A Cottage of One's Own
October 24, 2018 3:42 PM Subscribe
Two of my Canadian friends are going in on a 10 acre property in BC, Canada. There has been some discussion of us building a small cottage for me on the property that I would pay for. I (an American citizen) need to draw up a contract for all this. . .but I'm not familiar with how these things work north of the border. Snowflakes below.
I trust these people totally, but I am enough of a business-minded person to know that contracts are needed in situations like this.
I'd like to set up a contract for what amounts to a lifetime lease on the portion of the property my house will be on. I am paying for the construction in cash, so no loans to worry about. Building permits and so on are likewise not an issue. I'd also like to include a first right of refusal clause in the event they decide to sell, and to be compensated for money I spend building the house if I am unable to purchase the property at the time of the sale. (One of my friends is building an addition to the current house on the property and the other has agreed to sign a contract to reimburse the improvements in the event of a sale, so I consider that precedent enough).
I anticipate spending $30-50K on this house over the next several years and I don't want that investment to be sold out from under me with no recourse. We have talked about the possibility of parcelling the property into two pieces, but that would entail me spending an additional $20-30K to make that happen, so that's not a likely option.
If this was in America, I have a pretty clear understanding of what type of lawyer to talk to and how this would work. What kind of Canadian lawyer am I looking for? I need to find out if this contract is even legally possible with Canadian property laws, and if so, how it needs to be worded and signed / filed to ensure its validity.
Hivemind, please bless me with your knowledge of the Canadian legal system. Many thanks.
I trust these people totally, but I am enough of a business-minded person to know that contracts are needed in situations like this.
I'd like to set up a contract for what amounts to a lifetime lease on the portion of the property my house will be on. I am paying for the construction in cash, so no loans to worry about. Building permits and so on are likewise not an issue. I'd also like to include a first right of refusal clause in the event they decide to sell, and to be compensated for money I spend building the house if I am unable to purchase the property at the time of the sale. (One of my friends is building an addition to the current house on the property and the other has agreed to sign a contract to reimburse the improvements in the event of a sale, so I consider that precedent enough).
I anticipate spending $30-50K on this house over the next several years and I don't want that investment to be sold out from under me with no recourse. We have talked about the possibility of parcelling the property into two pieces, but that would entail me spending an additional $20-30K to make that happen, so that's not a likely option.
If this was in America, I have a pretty clear understanding of what type of lawyer to talk to and how this would work. What kind of Canadian lawyer am I looking for? I need to find out if this contract is even legally possible with Canadian property laws, and if so, how it needs to be worded and signed / filed to ensure its validity.
Hivemind, please bless me with your knowledge of the Canadian legal system. Many thanks.
Your friends in Canada are likely planning on using a lawyer in connection with buying the 10 acres. (If not, they probably should be.) It would seem to me that if you all trust each other, you could ask that lawyer to draw up agreed-upon documents setting out your respective rights. You could share the costs. I imagine you would each need to give the lawyer a waiver of conflicts, but that's OK unless you would prefer to have your own representation.
posted by Mid at 5:40 PM on October 24, 2018
posted by Mid at 5:40 PM on October 24, 2018
Check your MeFi Mail.
posted by lookoutbelow at 6:55 PM on October 24, 2018
posted by lookoutbelow at 6:55 PM on October 24, 2018
This thread is closed to new comments.
posted by beagle at 3:53 PM on October 24, 2018