The city wants to take your land. Now what?

If you have just received a Notice of Application for Approval to Expropriate Land, you are likely experiencing a mix of confusion, concern, and uncertainty about what comes next. It may be the first you have heard of the city’s plans, or maybe rumours have been circulating for months. Either way, this notice is the first formal step the expropriating authority must undertake in order to take your land in accordance with the law.

Expropriation is not an everyday event, and for most property owners, it is unfamiliar territory. That being said, careful documentation of the process and early guidance from experienced expropriation counsel can make a meaningful difference in protecting your rights and ensuring full and fair compensation.

This article walks you through the key steps you should take when a Notice of Application for Approval to Expropriate Land arrives, and explains how the process unfolds under Ontario's Expropriations Act (the Act).

Expropriation can proceed without your consent

The starting point under the Act is straightforward: an expropriating authority may take your land without your permission, as long as it follows the legal steps. These steps generally include:

• service of a Notice of Intention to Expropriate;
• a hearing of necessity (if requested);
• approval of the intention to expropriate;
• registration of the approved plan of expropriation;
• service of a Notice of Expropriation; and
• determination of full and fair compensation, either via negotiation or via application to the Ontario Land Tribunal.

For property owners and tenants, this means that simply disagreeing with the loss of the land is not enough to stop the process. The Act governs the process from start to finish, and any right to challenge must be grounded in its provisions.

Contesting the expropriation

Owners cannot refuse an expropriation outright; instead, the law gives them a structured opportunity to question the necessity of the taking and to protect their economic position. It is called a hearing of necessity. Property owners, tenants and others with an interest in the land can all request a hearing to determine whether the taking is fair, sound and reasonably necessary to achieve the objectives of the expropriating authority.

A separate bulletin details this procedure.  

If there is no request for a hearing of necessity, or after the hearing’s conclusion, the approving authority will approve the final version of the expropriation. Within three months of approval, the expropriating authority will register a plan of the land to be expropriated in the proper registry office. The expropriating authority is now the owner of the land.

Thereafter, the registered owner will receive a Notice of Expropriation.

What happens in the early stages after you receive this notice can have a big impact on your compensation and the overall process—often before you have had time to fully understand what the notice means.

Understanding what the Notice of Expropriation means

A Notice of Expropriation is served after the expropriating authority has registered its plan of expropriation under section 9 of the Act. The registration transfers legal title from the registered owner to the expropriating authority, though it does not grant immediate possession. The authority must serve the notice within thirty days of registration to the owner, but failure to do so does not invalidate the expropriation.

This is often the most unsettling moment for owners: title has shifted, but you still hold the keys. The law permits you to remain on the property until the authority complies with the Act’s possession requirements. Think of it as the legal equivalent of a contractor standing politely in your driveway with blueprints, but unable to start work until the formalities finish.

Your property rights are not fully extinguished yet, but they are severely affected as the Notice of Expropriation triggers several time-sensitive obligations and some entitlements.

Review the documents that follow

Once the plan is registered and the Notice of Expropriation is served, you will usually receive two additional documents: a Notice of Possession and a Notice of Election. These notices often arrive together because the Act compresses the timing tightly around the registration event.

The Notice of Possession sets out when the authority intends to take physical control of the property. The Act requires them to give you at least three months' notice before taking possession, unless a court orders otherwise. The Notice of Election gives you thirty days to choose the valuation date that will be used to calculate your compensation.

Together, these documents form the first "package" that defines the timeline ahead. Pay close attention to the dates, as they will drive every subsequent step.

Something to keep in mind

These notices should alert owners that the expropriating authority will soon require access to the property to have it appraised. The Act allows entry onto your property with the consent of the owner or with an order of the Ontario Land Tribunal (the Tribunal). This request is part of the compensation process. The owner can refuse consent, in which case the expropriating authority may apply to the Tribunal to obtain the required authorization.

Choosing your valuation date carefully

Under the Act, you can choose one of three dates to be used for calculating the market value of your property:

• the date the Notice of Hearing of Necessity was served, if a hearing was held;

• the date of registration of the plan of expropriation; or

• the date you were served with the Notice of Expropriation.

If you do not make a choice within thirty days, the date automatically defaults to when the plan was registered.

This choice has real financial consequences. Market conditions fluctuate, and selecting a date closer to a market peak may meaningfully improve your compensation. Conversely, choosing without adequate information can lock you into an unfavourable position.

In practice, owners typically review property value trends with their expropriation counsel before choosing a valuation date. This is a narrow window with significant impact, and once it closes, it cannot be reopened.

Understanding compensation: what you’re entitled to

The Act sets out four heads of compensation:

• Market value of the land taken. This is what your land would likely sell for on the open market—the price a willing seller and a willing buyer would agree on;
• Disturbance damages. These may cover costs like moving expenses, relocation costs, and business losses;
• Injurious affection. This applies when only part of your land is taken, and compensates you for the reduced value of the land you keep, as well as related business and personal losses; and
• Special difficulties in relocation. This is rarely awarded and only applies in unusual situations.

When you receive a Notice of Expropriation, the market value calculation is immediately in play, as the expropriating authority must formulate an offer to the owner. The other heads often develop over time and usually require detailed records, expert reports, and documented losses. This is why keeping good records from the start is essential. Contemporaneous records carry significant weight in compensation proceedings.

The first offer of compensation: accepting payment vs. settling your claim

Within three months of registration, and before taking possession, the expropriating authority must serve you with an offer of full compensation under section 25 of the Act.

This offer must include a full compensation amount, covering the market value of your land and any other losses the expropriating authority thinks apply. It must also be supported by an appraisal report, which must be served at the same time. If you accept this offer, your claim is settled and closed.

Importantly, the expropriating authority must also offer you an immediate payment of 100 percent of what they estimate is the market value of your land, on a without prejudice basis. Accepting this payment does not foreclose your right to claim additional compensation later.

Many owners choose this option to have money in hand while negotiations continue.

However, accepting the offer as a full and final settlement will end your claim permanently. Understanding this difference is critical. You should review everything carefully with expropriation counsel before signing anything.

Note that business losses caused by the expropriation, if applicable, are calculated on a separate timeline and are not included in the offer under section 25 of the Act. By their nature, business losses can only be determined over a longer period and follow separate rules under section 19 of the Act.

Maintain a disciplined record from day one

Receiving a Notice of Expropriation is not the end of the process. It is the beginning!

The best way to stay ahead of the process is to keep a single, well-organized file containing every document, date, conversation, and expense from the moment the notice arrives. The date you received the notice is especially important because it triggers your deadline to choose a valuation date and anchors many of the deadlines that follow. Choosing your valuation date, understanding what compensation you can claim, and building a thorough documentary record, shapes everything that follows.

The second-best way to stay ahead is to get advice early. A brief consultation with the DLA Piper expropriation team can help you avoid costly missteps and put you in the best position for a good outcome.

If you have questions about your rights or the process ahead, the DLA Piper expropriation team is here to help.