Federal Real Property Regulations Update

Summary#

These are final regulations (SOR/2020-134) that update the wording of the Federal Real Property and Federal Immovables Regulations to use both common-law and civil-law terminology. They are mainly wording and terminology changes to align the regulations with the civil-law concepts used in Quebec and with the Federal Real Property and Federal Immovables Act. They came into force on June 18, 2020.

What it does#

• Changes the regulation title to Federal Real Property and Federal Immovables Regulations to match the Act.
• Adds civil-law terms (for example, “immovable(s)”, “servitude”, “real right”, “movables or immovables”) alongside common-law terms throughout the rules so the English and French versions match civil- and common-law concepts.
• Revises definitions of key terms such as “acquisition” and “disposition” to spell out specific ways the Crown can acquire or dispose of property (for example, by lease as lessee or lessor, by acceptance of a gift, by surrender or resiliation of a lease, or by abandonment of a servitude).
• Clarifies transfer and acceptance of administration and control of federal property between Ministers, provinces and agent corporations (including adding “or any right” to cover civil-law interests).
• Updates transaction rules such as allowing a Minister to approve payment of an owner’s legal fees and to pay interest on completion delays (interest capped at 1.5% above the relevant Government of Canada three-month Treasury Bill tender rate).
• Confirms that partial payments before completion can be made in Canada under arrangements that protect the Crown, and explains limited circumstances where the Minister of Foreign Affairs may follow local commercial practice for payments abroad.
• Adds “or act(s)” after “instrument(s)” in places to reflect civil-law drafting and permits modern storage methods for documents in the Department of Justice depository.
• States that these changes are terminological and do not change the policy intent or add costs to government or stakeholders.

Who's affected#

• Department of Justice staff who draft and maintain federal regulatory language.
• Federal departments and ministers that acquire, hold, manage or dispose of federal property (for example, those that administer buildings, land or property interests).
• Legal teams and lawyers who handle federal property transactions, especially in Quebec where civil-law terms are commonly used.
• Agent corporations and Crown corporations involved in real property transactions.
• Members of the public who deal directly with the federal government on property purchases, leases or transfers may notice clearer, more consistent wording.
  If it is unclear whether a specific group is affected, the changes are mostly about wording and do not change how transactions are meant to work.

Why it matters#

• The main effect is clearer, more consistent rules across Canada’s two legal traditions (common law and civil law).
• That clarity should make it easier to read and apply the rules in both official languages, and reduce uncertainty in federal property transactions — particularly in Quebec.
• The amendments do not change government policy or create new costs for businesses or the public.