When the government takes your property, they set the price. Your job — with the right lawyer — is to make sure that price is actually fair.
Expropriation is the legal process by which a government body or public utility compulsorily acquires private land. In Ontario it is governed by the Expropriations Act, R.S.O. 1990, c. E.26. The Act gives property owners significant rights — but most owners never fully exercise them, because they do not know what those rights are.
Who Can Expropriate Your Property in Ontario?
- Municipal governments — road widenings, transit corridors, park expansions, utility easements.
- Ontario government ministries and agencies — provincial highways, hydro transmission lines, pipeline rights-of-way.
- Metrolinx, GO Transit, the TTC — stations, maintenance facilities, expansion corridors.
- Conservation Authorities and school boards — land assembly for flood management, school site acquisition.
- Hydro One and other utilities — transmission corridors, substation sites.
The Expropriation Process in Ontario
The process follows a defined sequence under the Expropriations Act:
- Notice of Application for Approval to Expropriate — the expropriating authority serves notice and registers it on title. You then have 30 days to request a Hearing of Necessity.
- Hearing of Necessity — an inquiry officer determines whether the expropriation is fair, sound, and reasonably necessary. This is your first opportunity to challenge whether the taking should happen at all, or in its proposed form.
- Expropriation Plan registered on title — once approved, the authority registers the plan. Your ownership is extinguished.
- Offer of Compensation — the authority must serve you with a written offer within three months of registration. You are entitled to an advance payment of 90% of the offered amount immediately, regardless of whether you accept the offer.
- Negotiation or referral to the Ontario Land Tribunal — if you disagree with the compensation offered, you can negotiate or refer the matter to the Ontario Land Tribunal for determination.
"The authority's first offer is almost never the best offer. They have every incentive to start low. Your leverage disappears if you accept without getting independent advice."
What Compensation Are You Entitled To?
Ontario's Expropriations Act entitles you to more than just the market value of the land taken. The full compensation package includes:
- Market Value. The fair market value of the expropriated land as of the date of valuation, determined by what a willing buyer would pay a willing seller without compulsion. The authority's appraiser is not your appraiser. You are entitled to commission your own appraisal at the authority's cost.
- Injurious Affection. Compensation for damage to the portion of your land that was not taken — if the expropriation reduces the value of your remaining property, you are entitled to that loss. A partial taking that splits a lot, removes parking, or severs utility access often causes injurious affection that exceeds the value of the land taken.
- Disturbance Damages. Costs you actually incur as a result of the expropriation that are not reflected in market value: moving costs, temporary storage, mortgage penalties, business relocation costs, loss of business profits during relocation, and the cost of re-establishing in a new location.
- Business Losses. If you operate a business on the expropriated property, you may be entitled to compensation for lost profits, customer goodwill, and the cost of re-establishing the business. These claims require careful expert evidence.
- Solatium. An additional payment of up to 5% of market value (capped at $15,000 under the Act) to acknowledge the non-monetary loss of having your property taken without consent.
- Legal and Appraisal Costs. You are entitled to recover your reasonable legal fees and the cost of your appraisal from the expropriating authority — win or lose — so long as you achieved at least as much as the authority's offer.
The Hearing of Necessity: Your First Line of Defence
Most property owners do not know they have 30 days from receiving the Notice of Application to request a Hearing of Necessity. At this hearing, an independent inquiry officer examines whether the proposed expropriation is fair, sound, and reasonably necessary in the achievement of the objectives of the expropriating authority. You can argue that:
- A different parcel or route would achieve the same purpose with less impact on your property
- The full taking is unnecessary when a partial taking or easement would suffice
- The authority has not genuinely explored alternatives
- The stated purpose does not justify the scope of the taking
The inquiry officer's report is not binding, but an unfavourable report can slow the process considerably and create negotiating pressure. Missing the 30-day window waives this right entirely. If you have received a Notice, call immediately.
Why the First Offer Is Rarely the Fair Offer
Expropriating authorities employ experienced appraisers and lawyers whose job is to minimize the compensation paid. Their appraisals routinely undervalue injurious affection to remaining land, ignore disturbance damages entirely, and apply the lowest defensible market value. Independent appraisers routinely arrive at significantly higher numbers — particularly in a rising market, where the valuation date matters enormously.
"Most owners accept the first offer because it sounds reasonable. The ones who get advice first almost always do substantially better."
For more on civil property and real estate disputes, see our civil litigation page or browse the blog. If your expropriation has employment or business disruption dimensions, our employment law practice may also be relevant.
