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Business Forum | Expropriation: who is responsible for paying the bill for collective property?

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We wish you never to be expropriated under the new law that Minister Geneviève Guilbault wishes to adopt.

Unfair calculation of the compensation to which you are entitled, capped in addition. Legal fees not reimbursed. Valuation date that makes you poorer. You will have the wind in your face, believe us. The National Assembly has just completed the study of Bill 22, which aims to “modernize” the expropriation process in Quebec. While it has been a long-standing call to improve things, unfortunately quite the opposite is happening; a significant setback in terms of property rights.

We are certified appraisers, experts in expropriation, and we are concerned. The bill on expropriation, presented by the minister of the largest expropriating body in Quebec, Ms. Geneviève Guilbault, will change the rules of the game, and cause a very real financial risk for owners and tenants in Quebec, small and large. Certain elements concern us more.

For example, you are told in March that you will be expropriated (let’s say your house is then worth $400,000) for a project that your municipality wants to carry out, and that with all the stages of the expropriation process, you free your residence in November (your house is now worth $425,000), you will only be compensated for $400,000 – the value on the date you were given the expropriation notice. You will therefore have to pay $25,000 out of your own pocket to relocate under the same conditions, without enrichment or impoverishment. Do you have $25,000 “to spare”?

Worse still, the bill provides that even if you wish to be represented by a lawyer during the different stages of the expropriation process, these costs will not be reimbursed to you and you will have to trust the lawyers of the expropriating authorities to hope to have your rights respected. rights. This is an unfair balance of power which can cause harm to the expropriated party.

Where the problem lies is that in addition to all these significant risks deplored by several organizations, such as the Bar, the Order of Chartered Appraisers of Quebec, the Altus Group, the Urban Development Institute and the Fasken law firm, the minister goes even further. The bill caps certain compensation you should be entitled to. Basically, that means if you’re owed $100,000, you might get $30,000 or $40,000. We cannot on the one hand argue for a cap on compensation and at the same time advocate for a fair and equitable process. These are two concepts in perfect, total and complete opposition.

Let us keep in mind that an expropriation is an exceptional right granted to certain public bodies and that it directly infringes on property rights by dispossessing an owner of his building. The transaction takes place in a context where the owner has decided neither to sell nor the moment when he will be dispossessed of his property. It is a humanly very difficult ordeal for the expropriated person, and one that deserves to be taken seriously.

Bill 22 is a unique opportunity for Quebec to adopt a modern law, which improves the expropriation process for all Quebecers and for the benefit of the community. It has to be done. Unfortunately, in its current version, we fear that it will cause harm to expropriated people – and that we will miss a long-desired opportunity.

To maintain the balance necessary for expropriation, the minister has a duty to act and amend Bill 22, to protect those who placed their trust in her just a year ago.

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