An equity partner is an individual or entity that contributes capital to a real estate investment in exchange for an ownership stake and a share of the profits, rather than receiving fixed interest payments like a lender. Arrangements that pool capital from passive partners who rely on the efforts of an active partner can be securities under Canadian provincial law (NI 45-106) and may require a prospectus exemption, a registered dealer, and compliance with accredited-investor rules. Consult a securities lawyer before raising equity capital or committing it as a passive partner.
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