2.2 Adverse factors

A licensee must inform the party represented and all other parties to a transaction of any known factor that may adversely affect the parties or the object of the transaction.¹

Adverse factors may of course relate to the quality of the immovable and its functionality. But they can also vary depending on the parties involved, their values, perceptions, religion, age, etc. They can be totally subjective and not related to the objective qualities of the immovable. For example, some people may not want to buy a property that belonged to a person suspected of being a member of a criminal organization or where there are concerns about unexplained phenomenon.

Once a licensee has knowledge of a factor which may adversely affect a party to the transaction, regardless of the source of information, he must disclose it, after making his due diligence. However, due diligence does not mean an investigation.

The information the licensee discloses must be the information he received. But the licensee is also required to be proactive, i.e. he should not wait for the buyer’s questions in this regard. After all, the buyer has no reason to think of such a situation or ask questions about it. Also,  even if the information or events date back a few years, they can still be relevant and must be disclosed.

The licensee must also be able to provide the source of this information, allowing him to provide objective information.

The buyer's broker who receives information from the seller or the seller's broker must pass it on to his client. 

He must also provide him with all the necessary explanations to ensure that he understands and advise him on the possible implications or consequences on the transaction.  

In addition, it is important that the buyer's broker understands his client's beliefs and values. This way, the buyer's broker will be able to ensure that his client makes an informed decision while respecting his buyer's profile.

¹ S. 85 RBR