Frequently commited errors - Certification examination
While completing the Brokerage contract – Sale form, the client asks you to advertise the property on social media. In which section of the form should you enter this information?
Any advertising must be entered in section 11 (Other declarations and conditions) of the Brokerage contract – Sale form.
Advertising must not be entered in section 6 (Information Listing Services) of the Brokerage contract – Sale form because the services referred to in this section are those to which brokers subscribe and exclude advertising for the general public on various websites or in newspapers.
When completing a promise to purchase, my clients ask me to add a clause concerning certain work to be performed by the seller. What should such a clause include?
If you have to draft a standard clause, under section 12.1 of the Promise to purchase form, make sure that it is complete. To be considered as complete, it must include:
Something to be done by a specific person
Details of all the work to be performed.
A deadline to do so
The deadline can be calculated in calendar days after acceptance. The expression “working days” should never be used.
A notice to be sent whether or not the undertaking is obtained
Provide for the sending of a written notice or document within the same period or within a different period, as the case may be, to indicate whether or not the conditions are met.
A consequence: null and void
Provide for a consequence if the condition is not fulfilled. For instance, if the work is not completed within the specified period, provide for the promise to purchase to be null and void, or provide for monetary compensation that will be paid by the seller.
My buying client would like to obtain a copy of the certificate of location from the seller. Do I have to request this document under clause 9.1 (Review of Documents by Buyer) of the Promise to purchase form?
It could be risky to request the certificate of location under clause 9.1 of promise to purchase form where the buyer simply wishes to get it before visiting the notary, without having a professional examine the document.
The recommended practice to protect the parties and ensure the smooth progress of transaction is to include a condition under section 12 (Other declarations and conditions) of the Promise to purchase form.
When selling a property, when should I complete and have the Declarations by the seller of the immovable form signed.
The Declarations by the seller of the immovable form should be completed by the real estate broker, with the seller’s help, based on the information and documents provided by the latter. This must be done at the time of signing of the brokerage contract. The seller must then answer the questions on this form to the best of his knowledge and give the broker a copy of all substantiating documentation (work done on the immovable, equipment installed, invoices, etc.).
My client wants to buy a condo built 10 years ago. To what document do I have to refer to complete section 3 (Summary description of the immovable) of the Promise to purchase – Divided co-ownership form?
In the case of a promise to purchase a condominium, the buyer’s broker must use the information available in the detailed description sheet of the seller’s broker. He will find all necessary information to complete the section on the summary description of the immovable.
In the case of a brokerage contract concerning a condominium, the seller’s broker may refer to the cadastral plan to obtain all information he needs to complete section 3 of the form and the description sheet.
My selling client calls to tell me that his sister would like to buy his property. He asks me to reduce my compensation by half (i.e. 3%) if his sister buys the immovable within 60 days following the signing of the brokerage contract. What shall I do?
To do this, you must complete with your client clause 2.2 (Reduced remuneration in case of promise to purchase by a designated person) of the recommended form Annex RCOM – Reduced compensation.
This clause results in a reduction of the broker’s remuneration according to the parameters specified therein, regardless of the amount or percentage of remuneration provided for in the clause “Remuneration (plus taxes)” of the brokerage contract form.
Can I attach the Identity Verification form to my client’s Promise to purchase?
No! The personal information collected by the broker as part of the identity verification process must not be disclosed to the seller or the broker representing him, when presenting a promise to purchase.
The Identity Verification form will be placed on record to show that the identity of the buyer was verified.
Under which circumstances should I have my client sign the acknowledgment of receipt of the Declarations by the seller of the immovable form?
The acknowledgment of receipt in section D15 of the Declarations by the seller of the immovable form must be completed and signed by the buyer and his witness before or at the same time as the signing of a promise to purchase. By signing, the buyer acknowledges having received a copy of the Declarations by the seller of the immovable form.
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Section 3 of the Brokerage contract – Sale form and Promise to purchase form refers to the immovable, it indicates that: “The immovable, with building erected or to be erected thereon, if applicable, is designated as follows...”. What are the dimensions and area that should be entered, those of the erected building (house) or of the lot?
The dimensions and area referred to in section 3 (Summary description of the immovable) are those of the lot. For the dimensions, the measurements must be indicated in meters or feet. For the area, the measures must be indicated in square meters or square feet. The corresponding boxes must also be checked.
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When completing the Declarations by the seller of the immovable form with my selling client, what do I have to indicate in section D14 Details and major improvements to the immovable?
Any affirmative answer on the Declarations by the seller of the immovable form must be detailed in section D14 of the form and must include the number of the clause to which the details apply.
In addition, all information to be shared between the parties in a transaction must also be added to section 11 (Other declarations and conditions) of the brokerage contract or section 12 of the promise to purchase. The Annex G – General can also be used to complete and detail this information.