Published 29 September 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty
A developer prices your land from what it can become. They take the value of the finished units, subtract construction, planning fees, development charges, parkland, financing and profit, and offer what is left. Expect either a firm offer at a lower price or a higher price conditional on approvals such as a rezoning, which in Ontario can be appealed to the Ontario Land Tribunal if council has not decided within 90 days, but often takes longer. In Toronto a rezoning application alone costs $63,679.83 plus $6.23 per square metre in 2026. Protect yourself with deposits that become non-refundable at stages, a hard outside date, access and insurance terms, and copies of reports if the deal dies. Settle HST, capital gains and, for non-residents, section 116 with your accountant before you sign.
How a developer arrives at a number
Developers use a residual land value. They estimate what the finished project will sell or rent for, then subtract every cost to get there: design and consultants, planning application fees, development charges, parkland, construction, financing, marketing, and a profit margin their lender will accept. What remains is what they can pay for the land.
This explains most of what sellers find frustrating. Two developers can offer very different prices for the same site because they see different projects on it. A price can drop after an offer because a cost went up. And the seller’s view, based on nearby house prices, often has nothing to do with the developer’s arithmetic. Understanding their math is the best way to negotiate. See how much is my land worth for the method.
The published costs inside their number
| Cost | Published figure | Source and effective date |
|---|---|---|
| Toronto zoning by-law amendment | $63,679.83 base plus $6.23 per m² of gross floor area, capped at $779,441.52 | City of Toronto, effective 1 January 2026 |
| Toronto official plan amendment | $232,602.79 | City of Toronto, effective 1 January 2026 |
| Toronto site plan approval | $43,605.12 base plus $5.37 per m², capped at $621,372.96 | City of Toronto, effective 1 January 2026 |
| Toronto development charge, 2+ bedroom apartment (non-rental) | $80,690 per unit | City of Toronto schedule effective 26 June 2025 |
| Mississauga development charge, apartment | $100,062.43 per unit | City of Mississauga, 1 August 2026 to 31 January 2027 |
| Toronto parkland | 5% of land (residential) or the alternative rate, capped at 10% or 15% | City of Toronto parkland page |
Multiply the development charge by the number of units a developer hopes to build and you see why charges shape land prices. More in development charges in the GTA.
Firm offers, conditional offers and approvals
Developer offers usually take one of two shapes:
- Firm, or with a short due-diligence period. The developer takes the planning risk and pays less for it.
- Conditional on planning approval. The price is higher, but the deal depends on a rezoning, official plan amendment or other approval, which can take a long time.
The Planning Act lets an applicant appeal a rezoning to the Ontario Land Tribunal if council has not decided within 90 days of a complete application, or 120 days when it is filed with an official plan amendment. Those are appeal triggers, not typical approval times. Council can only consider a rezoning if the official plan allows the use. A conditional deal can tie up your land for a long time, so the structure matters more than the headline price.
Protecting yourself in a conditional deal
- Staged deposits. A deposit on signing and further deposits at milestones, becoming non-refundable or released to you as each stage passes.
- An outside date. A hard date after which either side can end the deal, with limited, paid extensions.
- Control of the application. Your consent is usually needed for applications on your land. Ask to see them before they are filed.
- Access. Notice, insurance, indemnity and restoration for surveys, soil tests and environmental drilling.
- Reports. Copies of the studies the developer commissions, delivered to you if the deal ends.
- Occupancy. If you live on the land or have tenants, what happens between signing and closing.
Your lawyer drafts all of this. My role is to make sure the business terms are on the table before anyone is committed.
Environmental and site issues that move the price
If your land was ever a gas station, a factory, a dry cleaner or another commercial or industrial use, expect environmental work. Changing land to a more sensitive use, such as residential, requires a record of site condition filed in Ontario’s Environmental Site Registry under Ontario Regulation 153/04. That rests on a Phase One environmental site assessment and, where needed, a Phase Two to measure contamination, prepared by a qualified person. Soil leaving the site may also fall under the Province’s excess soil rules.
Developers also check conservation authority limits under Ontario Regulation 41/24, trees, heritage status and servicing capacity. Anything they find becomes a cost or a condition. Having your own reports ready shortens their due diligence and supports your price. See conservation authority regulated land and environmental due diligence on a gas station site.
Land assemblies: selling with your neighbours
Many GTA development sites are assembled from several houses. If a developer approaches your street, owners who sell together can often achieve more than owners who sell one at a time, because the assembly is what creates the site. It also creates risk: one holdout can stall everyone, and the terms need to be aligned. Each owner needs their own lawyer, and the agreements usually need to be conditional on all the other parcels closing.
If only part of your land is needed, the sale of that part requires a consent under the Planning Act, which lapses if the transaction is not completed within two years of the certificate. See lot severance in Ontario and severance and subdivision clauses.
Tax: HST, income and non-residents
- HST. The CRA says most sales of vacant land by individuals are exempt, but land used primarily in a business, sold in the course of a business, or subdivided into more than two parts is generally taxable, and sales by corporations usually are. A house you lived in is a different question from vacant land; ask your accountant. See HST on land sales in Ontario.
- Income tax. Whether a gain is sheltered by the principal residence exemption, taxed as a capital gain or taxed as income depends on your facts. The CRA requires the sale of a principal residence to be reported even when fully exempt.
- Non-residents. Under section 116 of the Income Tax Act, the buyer’s lawyer will usually hold back part of the price until the CRA issues a clearance certificate.
Getting the right price
The strongest position is knowing what your land can become before the developer tells you. That means the official plan designation, the zoning, what nearby applications have asked for, and the costs they will face. With that, you can test whether an offer is fair and which structure suits you. Our guide to selling vacant land in Ontario covers the documents buyers ask for.
The AI land value estimator below gives you a range for a lot or acreage in about a minute, from the same inputs a buyer’s appraiser starts with.
If a developer has approached you, or you think your land might interest one, book a call or phone 833-330-1925 before you sign anything.
Free tool — AI land value estimator
Land Valuation
What’s your land
worth today?
Three quick steps. Land doesn’t price like a house — what you’re allowed to build on it, how far along the approvals are, and whether services reach the lot line move the number more than anything else. This weighs all of them.
Reading recent land sales…
Estimated land value
—
$0–$0
Most likely $0 · about $0 per acre · $0 per buildable sq ft
What moved the number
Starting from what comparable land in your municipality trades for, here’s what your specifics added or subtracted.
What would raise it
Approvals are the biggest lever on land. Here is what each next step is worth on this parcel.
—
Development sites are listed at $1
for a reason.
Sellers let the market price them — and the market only pays for what it can see: the planning file, the servicing letter, the environmental reports. A model can’t read your file. I can, and I know which developers are buying right now.
Frequently asked questions
How do developers decide what to pay for land?
They calculate a residual land value: the finished value of the units they can build, minus design, planning fees, development charges, parkland, construction, financing and profit. What is left is their maximum land price. Two developers can offer different prices for the same site because they plan different projects on it.
Should I accept a conditional offer from a developer?
It can pay more than a firm offer, but it ties up your land while approvals proceed. Protect yourself with staged deposits that become non-refundable at milestones, a firm outside date, access and insurance terms, and copies of the developer’s reports if the deal ends. Have a lawyer who does development deals draft the agreement.
How long does a rezoning take in Ontario?
The Planning Act lets an applicant appeal to the Ontario Land Tribunal if council has not decided within 90 days of a complete application, or 120 days if filed with an official plan amendment. Those are appeal triggers. Many rezonings take much longer, especially with studies, public meetings, amendments to the official plan or appeals.
Do I pay HST when I sell my land to a developer?
It depends on how you held the land. The CRA says most sales of vacant land by individuals are exempt, but land used in a business, sold in the course of a business, or subdivided into more than two parts is generally taxable, and corporate sellers usually charge HST. A home you lived in raises different questions. Ask your accountant before you sign.
Is it better to sell with my neighbours in a land assembly?
Often, because the assembled site is what a developer needs, and owners who sell together can negotiate from a stronger position. It also adds complexity: agreements usually depend on every parcel closing, and one holdout can stall all of them. Each owner should have their own lawyer.
Sources
- City of Toronto — Fee schedules for planning applications (2026 workbook) — effective 1 January 2026
- Government of Ontario — Citizen's guide to land use planning: zoning by-laws — rezoning, minor variances, additional residential units, site plan control
- Government of Ontario — Citizen's guide to land use planning: land severances (consents) — 90-day decision, 20-day appeal, two-year lapse
- City of Toronto — Development charge rates effective June 26, 2025 — the schedule the City lists as current
- City of Mississauga — Development charge rates, 1 August 2026 to 31 January 2027 — City, Region of Peel and school boards
- City of Toronto — Parkland dedication — 5% / 2%, alternative rate and caps
- Government of Ontario — Brownfields redevelopment and records of site condition — O. Reg. 153/04
- Hamilton Conservation Authority — Conservation Authorities Act and new O. Reg. 41/24 — in effect 1 April 2024
- Canada Revenue Agency — GST/HST Info Sheet GI-003, Sales of vacant land by individuals
- Canada Revenue Agency — GST/HST Memorandum 19.1, Real property and the GST/HST — real property taxable unless specifically exempt
- CRA — Reporting the sale of your principal residence — report the sale even when fully exempt
- Income Tax Act, section 116 — Justice Laws Website — non-resident sellers
Related reading
- How much is my land worth?
- How to sell vacant land in Ontario
- Development charges in the GTA
- HST on land sales in Ontario
- Severance and subdivision clauses
- Lot severance in Ontario
- Title fraud and the Land Titles Assurance Fund
About the author — Jatin Dua, Toronto and GTA real estate broker
I am Jatin Dua, Broker of Record and co-founder of RE/MAX Quantum Realty Inc., Brokerage, Unit 101, 799 The Queensway, Toronto. I work with buyers and sellers across Toronto and the GTA and have helped more than 100 families sell. Four-plus years of active GTA transactions and over $100 million in sales volume. Every figure here comes from a published table, regulator or statute linked in the sources, so you can check all of it without asking me.
Reach me at connect@jatindua.com or 833-330-1925, or book a call.