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Sale of Surplus Land Policy
Dated: June 27, 2022
1. Purpose
The Municipal Act, 2001, Section 270(1) requires that municipalities shall adopt and
maintain policies to govern the sale and other disposition of land. The purpose of the
policy is to set out the principles governing these transactions and the procedures to be
followed.
2. Policy Statement
The Township of Ramara will dispose of surplus land in an open and transparent
process to ensure that the consideration for such disposal is fair, reasonable and in the
best interest of the Township.
Further, the following Township owned properties with water frontage shall not be sold:
a) No Township lands with water frontage shall be sold unless such sale is for
the good of the Township as a whole;
b) Lands used for parks purposes that are maintained by the Township or a
Community Centre Board of the Township shall remain for public use and no
encroachment or use other than for parks purposes will be permitted;
c) Lands leased along the Trent Canal will continue to be leased at fair market
rates until such time as Council adopts a long term strategy for the area;
d) Lands that are unopened road allowances, or lots reserved for access to the
lake and not maintained by the Township may be used and maintained by the
public provided no trees are cut unless permission is given by the Director of
Infrastructure, all garbage and debris is removed, no structures are erected,
no fires are permitted and no camping is allowed. Any person maintaining
such land is not exclusive and cannot prohibit its use by other members of the
public. Signs may be posted at the discretion of Council or the Director of
Infrastructure;
When requests are received by persons wanting to purchase or use Township
owned water front, they shall be advised by staff of this policy and the conditions
contained herein.
3. Scope
The procedures established in this policy are intended to provide guidance to Council
and staff. These procedures will govern the sale and disposal of surplus land owned by
the Township of Ramara. Land disposal procedures may be initiated in response to
inquiries from the public, unsolicited offers or as the result of internal municipal
decisions and the decisions of Council.
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4. Definitions
Appraisal shall mean a formal written opinion of the fair market value of the land. An
appraisal is valid for a maximum of one (1) year after being received by Council. This
may be provided by any one or all of the following methods:
a) By the CAO's office, having reference to assessed values in the surrounding
area, or,
b) By an opinion of an independent Real Estate Agent, having knowledge of land
values in the area, or,
c) By a formal valuation by a qualified Real Estate Appraiser.
Lands shall mean any real property owned by the Township including any structures
and buildings located thereon.
Other Disposition shall mean the granting of the use of land by:
a) Lease for a period of five (5) years or more, or
b) A lease with options to renew for a period greater than five (5) years, but this
does not include a licence given by the Township which is revocable by the
Township within the twenty-one (21) year period.
Sale shall mean a transfer of legal title in land and shall include a lease of 21 years
or longer.
Township shall mean The Corporation of the Township of Ramara.
5. General
Council reserves the right to undertake activities to increase the value of lands prior to
appraisal(s) and/or sale.
The Township at all times makes no representations or warranties regarding title or any
other matters relating to the land to be sold. Surplus land is sold on an "as is" basis.
Declare Lands Surplus
Prior to selling any land, Council shall by resolution, declare the land to be surplus to
the needs of the Township;
Prior to declaring the lands surplus to the Township, the CAO shall circulate to all
Township Departments and other such agencies or governments as the CAO deems
appropriate or as may be required by law.
Council may declare lands to be surplus for any reason, including but not limited to
economic growth, income, job creation, community development, etc.
Appraisal
The disposition of Township owned land shall be for no less than the fair market value
of the land determined through at least one independent appraisal completed by an
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accredited appraiser through the Appraisal Institute of Canada, or such other method of
valuation as determined by the CAO.
An alternative method of valuation may include the value assigned by the Municipal
Property Assessment Corporation or a letter of opinion of the fair market value of the
land from a real estate brokerage firm or an independent real estate agent. Alternative
methods may also be used for non-viable land or a lease.
Prior to the Acquisition of land by the Township, the Township shall obtain at least one
independent appraisal completed by an accredited appraiser through the Appraisal
Institute of Canada, or other such method of valuation as determined by the CAO.
Notwithstanding the sections above, and whereas otherwise not or prohibited by:
Legislation and regulation from doing so (i.e. anti-bonusing provisions), the acquisition
and disposition of land may be at a price different than fair market value if, in Council's
opinion it is in the best interest of the Township to do so.
Survey
Prior to selling any surplus land, the Township may obtain or require a survey or
reference plan of the land from Registered Ontario Land Surveyor in accordance with
the laws of the Province of Ontario. This requirement may be waived if an existing
survey or reference plan or property identification Number (PIN) is available. A
reference plan shall be provided if a new lot is being created.
Other Approvals
Nothing in this policy shall fetter the absolute discretion of Council to retain or dispose of
the land on such terms and conditions as may be fixed by Council, which shall include
the power to sell the land to whomever it directs.
All land, with or without improvements, shall be sold on an "as is" basis unless Council
directs otherwise.
The Township is under no obligation by virtue of the sale of land to grant any approvals,
including approvals for changes to the Official Plan or Zoning Bylaw or with respect to
site plan control, minor variances and building permits or to support approvals required
by any other approval authority, which may be necessary for the use of the land by the
purchaser, express or otherwise.
Notice Requirements
Once the lands have been declared surplus by Council, notice shall be provided in
accordance with the Township's Notice Policy.
The Notice shall identify:
a. That the lands have ben declared surplus to the Township's needs.
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b. The municipal address, legal description and/or a key map to identify the lands to
be sold;
c. The name and contact person who can respond to questions;
d. The proposed dated, time and location of the meeting where the sale of land will
be considered by Council.
If a decision is not made at the specified Council meeting, no further notice is required
provided that ta resolution is passed indicating Council's decision. This shall also apply
to any further referrals or deferrals of the matter.
Any person may submit an objection to the Clerk in writing and include the person's
name, address and reason(s) for the objection. Council must consider all comments
received prior to a sale commitment. Council may revoke the surplus declaration at any
time prior to the conveyance of land for any reason and may choose not to sell the
lands.
6. Methods of Sale
Unsolicited Offers
a) Will only be considered when provided in writing to the CAO's office with a clear
reference and description of the parcel of land to which the unsolicited offer is
being made;
b) The CAO has the authority to negotiate any offers received to ensure that only
viable offers are presented to Council;
c) To determine if the lands are surplus to the needs of the Township and prior to
considering a resolution declaring the lands to be surplus, the CAO shall
undertake a circulation to all Township Department and other such agencies or
governments as the CAO deems appropriate or as may be required by law;
d) Where one or more persons have expressed an interest in purchasing land, or
whether Council believes it to be in the best interest of the Township, Council
may by resolution direct that the lands be sold by public tender, listing with real
estate firms or brokers, direct sale or other method as determined by Council.
The following is a step-by-step process for the sale of Municipal lands by an Unsolicited
Offer or Inquiry:
i) Receipt of unsolicited offer to purchase Municipal land;
ii) The CAO has the authority to negotiate any offers received to ensure that
only viable offers are presented to Council;
iii) After consultation with all departments, the CAO shall submit a report to
Council recommending that the lands be declared surplus and method of
sale;
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iv) Appraisal and survey, if required;
v) Establish sale price/minimum tender amount (include all costs: survey,
legal, appraisal);
vi) Notice of Public Meeting for sale of surplus land;
vii) Public meeting to pass Bylaw to sell surplus land; and
viii)Finalization of sale of surplus lands by solicitor.
Sale by Public Tender
a) Notice of sale by public tender will be circulated for a period of 4 weeks. The
Township may choose to advertise in local papers, on the Township of Ramara
website and SurplusProperties.ca or other such similar website.
b) A tender package will be created. The Township reserves the right to edit the
package how they see fit for each sale. Packages will be made available to
potential tenderers. There may be a fee associated with obtaining a tender
package.
(i) The package may include, but is not limited to, the property roll number,
minimum sale/tender amount, location, brief legal description, annual
taxes; assessed value, approximate property size and/or dimension,
zoning; location map and photos, and direction as to how and to whom to
submit the tender bid.
(ii) Tenders bids must be submitted on the municipal tender package and
typed or handwritten legibly in blue or black ink. Tenders are to be
accompanied by a deposit of at least 20 per cent of the tender bid
amount, which deposit shall be made by way of money order or by way
of bank draft or cheque certified by a bank or authorized foreign bank
within the meaning of Section 2 of the Bank Act (Canada).
(iii) Tender bids will be submitted in a sealed envelope, addressed to the
Treasurer, which indicates on it that it is a sale by public tender bid and
provides a short description of the municipal address of the land,
sufficient to permit the treasurer to identify the parcel of the land to which
the tender relates to.
(iv) A tender shall relate to only one parcel of land;
(v) Upon receipt of an envelope identified as containing a tender, the
Treasurer or designate shall mark on it the time and date on which it was
received and shall retain it unopened in a safe place. For the purposes of
this Part, where two or more tenders are equal, the tender that was
received earliest shall be deemed to be the higher bid.
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(vi) A tender is withdrawn if the tenderer's written request to have the tender
withdrawn is received by the treasurer prior to the closing date and time
for receiving tenders. The envelope containing a withdrawn tender shall
be opened at the time of the opening of all sealed envelopes on the date
of the sale.
(vii) Tender opening procedures as set out in the Township's Procurement
Policy shall be followed.
Township's Initiative
a) After consultation with all departments, Council declares land to be surplus;
b) Council determines method of sale;
c) Appraisal and survey, if required;
d) Establish sale price/minimum tender amount (include all costs: survey, legal,
appraisal);
e) Notice of Public Meeting for sale of surplus land;
f) Public meeting to pass bylaw to sell surplus land; and
g) Finalization of sale of surplus lands by solicitor
Real Estate Firm or Broker
a) Invite proposals from a minimum of 3 real estate firms or brokers operating in the
Township or part of the Township. Sale proposals are to include a
recommendation on the listing price based on an evaluation of the fair market
value of the surplus land, the proposed term of the listing agreement, services to
be provided and the real estate commission payable by the Township.
b) Ensure that the real estate agent lists the land for sale on multiple listing
services;
c) Have all Offers to Purchase submitted to the CAO for presentation to Council
prior to the sale being completed;
d) The CAO has the authority to negotiate offers presented by the real estate to
agent to ensure that only viable offers are presented to Council.
e) Finalization of sale of surplus lands by solicitor.
Direct sale of Township owned land may occur:
a) Lands requested to be purchased by an abutting landowner;
b) Lands that do not have direct access to a highway (i.e. landlocked lands) if sold
to the owner of land abutting the landlocked lands;
c) The disposition of Township owned lands as part of an approved land
development planning application;
d) The disposition of land to other governments or public bodies such as the Crown,
a school board, conservation authority;
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e) After an unsuccessful public offer, subject to the approval of Council;
f) Land acquired as a road widening or part of a road widening in connection with
an approval or decision under the Planning Act, including road widening lands
being conveyed, in whole or in part, back to the original owner of the land or their
successor in title;
g) Closed highways, if sold to an owner(s) of land abutting the closed highways;
h) The land is needed to restore access or frontage to property cut off by
realignment or closure;
i) A purchaser has a statutory or legal right to acquire the lands;
j) A land exchange; or
k) For other lands deemed to be non-viable land save and except park land.
7. Sale of Unopened Road Allowances (URA)
Council will consider requests to stop-up, close and sell Township owned unopened
road allowances (URA) provided:
a) The URA is deemed to not be required for current or future municipal use;
b) The URA does not lead to waterbodies;
c) All costs (survey, legal, appraisal, advertising, etc.) are to be paid by the
purchaser and there is no expense to the Township;
d) That the permanently closing or altering of a URA results in a person having no
access to and from the person's land over any highway, unless the person
impacted agrees to such sale
Notice
Prior to selling any municipal road allowance the Township shall give notice to the
public of the proposed road closing and sale and hold a minimum of one public meeting.
An advertisement shall be placed in at least one newspaper having general circulation
within the local area once a week for a minimum period of two consecutive weeks
advising the date, time and location of the public meeting.
The Notice shall also be posted on the municipal website and at the municipal office.
Copies will also be posted in the immediate vicinity of the portion of the unopened road
allowance proposed to be closed and sold. The Notice shall include a brief description
of the road allowance and a sketch if at all possible as well as the date, time and
location of the public meeting.
After public consultation, a report will be submitted to Council at the next regular or
special meeting for further consideration with respect to final decision to close the URA
and at this time a Council resolution is required to proceed to next steps including the
passing of any by-law(s), if applicable.
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8. Sale of Shore Road Allowances (SRA)
Applicants must own property directly abutting the SRA. The Township will only convey
to the adjacent landowner the portion of the SRA above the controlled or normal high
water mark.
Applications will not be approved if the closure is deemed:
(i) To have an adverse impact on neighbouring property owners; or
(ii) Other land owners may be deprived of the sole vehicular access to their property;
or
(iii) Closure will result in conflicts with the Township Official Plan policies, bylaw
regulations or procedures.
Generally the portion of the shore road allowance to be closed and conveyed will be
determined by straight lot line projections. As a result of the irregular nature of the
shoreline, deviations from straight extensions of existing lot lines may be considered
and may be required by the Township in these cases.
Application Process
a) Applicant completes and submits an Application for Shore Road Allowance
Closing, along with the following:
(i) a sketch or survey if available indicating the property and proposed portion
of the SRA to be closed;
(ii) a deposit shall be submitted in an amount sufficient to cover costs, i.e.
legal, survey, advertising, etc.);
Note: savings may be realized if abutting owners apply jointly.
b) Township's solicitor shall:
(i) Circulate the draft R-Plan to Bell Canada, Hydro One Networks Inc. and
other agencies as required to receive consent to the closing of the SRA;
(ii) Prepare and forward to the Clerk, the public notice which shall be
published for one week in the local newspaper, on the Township's website
and to abutting land owners;
(iii) Provided no legitimate and reasonable objections are received, and the
Bylaw is approved, the Township will provide to the applicant the cost of
the land, plus HST;
(iv)Once payment of the land have been received, the Township's solicitor
will prepare the deed. The deeds will be provided to the applicant or their
solicitor upon receipt of all outstanding costs.
9. Exemptions
The following classes of land disposal are exempt from the provisions of this Bylaw:
a) Municipal tax sales as per Part XI of the Municipal Act, 2001;
b) Land sold under Section 110 of the Municipal Act, 2001;
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c) Land to be used for the establishment and carrying on of industries and industrial
operations and incidental uses.
This Policy does not apply to the sale of land to the following public bodies:
a) A municipality;
b) A local board, including a school board and a conservation authority;
c) The Crown in Right of Ontario or Canada or their agencies.
d) By resolution, Council may direct, on a case-by-case basis, that any exempted
disposal be conducted in accordance with this policy.
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