LOT SIZE

Please note that a revised Canadian Armed Forces Relocation Directive (CAFRD) has taken effect as of March 1st, 2025.

This ReloFact describes Lot Size and how it affects sale and purchase benefits. Additional information can be found in Articles 8.1.06 & 8.1.06.1 of the Relocation Directive.

What is lot size?

lot size refers to the amount of land your principal residence is situated on, measured in square feet, square metres, or acres. The legal dimensions of your property can be found on one of the following
documents:

• Land Survey
• Appraisal Report
• Municipal Tax Bill

How does lot size affect my Sale and purchase benefits?

The reimbursement of your sale and purchase benefits may be affected based on the following lot size
limitations:

• 1.25 acres or less
• Up to 4 acres where required by zoning laws or city bylaws

An appraisal is required to establish the market value of your property. If your lot size is greater than 4 acres, reimbursement may be limited to the portion of land that falls within the above limitations.

SALE

• If your property is 1.25 acres or less, Real Estate Commission (REC) will be reimbursed as per article 8.2.09 of the Relocation Directive.
• If you reside in an area where zoning laws or city bylaws require your property to be greater than 1.25 acres, you are entitled to reimbursement up to 4 acres.
• Additional land owned may be limited to a reimbursement that falls within the above limitations.

PURCHASE

• If your property is 1.25 acres or less, Land Transfer / Welcome Tax will be reimbursed as per Article 8.3.09 of the Relocation Directive.
• If you reside in an area where zoning laws or city bylaws require your property to be greater than 1.25 acres, you are entitled to reimbursement up to 4 acres.
• Additional land purchased may be limited to a reimbursement that falls within the above limitations.

For a sale: If the property is over 1.25 acres, you will be required to provide one of the following, as applicable, to be reimbursed for home sale benefits:

• A copy of the city bylaw or cerƟficate specifying the required lot size
• An appraisal of the property reimbursed at CAFRD 8.2.05 based on the value of the home and 1.25 acres only, or up to 4 acres where the larger lots size is required by zoning laws and city bylaws

REC will be capped at the lessor of either the appraised value or sale price.

For example, the home was appraised at $400,000. Home sold for $425,000. The REC will be calculated based on the $400,000 and you will be responsible to pay the Realtor the remaining funds.

For a purchase: If the property is over 1.25 acres you will be required to provide one of the following, as
applicable, to be reimbursed for home purchase benefits:

• A copy of the city bylaw or certificate specifying the required lot size
• An appraisal of the property not reimbursed by the CAFRD or provided by a financial institution
  to secure a mortgage, based on the value of the home and 1.25 acres only, or up to 4 acres where the larger lots size is required by zoning laws and city bylaws

Land Transfer / welcome Tax will be capped at the lessor of either the appraised value or purchase price.

For example, the home was appraised at $400,000. Home purchased for $425,000. The land transfer/ welcome tax reimbursement will be calculated based on the appraised value of $400,000 and you will be responsible to pay the Realtor the remaining funds.

Note: Real Estate Commission is NOT payable on a purchase.

This ReloFact is a general guide, meant for informative purposes only. The CAFRD remains the authority for the reimbursement of relocation expenses and referring to it for eligibility prior to incurring expenses is encouraged.