Standard 9: Ensuring Sound Transactions
The land trust works diligently to see that every land and conservation agreement transaction is legally, ethically and technically sound.
Background
A land trust usually intends to protect the property it conserves in perpetuity. To help secure the perpetual conservation of land, its transactions must hold up over time and withstand challenges. Sound transactions rely on the land trust performing “due diligence” in its transaction steps. Land trust representatives need not be lawyers, but they must have good legal advice, and they should familiarize themselves with basic principles of real estate and tax law. The land trust should draw a landowner’s attention to issues that must be addressed as the transaction proceeds. However, a land trust should not represent itself as giving specific legal or financial advice; a landowner’s own advisors should do that. A land trust may have to call on other financial and technical experts in order to complete the transaction. Carefully documenting the steps a land trust takes in performing its due diligence can help secure the perpetual conservation of the property.
Relevant Law
- Property Law Act, RSBC 1996, c. 377, s. 35.
- Land Title Act, RSBC 1996, c. 250, s. 218-223.
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I; see:
- Environmental Management Act, SBC 2003, c. 53, s. 40
- Contaminated Sites Regulation, BC Reg. 375/96, as am., s. 3.
- Land Title Act, RSBC 1996, c. 250, Parts 10 and 10.1
- Canada Revenue Agency policy interpretation of Income Tax Act, SC 1985, c. I;
see Income Tax Technical News No. 26 at:
- Taxation (Rural Area) Act, RSBC 1996, c. 447.
- School Act, RSBC 1996, c. 412.
- Police Act, RSBC 1996, c. 367.
- Property Transfer Tax Act, RSBC 1996, c. 378.
- Social Service Tax Act, RSBC 1996, c. 431.
PRACTICE
F. Documentation of Purposes and Responsibilities
The land trust documents the intended purposes of each land and conservation agreement transaction, the intended uses of the property and the roles, rights and responsibilities of all parties involved in the acquisition and future management of the land or conservation agreement.
Background
Written documentation of the landowner’s intentions and the land trust’s plans avoids misunderstandings and misrepresentations-both during the landowner’s lifetime and after the original parties to the transaction are no longer around to provide clarification. This documentation will serve to provide clarity on the donor's wishes for the property and will allow the land trust to assess both their ability to manage the property in accordance with those wishes as well as serving to reduce misunderstandings on both sides. Memorandum of understanding, letters of agreement and/or correspondence should clarify the relationship of all parties to each other and to the land. This documentation is especially important when more than one party will share in the management of the land or stewardship of the conservation agreement. With conservation agreement projects, much of this information is contained in the conservation agreement itself, but when it falls outside of the agreement, or it is a fee project, the written documents should be part of the project file.
Assessment Questions
BC Assessment Questions
- At the time of donation, does the land trust document the donor’s wishes for their property and their intent in making the donation to the land trust?
- If applicable, does the land trust document and communicate its future intent to sell or transfer a property at the time of acquisition?
- Does the land trust review the provisions of its covenants with new landowners as soon as possible following the transfer of a property to a new owner?
- Does the land trust review all covenant provisions with landowners as part of the regular monitoring process?
- Does the land trust outline the rights, responsibilities and expectations of each party as part of the process for each land transaction?
- Does the land trust provide an estimate of potential costs for land transactions to landowners at the beginning of each land transaction?
CLTA Assessment Questions
On a scale of 1 to 4, rate the land trust's compliance with the following"
"The land trust documents the intended purposes of each land and conservation agreement transaction, the intended uses of the property and the roles, rights and responsibilities of all parties involved in the acquisition and future management of the land or conservation agreement."
