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).
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.
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.
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.
Telephone solicitation rules
All real estate agencies and brokers who canvass using unverified telephone lists are subject to CRTC Rules.
“Residential” or “Commercial” Brokerage: Ethical obligations are the same for all
Some real estate brokers and agencies offer services in more than one field of practice, i.e. residential and commercial and therefore do not specialize only in commercial transactions.
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.
Verifying right of ownership restrictions and consulting the online land register
Just as he must verify the features of an immovable, the real estate broker must know and verify the characteristics of the immovable’s right of ownership under private and public law.
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.
A suspended or revoked licence bars the holder from practicing
A real estate broker whose licence is suspended or revoked is no longer authorized to practice his profession or carry out brokerage transactions. He must cease any real estate brokerage-related activity.
The real estate broker acting as the client’s intermediary or mandatary
Under section 2 of the OACIQ’s Regulation respecting brokerage requirements, professional conduct of brokers and advertising (“the Regulation”), a broker must avoid placing himself in a conflict of interest.
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.
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