Regulation

Municipal Right of Pre-emption: What Changes When You Sell Your Plex in Quebec

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Sale of a property subject to the municipal right of pre-emption in Quebec

ImmoMulti — direct buyer of multi-unit properties on the North Shore — sees more and more owners wondering what the municipal right of pre-emption concretely changes for the sale of their property. Since the adoption of Bill 37, municipalities, regional county municipalities (MRCs) and certain municipal bodies can acquire a property in priority, before any other buyer, notably to develop affordable or social housing. For you, an owner-seller of a plex on the North Shore, this new power adds a step (the notice of intent to alienate) and a waiting period — up to 60 days in Montreal — between your agreement with a buyer and the final signing at the notary. Here is how it works and how to sell your multi-unit property without letting it slow you down.

Bill 37The law that creates the municipal right of pre-emption
60 daysExercise delay in Montreal after the notice of intent
10 yearsValidity period of a designation (Montreal)

What exactly is the municipal right of pre-emption?

The right of pre-emption is the power, granted by Bill 37, that municipalities, MRCs and certain municipal bodies have to acquire a property or a piece of land in priority, before any other buyer — notably to develop affordable or social housing, but also for transport, waste management, the environment, recreation and culture.

The right of pre-emption was established by a provincial law, Bill 37 (adopted). This law grants municipalities, MRCs and certain municipal bodies the power to acquire a property or a piece of land in priority, before any other buyer. In other words, when an owner sells a targeted property, the city can decide to substitute itself for the buyer who was found and acquire the property on the same terms.

The primary purpose of this power is the development of affordable or social housing, a major issue everywhere in Quebec, including on the North Shore. But the right of pre-emption can also serve other public-interest purposes: transport, waste management, the environment, recreation and culture. It is a planning tool in the hands of municipalities.

For an owner of a plex or multi-unit property, the key takeaway is simple: the right of pre-emption does not prevent the sale, but it gives the city the option to step in as a priority buyer. This adds a variable to manage in your transaction.

Source: Government of Quebec — Adoption of Bill 37

How to know if your plex on the North Shore is subject to it?

A municipality subjects certain properties or pieces of land to the right of pre-emption through a notice. In Montreal, a designation remains valid for 10 years. Since the targeted properties and terms vary from one city to another, the owner of a plex on the North Shore must check with THEIR municipality and validate with a notary before putting the property up for sale.

Notice of intent to alienate sent to the municipality in Quebec

The right of pre-emption does not apply automatically to all properties. The municipality must first designate certain properties or pieces of land as subject to the right of pre-emption. In the example of the City of Montreal, this designation is registered and remains valid for 10 years. Throughout that period, every planned sale of the targeted property will have to deal with the pre-emption mechanism.

Concretely, even before thinking about selling your plex on the North Shore, the first question to ask is: is my property subject to it? If the answer is yes, you will have to follow the full procedure; if the answer is no, your sale is not affected by this mechanism. The distinction is crucial for planning your timeline.

As we will see further on, the properties subject to it and the delays vary from one municipality to another. On the North Shore, each city — Terrebonne, Mascouche, Blainville, Boisbriand, Saint-Jérôme, Saint-Eustache — may have its own rules. You must therefore check directly with your municipality and, ideally, have the situation validated by a notary as soon as you start considering a sale.

Source: City of Montreal — Right of pre-emption

The notice of intent to alienate and the 60-day delay

To sell a property subject to it, the owner must send a notice of intent to alienate to the municipality. In Montreal, the City then has 60 days to exercise its right and buy in priority. Once this period passes without a response, the transaction can take place and the City can no longer exercise its right for that sale.

Transfer of ownership of a multi-unit property at the notary in Quebec

When a property is subject to it, the owner who wants to sell it must send the municipality a notice of intent to alienate. This notice formalizes your planned sale with the city and triggers the period during which it can decide to exercise its right of pre-emption. It is a mandatory step specific to the targeted properties: without it, the transaction of a property subject to it cannot be properly concluded.

Once the notice is sent, in Montreal, the City has 60 days to decide whether to exercise its right and buy the property in priority, on the terms you agreed with your buyer. Two scenarios are then possible, as the table below summarizes.

StepWhat happensDelay (Montreal example)
1. Agreement with a buyerYou negotiate a purchase offer on your designated plexPer your negotiations
2. Notice of intent to alienateYou send the mandatory notice to the municipalityBefore the final signing
3. Pre-emption delayThe City assesses whether to exercise its priority purchase right60 days
4a. The City exercises its rightThe municipality buys the property on the agreed termsDuring the 60 days
4b. The City does not exerciseThe transaction proceeds with your buyer; the City can no longer exercise its right for that saleAfter the 60 days

The reassuring point: once the period passes without a response from the City, the transaction can take place with the buyer of your choice, and the municipality can no longer exercise its right for that specific sale. The right of pre-emption is therefore not an expropriation; it is a priority purchase right that is bounded in time.

Source: City of Montreal — Selling a property subject to the right of pre-emption

What is the concrete effect on selling your plex on the North Shore?

The right of pre-emption does not block the sale, but it lengthens the timeline and adds uncertainty: during the period (up to 60 days in Montreal), the buyer can be set aside in favour of the municipality. This wait can discourage buyers, weaken financing on a tight deadline and slow the sale of a plex on the North Shore.

From the owner-seller's standpoint, the right of pre-emption mainly translates into added time and uncertainty. You find a buyer, you agree on a price — then you must send the notice of intent to alienate and wait through the waiting period before you can sign at the notary. For a plex or multi-unit property on the North Shore, this can noticeably lengthen the timeline of a transaction.

This wait is not neutral. During the pre-emption delay, your buyer knows they could be set aside in favour of the municipality, which would buy in their place. This uncertainty can:

  • Discourage some buyers, who prefer properties with no pre-emption constraint to avoid tying up their financing for nothing.
  • Weaken a purchase offer whose financing or mortgage rate has a tight deadline — an extra delay can cause an approval to expire.
  • Lengthen the overall process of selling your multi-unit property, which complicates planning if you yourself have another purchase or a timeline to respect.

For the owner of a plex on the North Shore, the issue is therefore not to fear having the property seized — that is not what this is about — but to properly plan a sale that involves one more step and one more delay than usual.

The tight-deadline trap

If your buyer depends on a mortgage approval or a guaranteed rate for a limited period, the pre-emption delay can cause the financing to fall through before signing. On a designated property, plan for this delay as early as the purchase offer and have it validated by your notary to prevent a solid sale from derailing because of a poorly anticipated timeline.

Rules that vary from one municipality to another

The 60-day delay and the 10-year validity are Montreal's example. The properties subject to it and the delays may differ from one city to another on the North Shore. Before selling, check the exact situation of your plex with your municipality and confirm the steps with a notary.

Closing the sale of an income property after the pre-emption delay

It is essential to understand that the figures cited above — the 60-day delay and the 10-year validity of the designation — correspond to the example of the City of Montreal. The provincial law (Bill 37) creates the power, but each municipality applies it according to its own terms.

Concretely, this means that the properties subject to it and the exercise delays may differ from one city to another. A North Shore municipality could target different sectors or types of property, or set different delays. You therefore cannot assume that Montreal's rules apply as-is to your plex in Terrebonne, Blainville or Saint-Jérôme.

"The right of pre-emption does not prevent you from selling your property: it simply gives the municipality the option to buy in priority. But since the rules vary from one city to another, an owner-seller's first step should always be to check with their municipality and their notary."

— ImmoMulti Team

The golden rule for any owner considering selling a multi-unit property on the North Shore: check with YOUR city whether your property is subject to it and which delays apply, then have the entire process validated by a notary. This upfront verification spares you surprises at the moment you have a buyer ready to sign.

How to sell fast and friction-free despite the right of pre-emption?

A direct sale to a specialized buyer like ImmoMulti helps manage the steps and delays of the right of pre-emption. You transact with a serious buyer, with no broker and no commission, who understands the notice of intent to alienate and the waiting period — which reduces the risk of a buyer backing out during the pre-emption period.

The best antidote to the uncertainty of the right of pre-emption is a solid buyer who will not back out during the waiting period. That is precisely where a direct sale to a specialized buyer makes the difference. Rather than risking a private buyer becoming discouraged by the complexity of the notice of intent to alienate and the pre-emption delay, you transact with a party that already knows these steps.

ImmoMulti buys multi-unit properties across the whole North Shore, with no broker, no commission and a fast offer. On a designated property, we support the owner in planning the notice of intent and the waiting period, keeping the transaction as smooth and confidential as possible. You thus avoid the double risk of a buyer backing out and a timeline that drags on indefinitely.

Sell your property fastDiscover how to close the sale of your North Shore plex without waiting, even on a designated property

Selling a designated plex, friction-free

  • Serious buyer who does not back out during the pre-emption delay
  • No broker, no commission, in full confidentiality
  • Support for the notice of intent to alienate and the waiting period
  • Direct offer on multi-unit properties across the whole North Shore

If you are also considering a quiet, no-fanfare transaction, our guide on selling a property discreetly (off-market) explains how to sell without a public listing. And before setting your price, think about your seller's declaration, a key document for a smooth sale. For a sale in the greater region, also see our page on selling a property in Montreal. You may also want to read our opinion piece on the municipal right of first refusal and the plex sale.

Frequently Asked Questions

The right of pre-emption is the power, granted to municipalities, regional county municipalities (MRCs) and certain municipal bodies by Bill 37 (adopted), to acquire a property or a piece of land in priority, before any other buyer. The city can use it notably to develop affordable or social housing, but also for transport, waste management, the environment, recreation and culture. Concretely, if your property is subject to it, the municipality has the option to substitute itself for the buyer you have found, on the same terms.

A municipality subjects certain properties or pieces of land to the right of pre-emption through a notice published and registered in the land register. In Montreal, for example, a designation remains valid for 10 years. The exact terms (which properties are targeted, which delays apply) vary, however, from one municipality to another. For your plex on the North Shore, you must check directly with YOUR city and validate the situation with a notary before putting the property up for sale.

When a property is subject to the right of pre-emption, the owner who wishes to sell it must send the municipality a notice of intent to alienate. This notice informs the city of the planned sale and triggers the period during which it can decide to exercise its right and buy the property in priority. Without this step, the transaction cannot be properly finalized for a property that is subject to it. It is an additional formality specific to the targeted properties.

In Montreal, after the notice of intent to alienate is sent, the City has 60 days to decide whether to exercise its right of pre-emption and buy the property in priority. Once this period passes without a response, the transaction can take place and the City can no longer exercise its right for that specific sale. Note: this 60-day delay is Montreal's. Delays may differ depending on the municipality where your North Shore plex is located; validate with your city and your notary.

No, it does not prevent it. The right of pre-emption does not block the sale: it gives the municipality the option to buy in priority, on the terms negotiated with your buyer. If the city does not exercise its right within the prescribed period, you sell normally to the buyer of your choice. The main effect for the seller is the addition of a step (the notice of intent) and a waiting period that lengthens and complicates the timeline of your multi-unit property transaction.

The right of pre-emption adds a waiting period (up to 60 days in Montreal) between the agreement with the buyer and the final signing at the notary. During this period, the buyer lives in uncertainty: they could be set aside in favour of the municipality. This uncertainty can discourage some buyers, lengthen the process and weaken a purchase offer with financing on a tight deadline. For the owner of a plex on the North Shore, this means a potentially slower and less certain sale.

In Montreal, a designation under the right of pre-emption remains valid for 10 years. During this period, every planned sale of the targeted property must go through the notice of intent to alienate and the pre-emption delay. The validity period may, however, vary from one municipality to another on the North Shore. Since a long-lasting designation directly affects the liquidity of your income property, it is worth checking the exact situation of your plex with your city.

Selling directly to a specialized buyer like ImmoMulti helps manage the delays linked to the right of pre-emption. Rather than enduring the uncertainty of a buyer who might back out during the waiting period, you transact with a serious buyer, with no broker and no commission, who understands the steps specific to designated properties. We support the owner through the sending of the notice of intent and the waiting period, keeping the sale of your North Shore multi-unit property as smooth and confidential as possible.

Selling your plex on the North Shore, even when subject to the right of pre-emption

If your income property is affected by the right of pre-emption, ImmoMulti can submit a direct offer — no broker, no commission, no obligation — and support you through the delays. We buy multi-unit properties across the whole North Shore.

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