Forms and contracts
Before you buy or sell a property, why not take a little time to review the OACIQ’s mandatory and recommended forms used by your broker? They will give you a good idea of the main steps involved in a real estate transaction.
Please note that these forms are provided for illustration purposes only and cannot be used for an actual transaction.
Mandatory and recommended brokerage forms have been used for more than a year now and the vast majority of brokers seem to make a good use of them.
Last January, 1,869 agency executive officers and brokers acting on their own account were invited to complete the self-inspection questionnaire about their practice in 2012. This annual exercise is a great way to follow the development of the profession to ultimately improve some aspects of the practice. Here are the trends arising from answers to the questionnaire.
Licence issuance and reactivation
Period required to process a request for issuance, transfer, lifting of suspension, suspension or revocation
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.
Many real estate brokers are wondering if it is a good idea to let the seller fill out the form Declarations by the seller of the immovable (DS) himself, or if the broker should do it as a matter of course. The OACIQ recommends that the form be filled out by the broker, with the seller’s assistance. There are several arguments in favour of this:
The real estate broker must ensure that the rights and obligations of the parties to a transaction are recorded in writing and reflect adequately their will. In addition, he must always be capable of proving the accuracy of the information he provides to the public or to another licence holder.
Presenting several promises to purchase raises numerous practical questions for real estate agencies and brokers. Let’s take a look at a few potential scenarios where several promises to purchase are presented simultaneously to the seller.
Which copy goes to whom when signing the paper version of a contract, a transaction proposal or a form?
The Info ACAIQ Information Center has observed a lack of consistency among licence holders in the way the paper versions of completed and signed contracts, transaction proposals or forms are remitted to the parties concerned. In residential real estate, omitting to give a duplicate of the brokerage contract to sell or to purchase to the client can lead to serious repercussions, as we will discuss below.
Under section 28 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising, a broker who, directly or indirectly, holds or proposes to acquire an interest in an immovable or enterprise that is to be purchased, sold or exchanged, or proposes to act as lender in connection with a loan secured by immovable hypothec must, before the drafting or acceptance of the transaction proposal, send a written notice to the prospective contracting party (e.g. the seller, the buyer or the borrower) notably disclosing his quality as licence holder.
Pyrite is an iron sulphide molecule present in the stone fill used in construction. It may therefore be found around foundation drains and under the concrete slabs of the cellar or the garage. Under certain conditions, pyrite can oxidize and produce a sort of white powder that swells, causing, among other things, the slab to lift and producing cracks in the foundation and partitions. These problems may appear several years after construction.