of associated costs. These include:
- Survey Costs: A property survey is required before applying; typically costs around $3,000 for a residential lot.
- Application Fees: Paid to the municipality; in 2024, Toronto’s fee was $6,763.20, with lower rates in smaller municipalities.
- Special Reports: May be required (e.g., environmental, traffic, planning); cost $3,000–$5,000+ per report.
- Professional Fees: Lawyers and planners charge hourly rates depending on experience and scope.
What This Means for You:
If you own adjoining land where one or more parcels are not part of a registered subdivision, there is a high likelihood that the properties have merged under Ontario law. This can create complications if you attempt to sell, mortgage, or transfer one parcel independently. Without a formal severance, such transactions may be void. If you’ve already entered into an agreement to sell partial of the land, you may be in breach of contractual obligations under your contract for failure to have legal authority to close.
Before undertaking any land transaction involving adjoining lots, it’s vital to confirm the status of the title and seek professional legal advice.
If you’re unsure about the legal status of your property or are planning a land transaction and need more information about severance, the Committee of Adjustments, abutting lands or title merger, our Land Development Team at SorbaraLAW can help you navigate the process remotely or at any of our four offices in Waterloo, Guelph, Fergus and Markham. Contact us today to schedule a consultation.
[1] Government of Ontario, Subdivisions (2025), online: < https://www.ontario.ca/document/citizens-guide-land-use-planning/subdivisions#section-0>.
[2] Karen La Capara, Real Property 101 for Estate Planning: Parcel Merger (2024), online:
<https://www.allaboutestates.ca/real-property-101-for-estate-planning-parcel-merger/#_edn1>.
[3] Canadian Imperial Bank of Commerce v. Lightfoot, 2025 ONCA at paras 1-4.
[4] Zachary Soccio-Marandola, Land Severance in Ontario: The Complete Guide (2025), online:
<https://www.socciomarandola.com/land-severance-ontario/>.