Public articles
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.
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.
The importance of confirming the cancellation of a promise to purchase
Several clauses appearing particularly on the forms Promise to purchase, Annex F and Annex R state that the Promise to purchase shall become null and void if one of the parties fails to comply with the deadline indicated therein. Clause 6.3 of the Promise to purchase is an excellent example of this situation.
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.
Obligation to recommend a building inspector who has professional liability insurance
Section 81 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising provides that a broker or agency executive officer must notably “recommend to the person proposing to acquire an immovable that the person have a full inspection performed by a professional or a building inspector who […] has professional liability insurance covering fault, error and omission”.
Instructions to the notary regarding remuneration sharing - Who can do what?
The seller’s broker or agency may instruct the notary to pay directly the buyer’s broker or agency from the proceeds of the sale.
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.
Rules surrounding the discharge of an hypothec
To make real estate transactions more secure for all stakeholders, notaries are subject to strict rules regarding the requesting of account statements for the repayment of a loan balance to discharge an hypothec on an immovable.
What forms should be used for the sale of an enterprise?
Under the Real Estate Brokerage Act, the sale of an enterprise remains subject to this Act only if the enterprise’s property, according to its market value, consists mainly of immovable property.
How the trust account becomes an added value
Since the system which supports the opening, maintenance and management of a trust account is based on trust, the following article is intended for all brokers, including agency executive officers.
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).
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)
Instructions to the notary regarding remuneration: a specific clause on this subject
Is it possible to have the remuneration agreed to on my brokerage contract to purchase paid by the notary directly from the proceeds of the sale?
How to prepare for an inspection
An inspection should be seen as a privileged opportunity for training and prevention. The Inspection Department is responsible for overseeing the activities of the members of the OACIQ, specifically by verifying their records, books and registers.
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.
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.
Disclosure of remuneration: The Inspection Department is keeping a close eye on things
Transparency is required in any real estate transaction. In terms of remuneration, you must disclose in writing to the party you represent the conditions of remuneration sharing offered to agencies or brokers collaborating in this transaction, and the consequences generated by the proposed conditions.
Building inspection guide: Broker’s responsibilities
Building inspection is an essential step when purchasing a house.
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