Public articles

April 08, 2013

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.

Aging oil tanks - How to lessen the difficulties they can cause

Insuring an immovable with an oil tank that is aging(1) or has been improperly or inadequately maintained can prove difficult. This in turn could jeopardize a transaction. When selling such an immovable, real estate brokers must be mindful of their duty to inform and advise, which will help reduce the problems that the presence of such a tank can cause.

March 25, 2013

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.

Notice to the Land Register in case of land contamination

The Environment Quality Act (''the Act'') establishes rules regarding land protection and rehabilitation in case of contamination. It is supplemented by the Land Protection and Rehabilitation Regulation, whose purpose includes setting out the types of industrial or commercial activities that require a particular treatment and establishing contamination limit values beyond which rehabilitation measures must be undertaken.

March 22, 2013

Abiding by the Act respecting Tourist Accommodation Establishments

In the course of their activities, some licence holders act as intermediaries for the short-term rental of cottages, houses or apartments. Considering their duty to verify, inform and advise, these brokers would be well-advised to know the ins and outs of the Act respecting Tourist Accommodation Establishments.

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.

The statement of registration: sometimes a condition for issuing a licence

Filing a statement of registration can sometimes be one of the conditions for issuance of a licence. The OACIQ must also comply with the Act respecting the legal publicity of enterprises, which is why it requires a copy of this statement to issue a licence.

Notaries and lawyers must act “in the course of their practice”... or be OACIQ licence holders

Note: This article refers to a judgement rendered between 2004 and 2012, at the time when the old Real Estate Brokerage Act (R.S.Q. c. C-73.1) and its regulations were in force. Therefore, the following text refers to the vocabulary applicable at that time. However, the following analysis remains relevant under the Real Estate Brokerage Act (R.S.Q. C-73.2) that came into force on May 1, 2010 and updated on July 13, 2018 after the adoption of Bill 141.

Share purchase for exclusive use of a dwelling

There is a method of acquiring real estate that all real estate brokers must acquaint themselves with. It is a process, sometimes called ''securitization'', by which a buyer acquires, on the one hand, a number of shares in a corporation (formerly called company) whose main asset is an immovable and, on the other hand, under a leasing agreement inseparable from the share acquisition agreement, the exclusive use of a given apartment in the immovable. The buyer then holds all rights of use to this apartment and may, in principle, occupy it or lease it. In this type of transaction, the acquisition of shares is therefore indivisible from the right to occupy an apartment specifically tied to the shares acquired.

January 29, 2013

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.

September 18, 2012

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.

June 12, 2012

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).

January 31, 2012

Factors that may affect the decision of a buyer

Any broker has the obligation to inform the parties engaged in a transaction of any known factor that may adversely affect buyers or sellers or the very object of transaction.

December 14, 2011

Remuneration to be paid to the broker’s business corporation by the broker’s agency

Since January 1, 2012, a broker acting on behalf of an agency has been able to carry out his activities within a business corporation (company) which he controls. The remuneration formerly payable to the broker will therefore be payable to this corporation.

April 05, 2011

Water supply, wells and septic tanks

When a transaction concerns a property that is not serviced by a municipal water system or equipped with a wastewater treatment system, financial institutions usually want assurances that the water is drinkable or the system is up to code before authorizing a loan.

November 07, 2008

Existing inspection report: What is the proper procedure for the real estate broker?

The Regulation respecting brokerage requirements, professional conduct of brokers and advertising (hereafter “the Regulation”) states that a broker or agency executive officer must take steps, in accordance with accepted practice, to learn of any factors that may adversely affect the party represented by them or the agency for which they act, the parties to the transaction or the very object of the transaction.

September 19, 2008

Telephone solicitation rules

All real estate agencies and brokers who canvass using unverified telephone lists are subject to CRTC Rules. 

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