RESALE OF INTERMENT RIGHTS


The restrictions and exceptions are set out in the Act.


      · Section 4(2) of the Act prevents anyone from selling interment rights unless they are a cemetery

operator or sales representative.  This restriction does not apply if the person/company is selling

interment rights that it owns (s.47(1))


      · It is prohibited under s.47(3) for anyone (individual or company) to purchase interment or scattering

rights for the purpose of reselling them for profit.


     · S.47(3.1) provides an exemption to s.47(3) to funeral establishments and other licensed entities

as long as it is incidental to their business.


     · S.47(4) prevents a person from selling the interment rights for a price which is greater than set

out in the cemetery’s price list.


Section 47 below for your reference.


Note, that the resale provisions regarding internment rights are governed by the by-laws of the cemetery.  Some cemeteries do not permit resale to a third party and the person can only sell the rights back to the cemetery.


47.  (1) Despite section 4, an interment rights holder or a scattering rights holder has the right to sell the interment rights or scattering rights, as the case may be, to a third party before the rights are exercised, if such a resale is not prohibited by the by-laws of the cemetery. 2002, c. 33, s. 47 (1).


Disclosure to third party

(2) An interment rights holder or a scattering rights holder who sells interment rights or scattering rights under subsection (1) shall disclose in writing,

      (a) to the third party purchaser, such information as may be prescribed in such manner as may

be prescribed; and


      (b) to the cemetery operator, such information as may be prescribed in such a manner as may be

prescribed. 2002, c. 33, s. 47 (2); 2006, c. 34, Sched. D, s. 30 (1).


Prohibition against speculating

(3)  Subject to subsection (3.1), no person shall purchase interment rights or scattering rights for the sole or primary purpose of reselling the rights with a view to making a financial gain. 2002, c. 33, s. 47 (3); 2006, c. 34, Sched. D, s. 30 (2).


Exception

(3.1)  Subsection (3) does not apply to an operator who purchases interment rights or scattering rights for the purpose of reselling the rights if the resale is incidental to carrying on the business of a cemetery, crematorium, funeral establishment, casket retailing business, marker retailing business or transfer service. 2006, c. 34, Sched. D, s. 30 (3).


Same

(4)  An interment rights holder or a scattering rights holder who resells rights under this section shall not sell the rights for an amount that is greater than the price of those rights as indicated on the cemetery’s price list. 2002, c. 33, s. 47 (4).


If no resale permitted

(5) Subject to subsections (9) and (10), if the by-laws of a cemetery prohibit an interment rights holder or a scattering rights holder to sell the interment rights or scattering rights to a third party, then, in addition to any rights of cancellation that may exist under section 41 or 42, the rights holder may, at any time, cancel the contract under which the rights were purchased by giving the cemetery operator written notice of the cancellation and require the operator to repurchase the interment rights or the scattering rights, as the case may be. 2002, c. 33, s. 47 (5).


Refund

(6) If an interment rights holder or a scattering rights holder cancels a contract for the purchase of interment rights or scattering rights under subsection (5), the operator shall pay the rights holder the greater of the following amounts, less a prescribed amount:


      1. All money received by the operator under the contract.


      2. The market value of the interment rights or scattering rights on the day the operator receives

notice of cancellation of the contract, less the amount, if any, owing under the contract as of the

day on which the rights holder cancels the contract. 2002, c. 33, s. 47 (6); 2006, c. 34, Sched. D,

s. 30 (4).


Market value

(7) For the purposes of paragraph 2 of subsection (6), the market value of the interment rights or scattering rights shall be,


      (a) if the price for the rights is set out on the operator’s price list, the price set out in the price list;

and


     (b) if the price for the rights is not set out on the operator’s price list, the price determined in

accordance with the regulations. 2006, c. 34, Sched. D, s. 30 (5).


Timing

(8)  A refund under subsection (6) shall be made by the cemetery operator within 30 days of receiving notice of the cancellation. 2002, c. 33, s. 47 (8).


No cancellation right

(9)  A person who holds interment rights with respect to a lot in a cemetery plot is not entitled to cancel the contract under which the rights were purchased under subsection (5) if interment rights to another lot in the plot have already been exercised. 2002, c. 33, s. 47 (9).


Same: scattering rights

(10)  A person who holds scattering rights with respect to scattering grounds in a cemetery is not entitled to cancel the contract under which the rights were purchased under subsection (5) if other scattering rights with respect to the same scattering grounds have already been exercised. 2002, c. 33, s. 47 (10).


(11)  Repealed: 2006, c. 34, Sched. D, s. 30 (6).


Application

(12) This section applies to any contract for the provision of interment rights or scattering rights, including any such contract that was made before the day this section comes into force. 2002, c. 33, s. 47 (12).


Same

(13)  This section applies with necessary modifications to transfers for no consideration of interment or scattering rights. 2006, c. 34, Sched. D, s. 30 (7).