Bill 37, An Act to amend various legislative provisions principally respecting housing, was assented to on June 10. It amends a number of laws, including municipal legislation, by amending the Cities and Towns Act and the Québec Municipal Code. These amendments give municipalities, intermunicipal boards and public transit corporations the power to acquire immovables through a right of first refusal. Its operation is identical to that granted to Ville de Montréal a few years ago. Thus : By by-law, the municipality determines the territory over which its right of pre-emption may be exercised, and the municipal purposes for which immovables (other than those of a public body) may be acquired. For these purposes, the municipality may act as the agent of another municipal body, such as the Régie intermunicipale or a public transit corporation. This right of pre-emption is exercised subject to the right of pre-emption provided for in the Cultural Heritage Act. The municipality then publishes a notice of pre-emption in the land register and notifies the owner. The owner covered by this notice may not, on pain of nullity, dispose of the property if he has not notified the municipality of his intention to do so. He may, however, alienate it to a person related to him within the meaning of the Taxation Act, or to a public body within the meaning of the Act respecting access to documents held by public bodies and the protection of personal information. The notice is valid for 10 years. When the owner wishes to dispose of his building and consequently receives an offer to purchase, he must notify the Town. This notice must indicate :
- sales price;
- conditions of disposal;
- the buyer’s name; and
- if there is a non-monetary consideration in whole or in part, then the notice must contain a reliable and objective estimate of the value of the non-monetary consideration.
However, the owner is not expected to provide a copy of the offer received. The City has 60 days to exercise its right of pre-emption at the price and conditions set out in the notice. If the notice contained an estimate, the price paid by the City is increased by an equivalent amount. During the 60-day period, the City may require any information from the owner to enable it to assess the condition of the immovable, and upon 48 hours’ notice, the City may have access to the immovable to carry out any study or analysis at its own expense. If the City refuses or fails to give notice within 60 days, it is deemed to have waived its right to access and must cancel its notice of subjection. If the City exercises its right of pre-emption, the sale takes place within 60 days of the City’s notification to the owner. If there is a failure to enter into a “notarized contract”, the City becomes the owner by registering a notice of transfer of ownership in the land register, which will be served on the owner at least 30 days prior to registration in the land register. If the City acquires the building, it must compensate the third party who wished to acquire the building for its reasonable expenses incurred in negotiating its proposed purchase. As you may know, the term “alienate” includes “mortgage”. This is not the case here; we are really talking about the transfer or sale of an immovable.
By Jean Proulx