A guide for Ontario property owners
Understanding Compensation
Compensation starts with understanding what is being acquired and how the property is affected.
An expropriation claim may involve more than the value of the land taken. The relevant components depend on the property, the interest acquired and the losses supported by the evidence.
The legislation behind compensation
Ontario’s Expropriations Act sets out the framework for expropriation and compensation. Depending on the circumstances, compensation may address the market value of the property interest taken, damage to the remaining property and other eligible losses.
The applicable provisions and valuation assumptions depend on the particular taking. An expropriation lawyer can explain the legal requirements, while an appraiser can assess the relevant valuation issues.
Value of the interest acquired
The appraisal considers the property’s characteristics, market evidence and highest and best use. Its current use may not capture all of its value: redevelopment potential can be relevant where supported by planning, physical and financial considerations.
The valuation must also address the appropriate valuation date and applicable rules concerning the influence of the public project. These are matters to review with your appraiser and lawyer.
Effects on the property you retain
Where only part of a property is acquired, the assessment should consider what remains. Changes to access, parking, configuration or development potential may affect the remaining property’s market value. A qualifying reduction in value may form part of a claim for injurious affection.
Other potentially eligible losses
Depending on the circumstances, compensation may also involve disturbance damages, relocation expenses or business-related losses. These require supporting evidence and an assessment of eligibility. The same loss should not be counted more than once under different categories.
Your own appraisal
The authority’s appraisal is an opinion of value that can be independently reviewed. Your appraiser can examine its assumptions, comparable evidence and treatment of the acquisition’s effects. Planning, engineering or business valuation expertise may also be helpful.
Professional cost recovery is subject to the applicable rules and circumstances. Discuss scope, payment arrangements and potential recovery with your advisers at the outset.
Example: part of a commercial parking lot
An authority proposes to acquire a strip of a commercial property for a road widening. The assessment begins with the interest acquired, then considers whether losing parking or changing vehicle circulation affects the remaining property. Any business loss requires separate supporting evidence and coordination with the other parts of the claim.
Illustrative example only; compensation depends on the facts and applicable law.