Public articles
The Declarations by the seller form, for a transparent transaction
A real estate transaction includes obligations and responsibilities for all the parties involved, whether you are a buyer or a seller, represented or not by a real estate broker.
New OACIQ promise to purchase forms in effect as of June 22, 2021
As part of the measures implemented to address the issues raised by the overheated housing market, the Ministry of Finance and the OACIQ have agreed to amend the promise to purchase forms to reinforce the messages pertaining to the risks of waiving a pre-purchase inspection.
Buyer’s Guide and Seller’s Guide
The OACIQ offers you two new tools to better understand the many steps of a real estate transaction.
Property off the market, termination of contract: Concepts not to be confused
If the seller may no longer wish to sell his immovable during the term of an irrevocable 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.
Signing a brokerage contract to sell, purchase or lease an immovable
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.
Brokerage contract: The right to change one's mind
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.
The DS – Divided co-ownership form
Since July 1, 2018, future buyers or sellers of divided co-ownership properties have been even better protected with the form Declarations by the seller of the immovable - Divided co-ownership designed by the OACIQ specifically for this market.
Is it possible to cancel a real estate promise to purchase?
This is a common question asked by consumers who contact the information centre Info OACIQ.
A report card on a property
The Real Estate Brokerage Act provides for a range of tools to protect your interests. The Declarations by the seller of the immovable form is one of them.
What’s an exclusive brokerage contract?
In accordance with the public protection mission entrusted to it by the Real Estate Brokerage Act, the OACIQ has designed brokerage contracts to protect your interests.
Inclusions and exclusions as part of a sale
“I just moved in and – surprise! – the beautifully appointed walk-in closet is now an empty space. Should the shelves have been included?"
Chain transactions…allow a time period for the signing of the deed of sale
When it comes to signing the act of sale before the notary, a common concern for the seller is to get his money as quickly as possible or to schedule a quick signing date. Remember that before distributing funds, the notary must always publish acts and perform many checks in the Land register, in addition to obtaining from the creditor a commitment to cancel the existing charges (for example the seller’s mortgage).
OACIQ forms: For better prevention
To fulfil its public protection mission, the OACIQ published no less than fifty forms. They were designed to provide you with maximum protection, while clearly establishing the terms under which the broker will act.
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.
The importance for the parties of clearly understanding the promise to purchase
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.
Clause 10.5 of the promise to purchase, to ward off unpleasant surprises
Should the buyer or the seller be notified, following the fulfilment of conditions, but before the signing of the deed of sale, of any defect or irregularity whatsoever affecting the titles of the immovable or 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.
Can a promise to purchase be withdrawn?
The promise to purchase signed by the buyer shall be binding on him until the expiry of the acceptance period indicated in clause 14.1. The broker must always inform the buyer that his promise to purchase binds him to the seller as soon as it is signed.
Property Transfer Duties
As indicated in section 2.1 of the Act respecting Duties on Transfers of Immovables, the tax brackets are increased each year according to the Consumer Price Index for Quebec.
Understanding first refusal clause R2.2 of the mandatory form Annex R - Immovable
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.
Cancellation of a previously accepted promise to purchase
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.
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