Real Estate Investment Trusts (REITs)

Summary

This practice note sets out the definition, purpose, tax implications and liability issues of real estate investment trusts (REITs), which hold income-producing commercial real estate assets in an income trust for the benefit of its unit holders. It sets out which assets may be held in a real estate investment trust and the duties and role of the trustee. This Practice Note also provides an overview of REITs and their impact on Canadian commercial real estate. It focuses on the legal framework for REITs in Canada. The legal issues that arise in transactions involving REITs, including those involving cross-border REITs and foreign investors, will also be examined. This practice note will also offer practical tips for lawyers involved in advising on transactions involving REITs as counterparties, investors, or asset originators.