Quebec Civil Code and Mortgages | Articles 2660-2802

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The Civil Code of Quebec (C.C.Q.) is the cornerstone of Quebec mortgage law. Articles 2660 to 2802 define a mortgage (hypothec) as an accessory real right charging movable or immovable property to secure the performance of an obligation. The immovable hypothec, most common in residential transactions, must be constituted by notarial act (art. 2693 C.C.Q.) and published at the Quebec Land Register to be enforceable against third parties. The Civil Code distinguishes between conventional hypothecs, created by contract between the parties, and legal hypothecs, which arise by operation of law (for example, the legal hypothec of construction). The provisions also cover rank assignment, renewal, release and cancellation of hypothecs. The hypothecary creditor has specific remedies in case of default: prior notice of exercise, taking in payment, sale by judicial authority and taking possession for purposes of administration. This legal framework is distinct from the common law system applicable in other Canadian provinces, requiring Quebec mortgage brokers to have thorough knowledge of civil law.

The Civil Code of Quebec: Foundation of Mortgage Law

The Civil Code of Quebec (C.C.Q.) is the fundamental law governing private law relationships in Quebec, including mortgage law. Articles 2660 to 2802 form a comprehensive legal framework defining the nature, constitution, effects and exercise of hypothecs. This civil law system is unique in Canada and differs fundamentally from the common law regime applicable in the nine other provinces and three territories.

Constitution of the Immovable Hypothec

A conventional immovable hypothec must be constituted by notarial act en minute (art. 2693 C.C.Q.). The officiating notary verifies the identity of the parties, the legal capacity of the debtor, the state of the titles and the absence of undisclosed charges. The act is then published at the Quebec Land Register, making the hypothec enforceable against third parties and establishing its rank. The date of publication determines priority among hypothecary creditors.

A conventional hypothec requires a notarial act en minute (art. 2693 C.C.Q.)
A legal hypothec can arise without a contract, by operation of law alone (art. 2724 C.C.Q.)
Publication at the Land Register is essential for enforceability against third parties
The hypothec's rank is determined by the date and time of its publication

Types of Hypothecs Under the Civil Code

The Civil Code provides for several types of hypothecs. The conventional immovable hypothec is the most common for residential loans. The movable hypothec charges movable property (vehicles, equipment). The floating hypothec (art. 2715 C.C.Q.) allows the debtor to dispose of the charged property in the ordinary course of business. The legal hypothec of construction (art. 2726 C.C.Q.) protects unpaid contractors and workers. Each type has its own rules of constitution, publication and exercise.

Exercise of Hypothecary Rights

In case of default by the debtor, the hypothecary creditor has remedies governed by articles 2748 to 2794 C.C.Q. The creditor must first serve a prior notice of the exercise of a hypothecary right, followed by a 60-day period for residential immovables. Remedies include taking in payment (the creditor becomes the owner), sale by judicial authority, taking possession for purposes of administration and sale by the creditor. The debtor may remedy the default during the notice period, which constitutes important protection for Quebec property owners.

Frequently Asked Questions

Which articles of the Civil Code of Quebec govern mortgages?

Articles 2660 to 2802 of the Civil Code of Quebec (C.C.Q.) govern all aspects of mortgage law. Article 2660 defines a hypothec as a real right on property to secure the performance of an obligation. Articles 2693 and following deal with immovable hypothecs, and articles 2748 to 2794 cover the exercise of hypothecary rights.

Why must a mortgage be constituted by notarial act?

Article 2693 C.C.Q. requires that an immovable hypothec be constituted by notarial act en minute. This requirement ensures the authenticity of the document, protects the parties and guarantees the reliability of the Land Register. A private writing cannot constitute a valid immovable hypothec in Quebec.

What is the difference between a conventional and legal hypothec?

A conventional hypothec results from an agreement between debtor and creditor, formalized by notarial act. A legal hypothec is created by law without requiring a contract — for example, the legal hypothec of construction (art. 2726 C.C.Q.) protects workers and contractors who participated in work on an immovable.

Does the Civil Code of Quebec apply to fédéral lenders?

Yes, the Civil Code provisions on hypothecs apply to any loan secured by an immovable located in Quebec, including federally chartered banks. Quebec civil law governs the constitution and exercise of hypothecs, while OSFI (Office of the Superintendent of Financial Institutions) oversees the prudential practices of fédéral institutions.

How does Quebec mortgage law differ from other provinces?

In Quebec, mortgage law is based on the Civil Code, notably allowing taking in payment (the creditor becomes the property owner). In common law provinces, the system relies on mortgage law and foreclosure. The timelines, remedies and publication mechanisms differ considerably between the two systems.