Emphyteusis in Quebec: everything you need to know
Definition
Emphyteusis is the right that allows a person (the emphyteutic lessee) to fully benefit and enjoy, for a certain time, an immovable owned by another, provided they do not endanger its existence and undertake to make constructions, works or plantations that durably increase its value (art. 1195 C.C.Q.).
Main rules
- duration of at least 10 years and at most 100 years (art. 1197);
- created by contract or by will, and published in the land register;
- the emphyteutic lessee has the rights of an owner (may sell, hypothecate or lease their right) and bears the charges and taxes (arts. 1200 and 1205);
- the emphyteutic lessee must make the improvements agreed and maintain the immovable;
- a rent (annuity) may be payable to the owner.
End of emphyteusis
At the end of the term, the owner recovers the immovable with the constructions and improvements, without indemnity unless otherwise agreed (art. 1209). Emphyteusis can also be terminated for serious default (art. 1204).
Uses
Common in land-lease condominiums (units sold on land leased by emphyteusis), in public institutions and for development of land owned by religious or municipal bodies. Buyers should be aware that the value of the right decreases as the end approaches, which affects financing.
