RENOVATIONS (FLIPS IMMOBILIERS) AND RBQ LICENSE

If you want to perform real estate flips, you must have an RBQ license.

Indeed, since your goal is to make a profit, you are considered a construction contractor and you must have a license.

 

House or condo intended to be sold

You must have a contractor’s license to  :

• buy a house or a condo, renovate it, then sell it

 

 

The 2018 amendments to the Building Act give the RBQ the powers it needs to fully contribute to the fight against fraudulent practices and corruption in the construction industry.

 

Objective of certain amendments to the Building Act

Establish a presumption to facilitate the intervention of the RBQ in matters of speculative renovation (flip).

 

Speculative renovation (flip)

(Article 8 of the Building Act)

Is presumed to be an entrepreneur, the person:

1 °   who offers for sale or in exchange a building or a civil engineering work, unless it proves that the construction work of this building or work was not carried out for the purpose of sale or exchange;

2 °   who undertakes new construction work within two years from the date of issue by a municipality of the construction permit for the previous work or, in cases where no permit has been issued, from the date of start of the first works.

1985, c. 34, a. 8;  1991, c. 74, a. 7;  2018, c. 13,  at. 3.

 

Example:

The RBQ realizes that you are buying and renovating  houses to sell and make a profit without having to have a license. Within the meaning of the law, since you build houses yourself or buy and renovate them for the purpose of selling them, you are considered an entrepreneur.

You must therefore have a license.

Thanks to this broadening of the presumption of entrepreneur, the RBQ will be able to intervene more easily.

 

 

Definition of * construction work

Foundation, erection, renovation, repair, maintenance, modification or demolition of a building, of equipment intended for public use, of an installation not attached to a building, of a petroleum equipment installation or of ” a civil engineering work carried out on the site of the site and on the job, including the preliminary land development work.

 

To carry out or cause to be carried out * construction work , you must not only hold a license from the Régie du bâtiment du Québec (RBQ), but also:

1. hold the correct license sub-category (s)
2. ensure that the subcontractor performing the work also has the correct license subcategory (s)

Failure to comply with these rules can lead to very costly fines, since this failure is comparable to working without a license.

 

 

AMOUNT OF FINES ACCORDING TO THE TYPE OF OFFENSE AND THE PERSON COMMITTING THE OFFENSE – 2021

 

Offense committed by  Physical person  (individual)

Wrong category or sub-category from $ 5,902 to $ 29,504

Unlicensed work from $ 11,803 to $ 88,515

 

Offense committed by  Corporation

Wrong category or sub-category from $ 17,703 to $ 88,515

Unlicensed work from $ 35,405 to $ 177,028

 

 

Master electricians and master pipe-mechanics (CMEQ and CMMTQ)

The fines provided for in the Master Electricians Act and the Master Pipe-Mechanics Act are 5  000 $ to 25  $ 000 for an individual, and from $ 15,000 to 75  $ 000 for a legal person.

 

As a reminder

The owner’s license is not suitable for flips.

Indeed, the holder of a general owner-builder’s license performs or has performed, on its property (s), works  to meet their own needs  and not for profit from the actual execution of the construction work. In simpler terms, the owner-builder does not perform construction work for clients.

If you want to renovate buildings for the purpose of reselling, you are considered a building contractor, so you need to get a general contractor’s license.

 

You can actually perform several flips but also  to work  for future customers.

For this license, the exams to take are  :

• Administration  3h00
• Safety management on construction sites  1h30
• Project and site management  3h00
• Execution of construction works  3h00

 

Our preparatory training for the General Contractor license exams

o    Complete training of 4 courses – General contractor

 

ABOUT US

Founded in 2000, Formation Construction is the largest provider of preparatory training for passing RBQ exams in Canada.

Thousands of entrepreneurs – from various industries – have taken a course at Formation Construction.

Our 100% online courses are designed by leading specialists in the construction industry.

Throughout your study, the trainers are available to help you, answer your questions and monitor your progress 24/7.

We help you to put together your compliant file, which should be sent to the RBQ.

At each stage of your project, you get  advice from expert professionals to help you ask yourself the right questions and provide you with the essential tools to ensure you start a lucrative business.

You are oriented on the insurance and mandatory guarantees related to your entrepreneur’s license and have access to a panel of services essential to your business launch.

 

Contact us: 1 866 626-8055