City of Montréal’s pre-emptive right
By-laws have recently came into force regarding pre-emptive right. Any broker carrying out transactions in Montréal must be aware of these for the benefit of their clients and in accordance with their duties to inform and advise.
Because of its pre-emptive right, the City of Montréal may supersede a buyer whose promise to purchase has been accepted, under the following conditions:
- the proposed acquisition by the City is for the benefit of the community (public road, public space and park, housing, community equipment, institutional equipment, conservation of heritage buildings, land reserve);
- the immovable is located in one of the sectors identified in the By-law determining the urban planning sectors where the city's pre-emptive right may be exercised and the purposes for which the immovables may thus be acquired.
- Anjou-Langelier,
- Lachine East,
- Louvain East,
- the northern part of Nun’s Island,
- Namur-De la Savane,
- Assomption North,
- Bellechasse,
- Havre-Bridge-Wellington, and
- the area around the railway tracks between the Plateau and Rosemont;
OR
- the immovable is a regional park referred to in the By-law determining the park territories in which the city's pre-emptive right may be exercised and in which immovables may be acquired for the purposes of regional parks.
Notice of pre-emptive right
The owner of an affected property will receive a notice to this effect. This notice will be registered in the land register for a period of 10 years.
Notice of intention to alienate an immovable
An owner who receives a notice of pre-emptive right and has accepted a promise to purchase for which all conditions have been fulfilled must notify the City using a notice form (Avis d’intention d’aliéner un immeuble), available on the City of Montréal website.
If this notice is not received, the City may have the sale annulled.
The notice must be accompanied by the documentation required (e.g. promise to purchase, certificate of location, brokerage contract, etc.). It is important for the buyer to keep a proof that this notice has been sent.
Expenses incurred by the prospective buyer
If the City decides to exercise its pre-emptive right, it must compensate the person who initially planned to acquire the immovable for expenses incurred as part of the negotiation process.
Such expenses include inspection reports, expert reports, and remuneration of the broker to whom the buyer is bound by contract.
The buyer may claim these expenses by sending a letter, with documentation, to the clerk’s office of the City of Montréal.
For more details, visit the City of Montréal website at or dial 311 (514 872-0311 outside of Montréal).
- Reference number
- 205782
- Last update
- November 28, 2018