Rezoning / Upzoning

Rezoning is the formal process of amending a municipality's zoning bylaw to change the permitted land-use designation of a property, governed under the Local Government Act for municipalities outside Vancouver and the Vancouver Charter for the City of Vancouver. Upzoning is a subset of rezoning that specifically increases the permitted density or building intensity on a site — for example, allowing a six-storey residential building where only a single-family home was previously permitted. Both processes historically required a public hearing and council approval, though Bill 44 (2023) and Bill 47 (2023) have introduced significant 'by-right' permissions that reduce the need for case-by-case rezoning in many situations.

Bill 44, the Housing Statutes (Residential Development) Amendment Act, 2023, amended the Local Government Act and Vancouver Charter to require most BC municipalities to permit small-scale multi-unit housing — such as duplexes, triplexes, fourplexes, and in some cases sixplexes — on lots previously zoned for single-family or duplex use, without requiring a site-specific rezoning application. Municipalities were required to update their zoning bylaws to reflect these permissions within prescribed timelines set by the Province. This means property owners on qualifying lots may now be able to build additional units 'by right,' subject to the updated local bylaw standards rather than a discretionary council rezoning.

Transit-oriented areas (TOAs) were established under Bill 47, the Transit-Oriented Areas Act (2023), which amended the Local Government Act and Vancouver Charter to require municipalities to permit higher-density residential development within specified distances of designated SkyTrain stations and bus exchanges. Within these TOAs, minimum density permissions — such as taller residential buildings — apply by right, meaning a full rezoning application is not needed to achieve those densities provided the proposal meets the local bylaw standards updated to comply with provincial requirements. The Province designates specific TOA boundaries and corresponding minimum density requirements, and municipalities must amend their bylaws accordingly.

If a municipality has updated its zoning bylaw as required by the Local Government Act amendments under Bill 44 (2023), a qualifying property owner may not need to apply for a discretionary rezoning, because the additional residential units are permitted by right under the updated bylaw. However, the owner would still need to satisfy all applicable development permit, building permit, and bylaw requirements — such as setbacks, height limits, and parking standards — before proceeding. Property owners should confirm with their local municipality whether the bylaw update is in force and whether their specific lot qualifies.

A licensee regulated by the British Columbia Financial Services Authority (BCFSA) under the Real Estate Services Act (RESA) and its Rules must provide services in a competent manner and disclose material information known to them, including known zoning designations or pending bylaw amendments that could materially affect a property's value or use. Licensees must not misrepresent zoning status or speculate about rezoning outcomes as certainties, as this could constitute a breach of RESA. Because rezoning involves complex municipal planning and legal considerations, licensees should refer clients to the municipality and qualified legal or planning professionals for advice specific to their situation.

Land within the Agricultural Land Reserve (ALR) is subject to the Agricultural Land Commission Act (SBC 2002, c. 36) and the jurisdiction of the Agricultural Land Commission (ALC), which significantly restricts non-farm use and subdivision of ALR land. Municipalities generally cannot rezone ALR land for uses that conflict with the ALR's agricultural protection mandate without ALC approval, and the Bill 44 and Bill 47 upzoning requirements do not override the ALC's jurisdiction over ALR parcels. Owners or developers seeking to change the use of ALR land should apply directly to the ALC and obtain legal advice, as ALR restrictions take precedence over municipal zoning.

A rezoning or upzoning by itself — that is, a municipality changing a property's zoning designation — does not trigger Property Transfer Tax (PTT) under the BC Property Transfer Tax Act, because PTT applies to taxable transactions involving the transfer of a registered interest in land, not to regulatory land-use changes. However, if a rezoning increases the fair market value of a property and that property is subsequently sold or transferred, PTT will be calculated on the higher fair market value at the time of the taxable transaction. Buyers should consult the current BC Ministry of Finance guidance for applicable PTT rates and any available exemptions.

Traditionally, rezoning applications in BC required a public hearing under the Local Government Act, at which residents and affected parties could provide input before council voted on a bylaw amendment. Bill 44 (2023) amended the Local Government Act to remove the requirement for a public hearing on rezoning applications that are consistent with an Official Community Plan (OCP) and that relate to small-scale residential housing in areas covered by the new provincial requirements. Municipalities retain the right to hold public hearings in other circumstances, and applicants seeking a rezoning that goes beyond by-right provisions should confirm with the relevant municipality what process applies.

If upzoning allows a property to be redeveloped into multiple units — such as a multiplex or apartment building — and those units are to be separately owned, the Strata Property Act (SBC 1998, c. 43) governs the creation and governance of the resulting strata corporation, including the registration of a strata plan, establishment of bylaws, and ongoing strata corporation obligations. The upzoning itself is a municipal land-use matter, but any subsequent subdivision of the building into individually titled strata lots must comply with both the Strata Property Act and the Land Title Act. Developers converting or building strata properties should work with a BC notary public or lawyer experienced in strata law.

The allocation of risk for mid-contract zoning changes depends on the terms of the contract of purchase and sale, including any subject conditions or representations made about the property's zoning or development potential. Under RESA and BCFSA standards, a licensee who becomes aware of a material change — such as a rezoning that affects the property's intended use — has an obligation to disclose that information to their client promptly. Buyers and sellers should ensure contracts clearly address zoning-related representations and conditions, and should seek independent legal advice if a significant zoning change occurs between subject removal and completion.