When a municipality decides to widen a road, build a park or install water infrastructure, it can legally force the purchase of any building on its territory — including your plex or multi-unit building on the North Shore. This mechanism is called expropriation, and it is radically different from the pre-emption right (which only applies if you want to sell). Understanding your rights before you are confronted with it — the right to fair compensation, recourse before the Administrative Tribunal of Québec (TAQ), protection of your tenants — can make a difference of tens of thousands of dollars for you, the owner of a multi-unit building on the North Shore.
What is municipal expropriation of a building in Québec?
Expropriation is the forced acquisition of a private building by a public body — a municipality, the provincial government or a mandated agency — in exchange for the payment of compensation to the owner. The Expropriation Act (CQLR, c. E-25) governs this power in Québec law. Unlike the pre-emption right, you do not have to want to sell in order to be expropriated.
Expropriation is one of the most significant powers a state can exercise over private property. In Québec law, this power is governed by the Expropriation Act (CQLR, c. E-25), a modernized version of which came into force at the end of 2023. Other enabling laws — the Municipal Code of Québec, the Cities and Towns Act, and the Act respecting land use planning and development (LAU) — also grant expropriation powers to municipalities, according to the Ministère des Affaires municipales et de l'Habitation (MAMH).
For owners of plexes, duplexes, triplexes and multi-unit buildings on the North Shore, the fundamental distinction to remember is this: expropriation applies regardless of your intention to sell. Your income property can be targeted even if you plan to keep it for another ten years. Conversely, if the city seeks to buy first when there is a voluntary sale, it is the distinct mechanism of the municipal pre-emption right that applies.
Expropriation ≠ pre-emption right: do not confuse them
Pre-emption right: the city buys FIRST if you decide to sell — you remain free not to sell. Expropriation: the city forces you to sell, whether you want to or not, for a public-interest reason. Both mechanisms exist on the North Shore and apply differently to your plex or income property.
Source: Ministère des Affaires municipales et de l'Habitation (MAMH) — Expropriation; LégisQuébec — Expropriation Act (CQLR, c. E-25)
When can a North Shore municipality expropriate your plex?
A municipality can expropriate for any public-interest reason: widening or building a road, developing a park, installing a water or sewer network, running a high-voltage line, urban redevelopment. On the North Shore — Terrebonne, Mascouche, Blainville, Boisbriand, Saint-Jérôme — the infrastructure projects tied to population growth make this risk concrete for owners of plexes along the main arteries.
According to the MAMH, legitimate grounds for expropriation include, among others:
| Type of public project | Example on the North Shore | Legal basis |
|---|---|---|
| Municipal road or artery | Widening a boulevard in Terrebonne, Blainville or Boisbriand | Municipal Code / Cities and Towns Act |
| Water or sewer network | Extension of the municipal network in Mascouche or Mirabel | Expropriation Act (E-25) |
| Park or green space | Creation of a riverside park or a bike path | LAU + Cities and Towns Act |
| High-voltage line or energy infrastructure | Routing of Hydro-Québec lines or gas pipelines | Expropriation Act (E-25) |
| Public transit | Right-of-way for a rapid bus lane or rail alignment | Expropriation Act (E-25) |
| Urban redevelopment | Revitalization of a central sector in a North Shore city | LAU + Municipal Code |
For owners of plexes and multi-unit buildings located along arteries, near waterways or in changing sectors on the North Shore of Montréal, the risk of being affected by a municipal project is not theoretical. The strong population growth of cities such as Terrebonne, Mascouche, Mirabel and Saint-Jérôme generates constant infrastructure needs, and the resulting expropriations are published in the agendas of municipal councils and in the Gazette officielle du Québec.
Source: MAMH — Land use decision-making guide: Expropriation
The expropriation process in Québec: from notice to deed
Expropriation follows a legal process governed by Act E-25. The expropriating authority (the municipality) must notify the owner by an expropriation notice, then make a provisional offer of compensation. If the owner refuses the offer, they can submit the dispute to the Administrative Tribunal of Québec (TAQ), which has exclusive jurisdiction to set the final compensation.
The Expropriation Act (CQLR, c. E-25) defines the steps the expropriating authority must follow to take possession of a private building. The main stages of the process are as follows:
- Expropriation notice: The expropriating authority publishes a notice in the Gazette officielle du Québec and serves it on the owner. This notice describes the targeted building and the purpose of the expropriation.
- Provisional offer of compensation: The expropriating authority submits a first compensation offer to the owner. This is a provisional estimate, not a final amount.
- Taking of possession: Under the rules of the Act, the expropriating authority can take possession of the building even before the compensation is finally determined, upon payment of the provisional compensation.
- Contestation before the TAQ: If the owner considers the provisional compensation insufficient, they can submit a recourse to the Administrative Tribunal of Québec (TAQ), which has exclusive jurisdiction to set the final compensation.
- Final compensation: The TAQ renders a decision on the fair and reasonable compensation to which the owner is entitled.
"The Administrative Tribunal of Québec (TAQ) has exclusive jurisdiction to determine the compensation payable in an expropriation. If you disagree with the amount of money offered or the conditions imposed, you may apply to the Tribunal to have them modified."
— Administrative Tribunal of Québec (TAQ) — Expropriation sectionFor owners of plexes and multi-unit buildings on the North Shore, this process carries a risk that is often overlooked: the taking of possession can precede the final settlement of the compensation. In other words, the municipality can take possession of your income property before you have received the full amount owed to you. That is why it is essential to consult a lawyer specialized in expropriation law as soon as you receive the expropriation notice, and to have your multi-unit building appraised by an independent expert without delay.
Source: TAQ — Process of an expropriation recourse; LégisQuébec — Act E-25
How is expropriation compensation calculated for a plex or multi-unit building?
Expropriation compensation must be fair and reasonable. It is based on the market value of the expropriated building, to which incidental damages may be added — moving costs, loss of rental income during the transition, relocation costs. If the expropriating authority's offer seems insufficient to you, the TAQ can set a different amount of compensation based on your own expert reports.
The central principle of compensation in Québec expropriation law is that of fair compensation: the owner must be placed in an economic situation equivalent to the one they held before the expropriation. For an owner of a plex or multi-unit building on the North Shore, this means that the compensation may include:
- The market value of the building: what a reasonable buyer would pay on the open market for your duplex, triplex, quadruplex or other multi-unit building, as of the date of the expropriation.
- Incidental damages: losses of rental income caused by the expropriation, expenses incurred to relocate your management activities, and other direct damages recognized by Act E-25.
- Appraisal fees: in many cases, the fees of your valuation expert can be claimed as part of the recourse before the TAQ.
Your right to an independent counter-appraisal
- Do not rely solely on the expropriating authority's appraisal — have your building appraised by your own chartered appraiser (C.A.)
- The value for expropriation purposes may differ from the municipal assessment roll value or the value for tax purposes
- The TAQ will decide based on the appraisals of both parties if they diverge
- Consult a lawyer specialized in expropriation law before signing anything
For owners of plexes on the North Shore, the market value of a multi-unit building is calculated using the methods recognized in real estate appraisal: the income approach (based on the capitalization rate and net operating income) and the comparative approach (sale prices of similar multi-unit buildings in the sector). These are the methods commonly used for the appraisal of income properties on the North Shore. Your plex or income property has a value that can be significantly different — higher or lower — from what the municipality initially proposes.
Source: TAQ — Exclusive jurisdiction over expropriation compensation; Expropriation Act (E-25)
Your tenants during an expropriation: obligations and rights on the North Shore
Your tenants' leases remain in force throughout the expropriation process, until the moment you must hand the building over to the municipality. You keep your owner obligations (maintenance, heating, etc.) during this entire period. At the end of the process, the leases are terminated according to the rules of the Civil Code of Québec (CCQ).
The expropriation of your plex or multi-unit building on the North Shore does not automatically and immediately release your lease with your tenants. The Civil Code of Québec (CCQ) provides that leases are obligations that follow the building. Here is what you need to know as the owner of an income property targeted by an expropriation:
- Your owner obligations continue: until the building is handed over to the municipality, you must keep the plex in good condition, provide heating and meet all the obligations of the Civil Code toward your tenants.
- Inform your tenants as soon as possible: although Act E-25 does not detail the owner's exact obligations toward tenants in the event of expropriation, it is in your interest to inform your tenants quickly so they can prepare and, if applicable, assert their own rights.
- Termination of leases: at the end of the process, the leases are terminated according to the applicable rules of the CCQ and the Expropriation Act. Notices must generally be respected.
- Tenants' rights against the municipality: tenants displaced by an expropriation may have rights to compensation in their own right. Direct your tenants to a lawyer or the Administrative Housing Tribunal (TAL) for any question specific to their situation.
For owners of multi-unit buildings on the North Shore, expropriation creates a delicate situation: you remain responsible for your tenants while being uncertain about your own compensation and the date the building will be handed over. It is often a long and stressful period, especially if you have several active tenants in your plex or income property.
Source: TAQ — Expropriation; Act E-25
Should you sell your plex before an expropriation occurs?
If you have reason to believe that your income property on the North Shore is in the zone of a future municipal project (road, park, infrastructure), it can be significantly more advantageous to sell voluntarily — and quickly — before the expropriation notice is issued. A voluntary sale leaves you in control of the process, the buyer and the price; an expropriation takes that control away.
Once an expropriation notice is formally issued, several constraints apply to you as the owner of a plex or multi-unit building on the North Shore:
- Voluntary sale to a third party generally becomes very difficult, even impossible without the expropriating authority's consent.
- The building is "frozen" in a legal process that can last months, sometimes years.
- Your tenants are left in uncertainty, which can hamper your day-to-day management.
- The final compensation may be lower than the price you would have obtained on the open market before the project became known.
The winning strategy for owners of plexes and multi-unit buildings on the North Shore: actively monitor the agendas of your city's municipal councils (Terrebonne, Mascouche, Blainville, Boisbriand, Saint-Jérôme, Saint-Eustache, Deux-Montagnes, Mirabel), your RCM's land use plans, and the transportation plans published by the Ministère des Transports. If a project seems to be approaching your income property, consult a notary or a lawyer, and consider selling quickly before the expropriation process is officially launched.
ImmoMulti: offer within 48 h, even in an urgent situation
If you have received an expropriation notice or fear that your plex or income property on the North Shore is in the zone of a municipal project, ImmoMulti can submit a direct and confidential offer within 48 hours — no broker, no commission, no obligation. Act before you are constrained by a legal process over which you will no longer have control.
In summary, expropriation is a legal right of municipalities that every owner of a plex or multi-unit building on the North Shore of Montréal must know. Understanding the process governed by Act E-25, defending your right to fair compensation before the TAQ, and acting ahead of time if a project is on the horizon — these are the three reflexes that can protect the value of your income property on the North Shore.
