Nominee agreements are commonly used in Quebec when two parties enter into an agreement, and one party agrees to transfer their rights to the other party. These agreements are often used in real estate transactions and can help to protect the parties involved.

In Quebec, nominee agreements are known as „contrats de cession de droits” or „assignment of rights agreements.” These agreements are often used when one party wants to buy property but cannot legally do so. For example, a foreign investor who is not authorized to purchase property in Quebec may use a nominee agreement to buy the property through a Quebec resident.

In a nominee agreement, the party transferring their rights is known as the „nominee.” The nominee is the legal owner of the property, but they do not have any beneficial interest in the property. Instead, the nominee holds the property in trust for the other party.

The other party is known as the „beneficiary” or „principal.” They are the party who benefits from the nominee agreement. They have the right to use and occupy the property, and they have the right to sell or transfer their beneficial interest in the property.

Nominee agreements can be beneficial for both parties. For the nominee, they can earn a fee for holding the property in trust. For the beneficiary, they can benefit from the use and occupancy of the property without having to legally purchase it.

However, nominee agreements can also be risky. The nominee may be held liable for any damages or losses associated with the property. In addition, the nominee may face legal consequences if they fail to follow the terms of the agreement.

It is important for both parties to carefully review the terms of the nominee agreement and seek legal advice before entering into the agreement. The agreement should clearly outline the roles and responsibilities of each party and include provisions for resolving disputes.

In conclusion, nominee agreements are common in Quebec and can be useful for real estate transactions. However, they can also be risky, and it is important for both parties to seek legal advice before entering into the agreement. By carefully reviewing the terms of the agreement and understanding the risks involved, both parties can protect their interests and ensure a successful transaction.