<\/p>\n\n\n\n
Bill 37, An Act to amend various legislative provisions mainly with respect to housing,<\/em> was sanctioned on June 10th<\/sup>. It amends several Acts, including those in the municipal sector, by amending the Cities and Towns Act <\/em>and the Municipal Code of Qu\u00e9bec.<\/em> These amendments allow municipalities, intermunicipal boards and transit authorities <\/strong>the power to acquire immovables through a right of pre-emption.<\/p>\n\n\n\n Its operation is identical to that granted to the City of Montreal a few years ago. As such:<\/p>\n\n\n\n By by-law, the municipality shall determine the territory in 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. The municipality may, for these purposes, act as mandatary of other municipal bodies, which are the intermunicipal board and a public transit authority.<\/p>\n\n\n\n This right of pre-emption is exercised subject to the right of pre-emption provided for in the Cultural Heritage Act.<\/em><\/em><\/p>\n\n\n\n Subsequently, the municipality publishes in the land register a notice of the right of pre-emption and this notice is sent to the owner. The owner identified in the notice may not, on pain of nullity, alienate the immovable if he has not provided a notice to the municipality of his intention to alienate it. The owner may, however, alienate it from a person related to it within the meaning of the Taxation Act<\/em> or from a public body within the meaning of the Act respecting Access to documents held by public bodies and the Protection of personal information.<\/em><\/em><\/p>\n\n\n\n The notice is valid for 10 years.<\/p>\n\n\n\n When the owner wishes to dispose of his immovable and, as a result, receives an offer to purchase, he must notify the City. The notice shall indicate:<\/p>\n\n\n\n The owner is not expected to provide a copy of the offer received.<\/p>\n\n\n\n The City has 60 days to exercise its right of pre-emption at the price and conditions set out in the notice.<\/p>\n\n\n\n If the notice contained an estimate, the price paid by the City is increased by an equivalent amount.<\/p>\n\n\n\n During the 60 day period, the City may request any information from the owner to enable an assessment of the condition of the immovable and with a notice of 48 hours, the City may have access to the immovable to carry out any study or analysis at its own expense.<\/p>\n\n\n\n If the City refuses or does not send any notification within 60 days, it is deemed to have waived its right and must cancel its notice of pre-emption.<\/p>\n\n\n\n If the City exercises its right of pre-emption, the sale is made within 60 days of the City’s notification to the owner.<\/p>\n\n\n\n If there is a failure to conclude a “notarized contract”, the City becomes the owner of the immoveable by registering a notice of transfer of ownership in the land register, which will be served on the owner at least 30 days before registration in the land register.<\/p>\n\n\n\n If the City acquires the immovable, it must compensate the third party who wanted to acquire the immovable for its reasonable expenses incurred in negotiating its proposed purchase.<\/p>\n\n\n\n As you may know, the term “alienate” includes the term “mortgage.” Such is not the case here. In this instance it is specific to the transfer or sale of a building that is<\/p>\n\n\n\n