Casual Legal: Land acquisition steps & timing
By Greg Weber
Reynolds Mirth Richards Farmer LLP
Alberta Municipalities Casual Legal Service Provider
It takes considerable time, money and effort for municipalities to acquire property for large municipal projects.
Municipalities generally attempt to acquire the necessary property consensually without resorting to expropriation. This involves the acquisition of the property for an amount intended to reflect the market value of the property. This has the benefit of reducing the amount of compensation that could otherwise be owed to an owner under the Expropriation Act. Depending on the circumstance and the owner, it is hard to predict how long negotiations may take to run their course.
In the event negotiations are unsuccessful, municipalities’ only recourse is to expropriate. There are statutorily required steps and timelines that must be followed. Depending on various factors and what the landowner chooses to do, the requirements of the Expropriation Act place the timing of an expropriation at anywhere from 81 to 306 days. These timelines (including those in the upper end of this range) assume land titles will register documents in a timely fashion, which is something that cannot reasonably be counted on. Additional time must be added to the process to account for Land Titles registration times.
There is also a potential 'wildcard' at the end of the process. One of the last steps of an expropriation is service of the Notice of Possession under section 64. This sets the date that the municipality can take possession of the expropriated land. Possession must be at least 90 days from the date the Notice of Possession is served. This means it is typically not possible to acquire possession in less than the 90 days. It also means an owner could apply to a Court to request more time. There is very little case law guiding the circumstances for when the 90 days can be extended, but it is always open to an owner to apply to the Court for an extension of time.
For planning purposes, and out of fairness to the property owners, it is essential to have clear lines of communication with owners through the expropriation process and to make efforts to learn how much time property owners may require to relocate. If, for example, they operate a very complex business with heavy equipment and significant inventory, it may take longer than 90 days for them to relocate their business. Municipalities should be aware of this possibility and plan accordingly.
It can take much longer than many first think to complete the expropriation process, so it is important to initiate these proceedings in a timely fashion to ensure project deadlines are met.
To access Alberta Municipalities Casual Legal Helpline, Alberta Municipalities members can call toll-free to 1-800-661-7673 or send an casuallegal [at] abmunis.ca (email) to reach the municipal legal experts at Reynolds Mirth Richards and Farmer LLP. For more information on the Casual Legal Service, please call 310-MUNI (6864) or send an riskcontrol [at] abmunis.ca (email) to speak to Alberta Municipalities Risk Management staff. Any Regular or Associate member of Alberta Municipalities can access the Casual Legal Service.
DISCLAIMER: This article is meant to provide information only and is not intended to provide legal advice. You should seek the advice of legal counsel to address your specific set of circumstances. Although every effort has been made to provide current and accurate information, changes to the law may cause the information in this article to be outdated.
