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HomeBlogEviction for subdivision or expansion in Quebec: Law 31 and the 24-month indemnity
Lease & signingMay 24, 20269 min read

Eviction for subdivision or expansion in Quebec: Law 31 and the 24-month indemnity

Buying a triplex to convert it to a quintuplex, expanding a 4½ into two 2½, or turning a unit into an office — Law 31 multiplied the cost of evicting a tenant for these projects by 8. Understanding the new rules BEFORE the acquisition is often worth more than the project itself.

The Civil Code of Quebec distinguishes two completely different mechanisms for recovering a rented unit: repossession (article 1957, to house yourself or an eligible relative) and eviction (article 1959, to subdivide, substantially expand, or change the use of the unit). Many investors confuse the two — but the conditions, procedure, and ESPECIALLY the costs are radically different.

This article covers exclusively eviction in the sense of article 1959: the 3 admissible grounds, the new regime since Law 31 (February 2024), the minimum 24-month indemnity that replaced the old 3-month indemnity, the mandatory TAL procedure, and the economic analysis to do before planning any work that involves evicting a tenant.

Law 31 changed the game in February 2024

Before Law 31, the minimum eviction indemnity was 3 months' rent. Since February 2024, it's a MINIMUM of 24 months' rent — 8 times higher. This change aims to protect elderly and long-term tenants against opportunistic evictions meant to free up the unit for a higher post-renovation rent. Any investor who hasn't built this number into their business case before the acquisition risks a major unpleasant surprise.

Repossession vs eviction: the distinction that changes everything

These two mechanisms are routinely confused, even though they have almost nothing in common:

AspectRepossession (art. 1957)Eviction (art. 1959)
PurposeHouse the owner or an eligible relativeSubdivide, expand, change the use
BeneficiaryOwner, spouse, children, parents, etc.The project itself (no personal beneficiary)
CCQ article19571959
Notice deadline6 months (6+ month lease)6 months (6+ month lease)
Minimum indemnity3 months' rent + actual costs24 months' rent + actual costs (Law 31)
TAL procedureMandatory if refused (Law 31)Mandatory — eviction is not a right, the TAL MUST authorize it
Burden of proofShow the housing projectShow the subdivision/expansion/use-change project
Post-eviction cancellationPossible if quick resalePossible if work not completed

Why such an indemnity gap?

Repossession serves a documented human need (an owner who needs housing, a relative to shelter). Eviction for subdivision serves a profitability project — the conversion later frees up units rentable at adjusted market rates. The legislator judged in 2024 that this economic gain should fund a substantial indemnity for the evicted tenant. Hence the jump from 3 to 24 months.

The 3 admissible grounds for eviction (article 1959 CCQ)

Eviction under article 1959 is ONLY possible for three specific projects. Any other reason raised is rejected by the TAL:

1. Subdivision of the unit

Dividing an existing unit into two or more separate units. Typical example: a 6½ converted into two 3½. The subdivision must produce separate rental units with their own entrances, bathrooms and kitchens to qualify as such. A simple partition without independent services is not a subdivision in the legal sense.

2. Substantial expansion of the unit

Materially extending the unit's surface area, generally into an adjacent space (acquired neighboring unit, attic, basement, annex built). 'Substantial' is interpreted by the TAL: a 10% expansion is generally not substantial; above 30% with a room added, yes. Cosmetic renovations (kitchen, plumbing, floors) are NEVER eviction grounds — they can justify a rent increase but not an eviction.

3. Change of use of the unit

Transforming the residential unit into a commercial space, office, short-term tourist accommodation (with municipal permit), or any other non-residential use. The change must be real and permanent — the operation must be documented by municipal permits, zoning authorizations and architectural plans. A 'temporary' change is not a change of use.

Reasons that are NOT eviction under article 1959

Wanting to re-rent higher post-renovation, wanting to sell the building, wanting to install a non-eligible family member, wanting to free up the unit 'on principle' — none of these are valid eviction grounds. Trying to use article 1959 for these reasons exposes the owner to a TAL rejection and, since Law 31, to punitive damages for bad faith.

The new regime since Law 31

Before Law 31, the mechanism resembled repossession: notice sent, tenant had a month to respond, silence meant tacit acceptance, and only on active refusal did the owner have to apply to the TAL. Since February 2024, everything has changed:

  1. 1Tenant silence equals REFUSAL — no longer acceptance as before.
  2. 2The owner MUST systematically apply to the TAL to have the eviction authorized, even if the tenant doesn't respond.
  3. 3The burden of proof is fully on the owner from the start — project evidence, municipal permits, architectural plans, work schedule, financing.
  4. 4The minimum indemnity jumped from 3 to 24 months' rent (plus possible upward adjustment by the TAL for vulnerable tenants).
  5. 5The TAL can refuse the eviction even if all technical criteria are met, if the project is deemed premature, uncertain or opportunistic.

Eviction is no longer a right, it's an authorization

Before Law 31, eviction under article 1959 was an owner's right that the tenant could contest. Since 2024, it's an authorization the TAL grants or refuses at its discretion. The project must be ready, financed, municipally authorized and scheduled by the hearing date — not in 6 months, not in 1 year. Presenting an 'intention project' is enough to get rejected.

The 24-month indemnity: how it's calculated

The legal minimum is 24 months of CURRENT rent — not market rent, not projected rent post-work. This minimum covers the base indemnity. To this are added the actual costs incurred by the tenant:

ComponentMinimum amount
Base indemnity (Law 31)24 months of current rent
Moving costsMover quotes, transport
Service transfer feesHydro, internet, telecom
Rent differential if new unit costs moreOn proof, variable period (may add to 24 months)
Documented reasonable costsBoxes, deposits, hookups
Upward adjustment for vulnerabilityTAL discretion — elderly tenants, disability, long occupancy

For a $1,500/month rent, the minimum is therefore 24 × 1,500 = $36,000, excluding costs. For a $1,200/month rent, $28,800 minimum. This sum is due at the eviction's effective date, in trust or directly to the tenant.

Economic analysis before planning the work

For an eviction to be economically justifiable, the rental gain post-work must exceed the total eviction cost. Simple formula:

Economic viability formula

Annual gain = (Projected rents post-work − Current rent) × 12. Eviction cost = 24 × Current rent + Actual costs (5-15% of minimum). Payback period = Eviction cost ÷ Annual gain. If the period exceeds 8-10 years, the project doesn't stand up without significant resale appreciation.

Worked example: converting a 5½ into two 3½

Investor buys a duplex with a 5½ rented at $1,400/month. Plan: subdivide into two 3½ rentable at ~$1,100/month each.

ItemAmount
Current rent$1,400 / month
Projected rents (2 × $1,100)$2,200 / month
Monthly rental gain+$800 / month
Annual rental gain+$9,600 / year
Law 31 indemnity (24 × $1,400)−$33,600
Estimated actual costs (10%)−$3,360
Total eviction cost−$36,960
Subdivision work cost (estimated)−$85,000
Total investment−$121,960
Payback period via cashflow≈ 12.7 years

Reading the example

Without resale appreciation, the project takes nearly 13 years to pay back on additional cashflow alone. For it to be attractive, the subdivision must create substantial resale appreciation (+$50,000 to +$150,000 depending on the market) — or the projected rents must be revised higher. Before Law 31, the same math gave a payback of ~9 years (with $4,200 indemnity instead of $33,600). The Law 31 jump clearly cut the profitability of these operations.

Step-by-step procedure

  1. 1Obtain municipal permits (subdivision, expansion, change of use) — without permits, the TAL will refuse the eviction.
  2. 2Get firm work quotes from a contractor — the schedule must be realistic and financed.
  3. 3Send an eviction notice to the tenant by bailiff or registered mail, minimum 6 months before lease end (6+ month lease) or 1 month (lease < 6 months).
  4. 4The tenant has one month to respond — silence equals REFUSAL since Law 31.
  5. 5File an application with the TAL to authorize the eviction, with all evidence (permits, plans, quotes, schedule, financing).
  6. 6Hearing at the TAL — the tribunal assesses the seriousness of the project and the legitimacy of the eviction. Decision rendered at hearing or in deliberation.
  7. 7If authorized: pay the minimum 24-month indemnity (in trust or directly), the tenant vacates on the fixed date.
  8. 8Carry out the work within the announced timeframe — otherwise the tenant can demand reinstatement or damages.

Traps to avoid

  • Buying a building expecting to convert without having included 24 months × number of tenants × rent in the business case
  • Sending the notice before having municipal permits — incomplete proof, TAL rejection
  • Underestimating TAL processing time (typically 4 to 9 months between filing and decision) — meanwhile the project stays blocked
  • Not completing the work within the announced timeframe — risk of tenant reinstatement or punitive damages
  • Confusing renovation with substantial expansion — renovation alone is never an eviction ground under article 1959
  • Presenting a 'temporary' change of use to free the unit briefly — clear bad faith
  • Forgetting our TAL notice calendar to validate the notice deadline

Repossession, eviction, assignment: which path to choose?

If the goal is simply to recover the unit (without a subdivision/expansion project), eviction under article 1959 is NOT the right path. Comparison of the three Law 31 mechanisms:

ObjectiveMechanismApproximate total cost
House yourself or eligible relative[Repossession (art. 1957)](/blog/unit-repossession-quebec-landlord-guide)3 months rent + costs (~$5,000 for $1,500/mo)
Recover the unit, no housing project[Assignment refusal (Law 31)](/blog/lease-assignment-quebec-law-31)$0 — if an assignment request appears
Subdivide / expand / change useEviction (art. 1959, this article)24 months rent + costs + work (~$37,000 + work for $1,500/mo)

The opportunist chooses assignment refusal

If you want to recover a unit without a solid personal housing project, WAIT for an assignment request and refuse it — it's free, no TAL hearing, and the tenant vacates at the date they proposed. By far the cheapest and least risky path. Repossession and eviction are for situations where waiting for an assignment is not an option.

Final decision: should you evict?

Before launching an eviction procedure for subdivision, expansion or change of use, validate these 5 points:

  1. 1Municipal permits in hand or in progress with a solid file
  2. 2Work financing confirmed (loan, equity, line of credit)
  3. 3Business case holds with the 24-month indemnity built into total cost
  4. 4Work schedule realistic on a 6-12 month horizon after eviction
  5. 5You're ready to wait 4-9 months between TAL filing and the decision

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FAQ

Frequently asked questions

Does the 24-month indemnity also apply to repossession?+

No. Repossession (article 1957, to house yourself or an eligible relative) remains at 3 months' rent minimum + actual costs since Law 31. The 24 months apply only to eviction under article 1959 — subdivision, substantial expansion, or change of use. Confusing the two can be expensive in a business case.

Can I evict for deep renovation without subdividing?+

No. Renovation alone, even deep, is not an eviction ground under article 1959. Major renovations can justify a substantial rent increase at next renewal, and in some cases a temporary eviction with mandatory relocation — but not a permanent eviction. The distinction is critical.

How long does an eviction procedure at the TAL take since Law 31?+

Count 4 to 9 months between filing the TAL application and the final decision, plus the 6-month notice period upstream. Realistic total: 10 to 15 months between the decision to launch the eviction and the moment the unit is vacated and ready for work. Any business plan assuming less is unrealistic.

What happens if I don't carry out the work after evicting?+

The tenant can, within two years of the eviction, ask the TAL for reinstatement in the unit on the original lease terms. If reinstatement is impossible (unit destroyed, sold), the TAL can order substantial damages — beyond the indemnity already paid. Carrying out the announced work is legally mandatory.

Can the TAL refuse an eviction even with all documents in order?+

Yes. Since Law 31, eviction is an AUTHORIZATION granted by the TAL — not an owner's right. The tribunal can refuse if the project is deemed premature, uncertain, or if the tenant is in a particularly vulnerable situation (advanced age, disability, long occupancy, tight market without alternatives). Presenting a solid file is not a guarantee of success.

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