Farms and ALR land: what to check beyond the house when you buy or sell

First, confirm the ALR status

The ALR protects about 4.6 million hectares of BC, and farming is its priority use; it is administered by the Agricultural Land Commission (ALC), an independent tribunal. The ALC's ALR Property and Map Finder shows whether a parcel is in the ALR, searched by PID or civic address. It is for reference only; for official confirmation, contact the ALC's mapping team. An ALR note on the title is not proof either way.

Inside the ALR, the ALC Act and its regulations take precedence over local zoning, and local zoning can be stricter still. What the ALR means for what you can build and what lenders will finance is in my ALR guide; below is what matters when you buy or sell.

How big a house, and how many

The principal residence on ALR land can have at most 500 m² of total floor area; anything larger needs an ALC application. Since December 31, 2021, one additional detached residence is allowed without an ALC application if the property has only one existing residence: up to 90 m² on parcels of 40 ha or less (where the existing house is 500 m² or less), or up to 186 m² on parcels over 40 ha. A secondary suite is allowed only inside the principal residence.

Local governments may be stricter. Before buying, check the existing buildings against both sets of rules, and ask the seller for the building permits and any ALC decisions on the property.

Subdividing, leasing part of the land, and fill

Land in the ALR can be subdivided only if permitted by regulation or approved by the ALC, and leasing part of a parcel for more than 3 years counts as a subdivision that needs ALC permission. A private owner cannot apply to take land out of the ALR: exclusion applications can only be made by the Province, local governments, First Nation governments and other prescribed bodies.

Placing fill or removing soil may need ALC authorization, and some fill needs a Notice of Intent, with a $150 fee. When buying, ask whether fill has been brought in and whether it was authorized.

Farm tax class: a new owner must apply by October 31

Farm class (Class 9) on the BC Assessment roll changes how the land is assessed and taxed, but it does not simply carry over to a buyer. After you buy a farm-classified property and plan to keep farming, you must submit a new application to BC Assessment by October 31.

The land must meet a minimum gross farm income: $10,000 if the farm is under 0.8 ha, $2,500 for 0.8 to 4 ha, and $2,500 plus 5% of the actual value of the land over 4 ha for larger farms. The farmhouse is assessed as residential (Class 1). Farm class also makes an owner a qualifying farmer for some PST exemptions.

Water licences

Using groundwater for anything other than household use — irrigation, for example — has needed a licence under the Water Sustainability Act since February 29, 2016; household wells are exempt. A water licence attached to the land passes to the new owner, who must notify FrontCounter BC, and any unpaid rentals or fees on the licence become the new owner's to pay. Check the licence before removing conditions.

Who can buy a farm

The federal ban on non-Canadians buying residential property runs to January 1, 2027. It covers a house with up to three units together with the land reasonably needed for its use as a home, so a farm with a farmhouse may be caught; vacant land has been exempt since March 27, 2023. Canadian citizens and permanent residents are not affected. If you are neither, have a lawyer confirm before you offer.

BC's 20% additional property transfer tax on foreign buyers applies in Metro Vancouver and four other regional districts; on farm land it applies to the value of the residence plus 0.5 hectares of land.

Financing, and how I work

Farm financing has its own lenders and rules — owner-occupied or working farm, specialized agricultural lenders such as Farm Credit Canada, and the federal CALA program — covered on my farm mortgage page.

Selling a farm: before listing, I gather what buyers will ask for — farm class records, water licences, building permits, any ALC decisions and fill approvals. Buying a farm: ALR status, the house rules, water and farm class are checked before conditions come off.

If I act on both the property and the financing, I tell you in writing, before you sign anything, which role I am in and how I am paid in each.

Common questions

How do I find out if a property is in the ALR?

Search the ALC's ALR Property and Map Finder by PID or civic address. It is for reference only; for official confirmation, contact the ALC's mapping team. An ALR note on the title is not proof either way.

How big a house can I build on ALR land in BC?

The principal residence can have up to 500 m² of total floor area. One additional detached residence, up to 90 m² on parcels of 40 ha or less or 186 m² on parcels over 40 ha, is allowed without an ALC application if there is only one existing residence. Local rules may be stricter.

Does farm tax status transfer when I buy a farm?

No. If you plan to keep farming, submit a new farm classification application to BC Assessment by October 31, and the land must meet the minimum farm income for its size.

Can I lease part of my ALR farm to someone else?

Leasing part of a parcel for more than 3 years is treated as a subdivision and needs ALC permission. A lease of the entire parcel is not caught by that rule.

Can non-Canadians buy farmland in BC?

Until January 1, 2027, the federal ban covers residential property, including a farmhouse and the land needed for it; vacant land is exempt. BC's 20% foreign buyer tax, charged in Metro Vancouver and four other regional districts, applies to the residence plus 0.5 hectares. Check with a lawyer before you offer.

Do I need a water licence for my well or for irrigation?

Household use of a well does not need one; non-domestic use such as irrigation does, under the Water Sustainability Act. When you buy land that has a water licence, you must notify FrontCounter BC.