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Author Archives / D. James Papadimitriou

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Commercial Condo Purchaser Tips

Posted in Commercial, Residential

With the continued exponential growth in mixed use developments which often take the form of separate components subject to condo declarations and in many cases multiple condo declarations as between the residential and commercial components, buyers and mortgage lenders will consider additional factors during their due diligence and as part of future management of the various components.… Continue Reading

New Québec Transfer Duty Regulations

Posted in Commercial, Policy, Residential

The Quebec government has deposited new regulations to give effect to measures ann‎ounced in the March budget.

Among the clarifications are confirming that exemptions for inter corporate transfers are based on 90 per cent issued shares and not voting shares, a trigger on change of control within 24 months of an exempt transfer, clarifying that options to purchase shares are captured within the anti-avoidance provisions as well as clarifying that amalgamations are exempt transfers.… Continue Reading

Usury Update from Québec Court

Posted in Policy

It is now settled law that application fees and similar charges are considered when calculating interest for purposes of offences under Canada’s criminal code but a recent Québec case provides some interesting guidance as to the civil consequences of such a finding.… Continue Reading

Calculating Damages for False Estoppel

Posted in Commercial, Policy

The Quebec Court of Appeal in Meyerco Enterpresis Ltd. v. Kinmont Canada Inc. (2016 QCCA 89) has recently partially overturned a lower court ruling that awarded damages for a false estoppel signed by a tenant based on application of a cap rate paid by the buyer and addressee of the estoppel instead applying general principals of ‎damages including mitigation.… Continue Reading

Good-Bye nominee share sales in Quebec

Posted in Commercial, Policy, Residential

In its March 17 budget the Quebec government brought in a series of measures reforming legislation governing transfer duties.  Of particular interest is the introduction of the requirement to disclose off title transfers and the imposition of transfer duties on same.  The legislation was drafted so to previously refer to registration as the trigger for taxation.… Continue Reading

Integrity in Real Estate

Posted in Commercial, Policy

In response to various scandals and as part of a continued global anti-corruption effort, the Canadian federal government responded with a new set of rules around integrity in procurement practices as well as sanctions for breach including termination of supply agreements and banishment. … Continue Reading

Dirty Estoppel Martinis

Posted in Commercial

A dirty estoppel is much like a Dirty Martini, except it packs a much bigger hangover if not properly digested.

On almost all major commercial real estate transactions today, a buyer will get few if any representations on the leases other than a statement that all of them have been delivered as well as a rent roll.

Instead the buyer will seek comfort on the estoppels to be delivered by the tenants (the figurative horse’s mouth) who in theory are making representations directly to the buyer and their lender and implicitly releasing vendor from past claims (enhanced by having the … Continue Reading

Québec off-title searches – A Rumsfeldian adventure

Posted in Municipal

There are many differences and misconceptions about Québec off-title searches that resemble Don Rumsfeld’s famous speech.

The first is that responses are typically available only after thirty days and beyond most due diligence periods, creating the “unkown unkowns” category.

If the transaction allows time for receipt before waiver and violations disclosed ( the “known knowns”) the reader must then further inquire as to whether the violations are outstanding (typically authorities do not necessarily follow up or note corrections).  Violations are also often dated, possibly time barred or tenant matters. Regulators are also not required to note corrections (often loath to … Continue Reading