Legal Landmines in Real Estate JVs

Recorded: June 2025
Guest: Shawn Quigg, Co-Founder of Cardinal Law
Host: Erwin Szeto, The Truth About Real Estate Investing for Canadians Podcast

If you’ve ever structured or invested in a joint venture, lent privately, or raised capital in Canadian real estate — this episode is essential listening. My guest, real estate and corporate lawyer Shawn Quigg, specializes in cleaning up deals gone wrong. And in this conversation, we unpack how to structure your partnerships, protect yourself legally, and raise capital the right way — without setting off securities alarms.

Here’s what we cover:

Why so many real estate joint ventures fail in 2024–2025
The difference between safe JV structures vs. risky shortcuts
How registered funds (RRSPs, TFSAs) can be legally used to invest in real estate
What lenders need to know before offering private mortgages
The rising popularity — and complexity — of CMHC’s MLI Select program

If you’re in the business of borrowing money, managing investor funds, or buying in partnerships — this episode is for you.

🧠 5 Real Estate Law Q&As for Canadian Investors

1. What is the most common legal mistake in real estate joint ventures?
Failing to have a detailed, lawyer-reviewed JV agreement is the top mistake. Verbal or vague contracts lead to expensive disputes when expectations aren’t aligned.

2. Can I legally raise money from friends or family to buy real estate in Canada?
Yes — but you must follow securities exemptions like the friends/family/business associate rule, and ideally work with an exempt market dealer. Always document everything with proper legal agreements.

3. Are RRSPs and TFSAs allowed in real estate investing?
Yes, but only through a limited partnership or mutual fund trust structure. You’ll also need an exempt market dealer if raising capital from the public.

4. What legal risks should private lenders watch for?
Private lenders should secure their loans with a registered mortgage, assignment of rents, and possibly a general security agreement (GSA). Legal remedies like power of sale can only help if the deal is structured properly.

5. How can I legally protect myself in a Canadian real estate JV?
Use a joint venture agreement or shareholders agreement that includes roles, dispute resolution, and an exit clause. Think of it as “deal insurance” that only costs a few thousand dollars — but saves tens of thousands later.

🎧 Listen to the full episode here

📜 Full Transcript

The full cleaned-up transcript from my conversation with Shawn Quigg is available here for anyone who wants to dive deeper into the nuances of deal structure, legal protection, and capital raising.

Ready to stop silent risks from wrecking your real estate business? Cardinal Law is offering Erwin’s listeners a free 1-on-1 corporate structure review ($500–$1,000 value) to help you lock down your asset protection and scale smartly. Just use code ERWIN. Click here to get started.

To Listen:

On iTunes: https://itunes.apple.com/ca/podcast/truth-about-real-estate-investing…/id1100488294

On Spotify: https://open.spotify.com/show/6Z8yd37AQfQI5DK0J0Xwzz

Amazon Music: https://music.amazon.ca/podcasts/40fe627d-dec7-4f5d-b7e5-90a550fffe46/the-truth-about-real-estate-investing-for-canadians

Audible: https://www.audible.ca/podcast/The-Truth-About-Real-Estate-Investing-for-Canadians/B08JJS91WR

Youtube: https://youtu.be/ro2A_7ds-ao

🦸‍♂️Household Hero? Here’s Your Next Step

If you’re a Canadian investor trying to build wealth safely and sustainably, Adam’s journey has valuable takeaways.

It might be time to revisit your current strategies—real estate, lending, or insurance—and ask:

Do your investments match your long-term goals?
Do you fully understand how your strategies work?
Would a more conservative approach offer better peace of mind?

Real estate remains a powerful tool for building wealth, especially with careful underwriting and due diligence. Insurance can be useful too—but only if it supports your broader financial goals.

Need help with conservative, peace-of-mind investing—backed by Wall Street-style due diligence—plus financial planning with your best interests at heart?

📅 Book a call

Until next time, happy Canadian and USA Real Estate Investing.

Erwin Szeto,

Your Cross Border Investment Guy

Why I’m Investing in the U.S.

I’ve been investing in Ontario since 2005. It’s been a great run—starting with properties in the $100Ks, now reaching $800K–$1M. How much higher can it go? I don’t know.

The remaining appreciation potential doesn’t justify the risk. That’s why I advise clients to look to the U.S., where rental properties range from $150K–$350K USD, with rents between $1,400–$2,600/month.

These cash-flowing numbers are night and day compared to Canada. Plus, landlords have rights, there’s no rent control, and income is in U.S. dollars—which are stronger than Canadian dollars.

If you don’t believe that U.S. dollars are stronger, ask 100 non-Canadians what they’d prefer to be paid in.

To regain control of your retirement, check out the cash-flow properties at:
👉 iwin.sharesfr.com

How SHARE Makes It Easier

The best part? My U.S. investments are more passive than my Canadian ones. I work with SHARE, an asset manager that guides me through the entire process.

SHARE helps with:

Finding quality income properties
Structuring the legal and tax side
Managing the property manager and insurance provider
Saving time and money with preferred rates

They even advise on when to refinance or sell. SHARE supports investors across the U.S., which is why I plan to own in Tennessee, Georgia, and Texas. It’s like having a JV partner—without giving up ownership or control.

Final Thoughts

If increasing cash flow is your goal, I don’t know of a better strategy for most Canadians. Once more: iwin.sharesfr.com is where to see what boring, cash-flowing investing looks like on the path to financial peace.

This is how I’m making real estate investing great again—for my family and hopefully for yours too.

Disclaimer

As a committed advocate for transparent and responsible investing, I want to disclose that I am an Advisor to SHARE SFR (Single Family Rental). I hold equity in the company and earn referral commissions from clients I refer.

My endorsement of their model—focusing on positive cash flow and direct ownership—is based on personal experience and belief. Still, every investor should do their own due diligence.

Legal Landmines in Real Estate JVs – with Shawn Quigg