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Assessing the sale price: A key responsibility for real estate brokers One of the essential tasks of the real estate broker is to establish the selling price of a property or advise the seller to do so in an informed manner. To determine the property's fair market value, the real estate broker must, among other things, perform a comparative analysis with other similar properties recently sold in the same area.

The selling price must reflect the market reality. When a broker advises his selling client about the value of a building or enterprise, he must give an opinion that is based on and supported by generally accepted practices.1 In addition, a broker must not provide or advertise false, misleading, or incomplete information, notably as to the selling price of a property. The advertised price must be the one set out in the brokerage contract.2 Furthermore, setting a price that is significantly lower than the market value and the comparables used with the aim of creating competition is not allowed.

Once a brokerage contract is signed, the real estate broker must gather and verify a range of essential information. This includes lot area, amount of taxes, general condition of the building and its main components (roof, electrical system, septic tank, artesian well, etc.), as well as previous declarations or any other existing expert reports concerning the property. It is therefore essential that the real estate broker take the necessary steps to obtain all the information regarding the property, particularly by completing the Declarations by the seller of the immovable form (or Declarations by the seller of the immovableDivided co-ownership), as well as with all relevant documents. The real estate broker must also take into account the seller's needs and situation to establish a fair selling price, for example, succession, separation, legal warranty of quality, etc.

To establish the fair market value of a property, the broker may also advise and inform the seller of the factors that may have a positive or negative effect on the property's selling price–location, property dimensions, year of construction, condition of the property, number of rooms and their layout, materials used, landscaping, current market characteristics, etc.

During the term of his brokerage contract, the real estate broker must advise and inform the seller so that the seller can adjust the price of the property according to the changing market or even review it for any other reasons.

1 Section 76 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising [RBR]
2 Section 112 of the RBR

Reference number
122864
Last update
June 19, 2025