The City of Montreal has a pre-emptive right for social housing
- Posted by Me Vanessa Hergett
On March 26, the Montreal Agglomeration Council adopted draft by-laws allowing the City of Montreal to make a pre-emptive right on certain buildings located on the territory of the agglomeration for the construction of social housing. During this meeting, the Agglomeration Council designated some of the lots covered by the right of preemption (Resolution designating the lots covered by the right of preemption) and on which the City of Montreal can exercise its right. A summary map representing the buildings concerned has been made public by the Agglomeration Council (Map of designated lot).
On April 23, the Agglomeration Council designated 81 additional lots, which you can consult here.
The City of Montreal should send the notices of subjugation to the owners concerned in the coming weeks. These notices will be entered in the Land register of Quebec.
The “Règlement déterminant le territoire sur lequel le droit de préemption peut être exercé et sur lequel des immeubles peuvent être ainsi acquis aux fins de logement social” provides for the procedures for exercising this pre-emption right.
The owner of a building subject to the right of first refusal, must, before selling his building, notify a notice of intention to the City of Montreal. The owner must also, if the building is sold for non-monetary consideration, provide the City with a reliable and objective estimate of the value of the non-monetary consideration.
No later than 15 days after notification of the notice of intention to the City, the owner should also send the City the offer to purchase and other documents (if they exist), such as leases or building occupancy agreements, the real estate brokerage contract, the environmental study, the building appraisal report, the report establishing the monetary value of the non-monetary consideration provided for in the offer or any other study or document used in connection with the offer to purchase.
The City then has a period of 60 days from receipt of the notice to acquire the building concerned, on the same conditions as those of the initial offer to purhchase and it must, within 60 days following, pay the selling price. The law provides that the City must reimburse the reasonable expenses incurred during the negotiation of the offer to purchase.
The pre-emptive right is the right available to the City of Montreal to acquire, in priority over other buyers, a particular building, in order to carry out projects for the benefit of the community. The City of Montreal retains its right of first refusal on an immovable for a period of 10 years from the registration of the notice of subjugation in the Land register of Quebec.
For any question relating to the exercise of the right of first refusal or any other question in municipal law, do not hesitate to contact a member of the Beauregard Avocats team.