If the seller may no longer wish to sell his immovable during the term of an irrevocable exclusive brokerage contract, your broker may, after agreement, put an end to the contract (termination). If there is no agreement, he must take the property off the market.
When the owner of a residential immovable chooses to sell through a real estate broker, he must sign a brokerage contract. The same applies to the buyer if the broker wishes to ask him for compensation and to the lessor concerning lease matters.
Signing a brokerage contract is an act that should be taken seriously. This is why you may, under certain conditions, terminate any contract signed between you and a real estate broker to sell, buy, lease or exchange a residential property. This is called the right to cancel.
Since July 1, 2018, future buyers or sellers of divided co-ownership properties have been even better protected with the new form Declarations by the seller of the immovable - Divided co-ownership designed by the OACIQ specifically for this market.
This is a common question asked by consumers who contact the information centre Info OACIQ.
Disclosure of a suicide: the Superior Court confirms the usefulness of the declarations by the seller
On November 21, 2013, the Superior Court determined, in Fortin c. Mercier(1) judgment, that the seller of an immovable had the obligation to inform buyers that a violent death had occurred therein.
Special requirements on the part of the seller and obligation to present any promise to purchase as soon as possible
Sometimes a seller may have particular requirements regarding the timing for submitting promises to purchase to him regarding an immovable for sale. For example, a seller may want to consider all promises to purchase at the same time, on a predetermined date.
When drafting the promise to purchase, the real estate broker must discuss each phase of the buying process with the buyer in order to avoid surprises along the way. This step must include an analysis of the buyer’s needs and objectives and an evaluation of his financial capacity. It is up to the broker to ensure that the buyer clearly determines what he is looking for based on his means.
Should the buyer or the seller be notified, before the signing of the deed of sale, of any defect or irregularity whatsoever affecting the declarations and obligations of the seller, the buyer has a recourse provided under clause 10.5 of the Promise to purchase form (for the Promise to purchase – Divided co-ownership (PPD) form, it’s under clause 10.7). If the buyer learns that the immovable has a defect or irregularity (e.g. an inground pool encroaching on a Hydro-Québec servitude), he is not bound to purchase the immovable with this irregularity.
Take a typical scenario: a broker has a promise to purchase in hand and is preparing to present it to the seller. The phone rings: the buyer informs him that he no longer wants to buy the immovable or present the promise to purchase. What should the broker do?
Clause R2.2 of the mandatory form Annex R – Immovable, the so-called “first refusal", generates a lot of questions from brokers and consumers. In fact, the OACIQ Info Center receives many calls to this effect. Followings are a few clarifications to help understand how it works.
Clause R2.3 of Annex R - Residential immovable allows the seller to accept a new promise to purchase conditional upon the cancellation of a previously accepted promise to purchase.
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.
The mandatory form Declarations by the seller of the immovable 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.
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