Buying from a seller who is not represented by a broker
You are interested in a property, but you find that the seller is selling by himself or through a for-sale-by-owner company? In accordance with the public protection mission entrusted to it by the Real Estate Brokerage Act, here is how the OACIQ oversees the activities of your broker to ensure that the transaction is carried out according to proper rules.
Your broker’s role
First of all, remember that if you sign a brokerage contract to purchase with your broker, you may either pay his compensation directly or add it to the purchase price offered on the immovable. In the latter case, it will be included in the mortgage loan.
In all cases, your broker must act in your best interests, while providing fair treatment to the seller. (In this regard, read the article entitled: What’s an exclusive brokerage contract?)
Furthermore, under his code of ethics, which provides that a broker must avoid placing himself in a conflict of interest situation, he cannot represent both the seller and you. Save for a few exceptions, when representing you, he cannot sign a brokerage contract or any other remuneration agreement with the seller.
In residential matters, if the immovable you are interested in is for sale by owner, your broker cannot sign a brokerage contract to sell with the seller because he is representing you and you are his client. He must act in your interest.
In addition to his duties during any purchase transaction, if the seller is not represented by a broker, your broker must in particular:
- check if, despite appearances, the property is listed by a broker;
- confirm the seller’s identity, since he is not represented by a broker;
- inform the seller that he must protect and promote the interests of the buyer he represents, while providing fair treatment to the seller;
- tell the seller that he may seek representation by a broker of his choice;
- If the seller refuses to seek representation by a broker of his choice, complete the Declarations by the seller of the immovable form with him.
In the Declarations by the seller of the immovable form, the seller must record everything he knows about his property in good faith and to the best of his knowledge. This minimizes the risks of lawsuits against the seller and allows you, as a buyer, to gain a better understanding of the immovable in order to make an informed decision. Should the seller refuse to complete the Declarations by the seller of the immovable form before getting the promise to purchase, a condition requiring the seller to provide his declarations within a given period should be included in this promise.
Once the seller has accepted your offer, your broker will ask for your permission to negotiate an agreement with the seller to advertise the sale of the immovable.
For any questions, please contact Info OACIQ by email at email@example.com or by telephone at 450-462-9800 or 1-800-440-7170.