CANADA Law and Practice Contributed by: Rachel V Hutton, Michael L Dyck, Mario Paura and Patrick Morin, Stikeman Elliott LLP
4.7 Enforcement of Restrictions on Development and Designated Use Provincial legislation generally provides for fines and penalties for contravention of applicable zoning and building by-laws. Municipalities may also take direct enforcement action against an offender to bring about compliance, and may pursue injunctions and court orders. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Legal persons (corporations and natural per - sons) may hold real property in Canada by way of direct ownership by an individual or through ownership of shares in a corporation that owns real estate. Relationships may also be estab - lished for the ownership of land, such as co- ownerships, partnerships and trusts, largely based on tax consequences, liability concerns and business considerations. Corporations, partnerships, co-ownerships and trusts are the most popular real estate investment vehicles in Canada. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity Corporations Corporations are legal entities distinct from their shareholders. While corporations provide the benefit of limited liability for shareholders, the income, losses, gains and capital cost allow - ances of the corporation are taxed or deducted at the corporate level, followed by the taxation of dividends in the hands of the shareholders. Partnerships By contrast, a partnership is not a distinct legal entity, and constitutes a legal relationship among its partners and is governed by common law
ity, procedural and documentary requirements for each category of development permissions, which range from applying and paying fees to meeting with municipal committees or the pub - lic, submitting plans and seeking the approval of municipal councils. Third parties (particular - ly neighbours) may have the right to be given notice of the application and to participate at a public hearing. Certain developments may require consultation with affected indigenous peoples. While the Crown is constitutionally required to conduct such consultation, procedural aspects are often delegated to the proponent of the development. 4.5 Right of Appeal Against an Authority’s Decision The availability of a right of appeal in these mat - ters varies. In some provinces, such as Alberta and Ontario, the decision of a municipality may be appealed to a specialised tribunal. In others, such as British Columbia, there is no such tribu - nal and municipal council decisions are not sub - ject to judicial review on their merits (although they may be reviewable on formal grounds such as lack of jurisdiction, procedural fairness or natural justice). 4.6 Agreements With Local or Governmental Authorities Large-scale developments by private real estate developers will typically require agreements with the municipality, setting out the terms and condi - tions for the development to proceed, relating to the construction of public facilities, land dedica - tions, servicing commitments and financial obli - gations.
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