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Modifications announced to the Act respecting duties on transfers of immovables

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Duties on Transfers of Immovables in Québec: Implementation of Previously Announced Amendments

On November 16, 2016, the Minister, Carlos J. Leitão, tabled Bill 112 giving effect to several fiscal measures announced in the Budget Speech delivered on March 17, 2016.

Among the measures set out in Bill 112 are the modifications announced to the Act respecting duties on transfers of immovables (CQLR c. D-15.1) (the “Act”). Bill 112 must still go before a parliamentary commission before its adoption.

The measures announced in the Budget Speech revolve around the following three main changes:

  • Imposing mutation duties at the time of the transfer of an immovable, as opposed to the time of its registration in the land register – thereby imposing off-title transfers of an immovable;
  • Amending the conditions of certain exemptions from payment of mutation duties, in particular in respect of transfers between closely-related parties, and introducing a requirement that the exemption conditions underlying the exemption be maintained for a period of 24 months following an exempt transfer;
  • Introducing new conditions applicable to exemptions, specifically in respect of transfers between former de facto (common-law) spouses and transfers in favour of an international governmental organization that has entered into an agreement with the Government with respect to its establishment in Québec.

It is worthwhile noting that the measures will only apply to transfers of immovables occurring after March 17, 2016.

Bill 112, entitled An Act to give effect mainly to fiscal measures announced in the Budget Speech delivered on 17 March 2016, details the means by which these amendments will be implemented. One should note that Bill 112 will only come into force on the date of its passage by the National Assembly and its assent thereto by the Lieutenant-Governor.[1]

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