CANADA – QUÉBEC Law and Practice Contributed by: Eleonora Eusepi, Sabrina Guillot, Janie Chaloux and Nicolas Gosselin, BCF Business Law LLP
government policy directions, which are administered by the Minister of Municipal Affairs, Regions and Land Occupancy, and set out the government’s objectives and expectations for regional and local planning bodies. Where the territory falls within a metropolitan community, a metropolitan land use and a develop - ment plan (the “Metropolitan Plan”) provide binding policy directions to the Regional County Municipality (RCM) and agglomerations within its territory. These policy instruments are not directly opposable to citi - zens; they frame the directives that cascade down to the RCMs, which must incorporate them into their own planning documents. At the regional level, each RCM adopts a land use and development plan (“the RCM Plan”) along with a complementary document that imposes specific obligations on local municipalities, such as stand - ards regarding heights, density, and new construction, which the municipalities must transpose into their own by-laws. The RCM Plan itself is not directly enforce - able against individual citizens, but it determines what each city or municipality (whether governed by the Cit - ies and Towns Act or the Municipal Code) may or must regulate. The RCM issues a certificate of conformity to confirm that local by-laws comply with the RCM Plan. Municipalities then adopt a series of normative regula - tory instruments directly applicable to citizens: (i) the zoning by-law, which divides the territory into zones and prescribes through a detailed grid the permitted uses, norms and density applicable to each zone; (ii) the subdivision by-law; and (iii) the by-law respecting permits and certificates, which governs the issuance of building permits, certificates of authorisation and certificates of occupancy. 4.2 Development Process, Challenges and Enforcement Development rights are obtained by filing an applica - tion for a building permit or a certificate of authorisation with the municipality, which verifies compliance with the zoning, subdivision and permit by-laws under the LAU. Where the project conforms, the municipal official must issue the permit. Additional authorisations may be required from the CPTAQ for land in an agricultural zone and from the Minister of Sustainable Develop - ment, Environment and Parks for projects subject to the Environment Quality Act. Third parties, including
residents of contiguous zones, may object through the referendum approval process provided for in the LAU when a zoning by-law amendment is proposed. Enforcement is carried out by the municipal official who applies the LAU and the local regulatory framework, with powers to refuse non-conforming permits, institute penal proceedings, and seek injunctive relief. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets The more commonly used entities to hold real estate in Québec are corporations, partnerships and trusts. In such cases, the holding of real estate assets is carried out indirectly, since the investor holds shares, interests, or units in the relevant entity, which itself owns the property. Investors may also opt for the direct holding of the real estate asset with other investors via undivided co-ownership. The choice of investment vehicle or holding structure is guided by various factors, including fiscal considerations, risk management, the type of asset, and each investor’s governance rules. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity A corporation is a separate legal entity whose share - holders benefit from limited liability. It is managed by a board of directors. Taxable income, profits, and losses are calculated at corporate level, and dividends are taxed at shareholder level. A partnership, whether general or limited, is created by agreement among investors. In a general partner - ship, the partners may manage the business directly and are jointly and severally liable to third parties. In a limited partnership, the general partner man - ages the enterprise and bears liability, while limited partners benefit from limited liability so long as they do not participate in management. Partnerships are flow‑through vehicles, meaning income, profits, and losses are taxed directly at the investor level. A trust is a distinct patrimony administered by trustees for its beneficiaries. Trustees act as administrators of
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