Controversy over Ottawa’s Plan to Allow Private Property on Reserves

by Admin on August 8, 2012

Ottawa is making plans to allow Canada’s first nations to sell reserve land, to both members and outsiders, while critics say this will only alienate many first nation groups.

The controversy is whether first nations need full land ownership, known as “fee simple,” to trigger housing and economic development on more than 600 reserves.

This would risk giving up control of parcels of reserve land.

The new law would allow an individual first nation to op in and hold the legal “fee simple” title to all or part of its reserve land serving as collateral for development. However, any “fee simple” land would be available to outsiders or developers.

Already Canada’s first nations are facing a lack of supply, pressing needs for repairs and in some cases heavy overcrowding.

According to advocates of the Conservatives’ First Nations Property Ownership initiative, part of the problem is that first nations people don’t “own” their plot of reserve land, and therefore can’t take out a mortgage. The argument is that instead band councils need to build house and green-light repairs.

Various first nations have allowed people living on reserves to take out a mortgage and claim tenure over a certain plot of land. The Nisga’a First Nation in British Colombia opened the door to fee simple ownership of residential land three years ago and has stressed that they’re a different case than the law Ottawa is drafting.

Other first nations have adopted a series of measures, such as long-term leases, that already deliver the benefits of land ownership to reserves without forfeiting control over the land.

Recently, Thai ombudsmen have placed more restrictions on land purchases in Thailand   for foreigners so that illegal ownership is less obtainable. While some investors may have issues with Thailand land law that has prohibitions on foreigners it is common in western countries, such as Canada, to place restrictions on how land is purchased and obtained.

For foreigners coming to Thailand long-term leases are available up to 30 years. According to Thailand real estate lawyers there is also an option to renew for an additional 30 years while land for industrial or commercial purposes may be leased up to 50 years by a foreigner. This has made outside investments an attractive and reasonable move. There are also various other legal mechanisms Thai lawyers may use to protect a foreigner’s interest in land.

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