07-001 Sale of Real Property Policy_20217-001
Page 1 of 3
LEGAL AFFAIRS
Policy 7 -001: Sale of Real Property Policy
Approval Date: October 24, 2011
Approval Authority: Council, By-Law 3549
Effective Date: October 24, 2011
Next Scheduled Review Year: 2025
Department: Office of the Clerk
Last reviewed: 2021
Revision Date/s:
Schedules:
POLICY STATEMENT
The following policy shall govern the process for sale of Real Property within the
municipal boundary of the Town of Tillsonburg.
DEFINITIONS
"Appraisal" means an opinion of fair market value of the surplus lands provided by a
land appraiser or such other qualified person as determined by the Chief Administrative
Officer.
"Disposal" shall mean the sale of real property.
"Real Property" refers to land owned by the Town of Tillsonburg, whether vacant or
not.
IMPLEMENTATION PROCEDURE
1. Surplus Lands
1.1. That prior to the disposal of any "real property" and where there is no
exemption under the regulations, Council shall obtain at least one opinion
7-001
Page 2 of 3
of value of the fair market value of the real property. The opinion of value
can be from the following:
a) A real estate professional familiar with the local area and as licensed
by the Real Estate Council of Ontario.
b) An independent qualified appraiser who is a registered member in
good standing of the Appraisal Institute of Canada, holding the
designation of AACI or CRA.
c) A member who is a registered member in good standing of the
International Right of-Way Association, holding the designation of
SR/WA.
2. Public Notice
2.1. That notice of the sale to the public of the proposed sale shall be provided
by one of the following or combination thereof:
a) Posting a notice on the real property for at least 20 days;
b) A publication of the notice in a newspaper having a general circulation
in the area where the property is located once a week for a period of
two consecutive weeks; and
c) Notice provided on the municipality's website.
The Chief Administrative Officer and/or Council may deem from time-to-time
measures of notice outside of the procedures identified above.
3. Alternate Sale Method
3.1. Council may choose an alternate method of sale or procedures for the
following:
a) A determination of the sale price based on the appraisal of the land
value and any costs associated with the history or proposed method of
sale.
b) The method of public notice.
c) Where, when and who will receive the offers or bids.
d) Terms and conditions of the sale; and
e) Council may reserve the right to adjust the sale price where, in the
opinion of Council, it is in the best interest of the Town to do so.
4. Closed Session
4.1. All tenders, requests for proposals or offers may be presented to Council
in Closed Session for deliberation, in accordance with the Municipal Act,
unless Council direction has been given to staff to negotiate the sale
within certain terms or an alternate method of sale is approved by Council.
5. Exempt Property
5.1. The following are exempt from this process.
a) The Sale of Lands for Tax Arrears which are subject to the procedures
set out in the Municipal Act; and
b) The sale of lands under the Expropriation Act.
7-001
Page 3 of 3
c) Municipal Industrial Land Sales.
6. Disposal of Real Property
6.1. That unsolicited offers to purchase the property may be processed on a
first come first serve basis after the real property is declared surplus.
6.2. Council may by resolution direct that real property be sold by tender,
request for proposal or direct sale via methods such as with a registered
real estate agent or brokerage.
6.3. When a property is to be sold by tender or request for proposal the
procedures existing at the Town shall be in effect that govern advertising
and submission requirements.
6.4. That disposal of the real property shall be effected by a resolution passed
by Council at a regular meeting of Council open to the public after the
requirements for public notice have been satisfied.
6.5. Upon acceptance of offers either through open or closed market, tender or
request for proposal a deposit shall be presented:
a) Shall be accompanied by a deposit in cash or cheque in an amount of
5% of the offered amount or $5,000.00, whichever is greater, payable
to the Town of Tillsonburg.
b) Where the offer or tender to purchase is less than $5,000.00 the
deposit shall be the full amount of the offer to purchase.
6.6. Before selling any surplus lands, the Town may circulate documentation
identifying the real property to other levels of government or agencies that
may be required by law or regulation.
7. Costs
7.1. That the purchaser shall be responsible for all costs incurred or required to
dispose of the property including legal, survey, appraisal, removal of
encumbrances, relief of easements, environmental testing and
remediation, demolition, planning and administration or those required as
part of due diligence research or conditions of sale.
8. General
8.1. The real property disposed shall be sold as an "as is - whereas" basis.
8.2. As well the Town may from time-to-time undertake activities to increase
the value of the real property prior to sale.
8.3. In the event that the provisions of this Policy are inconsistent with the
provisions of the Municipal Act, its Regulations or any other Act, the
provisions of the Act or Regulation shall prevail.
8.4. This policy shall be reviewed as deemed appropriate by Council or Chief
Administrative Officer as required under the Municipal Act.