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Considerations for Real Property Submissions

1. Acquisition-Specific Considerations

(purchase, lease, licence, gift, acceptance of a transfer of administration, acceptance of a transfer of administration and control)

  • Which program objective or purpose is being supported?
  • Is this transaction consistent with your organization's investment plan, real property strategies and program alignment architecture?
  • Before considering an acquisition of real property, have you explored all alternatives, including increasing the utilization of your existing assets, redesigning program requirements to reduce your space demands, or using the space or property of other departments or federal organizations?
  • Is the transaction open and fair? What process was used to determine options and solicit bids?
  • What is the appraised value of the property? Is the transaction at market value? Do appraisals or estimates support the price? If the transaction is less than the appraised market value, what is the justification?
  • Is this the best long-term option for the Crown in terms of economy, efficiency and effectiveness? Does it provide the best outcome for all Canadians?
  • Have you considered all relevant policy and strategic concerns of the government?
  • Has your investment analysis clearly examined all acquisition options that could meet the requirement, such as purchase of an existing asset, Crown construct, lease, public-private partnership or other arrangement?
    • In the case of a lease, are there options to renew or to purchase? Have you included any such options in the costing, and are they included in the proposal? Have you analyzed whether the lease will be a capital or operating lease for accounting purposes?
  • Have the quantitative, qualitative and risk considerations of each feasible option been thoroughly assessed, and does the preferred option clearly demonstrate best value to the Crown?
  • Have you identified all the factors that bear on the acquisition, including availability, timing, duration, location, financing and life-cycle costs, fit-up and relocation costs, the degree of control required, flexibility of use and market conditions?
    • Has the location of the preferred option been clearly justified as part of the value-for-money analysis?
    • Have the costs associated with fit-up been considered in your analysis? Have any deviations from Public Works and Government Services Canada's fit-up standards been justified for office accommodations?
    • Are there any critical timing issues?
    • Have security requirements been identified, and have they been met?
    • Does the property meet accessibility standards? If not, how much will it cost to bring the property into compliance? 
    • Have fire protection standards been met?
  • Does any project associated with the acquisition need Cabinet or Treasury Board approval?
  • Are funds available for the acquisition and any associated project costs?
  • Has the environmental condition of the property been assessed?
  • Are there restrictions on the use of the property because of environmental conditions, or for any other reason?
  • Is the property suitable for the intended use?
  • If the building is more than 40 years old, has the Federal Heritage Building Review Office conducted a heritage evaluation?

2. Disposition-Specific Considerations

(sale, lease, licences, gift, transfer of administration and control, transfer of administration)

  • Was the site appraised?
  • Is the disposition at market value?
  • In the case of a sale or transfer of surplus real property, have you provided interested parties with an opportunity to purchase the property or identify an interest in it?
  • Is the transaction a strategic disposal?
    • Does the property have the potential for significantly enhanced value?
    • Are the size and value of the property significant enough to negatively affect local markets should its integration not be managed?
    • Is the transaction sensitive or complex?
    • Have you conducted a strategic assessment and prepared a disposal strategy, and have you consulted with the Treasury Board of Canada Secretariat's Real Property and Materiel Policy Division to determine if this should be treated as a strategic disposal?
  • Does the disposition have any broader, federally mandated socioeconomic objectives?
  • Does the disposition affect the security or flexibility of either concurrent or subsequent use of adjacent Crown property?
  • Does the disposition diminish the value of adjacent or nearby Crown property?
  • If the transaction is a sale or transfer, have you considered whether the property can serve a different program requirement or a different use?
  • Are there any community sensitivities or issues?
  • Has the Department of Justice Canada conducted a legal risk assessment of rights or title?
  • Did you consult the Guide to Real Property Management: Aboriginal Context?
  • Have you consulted with Aboriginal groups?
  • Is an environmental assessment required under the Canadian Environmental Assessment Act?
  • Has the environmental condition of the property been assessed?
  • Are there restrictions on the use of the property because of environmental conditions, or for any other reason?
  • If remediation is required, who is responsible for carrying it out and paying for it?
  • Are any reversionary clauses or restrictive covenants attached to the property? Are any desired?
  • Have you released all environmental information?
  • If the building is more than 40 years old, has the Federal Heritage Building Review Office conducted a heritage evaluation?
  • If the building has been designated as “classified” or “recognized,” have you taken the appropriate steps to protect the heritage value?
  • Will a covenant be placed on the title to protect the heritage value, or have steps been taken to have the property designated by the province or municipality?

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