CANADA – QUÉBEC Law and Practice Contributed by: Eleonora Eusepi, Sabrina Guillot, Janie Chaloux and Nicolas Gosselin, BCF Business Law LLP
BCF Business Law LLP 1100 René-Lévesque Blvd. West 25th Floor Montréal Quebec H3B 5C9 Canada
Tel: +1 514-397-8500 Fax: +1 514-397-8515 Email: info.bcf@bcf.ca Web: www.bcf.ca/en
1. General 1.1 Main Sources of Law
A key theme has also been asset repositioning, par - ticularly in the office sector, where owners are revis - iting the highest and best use of under‑performing buildings. On the residential side, although the mar - ket was calmer than during the record‑setting COVID years, Québec still saw several noteworthy transac - tions in 2025, particularly in multi‑family segments. Several large‑scale multi‑unit acquisitions stood out, supported by a province‑wide 12% increase in plex sales and strong investor demand for stable, income‑producing assets. Among the most notable deals of the past 12 months were the sale of the Deloitte Tower by Cadillac Fair - view and the acquisition of Promenades Saint‑Bruno by Primaris REIT, reflecting continued activity across At federal level, the latest budget and National Hous - ing Strategy provided for the creation of Build Canada Homes, a public housing agency set up to increase the supply of residential property using public land and new financing tools, and gradual implementation started in 2025. The federal Prohibition on the Pur - chase of Residential Property by Non-Canadians Act was also extended until 1 January 2027, thus continu - ing to limit foreign investments by non-Canadians into “residential properties” (generally buildings with three or fewer dwelling units and parts of buildings such as condo units) in Census Metropolitan Areas and Cen - sus Agglomerations, subject to limited exemptions. In Québec, a major reform of the Act respecting the preservation of agricultural land and agricultural activi - the office and retail sectors. 1.3 Proposals for Reform
Property rights in Québec are governed by civil law principles, which differ significantly from the common law system applicable in all other Canadian provinces. The primary legislative foundation of real estate law in Québec is the Civil Code of Québec (Civil Code), which sets out the fundamental rules governing own - ership, its attributes, and its transfer. Beyond the Civil Code, statutes governing specific aspects of real estate law, including construction matters, agricultural land and fiscal matters, among others, must also be considered. Case law is also considered to have force of law and plays a crucial role in interpreting these rules and clarifying their scope. 1.2 Main Market Trends and Deals Over the past 12 months, the Québec real estate mar - ket has been shaped by continued pressure on the rental sector, prompting increased government inter - ventions to address the housing shortage. Expanded federal financing tools, including a larger CMHC loan envelope and the rollout of the Canada Homes pro - gramme, have been rounded out by municipal efforts to streamline permitting and accelerate approvals. Higher inflation and tightened lending criteria have weighed on first‑time buyer confidence, while mort - gage renewals have played a major role in the refi - nancing landscape. That said, Bank of Canada rate cuts have started to bring some breathing room and have helped restore investor confidence.
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