Subject: Public land sale price policy
Policy: PL 6.01.01
Compiled by – Branch: Crown Forests and Lands Policy Branch
Section: Crown Lands Policy Section
Date issued: July 1, 2020
Replaces directive title: Sale price policy
Number: PL 6.01.01
Date issued: February 11, 1997

1.0 Introduction

In accordance with section 2 of the Public Lands Act (PLA), the Minister of Natural Resources (MNR) is responsible for the sale of Ontario’s public lands.

The MNR Minister may direct the sale of public lands at such price or rental and upon such terms and conditions as the Minister considers proper (PLA, Section 16).

In considering proposals for the sale of public lands, the ministry the importance of projects that may provide socio-economic opportunity to Ontario’s communities. Public lands may also be sold for administrative or program purposes, as described in Crown land management policies. For example, the ministry generally considers approving requests from the adjacent land owner to purchase Crown shoreline reserves, dedicated roads and road allowances. The ministry generally does not sell land for new recreation or residential uses.

Revenue from the sale of public lands is non-tax revenue. The ministry’s principles and concepts of non-tax revenue include:

  • fair return to the Crown
  • maintaining consistent approaches across the province
  • administrative efficiency
  • cost-effectiveness

In addition to these principles, general direction regarding the determination of sale prices is outlined in Treasury Board and ministry policies, and include the following objectives:

  • maximize the Ontario Government’s non-tax revenues
  • ensure that ministries keep non-tax revenue rates up-to-date

The sale of public lands is generally to be based on fair market value.

In this policy,

  • "market value" means the most probable price which a property should bring in a competitive and open market as of the specified date under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus

Implicit in the definition of market value is the consummation of a sale as of a specified date and the passing of title from the seller to buyer under conditions whereby:

  1. buyer and seller are typically motivated
  2. both parties are well informed or well advised, and acting in what they consider their best interests
  3. a reasonable time is allowed for exposure in the open market
  4. payment is made in terms of cash in Canadian dollars or in terms of financial arrangements comparable thereto
  5. the price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale

2.0 Goal

To achieve a fair return to the Crown when public lands are sold and to provide clear direction regarding the sale price in relation to market value.

3.0 Policy objectives and strategies

  1. To obtain market value for the sale of public lands except as otherwise provided by policy.

    The ministry will rely on land evaluation methodologies outlined in PL 2.03.01 Appraisal and Valuation of Public Lands (policy and procedure), PL 2.03.03 Water Lot Evaluation Policy (Policy) to determine market value for the sale of public lands and will rely on PL 4.11.03 Road Allowances, Dedicated Roads and Crown Shoreline Reserves – Disposition policy for the sale of a road allowance, dedicated road or Crown shoreline reserve.

  2. To ensure that appropriate criteria are considered and approvals are obtained if public lands are disposed at less than market value.

    The ministry will rely on Treasury Board direction and ministry policies PL 6.01.03 Disposition of Public Land at less than Market Value policy, PL 4.11.03 Road Allowances, Dedicated Roads and Crown Shoreline Reserves – Disposition and PL 6.02.01 Administrative Fees For Public Land Transactions policy, for consideration of situations and appropriate processes under which public lands may be disposed of at less than market value.

4.0 References

  • PL 6.01.03 Disposition of public land at less than market value
  • PL 2.03.01 Appraisal and valuation of public lands (policy and procedure)
  • PL 2.03.03 Water lot evaluation (policy)
  • PL 4.11.03 Road allowances, dedicated roads and Crown shoreline reserves – disposition
  • PL 6.02.01 Administrative fees for public land transactions policy