Public articles
Special practices in commercial real estate brokerage
During the review of requests submitted to it, the Assistance Department noted that certain practices used in commercial real estate brokerage do not promote collaboration or go against the regulations. The aim of this article is to inform commercial real estate brokers of good practices to be adopted to avoid certain disputes. Here are a few examples:
CMHC is modifying its policies regarding loan insurance for homeowners
CMHC is implementing policy modifications concerning loan insurance for homeowners (including rental) 1 to 4 unit properties and providing greater clarification on the requirements surrounding the verification of the borrower’s income and employment. One of the changes is that since June 30, 2015, CMHC no longer allows cash backs granted by the lender to be used as down payment to satisfy minimum equity requirements. To learn about these changes and their effective date, read the following text of the CMHC: http://www.cmhc-schl.gc.ca/en/hoficlincl/moloin/rean/rean_056.cfm.
Subscription service to electronic forms
We are in an era where everything is available electronically. The real estate brokerage field is no exception. Considering the habits of most brokers and consumer needs, we decided to prioritize the use of OACIQ electronic forms through the InstanetFormsTM platform.
Commercial brokerage: confidentiality of information and duty to collaborate
The commercial real estate broker often faces a dilemma when it comes to respecting his duty to collaborate with other brokers, while ensuring that sensitive information regarding the sale of a business is not disclosed to a competitor, for instance. Since all brokers are subject to the duty to collaborate, the broker who engages in commercial transactions will not evade his duty to share information and to agree in advance to share remuneration with a buyer’s broker. So how to reconcile everything?
Clarifications about financing and inspection deadlines
Are statutory holidays, such as Easter Monday, Québec National Holiday and Labour Day, as well as weekends, counted in the deadlines provided for the obtainment of a mortgage undertaking and for building inspection?
Mould contamination in homes used as marijuana growhouses
In the last several years, the culture of cannabis, also known as marijuana, has seriously expanded across Canada.
Who owns an agency’s brokerage contracts?
The answer to this question resides in the parties to the brokerage contract. In this case, the brokerage contract is entered into by the selling owner and the agency, which is represented by the broker. The broker is not a party to the contract per se.
Firms accredited by the OACIQ for electronic document management (EDM)
The OACIQ believes that the proper use of an EDM system promotes compliance with regulatory standards adopted under the Real Estate Brokerage Act (R.S.Q., c. C-73.2) for the keeping of records, books and registers.
Resolutory clause or 180-day clause
One of the main advantages of the mandatory Brokerage contract – Sale is the protection granted to brokers by the resolutory clause or 180-day clause.
The lessee’s right to maintain occupancy and the repossession of a dwelling by the owner
The Civil Code of Québec grants several rights to the lessee of a dwelling, including the right to maintain occupancy. Basically, this right allows the lessee to occupy the dwelling for as long as he wishes. This means he can only be evicted under very specific circumstances provided in the law. The sale of the immovable does not impact this right, which the new owner must uphold. Not only does the lessee have the right to stay in his dwelling for the duration of the initial lease, but he is also entitled to the automatic renewal of the lease (renewal of right) at term. At term, the lease is renewed for the same period or, if the initial term was more than a year, for a period of 12 months.
Chain transactions…allow a time period for the signing of the deed of sale
When it comes to signing the act of sale before the notary, a common concern for the seller is to get his money as quickly as possible or to schedule a quick signing date. Remember that before distributing funds, the notary must always publish acts and perform many checks in the Land register, in addition to obtaining from the creditor a commitment to cancel the existing charges (for example the seller’s mortgage).
The guarantee for new residential buildings
Any buyer of a building referred to in the Regulation respecting the guarantee plan for new residential buildings has an unwaivable mandatory guarantee plan.
Co-ownership documents: Essential for an informed decision
To answer some questions regarding the co-ownership documents, here are the good practices to be adopted.
The BCS and the buy-back by the co-owning spouse
Mrs. Tremblay and Mr. Rashid are in the process of separating and decide to sell their ranch-style house, which they bought together three years ago. They sign an Exclusive brokerage contract – Sale (BCS) with Mr. Gagné, real estate broker. Two months later, Mrs. Tremblay wishes to buy back her spouse’s share.
Commercial real estate brokerage: when a broker leaves an agency
Sometimes a broker changes agency, decides to act on his own account or retire. The rules set out in the Regulation respecting brokerage requirements, professional conduct of brokers and advertising regarding agency change notices, including sections 24 and 26*, also apply in the commercial field.
Open house visits: security first!
Even though the vast majority of open house visits run smoothly, it’s better to be cautious, because to be informed by a seller that valuables have disappeared is never pleasant.
Classified heritage property: the Minister’s right of pre-emption in case of sale
Québec’s Minister of Culture and Communications has a right of pre-emption, also known as a “right of preference”, on any immovable classified as heritage property or situated on a classified heritage site. This means that the Minister may acquire a property by preference over any other purchaser at the price the purchaser is willing to pay. In accordance with the Cultural Heritage Act, the Minister must be given notice prior to the sale of such a property so that he may decide whether to exercise this right.
Tasks to accomplish for a broker: secretary vs assistant
What are the tasks that a real estate broker’s secretary (non-licence holder) can do compared to those of a real estate broker’s assistant (licence holder)?
Recycling bin: standards to be checked
In many Québec municipalities, the recycling bin remains the city’s property at the address to which it was delivered. Therefore, when you engage in a transaction for the sale of an immovable, a sound practice is to invite the seller to check the standards in this regard with his municipality and remind him, if necessary, that the recycling bin must remain on site at the time of moving.
On the promise to purchase forms : how to provide for the financing of renovations or taxes
Financing of renovations
As soon as they return from their honeymoon, Mrs. Rhonda Higgins and Mr. Osvaldo Heredia visit 17 houses in less than a month with their broker, Aimée Detousse. Mrs. Higgins and Mr. Heredia are bound by a mortgage brokerage contract (MBC) to mortgage broker Karina Tarinova.
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