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Eminent Domain

Understand eminent domain in Canadian real estate — what it means, how it works, and how property owners are compensated.

Eminent Domain

July 27, 2025


What is Eminent Domain?

Eminent domain is the government’s legal right to expropriate private property for public use, with fair compensation to the owner.

Why Eminent Domain Matters in Real Estate

In Canadian real estate, eminent domain (called expropriation) allows governments to acquire land for highways, utilities, or public facilities.



Key aspects:
  • Must serve a public purpose
  • Requires fair market compensation
  • Subject to legal process and appeal



Understanding eminent domain protects property owners’ rights and informs negotiations when land is taken.

Example of Eminent Domain in Action

The city exercised eminent domain to acquire land for a new light rail line, compensating the owners at market value.

Key Takeaways

  • Government right to take private land
  • Requires compensation at fair value
  • Used for public projects
  • Involves legal process and rights
  • Known as expropriation in Canada

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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