The certificate of location describing the current physical state of the immovable: Important elements to remember

Under various brokerage contracts and promises to purchase developed by the OACIQ, the seller undertakes to provide the broker or the buyer, as the case may be, with a certificate of location “describing the current physical state of premises.”

Although this requirement is not new, certain clarifications are needed to ensure that the clauses pertaining to the certificate of location on the brokerage contract or promise to purchase forms are interpreted in the same way by everyone. These clauses ensure that brokers work with an up-to-date certificate and that prospective buyers will have a document informing them adequately on the condition of the property which they are proposing to buy.

Submission of the certificate of location
Remember that, regardless of whether or not the seller has a certificate of location in his possession, the obligation to provide one remains. In the absence of a certificate, the seller will have to prepare one.

In addition, note that obtaining title insurance does not in any way release the seller from his obligation to provide an up-to-date certificate of location, and that whether or not the purchase of the immovable is financed by a loan secured by immovable hypothec.

In accordance with clause 10.3 of various promise to purchase forms (10.5 for immovables held in divided co-ownership), the certificate will be submitted to the notary before the signing of the deed of sale. Should the buyer wish to obtain the certificate of location to have a look at it but without waiving its subsequent verification by the notary, we invite you to read the article Obtainment of the certificate of location: what clause should be used in the promise to purchase? for more details on how to proceed.

The “current physical state of premises”
As required in the brokerage contract and promise to purchase forms, the certificate of location submitted must describe the current physical state of the premises.

This expression refers not only to the physical condition of the premises (adding a swimming pool, shed, fence), but also to changes in the regulations that may affect the findings made in the certificate of location. Therefore, a change, particularly to zoning regulations (e.g. premises located within a flood zone, erosion zone or a landslide zone), would require the making of a new certificate of location.

Fees
The obligation to provide a new certificate of location describing the current physical state of premises is the responsibility of the seller, who must bear the cost thereof. However, if a buyer wishes to obtain another certificate of location, he must do so at his own expense.

Time frame
When a new certificate of location is required, it is important to take into account the time period for its preparation (usually four [4] to six [6] weeks), and the fact that the notary should be able to take a look at it, as for any existing certificate of location, at least twenty (20) days prior to the signing of the deed of sale.

Thereby, the broker should ensure that the new certificate of location is requested as soon as possible after the signing of the brokerage contract, and not wait until a promise to purchase is presented.

Co-ownership
Regarding co-ownerships, the seller undertakes to provide the buyer with a certificate of location describing the current state of “the whole co-ownership.”

Insofar as a certificate of location describing the whole co-ownership is available and includes a description of the private portion, its remittance will be satisfactory. The certificate will then present each of the units, including their lot number and door number, as well as their dimensions and area. In this regard, entering only the lot number or door number without additional description is not enough. Moreover, if the available certificate is outdated or does not contain a sufficient description of the private portion, a new certificate must be provided.

Since the certificate provided must always describe the private portion, the broker should never cross out the word “including the private portion” under the clause relating to the certificate of location of various brokerage contracts, and under clause 10.3 of the different promise to purchase forms (10.5 for immovables held in divided co-ownership).