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Canada Locatee Land Lease (3-CAN-d)

Information current as of 2019
In Canada, a person (developer) may need a Locatee Land Lease (Locatee Lease) from the Department of Crown-Indigenous Relations and Northern Affairs Canada (Department) in coordination with a Locatee if a project requires the exclusive use and/or access to allotted reserve land. Indigenous and Northern Affairs Canada – Locatee Lease and Policy Directive Webpage; Indian Act, R.S.C. 1985, c. I-5, s. 58(3). A Locatee is a Band member in lawful possession of lands that, with the approval of the Department, have been transferred in accordance with the Canada – Indian Act, R.S.C. 1985, c. l-5. Indigenous and Northern Affairs Canada – Locatee Lease and Policy Directive Webpage. Bands are a “body of Indians for whose use and benefit in common, lands, the legal title to which is vested in [the Crown] have been set apart.” Indian Act, R.S.C. 1985, c. l-5, s. 2(1). Allotted reserve lands are tracts of land in the lawful possession of a Locatee. Indigenous and Northern Affairs Canada – Locatee Lease Policy and Directive Webpage; Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3. A Locatee may request that the Minister lease designated or undesignated reserve land to a third party via a Locatee Lease. Indian Act, R.S.C. 1985, c. l-5, s. 58(1).


Locatee Land Lease Process

3-CAN-d.1 – Contact the Department of Crown-Indigenous Relations and Northern Affairs Canada (Department)

A developer should contact the Department for more information regarding the process for obtaining a Locatee Lease.

3-CAN-d.2 – Consult with Locatee

A developer should consult with the Locatee in possession of the reserve land where the proposed project is located to obtain consent of the Locatee for the project and provide any information that the Locatee requires related to the project.

3-CAN-d.3 – Application for Leasing Locatee Lands Within an Indian Reserve

The Locatee must submit a complete Application for Leasing Locatee Lands Within an Indian Reserve (Application) to the Department. The developer should consult with the Locatee to provide the Locatee with any information and/or documents required for the Locatee to complete the Application. The Application must include all information necessary for the Department to successfully draft the Locatee Lease. After the Locatee and developer sign the Application, the Locatee must submit it to the Department. Along with the Application, the developer and/or Locatee must provide the following:

  • The developer’s corporate certificate of good standing (if applicable);
  • An identification document, if the developer or Locatee is an individual;
  • A development proposal (if requested by the Department);
  • Appropriate plans or survey of the land conducted at the developer’s expense (if requested by the Department);
  • An Environmental Assessment in accordance with the Canada – Environmental Assessment Act, S.C. 2012, c. 19 (CEAA) conducted at the expense of the developer; and,
  • Any other documents requested by the Department or relevant to the proposed Locatee Lease.

Indigenous and Northern Affairs Canada – Locatee Lease Policy and Directive Webpage; Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3, s. 8.

3-CAN-d.4 to 3-CAN-d.5 – Review Application Materials for Completeness

The Department reviews the Application materials for administrative and technical completeness.

3-CAN-d.6 to 3-CAN-d.7 – Review Application Materials for Approval

The Department reviews the Application to determine whether the terms of the proposed Locatee Lease are in compliance with Department policy, the Indian Act, R.S.C. 1985, c. I-5, s. 58(3), and any other applicable rules or regulations. As part of its review, the Department:

  • Verifies the status of the land;
  • Verifies the legal description of the land;
  • Conducts a credit investigation at the expense of the developer;
  • Conducts a corporate status check at the developer’s expense (if applicable);
  • Conducts a survey of the land at the expense of the developer for Locatee Leases with terms longer than ten (10) years.

Indigenous and Northern Affairs Canada – Locatee Lease Policy and Directive Webpage; Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3, s. 8.

3-CAN-d.8 to 3-CAN-d.9 – Negotiate Locatee Lease

After accepting the Application, the Locatee and the developer are responsible for negotiating the key terms of the Locatee Lease. Indigenous and Northern Affairs Canada – Locatee Lease Policy and Directive Webpage; Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-1, s. 2.19.

The key terms of a negotiated Locatee Lease must include at a minimum;

  • A provision designating the lessor as Her Majesty the Queen;
  • A provision designating the lessee (developer) or tenant;
  • The proposed use of the land and the specific development or activity planned;
  • The proposed term of the lease;
  • A legal description of the land or premises being leased;
  • The amount and terms of rent payment based on an independent appraisal conducted at the expense of the developer and approved by Public Services & Procurement Canada; and,
  • Any other terms deemed necessary by the Department.

Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-1, s. 2.19, 2.7.

3-CAN-d.10 to 3-CAN-d.11 – Draft Locatee Lease

After the terms are agreed upon, the Department drafts a standard Locatee Lease incorporating the negotiated terms. The Department provides a copy of the Locatee Lease to the lessee (developer) and Locatee. Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-1, s. 2.19, 2.7.

3-CAN-d.12 to 3-CAN-d.13 – Review Locatee Lease for Approval

The Department conducts a thorough review of the Locatee Lease to ensure it is in compliance with Department policy as well as any other applicable laws or regulations and to determine if any further studies or assessments must be concluded prior to execution of the Locatee Lease. The Department forwards any concerns relating to provisions of the lease to the Locatee. In reviewing the Locatee Lease, the Department considers:

  • The adequacy of rent;
  • The term of the Locatee Lease;
  • The proposed use of the land;
  • Whether all terms and conditions required by the Department are included;
  • The potential environmental impact of the lease pursuant to CEAA; and,
  • Review of the development plan (if applicable).

Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3, s. 8.13.

3-CAN-d.14 to 3-CAN-16 – Request Band Feedback

Although the Canada – Indian Act, R.S.C. 1985, c. l-5 does not require Band input for Locatee Leases, the Department seeks input and feedback from the appropriate Band Council before executing a Locatee Lease. The Band Council provides the Land Officer with a Band Council Resolution (BCR) providing feedback on the Locatee Lease within 15 to 20 business days after the Lands Officer makes the request to the Band. The BCR containing feedback will include information confirming that the proposed Locatee Lease does not contravene approved reserve land use plans or zoning bylaws. A BCR objecting to a Locatee Lease does not amount to a veto; however, the Department must consider any comments or concerns of Bands before executing a Locatee Lease. Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3, s. 4.3.

3-CAN-d.17 to 3-CAN-d.20 – Does the Lease Have a Term of More Than 49 Years?

Locatee leases with terms more than 49 years require consent of a Band by a majority vote. During a vote on a Locatee Lease, the Band considers issues such as the social and cultural influence of the Locatee Lease, the economic impact of the lease on the Band, the environmental consequences of the proposed transaction and the compatibility of the Locatee Lease with Band bylaws. If the Band Council votes in favor of the Locatee Lease, then it should pass a BCR formally approving the Locatee Lease. Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3, s. 8.

==3-CAN-d.21 to 3-CAN-d.22 – Execute Locatee Lease

After receiving Band feedback, the Department and the developer execute the Locatee Lease. The following steps must occur in order to properly execute a Locatee Lease:

  • Obtain Locatee’s signature on schedule to the Locatee Lease indicating consent;
  • Developer executes and signs the Locatee Lease;
  • The Department’s delegated authority executes and signs the Locatee Lease.

Indigenous and Northern Affairs Canada – Locatee Lease Policy and Directive Webpage.

3-CAN-d.23 – Register Locatee Lease

After a Locatee Lease is executed, the Department registers the Locatee Lease and any supporting documentation in the Indian Lands Registry System. Indigenous and Northern Affairs Canada Land Management Manual, Directive 7-3, s. 8.23.


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