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ARTICLE · 13 APRIL 2005

Priority Of Registered Leases In Québec

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Issues surrounding the registration of offers to lease and leases of real property have been the subject of a number of recent cases of interest to mortgage lenders in Québec.

CanadaReal Estate and Construction
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Article by James Papadimitriou, ©2005 Blake, Cassels & Graydon LLP

This article was originally published in Blakes Bulletin on Real Estate & Mortgage Financing - March 2005

Issues surrounding the registration of offers to lease and leases of real property have been the subject of a number of recent cases of interest to mortgage lenders in Québec.

Offers to Lease.

 The first set of cases address the issue of whether offers to lease constitute leases susceptible of registration and thus protected in the event of a sale or foreclosure of the property. In a 2004 decision, Guzzo v. Fiducie Immobilière M.C.M., the Québec superior court rejected the claim of a tenant that the purchaser of a power centre was bound by an offer to lease signed by the previous landlord, which offer had been registered against title without the landlord’s consent prior to the sale. Two recent Québec Court of Appeal decisions, Industries Ultratainer Inc. v. Rosenberg and Sobeys Québec Inc. v. 3764681 Canada

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