Is assigning a contract in Montreal, QC or generally in the province of QC illegal? An investor I just connected with in Laval told me so. He says in Quebec, an investor can only double close when applying the wholesale strategy, although he didn't seem too sure. Can anyone refer me to a legal source that confirms their answer? Thanks in advance.
Rental Property Investor · Laval, Quebec · Member since 2014 · 104 posts · 44 votes
7y
There are some training classes that teach how to do it for the QC province. You can check out Immofacile's "Vendez vos offres d'achat" for example, I'm sure there are others as well.
Double closing as you see being done in the USA is illegal here.
Let me know if you do start wholesaling, I'm always interested in rental properties.
Wholesaler · Carignan, Québec · Member since 2014 · 107 posts · 25 votes
7y
@Widny Toussaint Assigning a contract is not illegal, whoever told you so has probably never done it before. It's a gray area, not as easy as it is in the US but doable, you just have to know the right way to do it. I've done multiple time from seller and buyer side.
By the way double closing isn't illegal, I have done it too, you just have to know the right way to do it but I don't recommend this technique unless really particular circumstances.
Thank you all for your response. I really appreciate it. I was able to speak with 3 different real estate lawyers who confirmed that both an assignment of contract and double closing are legal in Quebec. They stated what you all mentioned, it's a matter of how it's all done (proper paper work, disclosing if real estate agent, etc.). Thank you again.
p.s @Philippe Laurin I will also keep you in mind once we starting acquiring rental properties. Thanks.