The Appraisals and Estimates Standard for Real Property was rescinded on May 13, 2022. It has been replaced by the Directive on the Management of Real Property and its appended Mandatory Procedures for Appraisals and Estimates.
This standard is effective November 1, 2006
This standard applies to all departments within the meaning of section 2 of the Financial Administration Act, unless specific acts or regulations override it.
The Treasury Board Policy on the Management of Real Property requires deputy heads to ensure their respective department maximizes the long-term economic advantage to the Crown, assesses opportunities to earn revenues, ensures real property decisions are financially prudent and represent the best value to the Canadian taxpayer and that the total consideration received or given by the government is justified in relation to the market value of the property.
To meet these requirements, departments must be able to determine the market value of the interests, benefits or rights involved. This standard establishes minimum requirements for making that determination before acquiring, disposing or entering into other arrangements with respect to real property.
This standard is issued pursuant to the Financial Administration Act, subsections 7(1), 9(1.1), 9(2) and the Federal Real Property and Federal Immovables Act, subsection 16(4).
5.1.1 Before acquiring or disposing of real property in a competitive and open market, other than through lease or licence, departments shall:
5.1.2 Before acquiring or disposing of real property in a competitive and open market by lease or licence, departments shall obtain at least one current estimate of market rent based on the rights conveyed by the agreement.
5.2.1 Before acquiring or disposing of real property for continued public purpose, departments shall:
5.2.2 Before entering into an agreement with another department, federal Crown Corporation or the provincial Crown for the use of real property, custodians shall obtain a current estimate of market value based on the real property's highest and best use considering restricted use or uses.
5.3.1 Before selling real property to the Canada Lands Company CLC Limited, departments shall obtain from a qualified independent appraiser:
5.3.2 The appraisal and the portfolio valuation shall be based on the terms of reference developed by the Chief Appraiser at Public Works and Government Services Canada (PWGSC) for the custodian department, in consultation with the Canada Lands Company CLC Limited.
5.4.1 Before acquiring or disposing of real property where the minister is satisfied that the nature or subject matter of the transaction is such that it would be inappropriate or would not be in the public interest to have a solicitation of offers, departments shall:
5.5.1 Departments shall obtain required appraisals from PWGSC in accordance with the TB Common Services Policy.
5.5.2 PWGSC shall ensure appraisals are duly signed by a person who is a real property appraiser accredited or licensed by a provincial, national or international real property appraisal organization, or by a person who is employed in the federal public service and whose qualifications are recognized by the Chief Appraiser at PWGSC.
Departments shall obtain a duly signed estimate from a person experienced in real estate that is established in a real estate-related business (such as appraisal, brokerage, banking), or is employed in the federal public service with appropriate qualifications.
Departments shall ensure the segregation of transaction and valuation responsibilities and ensure these responsibilities are clearly communicated.
Please direct enquiries about this policy instrument to the organizational unit in your department responsible for this subject matter. For interpretation of this policy instrument, the responsible organizational unit should contact: TBS Public Enquiries.