Definition : Real estate tax - Subdivision tax (Parkland tax)

A condition that may be required by a municipality when applying for a subdivision permit for an immovable. It is constituted either by the transfer of land or the payment of an amount representing at most 10% of the value of the subdivided land. It allows the municipality to promote the establishment, maintenance and improvement of parks and playgrounds and the preservation of natural areas.

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  From the first day of existence of the co-ownership, that is to say when its declaration of co-ownership is published in the Land Register of Quebec, the co-owners as one body constitute a “syndicate of co-owners”. This legal person must ensure the "preservation of the immovable and manage the common portions." To form this co-ownership several steps involving many protagonists are necessary.
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In my practice, many clients consult me to convert an immovable comprising several apartments into divided co-ownership. Unfortunately this does not always prove possible, more particularly because of the very high costs such a process implies (such as subdivision taxes known «Parkland taxes»  applicable in certain boroughs of Montreal or other municipalities) and vested rights in favor of tenants.
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