THE INVESTOR IN “FLIPS IMMOBILIERS” AND THE RBQ LICENSE

QUESTION:

An investor buys properties in order to resell them (Making Flips in construction jargon) and hires a general contractor (with the necessary licenses). Should this investor hold an RBQ license if he does not work on the sites himself?

REPLY :

The answer is yes” !
According to article 41 of the Building Act (RSQ, c. B-1.1) and subject to some exemptions, in particular those indicated in articles 42 and 49, a license is required for the person, natural or legal, who performs or have construction work carried out (by a subcontractor), carried out on the site itself and on the job, in particular of a building, installation or work covered by the Law.

When carrying out or having carried out construction work for the purpose of selling the building, you are acting as a contractor and must have an appropriate license.
According to article 9 of the Law, renovation, repair and maintenance work is assimilated to construction work.
So, if you are doing construction work on a building for the purpose of reselling it, you must have a contractor’s license.

EXEMPTIONS:

Article 42. Does not apply to a contractor or owner-builder who performs:
(1) construction work carried out on an agricultural operation usually developed by the operator himself or by less than three employees hired on a continuous basis;
2 ° maintenance or repair work carried out by employees who usually do so or who work in production in an establishment and are hired directly by an employer other than a contractor;
(3) construction work on water pipes or sewers, construction of sidewalks as well as paving work and other work of the same nature carried out by the employees of a local municipality or a regional county municipality or a metropolitan community;
4 ° construction work directly related to the exploration or operation of a mine and carried out by the employees of a mining company;
5 ° construction work directly related to the exploitation of the forest and carried out by the employees of a forestry company;
6 ° construction work on energy transmission lines carried out by the employees of an electricity distribution company.
However, the contractor and the owner-builder who carry out construction work on an installation intended to use or distribute gas or on an electrical installation, except those referred to in paragraphs 4 and 6, are subject to this chapter. °.
1985, c. 34, a. 42; 1990, c. 85, a. 122; 2000, c. 56, a. 218.

Article 49. No owner-builder license is required:
1 ° for those who have construction work carried out by a licensed contractor, whose main activity is the organization or coordination of construction work whose execution is entrusted to others;
2 ° for the natural person who carries out or has carried out construction work on a single-family house or a structure, intended for his personal use or that of his family.
However, a natural person may not carry out construction work at an installation intended to use gas or an installation of petroleum equipment or at an electrical installation if he is not a contractor.
1985, c. 34, a. 49; 1991, c. 74, a. 28; 2005, c. 10, a. 44.