The New "Surety Bonds" Regulation Under Ontario's Planning Act

On November 20, 2024, the Surety Bonds regulation (O.Reg. 461/24) came into force under Ontario's Planning Act.

This regulation provides land owners and those applying for planning approvals with the option to stipulate that a surety bond will secure their approval-related obligations.

This type of surety bond is generally called a subdivision or development bond. Section 2 of the Surety Bonds regulation requires the bond to provide as follows:

• guaranteed payment to the municipality if the principal under the surety bond defaults in performing an obligation guaranteed by the surety bond;
• the municipality may determine that the principal has defaulted in performing an obligation guaranteed by the surety bond;