Since the adoption of Bill 31 on February 21, 2024, the rules governing lease assignment in Québec have changed significantly for plex owners. What was once a relatively controlled mechanism has become, under the new law, a right that tenants can exercise more freely — with direct consequences for owners on the North Shore who want to manage their units or sell their income property. This article explains exactly what changed, what risks it creates, and how it affects your plex's value.
What is a lease assignment and how does it work in Québec?
A lease assignment (cession de bail) is the act by which a tenant transfers all of their rights and obligations under an existing lease to a new tenant — the assignee. Unlike a sublease, the original tenant exits the lease: they are no longer a party to it. The assignee becomes the new tenant, with the same lease conditions, including the same rent.
Before Bill 31, a Québec tenant had to obtain the owner's consent before assigning their lease, and the owner could refuse without necessarily having to justify that refusal. The process gave owners meaningful latitude. Today, that latitude has been substantially reduced.
What Bill 31 actually changed for lease assignments
Bill 31, adopted on February 21, 2024, fundamentally altered the dynamics of lease assignment in Québec. Here is the key change: a tenant may now notify the owner of their intention to assign their lease, and the owner has only 15 days to respond. If the owner does not respond within that deadline, the assignment is deemed accepted by law.
Furthermore, the owner may refuse the assignee only on objective and serious grounds directly related to the proposed assignee's ability to meet the lease obligations. They cannot refuse simply to recover control of the unit or to re-let it at market rent.
Prohibition on premiums
Bill 31 expressly prohibits any owner from requiring — directly or indirectly — any payment, premium, or benefit in connection with a lease assignment. Charging a premium, even informally, exposes the owner to a complaint before the Administrative Housing Tribunal (TAL).
Before / After Bill 31: Comparison for plex owners
| Situation | Before Bill 31 | Since Bill 31 (Feb. 2024) |
|---|---|---|
| Owner consent required | Yes — free refusal | No — owner can only refuse the assignee on serious grounds |
| Owner response deadline | Reasonable time | 15 days (failure = automatic acceptance) |
| Premium for assignment | Tolerated in practice | Strictly prohibited — $0 maximum |
| Rent at time of assignment | Same as existing lease | Same as existing lease (unchanged) |
| Owner's valid refusal grounds | General discretion | Limited: criminal record, proven inability to pay |
| Tenant's obligation to justify | No obligation | No obligation |
| Impact on plex value | Limited: owner could recover units | Growing rent gap → reduced NOI |
Concrete impact on your plex's value
The most significant consequence for plex owners on the North Shore is the widening gap between current rent and market rent. Since an assigned lease maintains the existing rent, each assignment perpetuates a below-market rent indefinitely — without the owner ever being able to reset to market rates.
Numerical example — Impact on value
Old rent after assignment: $800/month
Current market rent for that unit: $1,250/month
Monthly gap: $450 → Annual gap: $5,400 in lost NOI
Estimated value impact at GRM 14×: ~$75,600 in lost value per unit
On a 4-plex with 3 units at below-market rent: potential loss of $226,800 in property value
This is directly relevant if you are considering selling your plex on the North Shore: a buyer will analyze each lease, compare rent to market rate, and discount their offer accordingly. The wider the gap, the lower the offer.
When and how can an owner legitimately refuse an assignee?
Even under Bill 31, a plex owner retains the right to refuse an assignee — but only on serious, objective grounds. The Administrative Housing Tribunal (TAL) has clarified this: the refusal must concern the proposed assignee's ability to comply with the lease, not the owner's desire to recover the unit.
Grounds that may be valid:
- Criminal record directly related to the tenancy (e.g., arson, destruction of property, lease violations);
- Demonstrated inability to pay — verifiable through a credit check, if your lease authorizes it;
- False information in the assignee's application;
- Other serious, documented grounds showing the proposed assignee cannot meet the lease obligations.
Invalid grounds: desire to increase rent, preference for a different type of tenant, desire to renovate, intention to sell the unit vacant.
Important: the 15-day deadline
If you receive a lease-assignment notice, mark the date and act immediately. Any response sent after 15 days is legally equivalent to no response — the assignment is deemed accepted. Once that window closes, you lose the right to object to the proposed assignee. Consult a notary or housing lawyer as soon as you receive the notice.
Practical strategies for plex owners facing lease assignments
Despite the tighter rules under Bill 31, plex owners on the North Shore are not without options. Here are the main avenues:
- Document everything from day one: a complete move-in condition report, signed by the tenant, is your best tool if problems arise with an assignee later.
- Include a credit-check clause in new leases: this clause allows you to verify the financial capacity of any proposed assignee.
- Respond promptly to every assignment notice: even if you have no objection, acknowledging receipt in writing within 15 days protects you.
- Consult the TAL: if you believe you have valid grounds to refuse an assignee, seek legal advice before responding — an improper refusal can expose you to a damage claim.
- Evaluate the real market impact: use the GRM calculator or the NOI calculator to quantify the effect of the rent gap on your property's current value.
Should you sell your plex in a Bill 31 context?
For many plex owners on the North Shore, the accumulation of new obligations — lease assignment, mandatory rent increases, administrative housing court timelines — is tipping the cost-benefit balance. If your below-market rents are compounding and your NOI is declining, a sale to a direct buyer like ImmoMulti may preserve more value than waiting.
Unlike a retail buyer who negotiates down for every below-market lease, ImmoMulti purchases income properties as-is, with tenants in place — no need to empty the building, initiate evictions, or renovate first. We make a confidential offer within 48 hours.
To understand the full picture of your situation, see our analysis: Tenants and plex value at sale and Owner-occupancy evictions tripled — what it means for plex sellers.
Informational content only. Does not constitute legal advice. Bill 31 provisions and TAL decisions continue to evolve. Consult a notary or housing lawyer for advice tailored to your specific situation.
