- When selling land, conservation agreements or other real property interests:
- Establish protections as appropriate to the property.
- If the sale is to a party other than another charitable organization or public agency, obtain an independent appraisal by a qualified appraiser or a short narrative, a letter of opinion or other documentation from a qualified real estate professional to determine the value of the asset and to support the selling price.
- Select buyers in a manner that avoids any actual or appearance of impropriety.
- When selling or transferring conservation land or conservation agreements to another charitable organization or public agency, consider whether the new holder can fulfill the long-term stewardship and enforcement responsibilities.
- For the sale or transfer of land or conservation agreements certified as ecological gifts, request authorization from the Minister of Environment and Climate Change Canada, or its replacement.
Background
This practice specifies that when a land trust sells land it should first evaluate every property for its important conservation values, and design protections (such as conservation agreements) accordingly. Once the protection strategy has been determined, the land trust should then obtain a qualified independent appraisal (or, if the property has extremely low economic value, a short narrative). The land trust should market its conservation properties to ensure that the land trust receives a fair price and has the best potential stewards of the property, and to retain public trust and credibility. The goal of marketing is to reach as many potential conservation buyers as possible. Land trusts have increased ability to target marketing to conservation buyers via the Internet and tailored databases, eliminating the need to list a property with a real estate broker. This practice is further clarified in 4C when insiders may be involved in the transaction. For Ecological Gifts, Environment Canada must authorize disposition in order for the recipient to avoid penalty provisions as per section 207.31 of the Income Tax Act.