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Blog by Therese Reinsch

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Assignments

As of May 16, 2016, the provincial government will require that Contracts prepared by licencees include clauses stating that the Contract cannot be assigned withpout the written consent of the Seller and that any profit accrued from the assignment reverts to the original Seller.  Clients can instruct licencees to omit or change clauses.  Assignmentsor assigning one's rights to a Contract is a legitimate practice allowed by common law and also Section 36 of the Law and Equity Act. However, a few unethical licencees, and I reiterate a few, have undermined this practice through deceptive practices and made the public wary of any and all transactions. I cringe when the nightly newscast is broadcast around the province wondering what unsavory real estate story will hit the airwaves. I suppose one can blame it on the high value realestate in the Lower Mainland market. There is a lot of money to be made and taking advantage of loopholes, or ignorance of certain consequences is motivation by certain individuals to engage in unethical practices. Perhaps this will deter the practice.