CANADA Law and Practice Contributed by: Rachel V Hutton, Michael L Dyck, Mario Paura and Miguel Manzano, Stikeman Elliott LLP
Stikeman Elliott LLP 5300 Commerce Court West 199 Bay Street Toronto Ontario M5L 1B9 Canada Tel: +1 416 869 5500 Fax: +1 416 947 0866 Email: info@stikeman.com Web: www.stikeman.com
1. General 1.1 Main Sources of Law
legislation. Orders of foreign courts are enforceable in Canada under certain conditions. 1.2 Main Market Trends and Deals Access to Capital 2025 saw a continuing decline in interest rates and a lower – but stabilising – investment volume in Can - ada’s real estate market, with regional and sectoral variations. However, slowing GDP growth and higher unemployment due to US tariff policy, the spectre of the CUSMA review process and global events have created uncertainty, and this is expected to remain a concern for real estate companies. Access to debt and equity capital will continue to impact real estate companies and their investment strategies. In the resi - dential sector, it should be noted that the Federal gov - ernment’s Build Canada Homes programme, together with the Canada Mortgage and Housing Corporation (CMHC), are making access to capital much easier for affordable housing developments. The CMHC is also providing aggressive interest rates for multi-residential purchases, which has been a key factor in keeping this market sector active on the transactional side in some parts of the country. Institutional and private funds continue to dominate the market, with a resurgence of investment by pen - sion funds, REITS and private equity funds. Family offices are also very present in the multi-residential sector, in particular properties over 15 years old. Financings and refinancings remain active. The Industrial, Retail and Residential Sectors The industrial sector, being particularly vulnerable to trade-related uncertainty, saw an overall decline in
Under Canada’s federal constitution, laws relating to real estate fall within provincial jurisdiction. Each Canadian province enacts its own legislation with respect to the ownership structures, use, acquisitions and dispositions, financing and development of real property. Such laws tend to be similar across most of Canada’s provinces, as well as in the three north - ern territories. The exception is the civil-law jurisdic - tion of Quebec. In recent years, and in response to surges in residential property prices and availability, many Canadian provinces have enacted legislation imposing increased transfer tax, owner transparency and foreign ownership restrictions and obligations; at the federal level, the Prohibition on the Purchase of Residential Property by Non-Canadians Act (see 2.11 Legal Restrictions on Foreign Investors ), introduced in 2023, has been extended through 1 January 2027. In Canada’s common-law jurisdictions – that is, all provinces and territories other than Quebec – com - mon-law jurisprudence is a key component of real estate law. In addition, some real estate-related com - mon-law principles have been codified in legislation in Canada’s common-law jurisdictions. In Quebec, the Civil Code (similar to those in use in many Euro - pean countries) serves as the primary source of law, although case law clarifies issues that remain after the application of the Civil Code of Quebec. International law is not a significant source of real estate law in Canada. Nevertheless, international trea - ties are occasionally reflected in Canadian real estate
79 CHAMBERS.COM
Powered by FlippingBook