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.

Should we provide  buyers’ brokers with the co-ownership documents, such as the declaration of co-ownership, the by-law of the immovable,  , the minutes of co-owners’ meetings, the insurance policy of the whole co-ownership, the description of the private portion, the documents of the self-insurance fund and the financial statements?

Yes, the broker must provide these documents to buyers’ brokers and to unrepresented buyers. This is part of his duty to inform.

The buyer’s broker has a duty to advise his client properly. To fulfill this role, this broker must be able to obtain sensitive information about the co-ownership. Indeed, the answers to many questions of a buyer are found in the various documents produced in the co-ownership register. The same applies, for example, to the financial situation of the co-ownership, the insurability of the immovable or to the important elements set out in the by-law of the immovable (possibility of leasing, presence of animals, etc.). The analysis of this rigorously collated documentation enables a broker to guide the buyer and make an informed judgment regarding the decision to buy or not.

However, it is important to point out that the use of these documents by brokers must be limited to the context of the real estate transaction concerned, i.e., only for drafting a promise to purchase. That’s why both the seller’s broker and the buyer’s broker must take specific security measures to protect the confidentiality of documents.

In the event the buyer or his broker could not read these documents before drafting a promise to purchase, then it becomes important to complete clause 9.1 of the promise to purchase to make the promise conditional upon the examination of documents by the buyer, and this to his full satisfaction.

Quick reference guide

To help you document your divided co-ownership transaction records properly, check out this quick reference guide which lists the documents to be included in your records. This is not an exhaustive list, and other documents may need to be included in the brokerage contract or transaction record, depending on the particulars of each brokerage transaction (RIS, DSD, certificate of location, etc.).

• Quick reference guide - Post reform divided co-ownership (PDF)