You're about to sell your plex on the North Shore and your notary mentions a "notice of designation" in the title, or asks you about a "notice of intent to alienate" (NOI). The municipal right of first refusal — rarely talked about at the kitchen table — can add a 60-day delay to your transaction. Here's what it is, what it changes for you and what it doesn't.
Opinion column by the ImmoMulti Team. Facts are sourced; opinions are our own.
What Is the Municipal Right of First Refusal in Quebec?
The municipal right of first refusal (droit de préemption municipal) is a legal mechanism that allows a municipality to acquire a property before any third-party sale, at the same price as the private offer. It was introduced by the Act Respecting Expropriation in Quebec and has been progressively extended. Since 2022, it applies to all Quebec municipalities — not just large cities like Montreal or Quebec City, but also Terrebonne, Mascouche, Blainville, Saint-Jérôme and all North Shore municipalities.
In concrete terms: if your property is designated by a municipal resolution, you cannot sell it without first giving the municipality a chance to buy it. You must notify the city, which then has 60 days to exercise or waive its right. Only after that period — or after a written waiver — can you complete your transaction with a private buyer.
The notice of designation (avis d'assujettissement) is registered at the land registry and is valid for 10 years. It is visible on the title of your property. Your notary will flag it when preparing the deed of sale.
How Does It Work in Practice? The 3 Steps
The process follows a clear sequence that your notary manages. Here is the logic:
| Step | Description | Key point |
|---|---|---|
| 1. Notice of designation | The municipality registers a notice against the property at the land registry, designating it as subject to the right of first refusal | Valid 10 years — visible on your title |
| 2. Notice of intent to alienate (NOI) | You (the seller) send the municipality a notice containing the sale price, the buyer's name and the conditions of the proposed transaction | Must be sent before signing the deed of sale |
| 3. 60-day waiting period | The municipality has 60 days to exercise its right (and buy at that price) or to waive it in writing | Without a written waiver, you must wait the full 60 days |
In practice, most municipalities issue a rapid waiver in writing, well before the 60 days expire. They are rarely in a position — financially or operationally — to buy a private income property. But the step cannot be skipped: a sale completed without following this process could be legally challenged.
What Impact on the Sale of Your Plex?
The right of first refusal has three real effects on the sale of an income property on the North Shore.
1. A potential 60-day delay
Without a quick written waiver from the municipality, your transaction is frozen for 60 days after sending the NOI. For an impatient seller — or a motivated buyer — this can become a friction point. Some buyers will ask to adjust the conditions (price, closing date) to account for this uncertainty.
2. A psychological effect on certain buyers
An institutional buyer, a CMHC-financed buyer or a first-time investor may be concerned about this mechanism. The perception of risk — even if the municipality never actually exercises its right — can cloud negotiations. The more seasoned the buyer, the better they understand that the right is rarely exercised. But it adds a step to negotiate and explain.
3. An indirect effect on price
In the context of rising municipal taxes already pressuring plex owners, adding a bureaucratic step to the sale can reinforce the perception that owning a rental building is complex. Some sellers with a designated property accept a slight adjustment to complete a rapid, clean transaction. Combined with other obligations — impossibility of converting to condos, welcome tax weighing on buyers — the right of first refusal adds one more variable to the equation.
🎭 Devil's Advocate: Is the Municipality Really Going to Buy Your Building?
Let's be honest: the right of first refusal is far more frightening in theory than in practice. Municipalities introduced this tool primarily to preserve affordable housing and prevent speculative evictions — not to build a portfolio of private income properties. In practice, exercising the right requires the municipality to have the budget, the resources and the political will to acquire a multi-unit residential building and manage it.
For a duplex or triplex on the North Shore — far from a major urban strategic corridor — the probability that your local municipality exercises its right is extremely low. Most simply issue a written waiver promptly, sometimes in a matter of days. The 60-day maximum window is a legal ceiling, not the expected timeline.
So yes: the right of first refusal exists, it must be respected, but in the vast majority of cases on the North Shore, it is an administrative step managed by your notary, not a real obstacle to your sale. The danger is ignoring it and not following the procedure — not the municipality competing with your buyer.
The Verdict: A Manageable Obstacle, Rarely a Deal-Breaker
Our conclusion: the municipal right of first refusal is a legal reality that every North Shore plex seller must know and respect. But it is not a reason to panic or delay a sale. With good preparation — your notary checks the title early, the NOI is sent quickly, the municipality issues a rapid waiver — the process adds a few days at most, not weeks.
Where it becomes an issue is when sellers discover it at the last minute, when a buyer is under deadline pressure, or when the municipality takes its full 60 days. The solution: anticipate. Ask your notary to check the title and the registration status at the very start of the process, before even signing a promise to purchase with a buyer.
Three ways to minimize delays from the right of first refusal
- Have your notary check the title early: is there a notice of designation?
- Send the NOI as soon as an offer is accepted — the 60 days start from receipt
- Request a written waiver from the municipality — most respond quickly
If administrative complexity is adding up — right of first refusal, yield calculation, timing a sale — and you want a clean direct transaction without juggling multiple procedures, that's exactly what ImmoMulti offers: a direct purchase, managed from start to finish, without the friction of the open market.
A direct sale avoids the friction of the open market
ImmoMulti buys income properties directly on the entire North Shore. No commission, no repeated showings, transaction managed confidentially from offer to notary. Receive a purchase offer within 48 hours.
