Act respecting the Administrative Housing Tribunal (for housing complexes)
Although the Act respecting the Administrative Housing Tribunal1 is primarily the legislation establishing the Administrative Housing Tribunal, setting out its functions, jurisdiction and appeal procedures and remedies, it also deals with specific provisions relating to the preservation of dwellings and the conversion of rental properties to divided co-ownership.
Definition
Section 45 of the Act respecting the Administrative Housing Tribunal defines what constitutes a housing complex:
“In this subdivision, “housing complex” means several immovables situated near one another and comprising together more than twelve dwellings, if such immovables are administered jointly by the same person or by related persons within the meaning of the Taxation Act (chapter I-3), and if some of them have an accessory, a dependency or part of the structure, except a common wall, in common.”
This definition contains four essential elements:
- Immovables (two or more) situated near one another.
- Immovables comprising together more than twelve dwellings.
- Immovables administered jointly by the same person or by related persons within the meaning of the Taxation Act.
- Immovables that have an accessory, a dependency or part of the structure, except a common wall, in common. This can be a pool, a playground, an exercise room, etc.
Where to look to find out if an immovable is part of a housing complex:
- Certificate of location
1 CQLR, c. R-8.1.
Restrictions
Section 46 of the Act states:
“No person may, unless authorized by the Tribunal, alienate an immovable situated in a housing complex, or confer a right of occupancy or use or any similar right in respect of that immovable except by a contract of lease.
The forced sale, expropriation, taking in payment or retaking of possession of the immovable following an agreement made in good faith does not result in an alienation.
Any interested person, including the Tribunal, may apply to the Superior Court for a declaration of the nullity of an agreement that has been made in contravention of this section.”
Therefore, if the immovable fits the definition of a housing complex as described above, authorization must be obtained from the Administrative Housing Tribunal. The purpose of this rule is naturally to protect tenants.
If an owner wishes to alienate (i.e. sell, exchange, transfer, etc.) one or more immovables that are part of a housing complex, or if he wishes to grant a right involving a dismemberment of the right of ownership (such as usufruct, use, emphyteusis), he must obtain the authorization of the Administrative Housing Tribunal.2
This authorization may also be sought by the prospective buyer.3
2 Act respecting the Administrative Housing Tribunal, CQLR, c. R-8.1, s. 46(1)
3 Act respecting the Administrative Housing Tribunal, CQLR, c. R-8.1, s. 46(3)
► DUTIES AND OBLIGATIONS OF THE BROKER
The broker should suggest that the seller obtain the authorization of the Administrative Housing Tribunal prior to signing a brokerage contract, in order to avoid creating unnecessary work for himself and for other brokers.
However, it could be premature to obtain authorization if the buyer’s plans are not known. In this case, the PP or, alternately, the CP will have to contain a condition to the effect that the sale is conditional upon obtaining authorization from the Administrative Housing Tribunal. The Act provides that this request can be formulated by the prospective buyer.
