Directive on the Management of Real Property

The directive ensures that real property is planned, acquired, used, and disposed of in a manner that supports the delivery of programs and services to Canadians, while ensuring best value to the Crown.
Date modified: 2022-11-18

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The requirements in the Directive on the Management of Real Property take effect on May 13, 2021 and replace the following instruments:

1. Effective date

2. Authorities

3. Objectives and expected results

  • 3.1The objective of this directive is that real property is planned, acquired, used, and disposed of in a manner that supports the delivery of programs and services to Canadians while ensuring best value to the Crown.
  • 3.2The expected results of this directive are as follows:
    • 3.2.1Real property is managed in a manner that enables operational outcomes, demonstrates sound stewardship and provides best value, consistent with the Government of Canada’s socio-economic and environmental objectives;
    • 3.2.2Real property decisions are based on risk management practices, performance information and an assessment of full life-cycle costs;
    • 3.2.3Effective governance and oversight mechanisms are in place to support the management of real property;
    • 3.2.4Opportunities for collaboration are considered in real property decisions;
    • 3.2.5Workforce capacity for real property management is developed and maintained commensurate with organizational need;
    • 3.2.6Transactions related to real property are fair, open and transparent, and demonstrate due diligence; and
    • 3.2.7Acknowledging the relationship between Indigenous peoples and the land, real property management decisions contribute to reconciliation with Indigenous peoples.

4. Requirements

Senior designated official(s) for the management of real property

  • 4.1The senior designated official(s) for the management of real property in a custodian department is responsible for the following:
    • 4.1.1Establishing, implementing and maintaining a department-wide real property management framework consisting of processes, systems and controls that:
      • 4.1.1.1Include oversight, planning and reporting mechanisms;
      • 4.1.1.2Incorporate performance results and lessons learned to inform real property decision-making;
      • 4.1.1.3Include an information system that:
        • 4.1.1.3.1Enables the collection and generation of comprehensive and accurate data on real property holdings, operations and transactions;
        • 4.1.1.3.2Enables year-over-year comparison;
        • 4.1.1.3.3Is linked to departmental financial information systems and processes;
        • 4.1.1.3.4Enables the development and maintenance of a portfolio-level decarbonization plan; and
        • 4.1.1.3.5Supports government-wide reporting requirements;
      • 4.1.1.4Contribute the real property perspective to departmental planning functions, including ensuring that the real property portfolio strategy inputs to the department’s investment plan are in accordance with the Policy on the Planning and Management of Investments, Appendix A: Mandatory Procedures for Investment Plans; and
      • 4.1.1.5Facilitate collaboration between real property officials and program leads to enable informed and integrated real property management decisions;
    • 4.1.2Providing advice to the deputy head on:
      • 4.1.2.1The nature, structure and resourcing of the department’s real property management function;
      • 4.1.2.2Significant gaps in performance and issues of non-compliance with the requirements of this directive;
      • 4.1.2.3The department’s real property portfolio strategy;
      • 4.1.2.4Investments required to maintain the integrity of the department’s real property portfolio and to optimize its operational efficiency, environmental performance and climate resiliency; and
      • 4.1.2.5Seeking the necessary Treasury Board approvals when the value of a transaction will exceed the Transaction Approval Limits and Conditions for the Acquisition or Disposition of Real Property;
    • 4.1.3Identifying and managing the department’s needs with respect to the necessary competencies, capacity, and professional development in real property management;
    • 4.1.4Ensuring the development, implementation and monitoring of a real property portfolio strategy;
    • 4.1.5Cultivating relationships with Indigenous peoples on matters related to real property;
    • 4.1.6Ensuring that real property transactions are conducted in a manner that:
      • 4.1.6.1Is fair,
      • 4.1.6.2Aligns with commercial real estate practices,
      • 4.1.6.3Respects treaties and other agreements between the Crown and Indigenous peoples, and
      • 4.1.6.4Includes an open solicitation of offers unless the minister is satisfied that the nature of the transaction would make an open solicitation of offers inappropriate or not in the public interest;
    • 4.1.7Ensuring compliance with appropriate building codes, fire codes and applicable specialized standards;
    • 4.1.8Investigating serious fires, in cooperation with local authorities, and ensuring that resulting recommendations are addressed; and
    • 4.1.9Certifying annually to the Treasury Board of Canada Secretariat the completeness and accuracy of the information submitted to the:

Real property practitioners

  • 4.2Real property practitioners in a custodian department are responsible for the following:

    Engagement with Indigenous peoples

    • 4.2.1Engaging Indigenous peoples on matters related to real property to fulfill duties and obligations of the Crown, and respond to interests as appropriate;

    Planning and governance

    • 4.2.2Supporting the senior designated real property official(s) in establishing, implementing and maintaining the real property management framework;
    • 4.2.3 Operating and maintaining a real property information system;
    • 4.2.4Monitoring the functionality, utilization, and physical, environmental and financial performance of real property assets over their life-cycle;
    • 4.2.5Developing the real property portfolio strategy;

    Stewardship and use

    • 4.2.6Maintaining the physical performance and functionality of real property;
    • 4.2.7Supporting the optimization of the real property portfolio by identifying real property that is underutilized, inefficient or no longer needed for departmental programs in order to:
      • 4.2.7.1Better utilize the property in the context of the real property portfolio strategy;
      • 4.2.7.2Dispose of surplus real property; or
      • 4.2.7.3Manage surplus real property that cannot be disposed of in a way that reduces costs while minimizing Crown liability;
    • 4.2.8Identifying opportunities to share special-purpose real property by assessing the costs and benefits of co-locating with other federal departments, other levels of government, and other organizations that have complementary objectives;
    • 4.2.9Charging the following in co-occupation and lease-out situations:
      • 4.2.9.1Costs of occupation, on a prorated basis, to other federal departments, other levels of government, and public institutions, such as universities, that co-occupy special-purpose real property, in order to advance or support complementary objectives; or
      • 4.2.9.2Market rent in all other situations where a party occupies underutilized federal real property that is still needed for program purposes;
    • 4.2.10Having occupancy, lease or licence agreements that set out the roles and responsibilities of the parties involved;
    • 4.2.11Ensuring that parties not subject to this directive that occupy federal real property do not impede the delivery of federal programs and departmental compliance with the requirements of this directive;
    • 4.2.12Undertaking due diligence to protect the Crown’s interest when entering into agreements specified in subsection 4.2.10;
    • 4.2.13Consulting with the Department of Justice Canada, Indigenous Services Canada, and Crown-Indigenous Relations and Northern Affairs Canada when the Crown contemplates a change in use of real property;
    • 4.2.14Considering opportunities to co-own, co-manage, or share the use of real property with Indigenous groups, recovering costs as and where appropriate;
    • 4.2.15Limiting the negative environmental impact of real property in a way that is consistent with the government’s sustainable development objectives, including reducing or avoiding to the degree possible:
      • 4.2.15.1Waste production;
      • 4.2.15.2Resource and energy use;
      • 4.2.15.3Greenhouse gas emissions; and
      • 4.2.15.4Site contamination;
    • 4.2.16Taking immediate and reasonable action to mitigate risk to human health and to the environment in the event of contamination, before assessing a future course of action;
    • 4.2.17Managing contaminated sites by:
      • 4.2.17.1In Canada, following standards and guidelines endorsed by the Canadian Council of Ministers of the Environment, or their equivalents; 
      • 4.2.17.2Outside of Canada, complying with applicable environmental legislation or regulations and, where none exist, adopting appropriate Canadian best practices to minimize the impacts of contamination;
      • 4.2.17.3Assessing suspected and known contaminated sites to determine the most appropriate, sustainable, and cost-effective action;
      • 4.2.17.4Prioritizing remediation or risk management activities on sites that pose the highest risk to human health and the environment; and
      • 4.2.17.5Undertaking site remediation or risk management to the extent required for current or intended federal use, unless the department can demonstrate that more stringent remediation would represent best value to the federal government;
    • 4.2.18Implementing the commitments set out in the Greening Government Strategy;
    • 4.2.19Considering diversity, including gender identity and gender expression, in the design and provision of built amenities;
    • 4.2.20Conserving the heritage value of federal heritage properties in Canada by following the procedures set out in Appendix A: Mandatory Procedures for Heritage Assessment and Conservation;  
    • 4.2.21Conducting appraisals and estimates following Appendix B: Mandatory Procedures for Appraisals and Estimates;
    • 4.2.22Providing barrier-free access to federal real property as prescribed in Appendix D: Standard on Barrier-Free Access to Real Property;

    Acquisition

    • 4.2.23Validating the need for acquiring real property based on program needs and on the real property portfolio strategy;
    • 4.2.24Undertaking a full life-cycle analysis, before acquiring a real property asset or interest, to seek best value;
    • 4.2.25Undertaking due diligence with respect to the following and other considerations, as appropriate, before acquiring real property:
      • 4.2.25.1Title, including asserted or established Aboriginal or treaty rights;
      • 4.2.25.2Environmental condition and performance, including an analysis of the potential to improve the asset’s environmental performance over its life-cycle;
      • 4.2.25.3Physical performance;
      • 4.2.25.4Heritage value considerations, including for archaeological sites;
      • 4.2.25.5Security considerations;
      • 4.2.25.6Accessibility considerations; and
      • 4.2.25.7Market value or market rent of the property, except as described in subsection B.2.2.1.3;
    • 4.2.26Acquiring real property is in a manner that:
      • 4.2.26.1Is fair,
      • 4.2.26.2Aligns with commercial real estate practices,
      • 4.2.26.3Respects treaties and other agreements between the Crown and Indigenous peoples, and
      • 4.2.26.4Includes an open solicitation of offers unless the minister is satisfied that the nature of the transaction would make an open solicitation of offers inappropriate or not in the public interest;
    • 4.2.27Justifying the amount paid for transfers of administration from agent Crown corporations, transfers of administration and control, and purchases of real property, including any goods and services acquired through these transactions, in relation to market value as set out in Appendix B: Mandatory Procedures for Appraisals and Estimates;

    Disposal

    • 4.2.28Undertaking due diligence with respect to the following, at a minimum, before disposing of real property:
      • 4.2.28.1Title, including asserted or established Aboriginal or treaty rights;
      • 4.2.28.2Environmental condition;
      • 4.2.28.3Physical performance;
      • 4.2.28.4Heritage value of federal heritage properties or archaeological sites on federal land;
      • 4.2.28.5Security conditions; and
      • 4.2.28.6Market value of the property, except as described in subsection B.2.2.1.3;
    • 4.2.29Disclosing the results of due diligence measures to prospective purchasers, where appropriate;
    • 4.2.30Consulting with the Department of Justice Canada, Indigenous Services Canada, and Crown-Indigenous Relations and Northern Affairs Canada when the Crown contemplates a disposal of real property by way of sale, exchange, gift, easement, transfer of administration, or transfer of administration and control;
    • 4.2.31Consulting with Indigenous peoples when there is a legal duty to consult about an intent to dispose of real property;
    • 4.2.32Consulting with Canada Lands Company CLC Limited (CLC) to identify surplus real property for potential sale to CLC when any of the following criteria apply:
      • 4.2.32.1The size of the property or the value of the sale could negatively affect markets if it is not appropriately managed;
      • 4.2.32.2There is an opportunity to add value through redevelopment;
      • 4.2.32.3Partnerships with other organizations could be the best mechanism to increase benefits to the government and to Canadians; or
      • 4.2.32.4Sensitive policy issues exist;
    • 4.2.33Obtaining the endorsement of the Treasury Board of Canada Secretariat on the identification of surplus real property in Canada that qualifies for sale to CLC;
    • 4.2.34Soliciting expressions of public purpose interest in all or a portion of the site simultaneously from federal departments, agent Crown corporations, provinces, municipalities, and Indigenous groups;
    • 4.2.35Notifying CLC and official language minority communities of the intent to dispose of real property;
    • 4.2.36Granting priority to acquire the entire site for public purpose in the following order:
      • 4.2.36.1federal departments;
      • 4.2.36.2agent Crown corporations;
      • 4.2.36.3provinces;
      • 4.2.36.4 municipalities and Indigenous groups;
    • 4.2.37Providing CLC the opportunity to acquire properties identified in subsection 4.2.33 if no priority public purpose interest for the entire site has been identified under subsection 4.2.34;
    • 4.2.38Ensuring that identified public purpose interests in a portion(s) of a site, and an obligation to reasonably accommodate them, are included in agreements with CLC;
    • 4.2.39Developing a business case for the disposal of surplus real property, supported by the valuation that was determined in accordance with Appendix B: Mandatory Procedures for Appraisals and Estimates, and by a business plan from CLC, when any of the criteria in subsection 4.2.32 have been met;
    • 4.2.40Disposing of real property in a manner that:
      • 4.2.40.1Is fair,
      • 4.2.40.2Aligns with commercial real estate practices,
      • 4.2.40.3Respects treaties and other agreements between the Crown and Indigenous peoples, and
      • 4.2.40.4Includes an open solicitation of offers unless the minister is satisfied that the nature of the transaction would make an open solicitation of offers inappropriate or not in the public interest;
    • 4.2.41Mitigating the risk associated with the disposal of sites containing contamination by any of the following:
      • 4.2.41.1Remediating the sites or taking action to manage the risks associated with the contamination before disposing of the sites;
      • 4.2.41.2Requiring that the acquiring party remediate the site after disposal;
      • 4.2.41.3Ensuring the legal transfer of environmental liability to the acquiring party;
    • 4.2.42Transferring administration of real property to other federal departments and exchanging funds at a value to be agreed upon between the departments, but no greater than the market value determined according to the procedures set out in Appendix B: Mandatory Procedures for Appraisals and Estimates;
    • 4.2.43Justifying the amount paid for transfers of administration to agent Crown corporations, transfers of administration and control, and sales of real property, in relation to market value according to the procedures set out in Appendix B: Mandatory Procedures for Appraisals and Estimates; and

    Reporting

    • 4.2.44Ensuring that information is reported in accordance with Appendix C: Mandatory Procedures for Reporting.

5. Roles of other government organizations

  • 5.1This section identifies the roles of other key government organizations in relation to this directive. In and of itself, this section does not confer any authority.
    • 5.1.1The Federal Heritage Building Review Office at Parks Canada Agency is responsible for the following:
      • 5.1.1.1Establishing the criteria and a process for designating federal heritage properties;
      • 5.1.1.2Developing policies, standards and guidelines, and providing advice and recommendations to other departments for the evaluation and conservation of federal heritage properties and archaeological sites on federal lands; and
      • 5.1.1.3Maintaining a directory of federal heritage properties, including federal heritage buildings, national historic sites, heritage lighthouses, and heritage railway stations.
    • 5.1.2The Chief Appraiser of Canada at Public Services and Procurement Canada is responsible for providing appraisals used for real property conveyances.

6. Application

  • 6.1This directive applies to the organizations listed in section 6 of the Policy on the Planning and Management of Investments that have or will have administration of real property, within the meaning of section 18 of the Federal Real Property and Federal Immovables Act.
  • 6.2For the purposes of the interpretation of this directive in the Province of Quebec, “real property” means “immovable” within the meaning of civil law in the Province of Quebec and includes the rights of a lessee in respect of such an immovable.
  • 6.3Reporting requirements in subsection 4.2.44 of this directive also apply to the following organizations, unless specific acts or regulations override it:
    • 6.3.1Directory of Federal Real Property: agent Crown corporations, within the meaning of subsection 83(1) of the Financial Administration Act; and
    • 6.3.2Federal Contaminated Sites Inventory: consolidated Crown corporations as described in the Public Accounts of Canada.

7. References

This directive should be read in conjunction with the following legislation and policy instruments. Although items listed are considered the most relevant to departments’ and agencies’ ability to comply with the requirements in this directive, the list should not be considered exhaustive.

8. Enquiries

Appendix A: Mandatory Procedures for Heritage Assessment and Conservation

A.1 Effective date

  • A.1.1These procedures take effect on May 13, 2021.
  • A.1.2These procedures replace sections of the following Treasury Board policy instruments:

A.2 Procedures

  • A.2.1These procedures provide details on the requirements set out in subsection 4.2.20 of the Directive on the Management of Real Property.
  • A.2.2Real property practitioners must apply the mandatory procedures described below.
    • A.2.2.1Seek a heritage evaluation of any building 50 years of age or older from the Federal Heritage Buildings Review Office at Parks Canada Agency when the building is:
      • A.2.2.1.1Crown-owned; or
      • A.2.2.1.2 Planned for acquisition by purchase;
    • A.2.2.2Consult with Parks Canada Agency before undertaking any intervention that may impact the heritage value of a federal heritage property or an archaeological site on federal land, to ensure that appropriate heritage conservation advice is obtained;
    • A.2.2.3Use best efforts to identify and facilitate alternative uses, including rehabilitation for adaptive reuse, before identifying a federal heritage property as surplus.

Appendix B: Mandatory Procedures for Appraisals and Estimates

B.1 Effective date

B.2 Procedures

  • B.2.1These procedures provide details on the requirements set out in subsections 4.2.21, 4.2.27, 4.2.39, 4.2.42 and 4.2.43 of the Directive on the Management of Real Property.
  • B.2.2Real property practitioners must apply the mandatory procedures described below.
    • B.2.2.1Obtain at least one appraisal from the Chief Appraiser of Canada before acquiring or disposing of real property, except:
      • B.2.2.1.1When there will be an open solicitation of offers and the total value of the real property interest is anticipated to be less than $500,000; in this situation, obtain at least one current estimate of the market value;
      • B.2.2.1.2When there is no open solicitation of offers and the value of the lease or licence is anticipated to be less than $25,000 total consideration; in this situation, obtain at least one current estimate of the market value;
      • B.2.2.1.3When there is a transfer of administration between federal departments with no exchange of funds; in this situation, no appraisal or estimate of the market value is required;
    • B.2.2.2Segregate transaction and valuation responsibilities related to real property transactions.

Appendix C: Mandatory Procedures for Reporting

C.1 Effective date

C.2 Procedures

  • C.2.1These procedures provide details on the requirements set out in subsection 4.2.44 of the Directive on the Management of Real Property.
  • C.2.2Real property practitioners, except for those in custodian departments that have been excluded from full reporting by decision of the Executive Director of the Investment Management Directorate, Treasury Board of Canada Secretariat, must apply the mandatory procedures described below.

    Reporting information for inclusion in the Directory of Federal Real Property (DFRP) and the Federal Contaminated Sites Inventory (FCSI)

    • C.2.2.1Inform the Treasury Board of Canada Secretariat of designated officials, including the authorized official, official contact, financial contact (where applicable), and data submitters for the DFRP and FCSI;
    • C.2.2.2Input reports to the DFRP and FCSI as prescribed in the applicable input guides;
    • C.2.2.3Provide new or revised information, with the exception of the data specified in subsection C.2.2.4, for inclusion in the DFRP and FCSI within 90 days of a change, including acquisition, disposal, amendment to an existing record, or change in the organization’s contacts;
    • C.2.2.4Report annual expenditure, liability and site performance data to the FCSI at fiscal year-end;
    • C.2.2.5 Support the annual certification of the completeness and accuracy of organizational records and contacts in the DFRP and FCSI as prescribed in the applicable input guides;
    • C.2.2.6Reconcile all DFRP and FCSI records and applicable fields with internal real property and building management systems, contaminated site management systems, and financial systems;
    • C.2.2.7Reconcile FCSI annual financial records with the financial statements submitted for the Public Accounts of Canada;

    Reporting to the Centre for Greening Government

Appendix D: Standard on Barrier-Free Access to Real Property

D.1 Effective date

D.2 Standards

  • D.2.1This standard provides details on the requirements set out in subsection 4.2.22 of the Directive on the Management of Real Property.
  • D.2.2Real property practitioners must apply this standard as described below.
    • D.2.2.1Ensure that where amenities are provided on federal real property they are accessible and barrier free and:
      • D.2.2.1.1If in Canada, they follow the Canadian Standards Association’s Accessible Design for the Built Environment (CAN/CSA-B651), except for real property acquired, constructed, or significantly renovated prior to the date of its publication; and
      • D.2.2.1.2If outside of Canada, they align with the requirements of the local jurisdiction;
    • D.2.2.2Provide barrier-free access to and use of at least the following amenities, where they exist:
      • D.2.2.2.1Entrances;
      • D.2.2.2.2Passenger elevators;
      • D.2.2.2.3Public areas;
      • D.2.2.2.4Common work areas;
      • D.2.2.2.5Interior doors and corridors;
      • D.2.2.2.6Washrooms;
      • D.2.2.2.7Public telephones;
      • D.2.2.2.8Drinking fountains;
      • D.2.2.2.9Parking areas;
      • D.2.2.2.10Parking spaces, when parking is provided;
      • D.2.2.2.11Seating in auditoriums, theatres and other general assembly areas in the quantities identified in the applicable building code;
      • D.2.2.2.12Classrooms, auditoriums, meeting rooms and theatres; and
      • D.2.2.2.13Residential units when employees or their immediate dependents require accessibility;
    • D.2.2.3Ensure that an accessible route from the main entrance is provided to accessible parking spaces, local public transit stops and all drop-off areas that are located within the limits of federal real property;
    • D.2.2.4Equip classrooms, auditoriums, meeting rooms and theatres of more than 100 square metres with an assistive listening system encompassing the entire seating area;
    • D.2.2.5Provide signage and audiovisual indicators for wayfinding and security;

Exceptions and minor variations

  • D.2.3Real property practitioners must do the following in relation to exceptions and minor variations when applying this standard.
    • D.2.3.1Establish internal procedures for identifying and seeking deputy head approval of exceptions from the accessibility requirements of this standard;
    • D.2.3.2Permit minor variations from the requirements, on a case-by-case basis, if consistent with the general intent of this standard, as long as the overall accessibility is maintained;
    • D.2.3.3Where the accessibility requirements of this standard will significantly reduce the heritage quality of the real property, some deviation is permitted; however, the following must be ensured:
      • D.2.3.3.1Access to at least the main level of the building;
      • D.2.3.3.2Where washroom facilities are inaccessible, equivalent facilities that are accessible shall be provided;
    • D.2.3.4Reassess exceptions to ensure that they are still justified when initial criteria for the exceptions change; and
    • D.2.3.5Document rationale and maintain records of all approved exceptions and minor variations.

Appendix E: Definitions

Definitions to be used in the interpretation of this directive can be found in Appendix C of the Policy on the Planning and Management of Investments.

© Her Majesty the Queen in Right of Canada, represented by the President of the Treasury Board, 2021,
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