Property Litigation & Dispute Resolution
In the expropriation process in Ontario, once the amicable negotiations between the property owners and the expropriating authority do not result in a satisfactory settlement outcome, the matter is subsequently taken to an adjudicator at Ontario Land Tribunal (OLT) or in rare cases, to the Ontario Divisional Court by the owners' representatives in order to resolve the compensation dispute between parties.
1. OLT and the Court will consider the following elements in reaching a final resolution:
- 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.
- Income & Business Loss: e.g. rental income or income loss during construction.
- Disturbance Damages: loss or physical damage to any components of subject property. e.g. landscaping, lighting, septic and water tanks.
2. Full and Final Settlement Agreement:
Once the compensation has been concluded and agreed upon, the parties reach a full and final settlement Agreement. This is an agreement where:
a. Finalizing Compensation:
- The property owner agrees to the final compensation offer, which includes:
- Full Market Value for the land taken.
- Additional Compensation for things like disturbance damages, business losses, relocation expenses, legal fees, or loss of income.
- Other Costs that may arise, such as severance damages or costs related to any other aspect of the expropriation.
Once the property owner accepts this offer, a formal settlement agreement is drawn up and signed by both parties.
3.Conclusion and Payment:
Once a full and final settlement Agreement is reached and the compensation amount is determined (either by negotiation or adjudication), the expropriating authority issues the final payment to the property owner.
Final Notes:
- The expropriation process in Ontario, while governed by the Expropriations Act, aims to balance the needs of public authorities with the rights of private property owners. The goal is always to ensure that the compensation provided is fair and reflects the true value of the property.
- The expropriating authority must follow strict procedures to ensure that the process is transparent, and that property owners are treated fairly at every stage.
TRGI and its Legal Partners can supports and assist property owners by:
- Reviewing Notices of Expropriation
- Assessing compensation entitlements, including market value and disturbance damages
- Coordinating appraisals and valuation evidence
- Representing clients before the Ontario Land Tribunal
At TRGI, we ensure property owners receive fair, accurate, and timely compensation, and that their rights are protected throughout the process.
