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.
Examples of cases where its use is mandatory or not recommended.
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, which must be used as of July 1, 2012, include now the obligation to specify whether or not an immovable is subject to goods and services tax (GST) and Québec sales tax (QST).
Since July 1, 2012, it’s the rules set forth in the new Regulation respecting contracts and forms which govern any brokerage contract or transaction proposal. These rules apply to residential and commercial real estate brokerage as well as mortgage brokerage.
Residential immovable: mandatory forms and statements in any brokerage contract or transaction proposal concerning the sale, purchase, exchange or lease
To ensure a better protection of public, the OACIQ published mandatory forms regarding chiefly residential immovables containing less than 5 dwellings. These forms were designed taking into account the rules provided in the new Regulation respecting contracts and forms. We will deal with them in the first part of this article. Then, we will discuss the mandatory statements that brokers must include in their contracts or transaction proposals regarding a chiefly residential immovable containing less than 5 dwellings, in particular cases where the forms will not necessarily be used by brokers.
Since May 1, a ''Transitional Annex'' form must be attached to any brokerage contract entered into on or after that date. We remind you that a PDF version of this form was made available on Synbad on April 20. A carbonless paper version is also available from the Synbad online store.
On September 28, 2012, the OACIQ Board of Directors adopted the following forms which must be used as of December 1, 2012. Each of these forms below will be accompanied by an explanatory leaflet.
When and how should the form “Amendments and Notice of Fulfilment of Conditions” be used?
Serge Brousseau,chairman David Farber Paul Robert Daniel Pelchat
More and more owners are willing to sign a brokerage contract, but require putting their property on the market and eventually selling it by themselves. Be aware that a “Brokerage contract – Sale” can be amended to allow the client to sell his property by himself without affecting the exclusive nature of the contract.
The Real Estate Brokerage Act and brokerage transactions relating to the sale of an enterprise
Under the Real Estate Brokerage Act, which came into force on May 1, 2010, a brokerage transaction relating to the sale of an enterprise remains subject to this Act only if the transaction is made under a single contract and the enterprise’s property, according to its market value, consists mainly of immovable property.