1. Property Acquisition Process
Ministry of Transportation
Property Acquisition Process
JULY 2007
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

2. MINISTRY OF TRANSPORTATION
Timing
18 to 24 months, under ideal circumstances.
Purchase by deed typically 12 months.
Purchase by expropriation 20 to 22 months (there is an overlap with the purchase by deed).
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

3. MINISTRY OF TRANSPORTATION
Purchase by Deed
From a Ministry stand point the most economical way to purchase a property.
Property owner still receives the market value and all entitlements of the land acquired.
Savings are in the “soft costs” in the lower fees of legal and other costs such as appraisal costs.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

4. Purchase by Expropriation
Not the preferred method of acquisition.
Typically involves higher legal costs (more negotiation time charged), higher appraisal costs, costs of other experts such as accountants, planners, engineers, higher internal costs to prepare new plans, and three major mailings (notices to the owner and the offer).
Expropriation could also lead to arbitration where the over all costs can escalate due to legal and other costs, plus the tendency for claimants to seek more.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

5. MINISTRY OF TRANSPORTATION
Process Steps
Property Request is issued indicating that property is required for the proposed project.
Title search is completed.
Reference plans prepared by Geomatics.
Appraisal is completed (an appraiser must be retained first).
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

6. Process Steps (cont’d)
Negotiations (purchase by deed), - should take anywhere from 1 day to 6 to 9 months, depending on what is being purchased.
If negotiations fail the expropriation process starts (process takes 7 to 10 months – the typical is 9.5 months).
If an owner requests for a “Hearing of Necessity” add 3 to 6 months to the process.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

7. Process Steps (cont’d)
Expropriation - a plan and certificate is registered. The land is now owned by the Ministry but we do not have possession of it at this time.
Formal Offer must be made within 3 months of the expropriation.
Possession can be taken 3 months plus one week from the date the owners were notified of the expropriation but an offer must be made first.
At this point the project can be cleared but the file remains “open”. Still need to resolve the differences with the property owner.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

8. Process Steps - Section 25 Offer
“…within three months after the registration of the (expropriation) plan and before taking possession”.
We must offer the “the full compensation” and offer immediate payment of 100% of the market value as estimated by MTO. And
we must provide a copy of the appraisal that that we relied on to estimate the compensation.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

9. Process Steps - section 30 Agreement
Where the owner consents to the acquisition but not the price (does not disagree to the expropriation itself), the property is purchased by deed at the Ministry’s offered price with the owner having the right to appear before the Ontario Municipal Board (OMB) for additional compensation.
Negotiations will continue with the owner until a settlement is reached or as ordered by the OMB.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

10. Process Steps - Arbitration
Either party may make an application to appear before the Ontario Municipal Board for a Hearing. The request almost always comes from the expropriated owner.
Once a Statement of Claim is received, the responsibility for the file is moved to Property Office for finalization and resolution. The region will provide support as required to Property Office.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

11. Property Acquisition Process – A Property Owner’s Entitlements
Market value of the lands (based on property appraisal)
Damages attributed to the disturbance
Damages for injurious affection
Special difficulties in relocation
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

12. Property Acquisition Process – A Property Owner’s Entitlements
Market value is - what a willing purchaser would pay to a willing vendor in the open market.
Damages attributed to the disturbance (examples) - simple ones such as moving or replacing a shed, flag pole etc. to moving costs, to allowances for improvements not reflected in market value (the wheel chair ramp) business loss etc.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

13. Property Acquisition Process – A Property Owner’s Entitlements
Damages for injurious affection - this is the loss to the remainder of the property as a result of the lands purchased or the construction (landlocked or grade changes etc).
Special difficulties in relocation - cost to renovate replacement property or the need to rent a temporary property until the replacement property is ready.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

14. Property Acquisition Process – Examples of Entitlements
The cost of utility hookups, cable hookups, etc (basically additional costs incurred because of the need to relocate)
Payment for mortgage discharge and any payable bonuses with in the existing mortgage. Payment for mortgage differential rates (for both the owner and the mortgagee)
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION

15. Property Acquisition Process – Examples of Entitlements
Payment of reasonable costs such as legal, moving, survey, utility hook up, land transfer tax payment on the replacement property (up to the market value of the property purchased by the Ministry) and other non-recoverable expenses.
Business loss expenses (Note: the onus is on the property owner to make a claim – because we would not know if there is or there is not a loss). The claim is then investigated.
PROPERTY OFFICE
MINISTRY OF TRANSPORTATION