Real estate

What should you do if, as the parent or dative tutor to the property, you want to:

invest the minor child's money by purchasing real estate in their name (apartment, house or building);
sell a piece of real estate that they have inherited?

Buying real estate

The transaction must be in the child's interests.

Example

The child is disabled and has to live in a house that is better adapted to their needs.

Conditions

Make sure that:

you are buying at a good price – ask a certified evaluator if you are in any doubt (the evaluation will be paid for from the child's assets);
there is clear title (undisputed ownership),and the document indicates which portion belongs to the child if they are not the sole owner;
the transaction is in the child's best interests;
the child's income is sufficient to cover the maintenance costs and related expenses (property tax, etc.).

Avoid conflict of interest

Are you going to live with the child in the house you are buying in their name? You must be able to afford to pay the child rent.

Transaction

You are in either of these situations:

The child has enough money for you to pay cash for the real estate: the Civil Code of Québec regards this investment as a presumed sound investment.
You are contracting a mortgage loan: you may have to obtain the authorization of the tutorship council and even of the court (which will ask the tutorship council's opinion), if the value of the real estate or mortgage loan exceeds $25,000.

Selling real estate

You should only consider selling real estate belonging to the child in exceptional circumstances.

Criteria for selling or contracting a loan

Exceptional
situations

Below are a few situations in which selling a piece of real estate would be justified:

the liquid assets available are not sufficient for bringing up the child;
the building is a condominium and the other co-owners have decided to sell their share;
an accident has left the child disabled and in need of housing that is better adapted to their impairments.

Civil Code: Criteria for the sale of real estate (article 213)

We advise you to adhere to the following criteria:

the transaction must be in the child's interest;
the transaction is necessary in order to assure the child's education and maintenance, pay their debts, maintain the building in good condition or preserve its value;
the price should reflect the fair market value (if in any doubt, seek the advice of a certified evaluator).

Your obligations

If you are a tutor you must always obtain authorization before selling a building-- either from the tutorship council, if the market value is less than $25,000, or from the court, if the market value exceeds $25,000.

You must also avoid conflict of interest. For example, if you want to buy the property or part of it for yourself, an ad hoc tutor has to be appointed.