Public articles

June 12, 2012

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)

November 01, 2006

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.

October 21, 2005

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.

March 20, 2005

About the brokerage contract expiry date

An expiry date must be entered in the appropriate space on the mandatory Brokerage contract form.

June 03, 2004

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.

January 21, 2004

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.

August 07, 2002

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.

November 01, 2001

Promise to purchase and financing of an immovable

Financing can make or break a real estate transaction. Therefore, in order to properly advise his clients, it is important that a real estate broker fully understand the obligations relating to new hypothecary loan.

House for Sale by Owner

When seeing a "House for Sale by Owner" sign, you initiated the conversation with the owner and offered to do business with him to sell his property. He then tells you: "I do not want to know anything about a brokerage contract, but if you find me a buyer, I'll give you a little something.” Despite that, you start looking for the future buyer, obviously unaware that this approach could cost you a lot. 

Presenting several promises to purchase

Presenting several promises to purchase raises numerous practical questions for licence holders. Let’s take a look at a few potential scenarios where several promises to purchase are presented simultaneously to the seller.

August 31, 1994

The real estate broker’s right to compensation after the expiry of the brokerage contract

The Info OACIQ information centre often gets calls from selling owners inquiring about the risk of signing a new brokerage contract upon the expiry of the initial contract. They wonder if they are therefore released of their obligation to pay compensation under the first contract.

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