Public articles
Exclusive brokerage contract: can the broker authorize his client to offer the immovable for sale by himself?
Some owners wishing to sign a brokerage contract ask to be able to market their immovable to find prospective buyers, too.
How to use the mandatory form Declarations by the seller of the immovable
The Declarations by the seller of the immovable form, mandatory since July 2012, must be used for all transactions involving the sale, by a natural person, of a chiefly residential immovable containing less than 5 dwellings, including immovables held in undivided co-ownership. For any transaction involving a divided co-ownership, brokers must now use the Declaration by the seller of the immovable – Divided co-ownership form.
Property off the market
Sometimes during the term of an irrevocable exclusive brokerage contract, the seller may no longer wish to sell his immovable. In such a case, and after agreement, the seller’s broker can put an end to the contract (termination) or, if there is no contract termination agreement, must take the property off the market after explaining the scope of this decision to the seller.
Application of GST and QST to the Sale of a Building Used for Residential and Commercial Purposes
Generally, the sale of a residential complex that is not newly constructed and has not undergone substantial renovations is exempt from GST and QST.(1)
Residential immovable – subject or not to GST and QST - Declaration to be made in the mandatory new forms of brokerage contract and promise to purchase
The brokerage contract and promise to purchase mandatory forms for residential brokerage include the obligation to specify whether or not an immovable is subject to goods and services tax (GST) and Québec sales tax (QST).
Use of clause R2.3 to cancel a first promise to purchase conditional upon the sale of the buyer’s immovable
Clause R2.3 of Annex R – Residential immovable allows for the acceptance of a promise to purchase conditional upon cancellation of a promise previously accepted by the seller. With this clause, the seller promises to undertake, in good faith and at his own expense, reasonable steps to obtain cancellation of every previously accepted promise to purchase the immovable.
The legal warranty of ownership and quality
A person selling movable or immovable property must warrant that the property is free from any defect in title and any latent defects.
About the brokerage contract expiry date
An expiry date must be entered in the appropriate space on the mandatory Brokerage contract form.
Termination of a brokerage contract
Sometimes a seller decides that he no longer wishes to sell his immovable and wants to terminate the brokerage contract by which he entrusted the sale of his immovable to a broker or agency. A buyer or lessor can also sometimes wish to terminate a brokerage contract.
Remuneration payable by the seller
Before examining the various cases in which remuneration is payable by the seller to the agency or the broker acting on his own account, let us briefly consider what form the broker’s remuneration may have under the Exclusive brokerage contract – Sale.
The term of a brokerage contract
How long should a brokerage contract last? The answer is simple: it is up to the consumer and the agency or the broker to determine the length of the contract. There are no rules in the Act or the regulations stipulating a minimum or maximum term for a brokerage contract.
Pyrite Clause and Percentage: Ban It!
When a promise to purchase provides for a pyrite test and a real estate broker specifies a percentage above which the buyer can withdraw in the clause, the broker can be considered at fault professionally. This practice, which has often been reported to the Organization, presents a serious risk to clients.
Promise to purchase and financing of an immovable
Financing can make or break a real estate transaction. Therefore, in order to properly advise his clients, it is important that a real estate broker fully understand the obligations relating to new hypothecary loan.
Saying NO to real estate fraud
In the course of his daily activities, a real estate broker comes into contact with a large number of clients and uses many forms to transact real estate. Because he is at the center of these transactions, he plays a key role, representing either the seller, the buyer, or the borrower.
Obligations of real estate brokers and agencies: High-risk areas for pyrite
Pyrite is an iron sulphide molecule present in the stone fill used in construction. It may therefore be found around foundation drains and under the concrete slabs of the cellar or the garage. Under certain conditions, pyrite can oxidize and produce a sort of white powder that swells, causing, among other things, the slab to lift and producing cracks in the foundation and partitions. These problems may appear several years after construction.
House for Sale by Owner
When seeing a "House for Sale by Owner" sign, you initiated the conversation with the owner and offered to do business with him to sell his property. He then tells you: "I do not want to know anything about a brokerage contract, but if you find me a buyer, I'll give you a little something.” Despite that, you start looking for the future buyer, obviously unaware that this approach could cost you a lot.
The real estate broker’s right to compensation after the expiry of the brokerage contract
The Info OACIQ information centre often gets calls from selling owners inquiring about the risk of signing a new brokerage contract upon the expiry of the initial contract. They wonder if they are therefore released of their obligation to pay compensation under the first contract.
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