Legal and regulatory framework
Before looking at the specific rules governing commercial and residential leasing in Québec, let us look at the courts that have jurisdiction in the event of a dispute between a lessor and a lessee.
Residential leasing
The court with jurisdiction to hear residential leasing cases in the first instance, to the exclusion of any other court, is the Tribunal administratif du logement.1
The Tribunal hears, among others, any application:
- where the sum claimed or the value of the thing claimed is less than $85,000;
- concerning lease renewal, rent fixing, repossession, division of a dwelling, change of destination, or substantial enlargement of the dwelling, regard less of the amount;
- demolition of a dwelling where there is no municipal regulation has been adopted to this effect;
- sale of an immovable located within a housing complex;
- conversion of a residential leasing property into divided or undivided co-ownership properties.
Where possible, but only with the authorization of a judge of the Court of Québec, decisions of the Tribunal administratif du logement may be appealed before the Civil Division of the Court of Québec.2
1 S. 28 Act respecting the Administrative Housing Tribunal
2 S. 91 Act respecting the Administrative Housing Tribunal
Commercial leasing
In commercial leasing, a court’s jurisdiction will depend on the value of the claim. If the value is below $70,0003 the Court of Québec has jurisdiction, if the value is $70,000 or more, the case will be heard by the Superior Court.4
It is possible to apply to the Small Claims Division of the Court of Québec if the amount of the claim does not exceed $15,000 (exclusive of interest) and the claimant is a natural person.
Where the claimant is a legal person or a partnership, the Small Claims Division will have jurisdiction only if the partnership had not more than five employees in the 12 months preceding the claim.5
3 Code of Civil Procedure, CQLR. c. C-25, s. 34
4 S. 31 C.C.P.
5 S. 953 (4) C.C.P.
Definition of lease
Article 1851 (1) of the Civil Code of Québec defines lease as follows:
“Lease is a contract by which a person, the lessor, undertakes to provide another person, the lessee, in return for a rent, with the enjoyment of movable or immovable property for a certain time.”
It is a contract that sets out the leasing conditions between two people, a lessor and a lessee. There are two main categories of leases, commercial and residential.
