Negotiations:

In the expropriation process in Ontario, property negotiation and full and final settlement are crucial stages where the expropriating authority and the property owner negotiate  compensation before the matter is taken to an adjudicator or court. These steps ensure that the landowner is adequately compensated for the land being taken, and the expropriating authority gets the property it needs for public purposes.

1. Property Negotiation Process

Negotiation happens prior, during and after the Notice of Expropriation is issued and the Notice of Possession (if applicable). Here’s what the property negotiation process typically involves:

a. Initial Compensation Offer

• Once expropriation begins, the expropriating authority (e.g., the government or a public body) makes an initial offer to the property owner. This offer is based on:
  • The market value of the property at the time of expropriation.
  • Compensation for injurious affection if only part of the property is taken, and the remainder is devalued.
  • Other damages or losses that arise from the taking of the land, such as relocation costs, severance costs, and loss of business income.

The offer is intended to cover all financial impacts, and the expropriating authority is required to provide a reasonable basis for how the compensation is calculated.

b. Reviewing the Offer

• The property owner can accept, reject, or negotiate the offer. Often, owners will hire professional appraisers, lawyers, and consultants to assess whether the compensation offered is fair.
• Appraisals: The property owner might seek an independent appraisal of the property to argue for a higher market value or a more comprehensive compensation package.

A professional appraisal may address several elements:

• Fair Market Value:  This is the price the property would sell for on the open market between a willing buyer and a willing seller.
• Severance Damages: If only part of the land is being taken, severance damages reflect the loss of value to the remaining land.
• Injurious Affection: The remaining land may lose value due to the proximity of new infrastructure (e.g., a road, transit line), which should also be compensated.

c. Counter Offer and Further Negotiation

• After receiving the expropriating authority’s offer, the property owner may make a counteroffer. This could be based on the owner’s own assessment, potentially higher than the authority’s initial offer.
• The expropriating authority may review and revise the offer based on the feedback and further negotiation. Negotiations continue until both parties agree on compensation or until a resolution is reached through the legal process.

d. Attempting Mediation:

• Sometimes, a neutral third-party mediator can assist in resolving disputes without going to court or a hearing. Mediation can be a faster and more cost-effective solution, where both parties work to find a middle ground.
• If mediation fails or is not deemed appropriate, the dispute can escalate to an Expropriations Hearing Officer or the Ontario Land Tribunal (OLT) for adjudication.

Contact TRGI to speak with us. We will review your situation, explain your options, and help you pursue the compensation you are entitled to under Ontario law.