Public articles
Notice to the Land Register in case of land contamination
The Environment Quality Act (''the Act'') establishes rules regarding land protection and rehabilitation in case of contamination. It is supplemented by the Land Protection and Rehabilitation Regulation, whose purpose includes setting out the types of industrial or commercial activities that require a particular treatment and establishing contamination limit values beyond which rehabilitation measures must be undertaken.
Abiding by the Act respecting Tourist Accommodation Establishments
In the course of their activities, some licence holders act as intermediaries for the short-term rental of cottages, houses or apartments. Considering their duty to verify, inform and advise, these brokers would be well-advised to know the ins and outs of the Act respecting Tourist Accommodation Establishments.
Share purchase for exclusive use of a dwelling
There is a method of acquiring real estate that all real estate brokers must acquaint themselves with. It is a process, sometimes called ''securitization'', by which a buyer acquires, on the one hand, a number of shares in a corporation (formerly called company) whose main asset is an immovable and, on the other hand, under a leasing agreement inseparable from the share acquisition agreement, the exclusive use of a given apartment in the immovable. The buyer then holds all rights of use to this apartment and may, in principle, occupy it or lease it. In this type of transaction, the acquisition of shares is therefore indivisible from the right to occupy an apartment specifically tied to the shares acquired.
Notaries and lawyers must act “in the course of their practice”... or be OACIQ licence holders
Note: This article refers to a judgement rendered between 2004 and 2012, at the time when the old Real Estate Brokerage Act (R.S.Q. c. C-73.1) and its regulations were in force. Therefore, the following text refers to the vocabulary applicable at that time. However, the following analysis remains relevant under the Real Estate Brokerage Act (R.S.Q. C-73.2) that came into force on May 1, 2010 and updated on July 13, 2018 after the adoption of Bill 141.
The statement of registration: sometimes a condition for issuing a licence
Filing a statement of registration can sometimes be one of the conditions for issuance of a licence. The OACIQ must also comply with the Act respecting the legal publicity of enterprises, which is why it requires a copy of this statement to issue a licence.
Cancellation of a previously accepted promise to purchase
Clause R2.3 of Annex R - Residential immovable allows the seller to accept a new promise to purchase conditional upon the cancellation of a previously accepted promise to purchase.
Exclusive brokerage contract: can the broker authorize his client to offer the immovable for sale by himself?
Some owners wishing to sign a brokerage contract ask to be able to market their immovable to find prospective buyers, too.
How to use the mandatory form Declarations by the seller of the immovable
The Declarations by the seller of the immovable form, mandatory since July 2012, must be used for all transactions involving the sale, by a natural person, of a chiefly residential immovable containing less than 5 dwellings, including immovables held in undivided co-ownership. For any transaction involving a divided co-ownership, brokers must now use the Declaration by the seller of the immovable – Divided co-ownership form.
Property off the market
Sometimes during the term of an irrevocable exclusive brokerage contract, the seller may no longer wish to sell his immovable. In such a case, and after agreement, the seller’s broker can put an end to the contract (termination) or, if there is no contract termination agreement, must take the property off the market after explaining the scope of this decision to the seller.
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)
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).
Factors that may affect the decision of a buyer
Any broker has the obligation to inform the parties engaged in a transaction of any known factor that may adversely affect buyers or sellers or the very object of transaction.
Remuneration to be paid to the broker’s business corporation by the broker’s agency
Since January 1, 2012, a broker acting on behalf of an agency has been able to carry out his activities within a business corporation (company) which he controls. The remuneration formerly payable to the broker will therefore be payable to this corporation.
Water supply, wells and septic tanks
When a transaction concerns a property that is not serviced by a municipal water system or equipped with a wastewater treatment system, financial institutions usually want assurances that the water is drinkable or the system is up to code before authorizing a loan.
Existing inspection report: What is the proper procedure for the real estate broker?
The Regulation respecting brokerage requirements, professional conduct of brokers and advertising (hereafter “the Regulation”) states that a broker or agency executive officer must take steps, in accordance with accepted practice, to learn of any factors that may adversely affect the party represented by them or the agency for which they act, the parties to the transaction or the very object of the transaction.
Telephone solicitation rules
All real estate agencies and brokers who canvass using unverified telephone lists are subject to CRTC Rules.
Moving? Change you address easily!
You have just completed a transaction and we are so happy for you. Now you need to prepare for moving.
“Residential” or “Commercial” Brokerage: Ethical obligations are the same for all
Some real estate brokers and agencies offer services in more than one field of practice, i.e. residential and commercial and therefore do not specialize only in commercial transactions.
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.
Verifying right of ownership restrictions and consulting the online land register
Just as he must verify the features of an immovable, the real estate broker must know and verify the characteristics of the immovable’s right of ownership under private and public law.
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