Is Wholesaling Real Estate Legal In Canada? A 2025 Guide For Investors
Aug 04, 2025
Is wholesaling real estate legal in Canada? Absolutely, and it’s one of the smartest ways to break into the real estate game with low risk and almost no upfront capital.
But here’s the thing: just because wholesaling real estate in Canada is legal doesn’t mean you can do it however you want. Every province has its own rules, and if you’re not careful, it’s easy to step over the line without even realizing it.
That’s why we put this guide together. Whether you're brand new or already doing deals, we’ll walk you through exactly how to wholesale legally, what to avoid, and how to stay compliant no matter where you’re investing. By the end, you'll know how to structure deals the right way and set yourself up for long-term success in the Canadian market.
- What Do You Need To Know About Wholesaling In Canada?
- What Is Wholesaling Real Estate?
- Can You Do Wholesaling In Canada?
- Is Wholesaling Real Estate Legal In Canada?
- Do You Need A License To Wholesale Real Estate In Canada?
- How To Do Wholesale Real Estate In Canada Legally?
- What Are The Benefits Of Wholesaling Real Estate In Canada?
- How To Buy A Wholesale Deal In Canada
- Is Wholesaling Real Estate Legal In Ontario?
- Wholesale Real Estate Ontario Contract
- Final Thoughts
If you’re serious about doing your first real estate deal, don’t waste time guessing what works. Our FREE Training walks you through how to consistently find deals, flip houses, and build passive income—without expensive marketing or trial and error.
This FREE Training gives you the same system our students use to start fast and scale smart. Watch it today—so you can stop wondering and start closing.
*Before we begin our guide on whether wholesaling real estate is legal in Canada, we invite you to view our video on How To Wholesale Real Estate Step by Step (IN 21 DAYS OR LESS)!
Host and CEO of Real Estate Skills, Alex Martinez, provides a comprehensive, step-by-step guide for beginners to start wholesaling real estate!
What Do You Need To Know About Wholesaling In Canada?
The Canadian housing market has gone through some major changes in recent years. After a stretch of skyrocketing home prices, things have started to cool down. Interest rate hikes have slowed appreciation, and in some areas, prices are even beginning to dip.
For those wondering, “Is wholesaling real estate legal in Canada?”—the answer is yes. And right now might be one of the best times to learn how to do it the right way.
When fewer buyers are competing and sellers are more motivated, wholesalers have a unique opportunity to lock up deals below market value and assign them to investors who are still active. But to stay compliant, you need to understand the legal framework in each province—and that’s where most new wholesalers get stuck.
- Yes, it’s legal: Wholesaling real estate in Canada is 100% legal when done properly within each province’s regulatory guidelines.
- Licensing laws vary by province: Some provinces may require a real estate license if you market properties you don’t own. Others may not, depending on how your contract is structured.
- You must sell your rights, not the property: Legal wholesaling in Canada means assigning your purchase contract, not marketing or selling the actual property.
- Transparency is key: Make sure all parties (including sellers and end buyers) fully understand that you're acting as a wholesaler and not a licensed agent.
- Double closings are an option: If assignment fees are limited or unclear, many Canadian wholesalers use double closes to stay compliant.
- Stay current with market shifts: As home prices stabilize or decline, wholesalers who know the rules can solve real problems for motivated sellers and cash buyers alike.
If you're serious about wholesaling real estate in Canada, now’s the time to sharpen your knowledge and position yourself to help sellers who need a fast solution. Understanding the legal side not only protects you; it builds trust with your buyers, sellers, and partners so you can scale faster with less risk.
A Quick Look Around Canada:
Year-over-year price growth in the Canadian real estate market (according to the Canadian Real Estate Association):
- British Columbia: -4.1%
- Alberta: +3.4%
- Saskatchewan: +8.0%
- Manitoba: +8.2%
- Ontario: -3.8%
- Montreal: +7.3%
- Quebec: +8.1%
- New Brunswick: +6.7%
- Newfoundland & Labrador: +10.9%
Most investors know these growth rates are not only unprecedented but also not sustainable. Likely, the current real estate market will slowly shift to a more balanced position, which means there will be more listings and, thus, more opportunities for investors.
What Is Wholesaling Real Estate?
If you've been researching ways to invest without a ton of capital, you’ve probably asked, “Is wholesaling real estate legal in Canada?” The short answer is yes, but there’s a lot to understand before diving in.
Wholesaling real estate in Canada is a strategy where investors profit by assigning their contractual rights to buy a property, rather than purchasing it themselves. The key legal distinction is that you’re not selling the property; you’re selling your right to buy it. That’s what makes it legal even without a real estate license.
As a wholesaler, your job is to find underpriced properties—usually from motivated sellers—and negotiate a purchase agreement. You’re not flipping houses or managing rentals. Instead, you’re flipping paper.
- Wholesalers legally assign their equitable interest—not the property itself.
- This interest is created when a purchase agreement is signed.
- It’s protected under the Doctrine of Equitable Conversion, recognized in Canadian law.
- You must disclose your intent and rights clearly in contracts to avoid regulatory issues.
Here’s how it works in action. You find a discounted home (maybe a rental, fixer-upper, or foreclosure) and put it under contract with the seller. This agreement gives you the exclusive right to purchase the property.
That contract itself becomes your asset. Before closing, you assign your equitable rights to a cash buyer, often a house flipper or rental investor. The profit you make is the difference between your purchase contract and the amount the end buyer agrees to pay.
- Build a reliable buyer list: Know what your investors are looking for and have them ready.
- Find below-market properties: Look for distressed sellers or underpriced homes.
- Disclose your role: Be clear in contracts that you're assigning the deal, not brokering it.
- Follow provincial laws: Every province has different rules for contract assignments and marketing.
- Avoid representing others in exchange for commission: This would require a real estate license.
Whether you’re sourcing deals from Redfin, Zillow, or word of mouth, your success in wholesaling real estate in Canada comes down to finding motivated sellers and having investors ready to buy. This model works in every province, as long as you understand and follow the rules.
Wholesale real estate Canada investors are using this exact model to flip contracts and build income without flipping houses or holding rentals. It’s not a shortcut; it’s a strategy. And if you want to do it right, knowing the legal side is step one.
Want to Wholesale Real Estate in Canada?
If you're serious about learning how to wholesale real estate in Canada the right way, without breaking any laws or wasting time, this is where to begin. Before you dive into paid tools or complicated systems, make sure you actually understand how wholesaling works step by step. Our Ultimate Investor Program gives you the full roadmap, from finding off-market deals to assigning contracts legally in your province. Ready to take action? Grab our FREE Ultimate Guide to Start Real Estate Investing and make your first move today.
Can You Do Wholesaling In Canada?
Wholesaling in Canada is legal; however, a wrong decision may create legal problems for those who are unprepared or inexperienced real estate wholesalers. The primary factor that allows a real estate wholesaler to work within Canadian law is the fact that they are selling/marketing their "equitable interest," not the property itself.
Selling/marketing the real property would require a real estate license, which means becoming a real estate agent or realtor.
On the other hand, selling or marketing your equitable interest is completely within the law. Although it may seem like a distinction without a difference, the difference is quite critical to staying within Canada’s legal limits.
As a wholesaler, you are marketing a property for yourself, not as a representative of another, which requires a license.
Canadian Real Estate License Laws By Province
Education and other requirements for real estate licensing vary by province in Canada.
- Ontario: The Real Estate and Business Brokers Act 2002
- Quebec: The Real Estate Brokerage Act
- Nova Scotia: The Real Estate Trading Act & Regulations
- New Brunswick: The New Brunswick Real Estate Agents Act & Regulations
- Manitoba: The Real Estate Services Act
- British Columbia: The Real Estate Service Act
- Prince Edward Island: The Real Estate Trading Act
- Saskatchewan: The Real Estate Act, Regulations & By-laws
- Alberta: The Real Estate Act
- Newfoundland/Labrador: The Real Estate Trading Act
Is Wholesaling Real Estate Legal In Canada?
Yes, if you follow the rules. Wholesaling is legal across Canada when done properly. The main thing to understand is that you're not selling the property itself; you’re selling your contractual right to purchase it. As long as you’re transparent, use assignable contracts, and stay aligned with provincial laws, wholesaling real estate in Canada can be a powerful and legal way to get started in real estate.
Here's why:
- Wholesalers sell contracts, not properties: You’re assigning the right to buy—not acting as a licensed agent.
- Assigning a purchase contract is legal: As long as the contract includes an assignment clause, it can be transferred to another buyer.
- No license required to sell your equitable interest: In most provinces, selling your position in a deal doesn’t require a real estate license.
- Supported by contract law: The doctrine of equitable conversion protects the buyer’s right to assign their interest before closing.
- Legal across provinces: While laws vary slightly by region, wholesaling is not banned in any province.
Being transparent isn’t just smart—it’s necessary. If you're wholesaling real estate in Canada, your end buyer needs to know upfront that you’re not the property owner. You’re assigning your interest in the deal, not selling the property itself or acting as a licensed agent. This kind of honesty helps you avoid misunderstandings and keeps everything above board.
Also, make sure your contract includes the right to assign. That single clause can make or break your wholesale deal. If you’re ever unsure, it’s worth speaking to a local attorney who understands Canadian wholesale real estate laws. It’s a small step that protects you and your business in the long run.
Do You Need A License To Wholesale Real Estate In Canada?
Yes, wholesaling real estate in Canada is legal, but only if you’re following your province’s rules. The big thing to understand? You’re not acting like a Realtor or selling someone else’s property; you’re just assigning your right to buy it, which is totally legal when done right.
If you're simply securing a purchase agreement on a property and then assigning that agreement to another buyer (without marketing the property itself), you’re not required to be licensed. This is known as selling your equitable interest<, not the actual real estate, which is what makes wholesaling unique and accessible to beginners.
That said, some investors eventually choose to get licensed to access the MLS or expand their services. But it’s not a requirement to get started wholesaling in any province.
Why You Don’t Need a License to Wholesale in Canada:
- You’re selling a contract, not representing a client.
- No commissions are involved; your profit comes from assigning the deal.
- Wholesaling focuses on equitable interest, which is legal to transfer in Canada.
- Real estate license laws apply to agency relationships, not contract assignments.
Just be sure to stay compliant with local laws, clearly disclose your role in the transaction, and avoid anything that could be seen as impersonating a licensed Realtor. If you’re unsure, a quick conversation with a real estate lawyer in your province can give you peace of mind.
- Ontario (Toronto): The Real Estate Council Of Ontario
- Quebec: The OACIQ
- Nova Scotia: The Nova Scotia Real Estate Commission
- New Brunswick: The New Brunswick Financial and Consumer Services Commission – Real Estate License
- Manitoba: The Manitoba Security Commission
- British Columbia: The British Columbia Financial Services Authority
- Prince Edward Island: Consumer, Corporate & Financial Services
- Saskatchewan: The Financial & Consumer Affairs Authority of Saskatchewan
- Alberta: The Real Estate Council
- Newfoundland/Labrador: Digital Government and Service – Real Estate Regulation
How To Wholesale Real Estate In Canada Legally?
It is possible to wholesale real estate Canada residents want to sell legally. In fact, there are several ways to complete a wholesale transaction in Canada, and the most popular are discussed below:
- The Buy & Assign Exit Strategy
- The Double Close Exit Strategy
- The Joint Venture (JV) Wholesaling Strategy
- Wholetailing Strategy
The Buy & Assign Exit Strategy
With a fully executed contract, the wholesaler has the legal option to market/sell their "right to buy the property" to another buyer. Wholesalers can use an Assignment of Contract to accomplish this task.
An Assignment is a legal instrument that transfers the wholesaler’s rights (aka, as the original buyer or assignor) to the new buyer (aka, the assignee).
The assignee is often a cash buyer who may regularly work with the wholesaler.
The Double Close Exit Strategy
Another closing strategy that Canadian real estate wholesalers use is the Double Close. As its name suggests, the double close includes two closings – usually performed back-to-back.
The wholesaler purchases the subject property as the principal buyer in the first closing. However, the real estate wholesaler is the seller in the second transaction.
The difference in the contracted price in each contract is the wholesaler’s gross revenue. That said, a double close includes twice the closing costs. This additional cost offers protection to the wholesaler as there is no question that a real estate license is not a requirement.
The Joint Venture (JV) Wholesaling Strategy
If you’ve been wondering, “is wholesaling real estate legal in Canada?”, the answer is yes — but only when done within certain legal boundaries. One of the most common and compliant ways to wholesale real estate in Canada is through a joint venture (JV) agreement.
In a JV deal, two or more parties come together to partner on a real estate transaction. As a wholesaler, you can legally find a deal, structure the opportunity, and then partner with an investor who provides the capital or closes on the property. Rather than assigning a contract — which may be restricted in some provinces without a real estate license — you enter into a legal partnership where each party contributes value and shares in the profits.
Joint venture wholesaling agreements are widely accepted across Canada and are especially useful for new investors who want to legally profit from real estate without violating licensing laws. If you're trying to find out is wholesaling real estate legal in Canada, JV partnerships are a proven way to stay compliant while still earning income from sourcing deals.
As always, it's wise to consult with a real estate lawyer to properly draft your JV agreement and ensure it meets all provincial requirements. When structured correctly, joint ventures are not only legal — they’re one of the most effective ways to grow your real estate business in Canada.
Wholetailing Strategy
Wholetailing combines two investment strategies – wholesaling and flipping.
Wholetailing goes a step beyond simple wholesaling because the investor purchases the property instead of assigning the right to purchase to another end buyer. Wholetailing a real estate deal is not considered a true flip because there are only a few modifications and repairs to be made as an enhancement to the property’s market value. Conversely, flippers would perform significant renovations.
Another difference is this strategy is that the end buyer of a wholetailing deal can be a retail buyer and not another investor.
This is because the wholetailer chooses to update and modify the property to be able to market it to a wider investor pool and likely generate a larger profit (from a higher price) than simply wholesaling deals.
What Are The Benefits Of Wholesaling Real Estate In Canada?
Is wholesaling real estate legal in Canada? Yes, it is, and those who navigate the exit strategy within the confines of the law can expect several benefits:
- There Is No Need For A Large Cash Investment or Perfect Credit
- It Is A Short-Term Investment
- Wholesaling Real Estate Offers An On-Ramp For Beginners
- Its Offers Relatively Low-Risk Investments In Terms Of Real Estate Strategies
There Is No Need For A Large Cash Investment or Perfect Credit
The primary reason to consider wholesaling real estate is the fact that it doesn’t require a large cash investment. Additionally, there is no credit review or ongoing mortgage payments as the property is sold quickly.
This investment strategy for Canadian investors does not require you to save a significant cash investment.
It Is A Short-Term Investment
Wholesaling, by its very nature, offers a quick turnaround. The part of the process that takes the most time is researching and finding investment properties that meet your investment criteria.
Wholesaling real estate offers a return on your investment without waiting for a renovation to be complete or the receipt of future rental income.
Wholesaling Real Estate Offers An On-Ramp For Beginners
Wholesaling houses in Canada, at its basics, is a simple process. It offers new investors the opportunity to enter the market without solid credit or large amounts of capital, learn the art of real estate investing, build a list of buyers, and evaluate a viable real estate wholesale deal.
Its Offers Relatively Low-Risk Investments In Terms Of Real Estate Strategies
Prudent investors prefer low-risk investments, which are not always visible for beginners to identify. Wholesaling offers a short-term, low-risk investment, as only a small cash investment (with the provision of an earnest money deposit in escrow) is required.
Most wholesalers also have established relationships with lenders in case they need to access funding.
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How To Buy A Wholesale Deal In Canada
The end buyer in a wholesale deal is typically an investor who plans to hold the property for rental income or further renovate to raise the purchase price for the next buyer.
If you are interested in becoming a cash buyer who takes out the wholesaler, note these important considerations:
- The end buyer saves time (and, therefore, money) because the wholesaler does much of the legwork by sorting through potential properties.
- Wholesalers are on the clock as there is a legally binding contract with a closing deadline. As such, when negotiating, remember that wholesalers are highly motivated property owners (aka sellers).
- Buying a property from an unlicensed individual creates a bit of risk, as there would be no governing oversight body to help should the deal become problematic. Due diligence offers the best defense against this potential risk.
Is Wholesaling Real Estate Legal In Ontario?
Yes, it is legal to wholesale real estate in Ontario without a real estate license if the transaction stays within the legal lanes of Canadian law. The Ontario law that defines the legal boundaries of real estate licensing is The Real Estate and Business Brokers Act (2002).
Specifically, Ontario law states that no person shall trade in real estate (as a broker or salesperson) unless appropriately licensed and registered.
The salient point in this law is that the asset being sold is "real property", which differs from the asset a wholesaler is marketing – the right to purchase the property according to the terms of the executed contract. As a result, real estate wholesalers must be diligent in their efforts to market their equitable rights, not the property, as if they were owners.
However, Ontario real estate law offers these exemptions, noted Subsection 5(1 a-k), and shown below.
A wholesaler should make sure that the wholesale contract does not expressly prohibit assignments or be heavily conditioned with approval from the seller required to assign your equitable interest. Without an explicit clause prohibiting assignments, a wholesaler may assign their rights to another end buyer.
Wholesaling real estate requires an investor to have a working knowledge of the local real estate market and its customs.
This would include knowledge of what actions require a license in Ontario, as well as state real estate laws. In addition, wholesalers must only market or sell their equitable ownership if they avoid those actions requiring an Ontario real estate license.
Wholesale Real Estate Ontario Contract
A Canadian real estate wholesale deal typically employs two legal instruments: a Purchase Agreement and an Assignment of Contract.
If you are unfamiliar with these documents, it is prudent to speak with a real estate attorney who can offer the appropriate legal advice for your wholesale real estate deal.
The Real Estate Contract or Purchase Agreement
The wholesale real estate contract used for Ontario real estate includes a tremendous amount of information that details the terms for each party.
At the very least, a contract will include:
- The Names & Contact Information Of All Relevant Parties: This would include the wholesaler, as the buyer, plus the seller. Lawyer and real estate broker names may also be included, if applicable.
- The Description Of The Subject Property: The street address & the legal description of the property.
- The Condition Of Premises: This section delineates the property’s physical state, including existing damage and necessary repairs, if applicable.
- The Purchase Price And Financing Terms: The agreed-upon price and financing terms are recorded along with where deposits will be held.
- The Deed Type: What type of deed is being used to pass the title?
- The Closing Date: This is the day when the paperwork is executed and the title changes hands in accordance with the contract terms.
In addition, a contract may also include additional clauses and relevant contingencies, as follows:
- The Financing Contingency: This allows for the cancellation of the real estate transaction if a buyer cannot secure the necessary financing. This is not applicable to cash buyers.
- The Inspection Contingency: This allows for the cancellation of the transaction if the buyers are dissatisfied with the home inspection report.
- The Marketable Title Option: This allows for the cancellation of the transaction if the buyer can’t obtain title insurance through a title company.
- The Buyer And Seller Default Clauses: This clause outlines what happens if either contract party defaults.
- The Risk Of Loss And Damage Clause: This clause protects the buyer if the subject property sustains damage while under contract but not yet closed.
- The Adjustments Clause: This clause may include modifications for property taxes or utilities. The specifics depend on the location of the property.
- The Statement Regarding Lead-Based Paint: This disclosure requires all parties to acknowledge that there is no lead-based paint on the property.
- The Addenda: Offers space for additional contingencies, if applicable. Caution: Sellers or their representatives may use this section to require any assignments to be approved by the seller.
The Assignment Of Contract
A wholesaler uses an Assignment of Real Estate Purchase and Sale Agreement to legally transfer their equitable interest (granted in one contract) to another buyer if the contract does not specifically prohibit this action.
The assignment contract stipulates the name of the new buyer who is assuming the equitable interest until closing.
The Assignment of Real Estate Contract includes a copy of the original purchase and sale agreement. This assignment provides the new buyer with the transaction’s details, including conditions, pricing, and stipulations if they apply.
The Assignment of Real Estate Contract also includes:
- The wholesaler’s payment terms.
- The date of the assignment.
- The date the assignment was executed.
The new buyer will generally provide a small earnest money deposit, with the balance received at or after closing.
Final Thoughts
So, is wholesaling real estate legal in Canada? If you've made it this far, you know that, yes, wholesaling real estate is legal in Canada, but it’s important to follow the specific regulations in your province. While you don’t need a real estate license in most cases, you do need to ensure full transparency with all parties and adhere to local laws regarding contract assignments. For those who operate within the legal framework, wholesaling presents a great opportunity to profit in the Canadian real estate market while keeping risks and upfront costs low. Whether you are real estate wholesaling Alberta properties or wholesaling real estate in Ontario, there is a path to success; you just need the right systems.
If you’re serious about doing your first real estate deal, don’t waste time guessing what works. Our FREE Training walks you through how to consistently find deals, flip houses, and build passive income—without expensive marketing or trial and error.
This FREE Training gives you the same system our students use to start fast and scale smart. Watch it today—so you can stop wondering and start closing.
*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.
Alex Martinez, the founder of Real Estate Skills, is known for his strong, practical expertise in real estate, starting from a beginner with no family connections in the industry to completing over 50 real estate deals, including wholesale and flips, within his first year.
He has dedicated his career to providing cutting-edge education and resources for real estate professionals. He emphasizes the importance of self-taught knowledge through mentors, books, and hands-on experience.
His journey from earning a modest income to becoming a successful real estate entrepreneur and educator showcases his expertise and dedication to the field.
Ryan Zomorodi, co-founder and COO of Real Estate Skills, leverages his experience from a diverse background in real estate investment, construction management, and entrepreneurship to provide comprehensive education in the real estate sector.
His expertise is rooted in hands-on experience, extensive industry knowledge, and a commitment to empowering others through education.
Ryan's journey reflects a blend of practical experience and entrepreneurial success, contributing to his role in developing a platform that educates and supports aspiring real estate professionals.
Read Ryan's Full Bio >>
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