The 2024 Act to amend various legislative provisions with respect to housing, which includes specific changes to the alienation (sale or transfer) of immovable properties, aims to regulate the transfer of real estate in Québec with a focus on supporting housing projects, particularly those related to social, affordable, or student housing. The law introduces a regulation that sets out conditions under which immovables can be alienated, or sold, in the context of these important housing initiatives. This regulation, introduced in December 2024, is designed to prevent the misuse of public properties and ensure that the alienation of immovables aligns with the province’s housing goals.

Under the law, Section 92 establishes rules for the alienation of immovables, but it specifies exceptions related to other laws such as the Natural Heritage Conservation Act, the Cultural Heritage Act, and the laws concerning agricultural land preservation. However, for the most part, alienation is governed by this new regulation. This regulation allows properties to be transferred for specific projects—mainly those receiving financial support from the government or agreements with private parties that will use the properties for public purposes. These public purposes include building affordable housing, providing social housing, or creating housing for students, as outlined in the Civil Code of Québec.

The regulation sets clear limits for when properties can be sold. Specifically, the sale of a property must be tied to projects that meet the criteria for public good. The goal here is to ensure that properties aren’t sold for private development or for other uses that don’t align with public housing needs. For instance, if the property is going to be used for housing projects that serve the community, such as affordable housing, then the sale is allowed. This prevents properties from being sold for profit in ways that don’t benefit the public, particularly at a time when affordable housing is a pressing concern in Québec.

In addition to the broad guidelines about the purpose of the property sale, the regulation also establishes a financial threshold for more significant transactions. The sale of an immovable property with a net book value of at least $5 million or where the price is at least $10 million less than the property’s value must be authorized by the Minister of Finance. This ensures that the government is involved in monitoring large real estate transactions, particularly when the price seems unusually low or the property is of significant value. In determining the property’s value, the regulation relies on the value listed on the property’s assessment roll, which is adjusted by a comparative factor. If the property is not listed on the roll, the market value determined by a chartered appraiser will be used instead. This valuation system is put in place to prevent properties from being sold at prices that could undermine public interests, especially when high-value immovables are involved.

These changes reflect the government’s focus on providing more affordable housing options for residents and preventing the loss of valuable public property to private interests. This regulation helps ensure that the transfer of public land aligns with Québec’s broader housing goals, prioritizing public welfare and making sure that real estate transactions serve the community rather than private profit.

Quebec (1841-2024) January 2, 2025