Property Severances and Mergers of Title: Assessment Roll Adjustments

Background

MPAC assesses land at its current value, based on a legislated valuation date established by the Ontario Assessment Act. “Current value” means that MPAC assesses the value of a property based on the amount of money the land would sell for, if sold at arm’s length by a willing seller to a willing buyer.

MPAC assigns a separate assessment roll number for each property.

From time to time, properties may undergo severances, mergers of title or consolidation of parcels. Property severances and consolidation of parcels are typically registered on title at the land registry office.

Property Severances

Property severance or consent is the process of dividing one property into two or more properties. Property owners wishing to sever a property must contact their municipality to learn about the consent process and what permits may be required.

Consolidation of Parcels

Consolidation of parcels takes place when two or more abutting parcels under a single ownership are consolidated at the land registry office pursuant to an Application to Consolidate Parcels.

Mergers of Title

Title to separately owned properties may in law “merge in title” and become one property for property assessment purposes when two or more abutting properties come under a single ownership. This may occur even if there is no Application to Consolidate Parcels registered at the land registry office.

MPAC does not proactively review the title to land to determine if a merger of title has occurred, but if MPAC receives notice or other documentation indicating that a merger of title has occurred, MPAC will follow the process for mergers of title as outlined below. 

Assessment Roll Adjustments Arising From Property Severances, Mergers of Title or Consolidations of Parcels                                                     

Severance Process

  1. Once a property is severed, the property owner is sent a notice of the severance decision by the consent-granting authority, usually a Committee of Adjustment or Land Division Committee.
  1. MPAC receives notification from the land registry office that a transfer document that implements the severance decision has been registered.
  1. Upon receiving notice of the transfer document from the land registry office, and depending upon municipal preferences, MPAC assigns a new or updated roll number for the newly severed parcels.
  1. MPAC informs the relevant municipality, advising it of the changes to the assessment roll numbers as a result of the severance.  
  1. A Property Assessment Notice reflecting the changed roll numbers is mailed to the property owner for the next taxation year.

Consolidation of Parcels and Mergers of Title Process

  1. MPAC receives notice from the land registry office or other satisfactory documentation that formerly separate abutting properties have merged in title.
  1. Upon receiving notice from the land registry office or other satisfactory documentation that two or more abutting properties have merged in title, MPAC will retire one or both of the formerly separate roll numbers and update the property information to reflect the merger of title. However, as an Application to Consolidate Parcels does not necessarily mean that two or more parcels have merged in title, MPAC may not combine roll numbers solely on that basis.
  1. Depending upon municipal preferences, a new or updated roll number will be created for the newly consolidated parcel.
  1. MPAC informs the relevant municipality, advising it of the changes to the new or updated roll number.
  1. A Property Assessment Notice reflecting the change is mailed to the property owner for the next taxation year.

Note: The applicable law prevails to the extent there is any conflict between this information and the current law. This information is not intended to provide legal advice and should not be relied upon as such.