{"id":4192,"date":"2020-04-22T12:04:23","date_gmt":"2020-04-22T16:04:23","guid":{"rendered":"https:\/\/www.gascon.ca\/2020\/04\/22\/the-city-of-montreal-acquires-a-pre-emptive-right-for-the-purchase-real-estate-properties-for-social-housing-purposes\/"},"modified":"2020-04-22T12:18:18","modified_gmt":"2020-04-22T16:18:18","slug":"the-city-of-montreal-acquires-a-pre-emptive-right-for-the-purchase-real-estate-properties-for-social-housing-purposes","status":"publish","type":"post","link":"https:\/\/gasc.sltm.ca\/en\/2020\/04\/22\/the-city-of-montreal-acquires-a-pre-emptive-right-for-the-purchase-real-estate-properties-for-social-housing-purposes\/","title":{"rendered":"The City of Montr\u00e9al acquires a pre-emptive right for the purchase real estate properties for social housing purposes"},"content":{"rendered":"\n<p>The Urban Agglomeration Council of Montr\u00e9al adopted the <em>Regulation determining the territory in which the pre-emptive right can be exercised and on which real estate properties can thus be acquired for social housing purposes <\/em>(\u201c<em>R\u00e8glement d\u00e9terminant le territoire sur lequel le droit de pr\u00e9emption peut \u00eatre exerc\u00e9 et sur lequel des immeubles peuvent \u00eatre ainsi acquis aux fins de logement social\u201d<\/em> <a href=\"#_ftn1\" name=\"_ftnref1\">[1]<\/a>) on March 26<sup>th<\/sup>. This pre-emptive right is the result of new powers that were conferred on the City of Montr\u00e9al in 2017 under Sections 151.1 to 151.7 of Appendix C of the <em>Charter of Ville de Montr\u00e9al, metropolis of Qu\u00e9bec<\/em> <a href=\"#_ftn2\" name=\"_ftnref2\">[2]<\/a> and allows the City to acquire certain immovable properties in priority over any other purchaser. Since 2017, this right has been used by the City, notably for regional park purposes <a href=\"#_ftn3\" name=\"_ftnref3\">[3]<\/a>.\r\n\r\n<a href=\"#_ftnref1\" name=\"_ftn1\"><\/a><\/p>\n\n<p><p><strong>Territory concerned<\/strong><\/p><\/p>\n\n<p>The Regulation relates to real estate properties that could be acquired by the City to develop social housing. The pre-emptive right covers the urban agglomeration of Montr\u00e9al and the 19 boroughs of the City, but also of Baie-D\u2019Urf\u00e9, Beaconsfield, C\u00f4te-Saint-Luc, Dollard-Des-Ormeaux, Dorval, Hampstead, Kirkland, L\u2019Ile-Dorval, Montr\u00e9al East, Montr\u00e9al West, Mont-Royal, Pointe-Claire, Sainte-Anne-de-Bellevue, Senneville and Westmount. In addition, only privately owned properties may be subject to the pre-emptive right.<\/p>\n\n<p>The agglomeration council has identified by resolution 196 lots that must be subject to the pre-emptive right, as provided in the Charter and the Regulation. They are divided as follows:<\/p>\n\n<ul>\n<li>C\u00f4te-des-Neiges-Notre-Dame-de-Gr\u00e2ce: 21 lots<\/li>\n<li>Le Plateau-Mont-Royal: 34 lots<\/li>\n<li>Le Sud-Ouest: 22 lots<\/li>\n<li>Mercier-Hochelaga-Maisonneuve: 1 lot<\/li>\n<li>PDUES (\u201curban, economic and social development plan\u201d) Marconi-Alexandra, Atlantic, Beaumont, De Castelnau: 26 lots<\/li>\n<li>Verdun: 15 lots<\/li>\n<li>Ville-Marie: 68 lots<\/li>\n<li>Villeray-St-Michel-Parc-Extension:\r\n9 lots<\/li>\n<\/ul>\n\n<p>A second resolution will be adopted in April 2020 to add another a series of additional lots. It should be noted that the agglomeration council has delegated to the City\u2019s executive committee the power to avail itself of the pre-emptive right and to acquire property subject to such a right <a href=\"#_ftn4\" name=\"_ftnref1\">[4]<\/a>.\r\n\r\n\u00a0<\/p>\n\n<p><strong>How will the city proceed?<\/strong><\/p>\n\n<p><p><em>Notice of Pre-emptive Rights filed with Land Registry<\/em><\/p><\/p>\n\n<p>The City must issue a notice to the Land Registry for each of the lots which must be subject to the pre-emptive right, specifying for what purpose the lot concerned may be acquired. It must also notify the owner of each lot. The pre-emptive right is valid for 10 years following the notice in the Land Registry.<\/p>\n\n<p><p><em>Notice of intent of the owner<\/em><\/p><\/p>\n\n<p>If an owner of a subject property owner accepts an offer to purchase from a third party, that owner must provide the City with a notice of intent to alienate the building, by mail or electronically using a form provided.<\/p>\n\n<p>The owner must, within 15 days of notification of his notice, send the City a copy of the following documents:<\/p>\n\n<ul>\n<li>offer to purchase<\/li>\n<li>lease or occupancy agreement of the property<\/li>\n<li>real estate brokerage contract<\/li>\n<li>environmental study<\/li>\n<li>property valuation report<\/li>\n<li>other studies or documents used in the offer to purchase<\/li>\n<li>a report stating the monetary value of the non-monetary consideration provided for in the offer to purchase, if any<\/li>\n<\/ul>\n\n<p>It is important to note that is it is not required to notify the City in the event of a sale for the benefit of a related person under the <em>Taxation Act <\/em><a href=\"#_ftn5\" name=\"_ftnref1\">[5]<\/a>.<\/p>\n\n<p><em>Exercising the City\u2019s pre-emptive<\/em> <em>right<\/em><\/p>\n\n<p>Upon receipt of the owner\u2019s notice, the City will have 60 days to (i) send a notice of exercise to the owner and indicate that it wishes to exercise its pre-emptive right, and (ii) acquire the property at the price and conditions stated therein, subject to any changes subsequently agreed with the owner. During this period, the City may require from the owner any additional information to assess the condition of the property. The City can also have access to the property provided she sends 48 hours\u2019 notice to this effect.<\/p>\n\n<p>If the City informs the owner that it will not exercise its pre-emptive right or if it does not provide its Notice to Exercise within the 60 days, it will then be deemed to have waived its pre-emptive right and such right will no longer be exercisable. The City will then have to require the discharge of the notice of pre-emptive right from the Land Registry.<\/p>\n\n<p>When the City exercises its pre-emptive right, it will be required to pay the purchase price of the property within 60 days of notification of its Notice of Exercise. In the event the City cannot pay the sum directly to the owner, the City can deposit it at the Superior Court Registry, on behalf of the owner. The City will also have to compensate the person who planned to acquire the property for the reasonable expenses incurred by the latter in negotiating the price and terms of the proposed sale.<\/p>\n\n<p>In the event that the City can\u2019t conclude a notarized deed with the owner (for example, if the owner refuses to cooperate), the City would become the owner of the property by registering a notice of transfer of ownership at the Land Registry. This notice would include the description of the property, the price and conditions of its acquisition as well as the date on which the City would like to take possession of the property.<\/p>\n\n<p>Due to the overheating in the prices of real estate properties observed in the territory of the Montreal agglomeration, the pre-emptive right will certainly raise questions in the coming years, in particular as to with regard to its application and the financial means available to the City to acquire such properties.<\/p>\n\n<p>To improve the supply of social housing in the urban agglomeration of Montr\u00e9al, the City has expressed its desire to use the pre-emptive right as an additional tool. This tool will be added to the <em>Regulation to improve the supply of social, affordable, and family housing,<\/em> which is still under review.<\/p>\n\n<p><strong><span style=\"color: #0179c9;\">By <a style=\"color: #0179c9;\" href=\"https:\/\/www.gascon.ca\/en\/emilie-therrien\/\">\u00c9milie Therrien<\/a><\/span><\/strong><\/p>\n\n<hr class=\"wp-block-separator\"\/>\n\n<p><a href=\"#_ftnref1\" name=\"_ftn1\">[1]<\/a> Regulation RCG 20-012.<\/p>\n\n<p><a href=\"#_ftnref2\" name=\"_ftn2\">[2]<\/a> CQLR c C-11.4<\/p>\n\n<p><p><a href=\"#_ftnref3\" name=\"_ftn3\" data-mce-href=\"#_ftnref3\">[3]<\/a><em> Regulation determining the parks territories in which the pre-emptive<\/em> <em>right can be exercised and on which real estate properties can thus be acquired for regional park purposes <\/em>(<em>\u201cR\u00e8glement d\u00e9terminant les territoires des parcs sur lesquels le droit de pr\u00e9emption peut \u00eatre exerc\u00e9 et sur lesquels des immeubles peuvent \u00eatre ainsi acquis aux fins de parc r\u00e9gional\u201d<\/em>), RCG 18-034<\/p><\/p>\n\n<p><p><a href=\"#_ftnref4\" name=\"_ftn1\" data-mce-href=\"#_ftnref4\">[4]<\/a><em> Internal regulation of the agglomeration council regarding its delegation of powers to the executive committee relating to the exercise of the pre-emptive<\/em> <em>right for social housing purposes <\/em>(<em>\u201cR\u00e8glement int\u00e9rieur du conseil d\u2019agglom\u00e9ration sur la d\u00e9l\u00e9gation de pouvoirs du conseil d\u2019agglom\u00e9ration au comit\u00e9 ex\u00e9cutif relatif \u00e0 l\u2019exercice du droit de pr\u00e9emption aux fins de logement social\u201d<\/em>), RCG 20-013<\/p><\/p>\n\n<p><a href=\"#_ftnref5\">[5]<\/a> CQLR c I-3<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Urban Agglomeration Council of Montr\u00e9al adopted the Regulation determining the territory in which the pre-emptive right can be exercised and on which real estate properties can thus be acquired for social housing purposes (\u201cR\u00e8glement d\u00e9terminant le territoire sur lequel le droit de pr\u00e9emption peut \u00eatre exerc\u00e9 et sur lequel des immeubles peuvent \u00eatre ainsi [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":4116,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - 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