Everything you need to know about buying, selling, and real estate brokerage in Quebec.
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It’s one of the oldest commercial structures in human history. Merchants in ancient Mesopotamia earned a share of proceeds in exchange for access to trade routes and market knowledge that their clients couldn’t access independently. Hammurabi’s Code, around 1755 BCE, already had formal provisions governing these broker relationships. The percentage was compensation for something genuinely irreplaceable: access to information and distant markets that the seller could not reach on their own.
Yes, in the late 1800s it made complete sense. Property information was fragmented and deliberately hard to access. Sales prices weren’t published. Knowing what a home had last sold for, or which properties were even available, required a network of local relationships and hours of legwork. The early real estate broker was, above all, an information broker. The percentage was payment for data.
Stockbrokers held their fixed percentage for 183 years, until the SEC eliminated fixed commission schedules on May 1, 1975. Within months, institutional rates dropped 26%, and the trend toward zero-fee online platforms eventually followed. Travel brokers charged commissions throughout the 20th century, then the internet arrived in the mid-1990s. By 2002, most major North American airlines had eliminated broker commissions entirely. Insurance is following more slowly, but comparison platforms and direct-to-consumer models are eroding the same ground.
The information asymmetry that justified the original model was dismantled, but the commission barely moved. REALTOR.ca launched in Canada in 1996. Centris went public-facing around 2000. Google Maps arrived in 2005, Street View in 2007. Today, 97% of homebuyers use the internet in their property search. A buyer arriving at a showing has already reviewed the municipal assessment, read the seller declarations, walked the street on Street View, researched the demographics, located the schools. What would have taken a seasoned broker three days of legwork in 1985 takes the modern buyer an hour at their kitchen table. The job got measurably easier. The fee didn’t move.
Yes, in some genuine ways. Regulatory requirements have increased significantly, particularly in Quebec, where the Brokerage Act imposes disclosure obligations, conflict-of-interest rules, and documentation standards that didn’t exist a generation ago. Transactions now involve more parties, more conditions, and more legal exposure. The parts that got harder are mostly the legal and transactional parts, which represent a relatively small portion of the total hours a commission model is supposed to justify. What got dramatically easier is everything related to information.
Only if you look at half the picture. The job changed shape. Some parts got harder, more parts got easier, and the net effect is probably close to a wash. The argument isn’t that brokers have it easy. It’s that the pricing model was never recalibrated to reflect what the job actually became. The rate kept climbing in absolute dollars as home prices rose, without any adjustment for the parts of the workload that technology eliminated.
· Listings are digital: Centris, Realtor.ca, and social platforms distribute a home to thousands of buyers instantly. · Paperwork is automated: e-signatures, OACIQ-compliant digital forms, and transaction management tools have eliminated most of the manual back-and-forth. · Showings are streamlined: smart lockboxes, virtual tours, scheduling tools. · Data is democratized: JLR, municipal assessment rolls, and APCIQ market reports give accurate comps in minutes. The work is genuinely lighter and faster than it was 20 years ago — but the percentage fee hasn’t followed.
· You pay for the work, not the price tag. A flat fee reflects what’s actually being done: marketing, negotiation, contract management, closing. The fee is the same whether your home sells for $400K or $900K. · Transparent pricing from day one. No surprises at closing. · Keep more of your equity. On a $600K sale, a traditional 5% commission is $30,000. A flat fee can save tens of thousands. · Same service, modern pricing. Flat fee doesn’t mean reduced service — it means passing on the efficiency gains technology created. · Aligned incentives. A flat-fee broker isn’t motivated to push you toward a higher price just to boost their own cut.
The seller, exclusively. When the profession formalized in the late 19th and early 20th centuries, the legal and ethical structure was unambiguous: the broker represented the seller. Full stop. If you were a buyer walking into a transaction, the person showing you homes was not your advocate. They were the seller’s broker, bound by fiduciary duty to secure the best possible price and terms for the person who hired them.
Also working for the seller. This is where the concept of the sub-broker comes in. Under the original cooperative commission structure, when a listing broker shared a property through the MLS, any other broker who brought a buyer to that property was legally acting as a sub-broker of the listing broker, and by extension, of the seller. The buyer had no representation whatsoever. The person driving them around, answering their questions, and helping them evaluate whether to make an offer was legally obligated to report anything useful back to the seller’s side. Interestingly, at the origins the listing commission did not get higher because there was a buyer’s broker involved. The listing broker shared his original commission of generally 2.5%.
Correct, and most buyers had no idea. A landmark survey conducted by the US Federal Trade Commission in the 1980s revealed that 71% of buyers wrongly believed the broker showing them homes was working for them. Consumers had no idea the friendly broker in the passenger seat was legally bound to report their maximum budget back to the seller. It was a profound and largely invisible conflict of interest that persisted for decades.
The shift was driven by court rulings and regulatory reform in the early 1990s. In Canada, legal scholars had flagged a specific danger: because the buyer’s broker was legally a sub-broker of the seller, the seller bore vicarious liability for that broker’s conduct. If a sub-broker made a false promise to a buyer to close a deal, the buyer could sue not only the broker but the seller themselves. The Ontario Court of Appeal’s 1991 ruling in Knoch Estate v. Jon Picken Ltd. strictly reinforced fiduciary obligations, and the Supreme Court of Canada cemented that position in Soulos v. Korkontzilas in 1997. Provincial regulators rewrote their licensing curricula, stripped sub-agency out as the default, and introduced mandatory disclosure forms.
Through the Brokerage Contract — Purchase, or BCP. Once a buyer signs this agreement, their broker is legally bound to represent their interests exclusively, with the full fiduciary duties that implies. On paper, it solved the representation problem the sub-agency model had created.
Not entirely. The BCP addresses who the broker represents. It does nothing about who pays them. And crucially, it only applies when a buyer has signed it.
The OACIQ requires buyers to sign a mandatory form called AVIS-CCA before a collaborating broker can even show them a property. The form states plainly: the broker who has not signed a purchase brokerage contract does not represent and does not defend the interests of the buyer. The broker works, de facto, for the seller. In other words, without a signed BCP, the buyer’s broker is legally working for the other side. The sub-agency principle was never abolished in Quebec. It was made opt-in. The default, for any buyer who walks through a door without a signed contract, remains what it was in 1955.
It was baked into the MLS system from the beginning, and it made sense at the time. When the buyer’s broker was legally a sub-broker of the seller, paying them from the seller’s proceeds was entirely logical. They were the seller’s extended sales force. The problem is that when the legal relationship changed in the 1990s and buyer representation became the standard, the payment structure never changed with it. The industry simply hardwired the old compensation model into the new legal framework.
No. The BCP resolves the representation problem. It cannot resolve the payment problem, because the payment problem is upstream of the contract itself. In Quebec, the buyer’s broker is almost always paid by the seller, out of the seller’s proceeds. That single fact generates a conflict of interest that exists regardless of what the BCP says, regardless of the rate it specifies, and regardless of the broker’s personal ethics. As long as the seller is the primary source of the payment, the buyer’s broker is structurally pulled toward the side funding them.
Yes, and it has nothing to do with who pays whom. The BCP retribution, whatever its rate, is calculated as a percentage of the final purchase price. The buyer’s broker is therefore legally bound to negotiate the lowest possible price for their client, while earning more money the higher that price climbs. On a $600,000 purchase at 2%, the buyer’s broker earns $12,000. If that same broker allowed the price to settle at $625,000 instead, they earn $12,500. The $500 difference is the structural incentive built into every single transaction.
More than it probably intended to. The OACIQ maintains an advisory page on its own website describing brokers steering clients away from properties with lower commission offers, cites the provision that prohibits it, and references the CBC Marketplace investigation that documented it with hidden cameras. The regulator is simultaneously warning brokers not to steer and maintaining the mandatory commission-sharing structure that makes steering economically rational.
In October 2024, Canada’s Competition Bureau obtained a federal court order to formally investigate CREA’s commission rules, suspecting they violate the abuse-of-dominance provisions of the Competition Act. In February 2026, the Bureau expanded the investigation to include Greater Vancouver REALTORS. The explicit mandate is to determine whether mandatory MLS rules facilitate the exact steering the CBC documented, artificially inflating transaction costs for Canadians by billions of dollars. Quebec, through the OACIQ and the APCIQ’s provincial collaboration rules, hasn’t faced the same direct scrutiny yet. But the structure under investigation federally is the same one operating here.
Not in the way most people assume. The idea that a higher commission signals better service, stronger protection, and superior outcomes sounds logical, but in practice it’s a myth. The evidence doesn’t support any meaningful relationship between commission percentage and the quality of service a seller actually receives.
Largely because it was never seriously challenged. In Quebec, sellers hand over 4% to 5% of their home’s sale price almost reflexively, operating on an assumption that has never been rigorously tested. The model persisted not because it reflects value delivered, but because the industry had every incentive to protect it.
Mostly branding. When you hand over 4% of a $600,000 home, you’re not buying superior protection or better outcomes. In many cases, you’re paying for a nicer headshot on a park bench advertisement and a more impressive office lobby. A higher commission correlates with a broker’s marketing investment in themselves, not with their ethical conduct or negotiating results.
It’s more complicated than that. The largest, most profitable real estate coaching businesses in North America are primarily teaching brokers how to justify their commissions, not how to serve their clients better. Tom Ferry, widely recognized as the top real estate coach in the industry, charges brokers between $6,500 and $32,000 per year. His program is built around scripts specifically designed to move a hesitant seller from “I’m not sure I want to pay 4%” to “I’d be foolish not to hire this broker.” The script doesn’t address whether the commission is justified. That’s objection neutralization, not customer service training.
Not primarily, no. Your home sells because it appears on Centris, where millions of pre-qualified buyers are already searching. The listing video’s main function is to market the broker. It goes on their YouTube channel, Instagram, website, and next listing presentation. Your property is the location. The broker is the subject. You pay for the production. They keep the asset for years after your sale has closed. If you decide on producing a listing video, it will be about your home, not a branding exercise for Rémi Chapadeau.
Lower than most people expect. To become a licensed real estate broker, you need to complete an AEC (Attestation d’études collégiales) in real estate, a college-level certificate program offered primarily through the Collège de l’immobilier du Québec. It can be completed in as little as three months of full-time study. There is no university degree required.
Real estate law, the Brokerage Act, valuation basics, mortgage financing, and professional ethics. After completing it, candidates must pass the OACIQ licensing exam and complete a supervised practice period before receiving their full broker’s license.
It adds important context. The professional being paid $20,000 to $28,000 to sell a home holds a three-month college certificate, not a law degree or an MBA. That’s not a knock on brokers; plenty of highly competent people hold that credential and do excellent work. The licensing threshold is roughly comparable to what’s required to become an insurance broker or a mortgage specialist, two fields where fee compression has been significant over the past two decades. The idea that percentage commissions reflect a rare or extraordinarily specialized expertise is hard to square with an entry requirement that can be met in a single season.
Almost entirely from Centris. The platform draws between 8 and 12 million monthly visits depending on the season, by a wide margin the dominant property search platform in the province. The buyer pool isn’t created by marketing. It already exists. At any given moment, somewhere between 5% and 10% of the population is actively ready to purchase, pre-approved, criteria defined, and searching on Centris. The moment your home appears on the platform, you have access to essentially the same buyer pool as every other listing, regardless of whether your broker spent $500 or $5,000 on supplemental marketing.
For most properties, yes. The actual marketing costs for a $400,000 listing and a $1,000,000 listing are largely identical: photography, video, and Centris placement cost the same regardless of sale price. The work doesn’t scale with property value. Only the commission does. There is no economic logic that justifies charging $40,000 to sell a $1,000,000 home when achieving the same Centris exposure costs precisely the same as it does on a $400,000 property. The percentage model is a pricing structure designed around what the market will bear, not what the service actually costs.
For a $500,000 listing, a flat fee of $4,950 covers the full lifecycle: market analysis, pricing strategy, photography and video coordination, Centris listing management, offer review, negotiation, and notarization coordination. On average, a listing of this complexity takes about 30 hours of professional time, which works out to roughly $165 per hour, consistent with what you’d pay a seasoned accountant or a specialized lawyer. It’s not a discount. It’s a professional rate for professional work, without the inflation that comes from percentage pricing.
That’s the standard industry critique, and it holds in some contexts, but it misunderstands the economics of how real estate actually works. A listing isn’t just a transaction. It’s a lead generation engine. On average, a single listing generates approximately three qualified buyers and one additional seller from the surrounding neighborhood. Open house visitors who didn’t win the offer stay active in the market. One listing, handled well, generates a pipeline of future business at no additional prospecting cost. A flat-fee listing that produces $4,950 in direct revenue can generate another $30,000 in buyer-side commissions from the same pool of contacts.
It’s worth thinking carefully about. The median income of Quebec seniors is approximately $30,000 per year. Their home, purchased decades ago and maintained through years of effort, often represents the vast majority of their net worth. Charging $20,000 to $25,000 in combined commissions to access that security isn’t premium service. It’s extraction from people who can least afford it.
Primarily a brand: a polished market presence, a confident pitch, and the psychological comfort that a high price point signals quality. That comfort is real; premium pricing functions as a trust signal in many industries. But in a market where the actual determinants of sale price are location, condition, and Centris exposure rather than the name on the sign, paying 4% of your home’s value for brand reassurance is a very expensive kind of comfort.
“Can you show me, hour by hour, what you’ll do to earn that money?” If they can’t answer that, or won’t, you already have your answer.
This form must be used when an exclusive brokerage contract for a primarily residential property of fewer than 5 units (excluding co-ownership/condo) is concluded with a natural person.
It is a contract under which the seller retains the services of an agency or broker, to the exclusion of any other agency or broker, to market the property.
Yes. The seller keeps the right to market the property themselves. However, if the property is sold or an agreement to sell it is concluded during the term of the contract — with or without the broker’s involvement — the seller will owe a commission to the agency or broker.
In a non-exclusive contract, the seller does not grant exclusivity to the broker. Compensation is owed only to the agency or broker who is the efficient cause of the sale, i.e. the one who actually interested the buyer in the property during the term of the contract.
If no end date is specified, the contract terminates 30 days after it is signed.
The contract ends at 11:59 p.m. on the specified date.
Yes, unless clause 11.1 says otherwise. However, the seller may be liable for the broker’s costs and expenses, or have to compensate them for any loss suffered.
Under section 28 of the Real Estate Brokerage Act, the seller may still terminate the contract at their discretion within three days of receiving a copy signed by both parties. Termination takes effect as soon as a written notice is sent or delivered to the licence holder.
The agency or broker may only terminate for serious cause. Termination cannot be made at an inopportune time or in a manner prejudicial to the seller, failing which the broker may have to compensate the seller.
Driver’s licence, health insurance card, permanent resident card, passport, or any other photo ID.
No. The contract provides two boxes to check: the property is NOT subject OR IS subject to GST/QST. The seller must promptly indicate the proportion in which the property is taxable.
The seller. These costs include any prepayment penalty.
They are sold without legal warranty of quality, at the buyer’s risk and peril, but must be in working order at the time of delivery of the property.
Contracts for the water heater, alarm system, propane tank, and similar items.
In four cases: (1) if an agreement to sell the property is concluded during the term — with or without the broker — and all conditions are met except signing and payment; (2) if a conforming promise to purchase is presented during the term and refused by the seller; (3) if a sale occurs within 180 days after the end of the contract with someone interested in the property during the term; (4) if the seller, by their own fault, prevents performance of the contract.
If the broker (or their spouse, or a company they control) acquires an interest in the property themselves; or if, through the buyer’s fault, the deed of sale is not signed or the price is not paid.
Yes. The seller acknowledges the broker’s right to share compensation with another agency or broker collaborating on the sale. The broker undertakes to collaborate and not to impose unreasonable sharing terms that could jeopardize the sale.
That they are the sole owner or duly authorized to sign the contract; that the property is not subject to another brokerage contract or sale/exchange agreement; that it is not leased on terms that would prevent the sale; and that they are a Canadian resident under tax law.
Not to offer the property for sale through anyone else, not to enter into any sale or exchange agreement except through the broker, and not to lease the property on terms that would prevent the sale.
The acquisition contract, titles, inspection reports, latest tax bill, insurance documents, leases, loan and mortgage documents (with applicable penalties), a certificate of location reflecting the physical state and any legal limitations, and any other documents about the property.
The seller must give the broker either a document showing the consent of their married or civil-union spouse and their commitment to intervene in the deed of sale, or a copy of the judgment authorizing them to sell without that consent.
Act with loyalty, diligence and competence; promptly present any written promise received; carry out customary verifications; perform usual marketing; disclose in writing any interest, conflict and compensation arrangement; use data in compliance with the law; and deliver a copy of the contract to the seller.
Only once an agreement to sell the property is concluded and all its conditions are met, except for the signing of the deed of sale and the payment of the price. Any sign must be removed at the end of the contract or as soon as the deed of sale is signed, whichever comes first.
The seller can choose to end the contract or to continue with the broker and be bound to the new agency, by sending a notice to that effect. Without notice, the contract is deemed terminated on the day the broker starts working for the agency.
In case of a dispute between the seller and the agency or broker, the OACIQ may act as conciliator or mediator if the parties so request. If that fails, the OACIQ can also arbitrate, again at the parties’ request.
No. Pre-purchase inspection conditions (deadline, choice of inspector, scope) are set out in clause 8 of the Promise to Purchase, not in the brokerage contract. The brokerage contract only refers to inspection to require the seller to provide any inspection or expert report in their possession to the agency or broker as soon as possible (clause 8.3).
No. The buyer’s mortgage financing conditions are set out in the Promise to Purchase, not in the brokerage contract. The brokerage contract only deals with the seller’s existing loans on the property (clauses 4.3 and 8.4).
The seller must list existing loans at clause 4.3 and provide the agency or broker, as soon as possible, with all loan documents and the loan and mortgage deeds, including any associated penalties (clause 8.4).
All costs related to repayment and discharge of any debt secured by mortgage, prior claim or other real right are at the seller’s charge, including any prepayment penalty.
Any inspection report and any other expert report in their possession, including: water analysis, soil analysis, environmental report, staking plan, plan, inventory of movables, service and employment contracts, permits and powers of attorney (clause 8.3).
It must reflect any cadastral operation, modification or renovation, the current physical state of the premises (heat pump, deck, fence, shed, pool), private-law limitations (servitudes, real rights, other charges) and public-law limitations (municipal regulations).
The seller must declare whether the property is subject to a third party’s right of pre-emption (clause 8.1.4). This right allows a third party to acquire the property in priority if the seller decides to sell, which can affect the ability to close the sale with another buyer.
The seller declares being a Canadian resident under the Income Tax Act and the Quebec Taxation Act (clause 8.1.5). If they are not, or if their residency changes, tax provisions concerning the issuance of a certificate of compliance or the withholding of part of the sale price will apply.
The date or deadline for signing the deed of sale is at clause 5.1 and the date or deadline for occupation is at clause 5.2.
A system (such as Centris or equivalent) to which the broker can submit the property’s information and photos for marketing purposes and to build comparables and statistics (clause 6.1).
Yes. The seller can check the box confirming that they have been informed of their right to use a distribution service and have waived it (clause 6.1).
If a distribution service is used, the broker cannot start marketing or carry out the acts contemplated in the contract until the property is listed in those services, unless the seller gives written instructions otherwise (clause 6.2).
The seller grants the broker the right to show the property at any reasonable hour, with each appointment set directly with the occupant (clause 8.8.1).
Yes. The broker may allow other agencies or brokers to exercise, in whole or in part, their showing and advertising rights (clause 8.8).
The broker must promptly disclose in writing any interest they intend to acquire and, before submitting their transaction proposal, must terminate the brokerage contract (clause 9.1.7).
The broker must disclose in writing any compensation arrangement that could conflict with the seller’s interest, the identity of any person or company owing them compensation, and the nature of the relationship and of the compensation (clauses 9.1.8 and 9.1.9).
The broker must promptly notify the seller in writing. The contract is deemed terminated as of the suspension or revocation of the licence, or of the complete cessation of activity (clauses 9.1.12 and 10.2).
The contract is terminated on the date of cessation. If the broker now works independently or has joined a new agency, the seller can choose to deal with that broker or with the new agency by sending a notice to that effect (clause 10.4).
The Seller’s Declarations on the Immovable (DV) annex, as well as any General Annex (AG), Disbursements and Compensation Annex (DR) or any other annex designated in clause 12.1.
The contract and its performance are governed by the laws of Quebec (clause 13.2).
The OACIQ can act as conciliator or mediator and, failing that, as arbitrator, when both parties so request (clause 14.1).
It is treated confidentially in accordance with the Real Estate Brokerage Act and personal-information protection laws. Only staff whose duties require it can access the information, and it is used only to perform the contract, except as otherwise allowed by law.
Yes. Subject to certain limits, the law gives the seller the right to access and to request the rectification of that information from the agency or broker.
When the property is the family residence, or when the seller’s marital status requires it. The married or civil-union spouse must then consent to the contract and commit to intervene in the notarized deed of sale, or the seller must produce a judgment authorizing them to sell without that consent (clause 8.6 and Spousal Intervention section).
The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) has the mission of protecting the public. It oversees broker and agency activities, enforces the rules of ethics, issues licences, and may receive requests for assistance or investigation from the public regarding a broker or real estate agency.
The Seller’s Declarations on the Immovable (DV) is a mandatory OACIQ form, in force since July 2012, by which the seller provides declarations about the condition of the immovable in connection with its sale.
It is a tool that allows licence holders to fulfil their duty of verification and to discover, in accordance with usage and the rules of the art, factors that may adversely affect either party.
The DV form applies to a primarily residential immovable with fewer than 5 dwellings, including an immovable held in undivided co-ownership. The DVD form (Seller’s Declarations on the Immovable – Divided Co-ownership) applies to transactions involving a fraction of an immovable held in divided co-ownership.
Since July 2012.
For the sale, by a natural person, of any primarily residential immovable with fewer than 5 dwellings, including an immovable held in undivided co-ownership.
The broker is required to use the DVD form (Seller’s Declarations on the Immovable – Divided Co-ownership).
No. When the seller is a legal person, the DV (or DVD) form is strongly recommended but not mandatory. It contains certain information essential to drafting a Promise to Purchase (e.g., nature of water supply and sewer services).
Notably in the case of financial institutions repossessing an immovable, or for real estate developers acting through a company that need this information to sell an immovable.
Particular attention must be paid to trusts to determine whether to use the DV or DVD form. This will depend on the nature of the patrimony involved.
Yes. In the case of an estate, the DV (or DVD) form is always mandatory.
No. The seller must answer based on their knowledge of the condition of the immovable. The form does not require the seller to declare what they do not know.
They must provide the necessary clarifications as needed and supply all documents in their possession related to their declarations.
A note specifying the reason can be entered at clause D-15 of the DV form, under the heading "Clarifications".
No. This form must not be considered the only means of fulfilling that duty. The broker must still carry out other research and verifications in order to always be able to demonstrate the accuracy of the information they provide to the public and to other brokers.
At the time of signing the brokerage contract. The broker must complete this form with the seller and have them sign it at that time.
It is a matter of transparency and of protecting the interests of the parties to the transaction. The seller’s declarations may contain elements that could change the broker’s opinion of the market value or the planned marketing.
Yes. The DV (or DVD) form must be completed jointly with the broker, because the verification obligations belong to the broker. The broker’s presence is very important when the seller provides their answers, so that the broker can probe certain questions further.
The broker simply cannot enter into or sign a brokerage contract with that seller.
No. This produces the same result as a refusal to complete and sign: the broker cannot then enter into a brokerage contract with the seller.
A broker who breaches this rule could be the subject of a disciplinary complaint.
Sections 129.1 and 129.2 of the Real Estate Brokerage Act (CQLR, c. C-73.2) and section 46.11 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising (c. C-73.2, r. 1) make these forms mandatory.
The DV (or DVD) form, having been brought to the buyer’s knowledge, is annexed and identified at clause 13.1 of the Promise to Purchase form.
Yes. As with any document forming an integral part of the promise to purchase, the DV (or DVD) form and all related documents must be sent to the mortgage lender so that the lender can determine, with full knowledge, the terms of the loan they may grant the buyer.
Yes. The form is provided to any inspector who requests it.
No. Every Promise to Purchase form must be completed with the mandatory DV (or DVD) form.
Yes. The DV (or DVD) form is a mandatory annex inseparable from the brokerage contracts.
The seller consents that the DV, together with its amendments and the documents supporting their declarations, be provided or made accessible to any other agency or broker with whom they have entered into a Non-Exclusive Brokerage Contract – Sale.
An effort should be made by the mandatary to obtain answers from the seller to the questions describing the condition of the immovable.
The mandatary may answer to the best of their knowledge, since they hold a power of attorney allowing them to act for the seller.
No. In any event, this does not release the broker from their duty of verification, and the broker should remain particularly vigilant.
They may proceed as the liquidator of an estate would, by entering a note at clause D-15 of the DV form indicating who they are and why they cannot answer.
It offers added value for protecting the clients’ interests, by minimizing the risk of lawsuits for sellers and by allowing buyers to negotiate with a better understanding of the condition of the coveted immovable.
It allows the buyer to give informed consent and to carry out additional verifications.
Yes. It is a protection for all licence holders who have the obligation to verify and disclose the information they provide to the public regarding the immovable for which they are responsible for marketing.
The document carries reference number 121838 and was last updated on May 1, 2023.
They are set by the Real Estate Brokerage Act (REBA), whose application is entrusted to the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ).
The OACIQ’s sole mission is the protection of the public. It ensures that every real estate broker in Quebec complies with their deontological duties and obligations.
The document carries reference number 204114 and was last updated on November 19, 2024.
The broker must act at all times with full transparency and integrity. For example, the seller’s broker must inform their client in writing of the remuneration-sharing terms they offer to other brokers representing buyers.
Yes. The broker must inform every party to the transaction of any factor they are aware of that could adversely affect the transaction (e.g., neighbour rumours that the property was used to grow cannabis).
Yes. The broker must indicate in writing, to the party they represent, the remuneration-sharing terms offered to the other brokers involved in the transaction.
Yes. The broker is required to demonstrate the accuracy of the information they provide using relevant documentation, and is responsible for all information they distribute.
The broker must, in particular, verify the amount of the municipal and school taxes, as well as any other information indicated on the property’s description sheet (e.g., year of construction, lot dimensions and area).
Among others: title of ownership, inspection or expert report, location certificate, loan-related documents, and loan and hypothec deeds.
They must keep a copy of these documents in their records.
In particular, if the broker has an interest in the coveted property, or if they are buying or selling for themselves or for a family member. These situations must be disclosed in writing to all parties involved, in accordance with the conditions provided by regulation.
The broker must ensure that the parties’ rights and obligations are set down in writing and adequately reflect their intent. The broker must also reasonably inform every party of the rights and obligations arising from the documents they have them sign.
In the contracts and forms signed between the parties, which the broker is required to make them understand before signing.
Yes. The broker must verify the identity of each party, including the signatory of a brokerage contract or a transaction proposal, whether they sign in their personal capacity or as the representative of an estate, a legal person, a financial institution, etc.
The regulation provides that the broker must verify the client’s identity before signing a brokerage contract.
Government-issued photo identification, such as a driver’s licence, a passport, or a health-insurance card.
The broker must ensure that the confidentiality of the information entrusted to them is respected and preserved.
The broker must promote the interests of their client and protect their rights.
The Real Estate Brokerage Act requires the broker to present every property available on the market matching the client’s criteria, or to explain why certain properties are not being presented.
The broker must advise and inform with objectivity, providing the explanations necessary to understand and evaluate the services they offer. The broker must ensure that the client fully understands every clause of the forms they have them sign.
The broker must ensure reasonable availability to their clients. If they cannot, they must designate another licence holder to replace them.
The broker must take the necessary measures so that every communication addressed to them is handled in their absence and the follow-up is carried out.
The agency executive officer takes over and ensures the broker’s replacement.
Consumers can contact the Info OACIQ information centre. Information officers can inform them about brokers’ duties and obligations and direct them to the appropriate resources.
They can consult the full set of protection mechanisms available to them on the OACIQ’s website, in accordance with the Real Estate Brokerage Act.
To objectively inform the party they represent and all parties to the transaction. This obligation covers all facts relevant to the transaction as well as its very subject matter, and must be fulfilled without exaggeration, concealment, or misrepresentation.
It applies to the information the broker provides to the public or to another broker, in accordance with accepted practices and professional standards. The broker must at all times be able to demonstrate the accuracy of that information.
It is proactive and affirmative: the broker must actively seek out as much available and readily accessible information as possible in order to thoroughly understand and disclose the context of the property being listed for sale.
They must verify, in accordance with accepted practices and professional standards, the information they provide to the public or to another broker, and must always be in a position to demonstrate its accuracy.
They must take the necessary steps to uncover any factors that could adversely affect the parties or the very subject matter of the transaction.
They must promptly provide the party they represent, in any medium that ensures its integrity, accessibility, authenticity, and intelligibility, with a copy of every document containing the data used to describe the immovable, the enterprise, or the hypothecary loan that is the subject of the brokerage contract.
In the file maintained by the agency or by the broker acting on their own account at their place of business.
1) That the information conveyed to the public and to other brokers be accurate; 2) that the broker always be in a position to demonstrate this; 3) that documents capable of substantiating this be found in the agency's or self-employed broker's file. All of this is intended to enable the public to make informed decisions.
As a real estate professional, the broker's fundamental role is to ensure that the transaction they oversee is fair and conducted with full knowledge of the relevant facts by all parties. From the moment they list the subject of the transaction, they must verify the seller's identity as well as the property's qualities and defects, both in terms of its physical characteristics and its legal status.
The Land Register, the Enterprise Register, the property tax accounts of each municipality, and the seller's declaration, among others.
Throughout the entire buying or selling process, since the broker's or agency's liability is engaged from the moment they affirm, publish, or allow information to be transmitted to the public.
Update the relevant documents (listing description, seller's declaration/seller's disclosure declaration) and inform the parties concerned. Verification and disclosure are never one-time actions: they are ongoing.
Trust. To earn that trust, the broker must "give it to them straight," which presupposes having genuinely taken the time to verify the information provided.
No. The seller's declaration is an important tool, but the broker remains obligated to verify information through independent sources (Land Register, assessment roll, municipality, previous listing descriptions and seller's declarations, etc.) and to confirm the accuracy of its contents.
Do not enter the information on the listing description until it has been verified and documented. Any information that cannot be verified or documented must not appear on the listing description.
Convey it, but also carry out your own duty to verify, provide your client with the necessary explanations so they understand the implications, and document your steps in the file.
Because the broker must be able to demonstrate, at any time, the accuracy of the information they have transmitted. Without documentation, the broker is exposed to a disciplinary complaint and may be presumed to have breached their obligation.
They must nonetheless document the steps taken—for example, by placing in the file a search report from the information dissemination service showing that the property has never previously been listed on the market.
No. It covers both the physical and legal characteristics of the property: titles, servitudes, hypothecs, acquired rights, municipal compliance, the history of the immovable, and so on.
This constitutes wilful blindness, which may give rise to a disciplinary complaint. The duty to verify is proactive: the broker must actively seek out available information.
Accurate information enables the public to make informed decisions. The duty to verify exists first and foremost to protect the parties to the transaction.
They may engage professionals (notary, land surveyor, inspector, accredited appraiser) for technical matters, but the ethical obligation to verify, document, and inform remains personal and cannot be transferred.
Brokers have a fundamental obligation to verify the identity and legal capacity of the parties they represent, as well as of those parties' representatives (agent under power of attorney, liquidator, tutor, officer of a legal person, etc.).
It ensures that the person claiming to have the authority to complete a transaction actually holds that authority, prevents real estate fraud, identity theft, and money laundering, and establishes the legal validity of the transaction.
The Guideline on the Prevention of Money Laundering and Real Estate Fraud, specifically the section entitled "Verifying the Identity and Legal Capacity of the Represented Party and Their Representative."
Legal capacity is the ability recognized by law to exercise one's own rights independently, including the right to sign a brokerage contract or a deed of sale. It may be limited by minority, a protective regime (tutorship), a homologated protection mandate, bankruptcy, etc.
Their identity (valid identification documents), their age (majority), their marital status where relevant (for example, in relation to the family residence), and the absence of any protective regime. The broker must also ensure that the person understands the scope of the transaction.
Its existence and status in the Québec Enterprise Register (REQ), its name, registered office, directors, and the authority of the person signing on its behalf (board resolution, delegation of powers, articles of incorporation).
A person who acts on behalf of another under a mandate agreement or power of attorney. The broker must obtain a copy of the power of attorney and verify that it expressly confers the authority to sell, purchase, or sign the required documents.
By obtaining a copy of the will or the court judgment appointing the liquidator, consulting the Register of Wills and Mandates if necessary, and verifying the liquidator's personal identity.
A copy of the judgment opening the protective regime or the homologation judgment must be obtained, the tutor's or mandatary's powers must be verified, and, where applicable, the court authorization or the advice of the tutorship council required to sell an immovable must be secured.
The trust deed must be obtained, the trustee(s) authorized to act must be identified, and their powers to dispose of the property must be confirmed. The rules regarding the seller's declaration (DV) may also vary depending on the nature of the patrimony involved.
The identity and consent of each co-owner must be verified, as all of them must sign the brokerage contract and the deed of sale (unless a mandate has been granted to one of them to act on behalf of the others).
It is a registration in the Land Register that protects the family residence. Where such a declaration has been published, the non-owner spouse must consent to the sale. The broker must therefore verify the seller's marital or civil status and the existence of such a declaration.
Government-issued photo identification (driver's licence, passport, health insurance card where permitted, citizenship card, etc.). Two pieces of identification are often required under anti-money laundering obligations.
A remote verification method compliant with the Guideline on the Prevention of Money Laundering must be used (document comparison method, affidavit method, dual reliable process method, etc.), and the process must be rigorously documented.
The person's name and contact information, the type and number of the identification document reviewed, the date and method of verification, and the documents establishing legal capacity (power of attorney, board resolution, court judgment, etc.).
Only if the method used is recognized and genuinely allows the document to be authenticated (verification of security features, comparison with a live photo, etc.). Simply receiving a JPEG image does not constitute a valid verification.
Refrain from proceeding with the transaction until identity and legal capacity have been verified. A refusal may be a sign of fraud and may trigger a reporting obligation to FINTRAC where a suspicious transaction is involved.
Exercise heightened caution: the true beneficial owner must also be identified, the legality of the arrangement must be confirmed, and if necessary, the broker must refuse to participate in a transaction that may be designed to conceal fraud or money laundering.
Real estate brokers are "reporting entities" and are required to identify their clients, maintain records, report certain transactions (cash transactions of $10,000 or more, suspicious transactions), and implement a compliance program.
Suspend the signing, recommend that the seller consult a notary or legal counsel, and document the situation. Signing a contract with a person who lacks capacity could result in nullity and a disciplinary violation.
The liquidator(s), whose authority derives from the will or a court judgment. The broker must verify the declaration of transmission in the Land Register, the cadastral designations, and the potential consent of the other heirs if required by the will.
Providing accurate information first requires dealing with the right person and confirming that they have the legal authority to dispose of the property. Identity verification is therefore a cornerstone of the obligation to inform with objectivity.
They provide a straightforward means of fulfilling the professional obligations of verification and disclosure. They may reveal pertinent information that has never been brought to the current owner's attention — for example, a death that occurred on the property or a history of water infiltration.
Yes. The broker is obligated to take the necessary steps to review them and to confirm the accuracy of their contents. All verified documents must be placed on file.
A documented record of the steps taken — for example, a search report generated from the information dissemination service demonstrating that the property has never been listed on the market.
The Land Register, the municipal assessment roll, tax statements, documents used in preparing the assessment roll, certificates of location, seller's declarations (current and prior), prior listing sheets, and any available technical documents (inspection reports, permits, plans).
Because a fact disclosed by a previous owner — such as a death, water infiltration, or cannabis cultivation — remains relevant and must be communicated to the buyer. The duty of disclosure is not limited to the current seller's personal knowledge.
You question the owner, obtain repair documentation if possible (invoices, warranties), disclose the fact to the buyer, and record everything in the current seller's declaration and on the listing sheet.
It allows the broker to retrieve prior listing sheets, prior seller's declarations, photos, asking and selling prices, listing durations, cancellations, and more. It is an essential source for reconstructing the commercial history of the property.
The broker must nonetheless fulfill the obligation to disclose information to other parties. The broker may verbally disclose relevant facts while protecting personal information, and may consult the agency manager or OACIQ as needed.
No. Even if it dates back several years, unfavourable information may remain relevant and must be disclosed — for example, a death that occurred long ago or a historical claim.
By placing a copy of the document on file and, ideally, a dated note summarizing the findings and the follow-up actions taken (questions put to the seller, updates to the seller's declaration, notation on the listing sheet).
Because they may reveal unfavourable factors that have not been corrected or have only been partially addressed. The broker must ask the seller about their existence and obtain copies.
Yes. The mere fact that the situation has been remedied does not exempt the parties from disclosing it. The problem, the work carried out, and supporting documents (invoices, plans, reports) must all be described.
Yes, to the extent reasonably required by professional standards. In particular, the broker must cross-reference the information against independent sources such as the Land Register, the assessment roll, and the municipality.
Among others: invoices and permits for renovations, the index of immovables and deed of sale for ownership identity, the certificate of location and land roll for the year of construction, and tax statements for amounts owed along with the land roll for assessed value.
Steps that conform to established practice and professional standards, proportionate to the complexity of the file, consisting of consulting relevant sources, questioning the seller, obtaining supporting documents, and documenting everything — without, however, rising to the level of a criminal investigation.
It provides assessed value, taxes, and sometimes floor area and year of construction. It also serves as a cross-reference for verifying the cadastral designation and the identity of the registered owner.
The broker must ensure that the cadastral designation, the owner's identity, and any servitudes or limitations are consistent across documents. Any discrepancy — such as an unrenovated lot or a servitude absent from one document — must be investigated.
No. The broker must give priority to official sources (Land Register, REQ, municipality) and must document screenshots or excerpts on file, ensuring that the source is current.
The broker risks a breach of the obligations of verification and disclosure, a disciplinary complaint, and potential civil liability for failure to disclose.
Yes, insofar as doing so is an essential means of properly advising the client. The buyer's broker may and must request access to relevant documents from the seller's broker.
Their use must be strictly limited to what is necessary for the transaction. Measures must be taken to protect their confidentiality (redaction, restricted access), and they must not be shared beyond the parties involved.
Whenever new information is received: a new tax statement, a new triennial assessment, an inspection conducted during the transaction, a notice of special assessment, and so on. The listing sheet and seller's declarations must always reflect current reality.
To ensure that no act limiting ownership rights has been registered subsequent to the publication of the current owner's title of acquisition: mortgages, easements, prior notices of exercise, notices of contamination, declarations of family residence, etc.
Prior deeds of sale, the civil status of owners, declarations of transmission, the identity of the true owners, legal capacity, the obligations of the seller and buyer, special clauses, right of first refusal clauses, easements, mortgages, the cadastral plan, registered legal hypothecs, prior notices of exercise, notices of contamination or decontamination, notices of use restriction, registered leases, declarations of family residence and co-ownership, etc.
The number officially identifying an immovable in the Quebec cadastre. For a renovated lot, it is a seven-digit number; for a non-renovated lot, it is an original lot number followed by a subdivision number, with reference to the cadastre and the parish or township.
Verify in the Land Register and on the municipal assessment roll whether the lot has been renovated. If so, advise the seller to have a new location certificate prepared without delay.
Because it allows for a definitive verification of acts encumbering the immovable since the publication of the current owner's title of acquisition. Other tools (e.g., commercial databases) may be useful, but only the Index is legally enforceable against third parties.
An easement attached to a person designated in the act. It is extinguished upon the sale of the immovable; new acquirers cannot benefit from it, unless a new easement is created with the consent of the owner of the servient land.
An easement attached to the benefiting lot (dominant land). It is transferred to new acquirers upon sale and should normally appear in the new deed of sale.
No. A broker must not express an opinion on the existence or type of an easement, as such advice constitutes legal counsel. The broker must refer their client to a notary or lawyer if there is any doubt.
Ten years. A right of way is extinguished by non-use for a period of 10 years. The broker must verify whether the right has been exercised within the past 10 years.
Practical obligations (e.g., snow removal from a lane) or limitations (e.g., passage restricted to pedestrians). The broker must draw the parties' attention to these conditions.
The notice of contamination (when characterization reveals concentrations exceeding regulatory values), the notice of decontamination (when a subsequent characterization confirms the absence of contaminants or levels below regulatory values), and the notice of use restriction (upon ministerial approval of a plan imposing restrictions).
As of March 1, 2003. Those affected include, among others, the owner, the lessor, the lessee, and the hypothecary creditor who has exercised their rights through taking in payment.
Quebec environmental regulations require, among other things, the publication of notices of contamination, decontamination, or use restriction in the Land Register, as well as the filing by the Ministry of a public list of affected lots.
No. It only lists cases brought to the Ministry's attention. Unlike the Land Register, however, it can be searched by address. Municipalities are also required to maintain a public list of lots subject to such notices.
The right of the Minister of Culture and Communications to acquire, by preference, an immovable classified as cultural heritage or located within a classified heritage site, at the price offered by another buyer, after having received prior notice.
At least 60 days before the sale. Upon expiry of this period, the immovable may be sold to the interested buyer, but exclusively at the price communicated to the Minister.
The cadastral designation of the property, the name and home address of the owner and the person interested in acquiring it, as well as the price that person is willing to pay and that the owner is willing to accept.
An up-to-date location certificate, the Répertoire du patrimoine culturel du Québec, the letter sent by the Ministry to the owner, the Land Register, and the office of the clerk or secretary-treasurer of the municipality.
Check 'Yes' at clause D2.9 of the seller's declaration (DV), add details at clause D15 indicating that the immovable is classified as 'cultural heritage,' and note on the listing description the existence of the Minister's right of pre-emption.
It must be conditional upon the Minister not exercising the right of pre-emption. Steps related to other conditions (financing, inspection) should only be initiated after the Minister's response, in order to avoid unnecessary expenditures.
Because they do not account for changes occurring after their creation, particularly boundary agreements relating to the State's hydrological domain, which may alter the cadastre of riparian properties.
The entry 'convention de délimitation du domaine hydrique' (hydrological domain boundary agreement). In such cases, the lot area may have been modified, and the broker must consult a notary or land surveyor and obtain an updated location certificate.
Ensure that no notice of legal hypothec has been published and that no prior notice of exercise of a hypothecary right is registered, by consulting the Land Register and Centris alerts, and engaging a legal professional as needed.
Discuss the matter with the seller client, conduct ongoing follow-up, disclose the information on the listing description, and ensure that all parties understand the situation and the associated risks.
No. Even when an easement is set out in the deed, the text must be analyzed rigorously (personal or real, obligations, duration, beneficiaries) and, where necessary, referred to a legal professional.
Because the index identifies the registrations, but only the documents themselves (deeds, prior notices, notices) allow for a full assessment of their scope — terms, amounts, beneficiaries, conditions — and enable the broker to properly inform all parties.
Because it is a public source that the broker must use to obtain and validate information about the property: value, taxes, and sometimes area and year of construction.
The exact area of the property or its year of construction, for example. This data may be found in the documents used in preparing the roll, which the broker may need to consult at the municipal office.
The persons listed under municipal regulations: the owner, the occupant of the property or establishment, the person who filed a review application, the targeted applicant, the local municipality, the municipal body responsible for assessment, and the minister.
Some municipalities will provide them with the written consent of the owner. The recommended form is the "Consent to the Communication of Information by a Municipality Concerning a Property." However, no obligation exists requiring the municipality to disclose them.
The owner may attend the municipal office in person to review them. The broker should accompany them through the process and record the results in the file.
Because the feasibility of construction, repairs, a business, or a change of use depends on municipal regulations, which vary from one municipality to another.
The right for a property or a use to remain in place even if it contravenes current regulations, provided it was compliant with the regulations in force at the time of its construction or establishment.
Always the person claiming to benefit from it. It is generally necessary to obtain the permit issued by the municipality and the municipal certificate recognizing the existence of the acquired right.
The person claiming to hold it must apply to the courts to have it confirmed. It is not the broker's role to make a legal determination as to the existence of the right.
Ensure that section D2.9 of the seller's declaration (DV) is checked and that details are provided in section D15, and retain a copy of the document evidencing the acquired right in the agency file.
By making the promise to purchase conditional upon the seller providing, within an agreed timeframe, proof of the existence of the acquired right, using clause 9.1 of the Promise to Purchase form.
An exceptional procedure by which the municipal council may authorize the carrying out of proposed work, or the regularization of work in progress or completed, that does not comply with zoning and land use by-laws.
The application of the zoning and subdivision by-law must cause serious harm to the applicant; the variance must not prejudice the neighbouring owners' enjoyment of their property rights; it must comply with the objectives of the urban plan; and, if the work is in progress or completed, it must have been undertaken in good faith and be the subject of a permit.
No. Each municipality is free to adopt its own by-law, which may therefore vary from one municipality to another.
Ensure that section D2.9 of the seller's declaration (DV) is checked and that details are provided in section D15, and retain a copy of the document evidencing the variance in the file.
By making the promise to purchase conditional upon the seller providing proof of the minor variance, using clause 9.1.
Clause 12.1 of the Promise to Purchase form, which allows the purchase to be made conditional upon obtaining such a variance.
The situation must be disclosed in the seller's declaration (DV): check "Yes" at clause D2.12 and provide details in section D14. The DV must be attached to the promise to purchase in order to release the seller from liability toward the buyer.
You question them about the date and scope of the work, verify the regulations applicable at the time, request copies of any available documents, record the situation in the seller's declaration (DV) (D2.12, D14, D15), and advise consulting a legal professional or other qualified expert if necessary.
No. It should ideally be cross-referenced with the certificate of location and, if necessary, with the documents used in preparing the roll, particularly for older buildings.
Because they may restrict the possibilities of use (short-term rental, commercial activity, major renovation, parking) and therefore affect the value and appeal of the property for different buyer profiles.
The Seller's Declaration Regarding the Property (DV) form, duly completed, with "Yes" checked at D2.12 and full details provided at D14.
To verify with the municipality the zoning regulations, the existence of acquired rights, the requirements regarding parking, signage, and signage structures, and to obtain written confirmation where possible.
You contact the municipality, request a copy from the clerk or the urban planning department, and make the promise to purchase conditional upon the production of proof within a reasonable timeframe (clause 9.1).
The broker must objectively inform both the party they represent and all parties to the transaction. This obligation covers all facts relevant to the transaction as well as the subject matter of the transaction itself.
Both the party they represent (or the agency on whose behalf they act) and all parties to a transaction.
All facts relevant to the transaction as well as the subject matter of the transaction itself.
Objectively, without exaggeration, concealment, or misrepresentation.
Informing consists of conveying accurate, verified facts; advising consists of helping the client understand the significance of those facts and make an informed decision. Both are complementary and mandatory.
No. It must be complete: withholding a relevant fact constitutes concealment, even if everything else that is disclosed is accurate.
It is not the broker's decision to make. The importance of a fact depends on each person's values, perceptions, and circumstances. The broker must disclose the fact and allow the buyer to form their own judgment.
No. Commercial interests never justify concealment. The protection of the public, regulatory compliance, and ultimately the validity of the transaction are all at stake.
Not exclusively. The broker must verify the information, obtain supporting documentation, and place everything on file. The seller's declarations (SD/SDD) are a central tool for structuring and formalizing these disclosures.
Verify the source, seek to confirm or refute it by reasonable means, and disclose only with caution, clearly distinguishing established facts from information that remains to be verified.
Yes. The buyer's broker must convey to their client all information received from the seller or the seller's broker, and provide the necessary explanations to ensure the client's understanding.
It includes unfavourable factors that, although subjective (e.g., a death on the property, a particular history), may influence the buyer's decision based on their values and perceptions.
Through systematic documentation: notes of conversations, email correspondence, signed forms, acknowledgements of receipt, and inclusion of all relevant documents in the file.
For certain information, written disclosure in the seller's declaration (SD/SDD) or the property description sheet is explicitly required. In all cases, written disclosure is recommended in order to demonstrate that the obligation has been fulfilled.
A breach of the duty to inform constitutes a fault that may engage the broker's civil liability toward the injured parties, as well as a disciplinary offence sanctionable by the discipline committee.
It begins with the very first communication with the public (advertising, property description sheet, phone call) and continues until the signing of the notarial act, and even beyond if new facts come to light during that period.
Disclose it to the parties without delay, update the seller's declaration using the Amendments (AM) form, and, as applicable, allow for renegotiation or the exercise of the conditions set out in the promise to purchase.
Any fact that could influence the decision of a reasonably prudent and diligent buyer or seller is relevant: the condition of the property, title, servitudes, contamination, particular history, municipal compliance, etc.
Document the source, conduct diligent verifications, and, if the fact is plausible and relevant, disclose it while specifying that it originates from a third party and requires additional verification.
No. It is a professional conduct obligation of public order. The parties cannot waive it by contract, even by explicit agreement.
No. Describing a house as being "in excellent condition" when it requires major repairs constitutes prohibited exaggeration, which contravenes the obligation to provide objective information.
Objective information is the precondition for a free and informed decision by the public. It is the vehicle through which the regulation of real estate brokerage protects consumers by rebalancing the information asymmetry between sellers and buyers.
It is a tool for the broker to promote the property. It must reflect reality and contain accurate, verified information. It is a document that is continually evolving.
1) The existence of the seller's declarations and the availability of documents relating to them; 2) where applicable, that the immovable is being sold without legal warranty; 3) the name of the broker or brokerage agency identified in the brokerage contract, followed by the licence designation, displayed prominently in a typeface of the same colour and at least equivalent in size to the other information; 4) where applicable, that the broker holds a direct or indirect interest in the immovable, with a disclosure notice attached; 5) a statement that the descriptive sheet is not an offer binding on the seller but an invitation to submit offers; 6) unless otherwise instructed in writing, information on the subject matter of the contract and the parties necessary to complete a transaction proposal.
No. The seller's signature on the Seller's Declarations (DV) or Seller's Declarations – Divided Co-ownership (DVD) constitutes personal information. Its use must be limited to the context of the transaction in question (i.e., drafting a promise to purchase). The broker must take measures to protect the confidentiality of these forms.
For example: invoices, plans, specifications, and permits for renovations; the Index of Immovables and deed of sale for owner identity; the certificate of location and property assessment roll for the year of construction; municipal and school tax accounts for taxes; and the assessment roll for property value.
No. Any information that cannot be verified or documented must not be entered on the descriptive sheet.
No. Descriptive text must be chosen with diligence and care, without exaggeration. The choice of words must reflect reality.
The broker must provide the party they represent, without delay and on a medium that ensures the document's integrity, accessibility, authenticity, and intelligibility, with a copy of every document containing the data used to describe the immovable.
So that the seller may review it and confirm that it accurately reflects reality.
Yes. The broker must make the necessary amendments to the descriptive sheet throughout the brokerage contract as new information is obtained. The broker must always have an up-to-date descriptive sheet in their possession.
These include, among others: new tax rates issued at the beginning of the year, the triennial assessment at the time of its filing, any discovery of an adverse factor, and any correction made to a factual element (square footage, inclusions, etc.).
Provide the buyer with the most recent version before drafting a promise to purchase and have them initial it, in order to avoid disputes arising from an outdated descriptive sheet.
A conditional promise to purchase is an accepted promise subject to conditions (inspection, financing, etc.). The broker may (but is not required to) include a notation indicating the existence of a CPP; the broker must discuss the implications with the seller, always acting in the seller's best interest.
No, it is not mandatory. However, the information must at minimum be disclosed verbally to any buyer who is interested in submitting a promise to purchase.
A withdrawal from the market is the removal of the listing and descriptive sheet from the information dissemination service. It may only be carried out at the request of a seller who no longer wishes to sell their immovable.
No. A withdrawal from the market may only result from the seller's own decision. Acceding to a buyer's request to withdraw the immovable from the market is contrary to the Act and its regulations.
A purchase at a below-market price followed by a resale at an inflated price to a third party with secured financing, with financial institutions being deprived of information about the original purchase price because the descriptive sheet has been removed.
Interest in multi-unit residential properties in poor condition, a selling price below the assessed value or comparable sales, substitution of the buyer at the notarial act, financing conditional on an insured mortgage, and a subsequent transaction at a significantly higher price.
A disciplinary complaint to the OACIQ, and potentially criminal charges: wilful blindness is subject to sanction.
A document attached to the descriptive sheet when the broker holds a direct or indirect interest in the immovable, in order to clearly inform the public of the potential conflict of interest.
No. Publishing a descriptive sheet presupposes a duly executed brokerage contract entrusting the marketing of the property to the broker or brokerage agency.
By having the buyer initial the most recent version, and by retaining a dated copy of that version in the file.
Correct the error immediately, notify the parties concerned, document the correction, and, if necessary, update any outstanding promises to purchase or Seller's Declarations if the error has a significant impact.
Highlighting accurately describes a documented advantage; exaggeration embellishes reality or conceals a defect. Any superlative must be supported by verifiable facts.
The broker has an obligation to inform the party they represent, as well as all parties to a transaction, of any factor of which they are aware that may unfavourably affect the parties or the very subject matter of the transaction.
Any element — objective or subjective — that may unfavourably affect a party to the transaction: the quality of the property, its features, history, perceptions, values, religion, the buyer's age, etc.
No. They may be entirely subjective and have no connection to the objective qualities of the property: fear related to an unexplained phenomenon, discomfort regarding a controversial former owner, etc.
As soon as the broker becomes aware of a factor that may unfavourably affect a party, they must, following diligent verification, disclose it. It is not the broker's role to judge whether the fact is relevant or not to the buyer.
A reasonable effort to confirm or refute the information received, without going so far as a formal investigation. This involves questioning the source, consulting available registries, requesting relevant documents, and cross-referencing information.
No. Regardless of the source (client, neighbour, a previous listing, a prior report), once the information comes to the broker's attention and diligent verification has been carried out, it must be disclosed.
No. The broker must be proactive: the buyer has no reason to presume a particular situation exists, nor to ask about it. The broker must therefore offer the information without being prompted.
Yes. Even if the information or facts are dated, they may still be relevant and must be disclosed.
Yes. The broker must be able to demonstrate the source, which allows them to convey the information in an objective and documented manner.
Yes. They must transmit it to their client, provide all necessary explanations to ensure their client understands it, and advise the client on the possible implications or consequences for the transaction.
Because the relevance of an unfavourable factor varies depending on each individual's profile. Understanding the client allows the broker to help them make an informed decision that reflects their buyer profile.
A truthful and verified response. If a death is known or has been discovered, it must be disclosed, regardless of its nature (violent, accidental, or peaceful).
No. The broker's obligation exists independently of the seller's wishes. If the seller refuses any disclosure, the broker may be compelled not to enter into the brokerage contract.
An attempt must first be made to verify it. If the rumour is confirmed, the fact is disclosed; if it cannot be verified, it is disclosed with a caveat, specifying the nature and source of the information.
They must notify their broker. The broker then updates the seller's declaration (SD) (by way of an amendment or a new SD), amends the listing description (fiche descriptive), and informs all prospective buyers.
No. Its significance is determined by each individual buyer. The broker's role is to convey the information; it is for the buyer to assess its impact.
By recording it in the seller's declaration (SD) (in the appropriate section and D15), in the listing description (fiche descriptive) if the information is required to appear there, by attaching it to the promise to purchase, and by retaining in the file all documents and correspondence supporting the process.
Diligent verification is a proportionate process based on readily accessible sources. An investigation involves more advanced methods (surveillance, interrogation, in-depth research) that fall outside the scope of a broker's role.
Civil liability toward the aggrieved parties (possible annulment of the sale, damages), a disciplinary complaint to the OACIQ, loss of reputation, and, in certain cases, exposure to penal proceedings.
No. The disclosure must be clear, complete, and precise, so that the recipient understands the nature of the fact, its extent, and its potential implications.
By conveying the fact that is relevant to the transaction, without sharing unnecessary identifying personal information (names, intimate circumstances), and by redacting documents where required.
Yes. A dated note in the file (date, time, buyer's name, substance of the exchange) or a follow-up email is essential to prove compliance with the obligation.
The mandatory form "Seller's Declarations on the Immovable." It assists the broker in fulfilling their verification obligation and in uncovering adverse factors. For a divided co-ownership immovable, the SDD form is used.
For the sale, by a natural person, of any primarily residential immovable with fewer than 5 dwelling units, including an immovable held in undivided co-ownership.
The SDD — that is, the form "Seller's Declarations on the Immovable – Divided Co-ownership."
Yes. It is a mandatory and inseparable annex to brokerage contracts. It must be completed jointly with the owner and signed at the time the mandatory selling brokerage contract is entered into, whether exclusive or non-exclusive.
Yes. Every promise to purchase form must be accompanied by the SD (or SDD) attached as an annex and identified under clause 13.1.
To any potential buyer, to the mortgage lender (to determine the terms of the loan), and to any inspector who requests it.
To ensure the seller provides complete and truthful answers, to ask questions about the condition of the immovable, and to conduct more thorough verifications.
The seller's legal obligation to disclose all adverse factors they are aware of regarding the immovable.
They enable the buyer to be properly informed about the condition of the immovable, reduce the risk of legal action arising from unpleasant surprises, promote transparency, and allow the buyer to make an informed decision.
To answer to the best of their knowledge and in good faith, to disclose what they have learned from previous owners, to provide supporting documents (invoices, plans, permits, etc.), to clarify answers in section D15, to sign the form, to consent to it being provided to the parties involved in the transaction, and to notify their broker of any new information.
To provide necessary clarifications: servitudes, charges, limitations, factors not mentioned elsewhere, details on points raised in the form, and — for the SDD — significant improvements to private and common portions.
The Annex G – General form attached to the form.
Obtain a copy, read it carefully, ensure that any adverse factor noted therein is disclosed in the SD and/or the listing sheet (fiche descriptive), and obtain documents proving that any corrective work was carried out.
Water infiltration, sewer backup, cannabis cultivation, flooding, fire, infestation, etc.
The seller's broker must obtain a copy of the report, read it carefully, and then update the SD by means of an Amendments (MO) form or by drafting a new SD (SDD).
By a notation in the following form: "SD 12345 amended by MO 67890."
Certificate of location and cadastral plan, prior inspection or expert reports, notices of non-compliance, renovation invoices, documents relating to the septic tank / leaching field / water supply, maintenance or warranty contracts, and — for co-ownership — the declaration of co-ownership, financial statements, projections and records, minutes of meetings, and special assessments.
Obtain a copy and place it in the file, check "Yes" at clause D14.10 of the SDD and provide details in D15, and strongly advise the client to complete the Request for Information from the Syndicate of Co-owners (DRCOP) form.
The "Request for Information from the Syndicate of Co-owners" form. It provides a comprehensive picture of the situation: arrears of common expenses, anticipated future assessments, balance of the contingency fund, legal proceedings currently underway against the syndicate, etc.
Under clause M1, under "Other," indicate the numbers of the SD (SDD) being amended. The MO signed by the seller is attached to the SD and provided to every potential buyer. The listing sheet is updated accordingly.
No, it is not mandatory, but it is strongly recommended. The information it contains (water supply, sewers, etc.) is essential for drafting a promise to purchase. Financial institutions and certain developers require it.
It depends on the nature of the patrimony in question. Careful consideration is required to determine whether use of the form is appropriate.
Yes. The form is always mandatory in the case of an estate.
The mandatary answers to the best of their knowledge, since they hold a power of attorney authorizing them to act. If they are unable to answer questions regarding the physical condition of the immovable (e.g., a liquidator of an estate), they must note this in clause D15 and explain why.
No. The broker must remain particularly vigilant and continue their verifications by other means (Land Registry, assessment roll, municipality, etc.).
The broker cannot enter into or sign a brokerage contract with that seller. A disguised refusal (e.g., "I refuse to complete this form") is equivalent to an outright refusal.
Yes. Every document forming an integral part of the promise to purchase, including the SD, must be transmitted to the mortgage lender so that they can determine the terms of the loan with full knowledge of the facts.
The seller's signature on the SD or SDD constitutes personal information. Its use must be limited to the context of the transaction in question — namely, the drafting of a promise to purchase — and security measures must be taken to protect its confidentiality.
Describe them clearly, attach invoices, permits, and plans, specify whether the work was performed by a professional or by the owner themselves, and indicate whether any certificates exist (e.g., ESA/RBQ compliance certificates).
No. The SD is a central but not exclusive tool. The broker must also consult the Land Registry, the assessment roll, the municipality, prior documents, and inspection reports.
Yes. The broker must continue to update them throughout the process in light of any new information obtained, by means of an MO or new SD, up until the signing of the deed of sale.
Not necessarily. Certain factors related to the history of a property do not legally constitute a latent defect; however, the broker is still obligated to disclose them to the parties.
Yes, whether the death was violent or not, accidental or not. It may be a relevant factor for certain buyers; it is not the broker's role to make that judgment on their behalf.
Yes, if it occurred in an outbuilding (shed) or on the land, which forms part of the property.
In clause D14.3 of the SD form, with additional details provided in section D15 where possible.
In clause D14.5 of the SD, with details provided in D15 as needed.
The current cannabis regulatory framework has been in force since October 17, 2018, resulting from a federal regime combined with a provincial regime that includes the Société québécoise du cannabis.
No. It is prohibited to possess a cannabis plant or to cultivate cannabis for personal use in a residential dwelling in Quebec.
Yes, regardless of the number of plants. This constitutes an adverse factor likely to influence the buyer's decision. The information must appear in the Seller's Declaration (SD) and, where applicable, in the listing description (fiche descriptive).
Obtain the certificate authorizing the cultivation, disclose its existence to the buyer, and advise that a more thorough inspection and air and mould testing be carried out.
For example: the home is relisted for sale quickly; the home is sparsely furnished; electricity bills are high or highly variable; the electrical meter has been tampered with; a new electrical mast; abnormal humidity in the attic; ice formation at ventilation outlets; dehumidifiers in unusual locations; moisture traces in the chimney; corrosion on outlets and switches; spongy floors; odours masking rot; peeling wallpaper; freshly painted ceilings; strong and unusual odour; mould on walls; patched holes in closet floors and ceilings; swelling of drywall panels; chimney not connected to the attic.
Question the seller, conduct additional checks (courthouse registry, criminal court record searches), advise the buyer to obtain air quality and mould assessments, and document everything thoroughly.
For example: a distant closing date with prior occupancy; purchase by a third party or nominee (prête-nom); a single-storey home with an attached garage purchased 'as an investment'; a buyer residing abroad; a substantial cash payment; a cash deposit; unusual financing sources; a mortgage commitment conditional on obtaining leases; a buyer who does not negotiate; no inspection requested; focus on the garage and basement; several recent transactions by the same buyer; transaction completed before a separate notary.
Not to accept a pre-occupancy arrangement, a distant closing date, or a lease with an option to purchase — so as to avoid being left with a contaminated property before signing, should the buyer or tenant disappear.
Whether the existing lease contains a clause prohibiting consumption. Since October 17, 2018, landlords initially had 90 days to add a prohibition clause; as of January 15, 2019, any amendments must follow the general lease modification process.
Yes. It is permissible to include such a clause when signing new leases.
The broker must review the co-owners' syndicate by-laws, the constituting act, the declaration and convention of co-ownership, and remain informed of any amendments up to the signing of the deed of sale.
No. Relevance is subjective and varies from person to person. The broker's role is to convey the fact; it is for the buyer to determine whether the information affects their interest in the property.
By disclosing the essential fact (the existence of a death, and its nature if relevant) without revealing personal information that is not necessary for decision-making (full identity, intimate details).
The broker must question the seller, remind them of their legal obligation to declare all relevant facts, and, if the fact is confirmed, refuse to omit the information from the SD and the listing description — and, if necessary, withdraw from the mandate.
Yes, but with clear disclosure of the fact, a thorough inspection including air quality and mould testing, and often a partial exclusion of the legal warranty of quality with respect to the elements that were remediated.
Assessments to measure air quality and the presence of mould, in addition to the standard pre-purchase inspection, ideally conducted by specialized professionals.
No. It can result from many causes (water infiltration, inadequate ventilation, damaged roofing). However, when combined with other indicators, it should heighten the broker's vigilance.
Yes. Several indicators (nominee purchasers, cash payments, rapid transactions, unusual financing) are also red flags for money laundering or mortgage fraud. The broker must therefore be doubly vigilant.
An inspection carried out before a property is listed on the market that allows the seller to determine the condition of the property, identify necessary repairs, uncover adverse factors, and provide more complete answers to questions in the Seller's Declaration (SD/SDD).
No. The fact that the seller has obtained a pre-listing inspection does not relieve the broker of the obligation to recommend that the buyer have a pre-purchase inspection carried out.
The broker is obligated to advise any person intending to acquire a property to have a complete inspection of that property carried out by a professional or a building inspector.
"A promise to purchase without an inspection clause is only appropriate in special circumstances, for example when the property is intended to be demolished or to undergo major renovations."
In consecutive calendar days (midnight to midnight). The starting day (the date the promise is accepted) is not counted, but the due date is. Saturdays, Sundays, and statutory holidays are all counted.
No later than four (4) days following the expiry of the inspection period set out in clause 8.1, and before 8:00 p.m., in writing.
To the seller directly, and not to the seller's broker.
Yes, provided the list contains more than one name.
A member of a professional order who is qualified and authorized to perform building inspections (architect, engineer, building technologist). A contractor, master electrician, or plumber is not considered a professional for the purposes of this recommendation.
1) Professional liability insurance specifically covering building inspection; 2) a recognized inspection service agreement setting out the nature, scope, and cost of services; 3) a recognized building inspection standard of practice; 4) a written report provided to the client.
The inspector does not meet the first requirement. The broker may not recommend that inspector and must, if necessary, redirect the client to a compliant inspector.
The nature and scope of the services offered, their cost, and any limitations, including liability exclusions.
It provides minimum guidelines, gives a public character to the services, defines technical terms, and standardizes the presentation of reports.
Yes, following analysis of visual observations. Significant findings must be clearly highlighted, and if certain items require further testing (e.g., pyrite), the inspector must direct the buyer to the appropriate expert.
The Association des inspecteurs en bâtiments du Québec (AIBQ), the Association des thermographes en inspection de bâtiment (ATIB), and the Association des professionnels de la construction et de l'habitation du Québec (APCHQ). Being an active member in good standing of one of these associations gives rise to a presumption that all four requirements are satisfied.
No. Due to the appearance of a conflict of interest, the broker must not offer to pay the building inspector on behalf of the client.
To remain reserved and allow the inspector to carry out the work with the buyer.
Yes, in order to properly advise the client. It is equally important for the buyer to attend, as the inspector will point out the elements that warrant attention.
No. The buyer must be given the opportunity to review the written report, obtain any necessary clarifications, and be satisfied before signing the fulfilment of the condition (clause AV4.3 of the Notice and Follow-Up on Fulfilment of Conditions form).
If the buyer determines that the report reveals adverse factors serious enough that, had the buyer known of them beforehand, the buyer would not have offered that price or would not have submitted a promise to purchase.
No. The buyer must act in good faith. The inspection must not be used as a pretext to withdraw without valid grounds.
A written notice addressed to the seller (and not to the seller's broker), accompanied by a copy of the inspection report, received by the seller within the applicable deadlines. It is the receipt of the notice and the report that renders the promise null and void.
The Notice and Follow-Up on Fulfilment of Conditions form (clause AV4.3).
By obtaining an acknowledgment of receipt from the seller, or by coordinating with the seller's broker to obtain one if necessary. If the deadline is approaching or the seller is not cooperating, a bailiff (process server) should be engaged. The buyer's broker must retain proof of receipt.
The buyer may renegotiate the price or conditions; the buyer must provide the seller with the report or relevant excerpt supporting the request, and, if an agreement is reached, sign an Amendments form (which will form an integral part of the promise to purchase).
No. The buyer is not required to do so, but it may be useful to support the request. If the full report is provided, it should be specified that it is provided for negotiation purposes only and not for the purpose of rendering the promise null and void.
It may be used when, in the context of renegotiation, the parties agree that the legal warranty of quality will not apply to the matter that is the subject of the reduction in the offered price.
To avoid future disputes related to the execution of the work, the quality of the work, and the applicable warranties.
The buyer is deemed to have waived the condition. Absent an agreement on an amendment, the buyer must proceed with the purchase under the original terms of the promise to purchase.
Yes, in the Seller's Declaration (SD/SDD). This may include a report commissioned by the seller or by a previous prospective buyer whose promise to purchase was subsequently cancelled.
No. A complete copy must be provided to the buyer, to ensure that elements the seller considers minor are not omitted when they may in fact be significant to the buyer.
The seller's broker must nonetheless inform the buyer of the report's existence and its contents.
No. The seller's broker may not provide a copy of a prior report prepared at the seller's request if the seller objects. In that case, the broker must at minimum disclose the adverse factors contained in the report.
The broker must redact any personal information before providing or granting access to a copy of a prior report.
The broker may advise the seller to obtain a counter-assessment on the points in dispute.
To guide and advise the seller in determining the market value of the property, so as to establish a fair price that reflects market conditions and enables the seller to achieve the best possible price in line with their objectives.
A broker must not express an opinion on the value of a property or a business, or on the cost of a loan, unless that opinion is substantiated and justified in accordance with accepted practice and professional standards.
Selecting a valuation method; gathering information on factors that may affect the price (location, dimensions, year built, condition, rooms, materials, lot, market, roof, overall condition, inclusions/exclusions, taxes, etc.); identifying recent comparable sales; conducting a comparative analysis where possible; and adjusting the prices of the comparables.
The comparative analysis (or parity method), which compares the property to recently sold properties with similar characteristics.
When there is insufficient or no data available to perform the comparisons required by the parity method.
In the case of multi-unit residential, commercial, or office properties.
The sales history of sold properties extracted from listing services, knowledge of the market, area, and neighbourhood, the municipal assessment roll, and the Land Registry. Relevant factors must be identified, assigned a value, and used to adjust the value of the comparables.
No. Sale prices must not be disclosed before they have been published in the Land Registry.
No. Information that directly or indirectly identifies the sellers — such as photographs, addresses, or the owner's name — must be redacted.
Act within the limits of their competence, inform the client accordingly, and seek assistance from a colleague, a recognized expert (e.g., a certified appraiser), or their agency executive officer.
In clause 4.1, in both words and figures, to avoid any ambiguity.
A practice whereby amounts that do not genuinely form part of the sale price — such as financing of the down payment, lender fees, or sums to be subsequently remitted to the buyer — are included in the stated sale price. This practice is prohibited.
No. Listing a price significantly below market value and comparable sales for the purpose of creating a bidding war is also prohibited.
No. The price displayed and communicated must reflect reality. A broker must not advertise information that is false, misleading, or incomplete with respect to the sale price of a property.
The broker must ensure that the price appearing on transaction documents is the price actually agreed upon between the seller and the buyer. Any discrepancy may constitute artificial price inflation or a misrepresentation.
By using the Amendments form, which expressly provides for this possibility in clause M2, signed by the seller.
It must be substantiated and justified: documented by comparables, adjustments, and an appropriate method, and consistent with accepted practice and professional standards.
An estate situation, a separation, whether or not the legal warranty is excluded, the need to sell quickly, etc. These factors must be taken into account when advising the seller.
Throughout the entire duration of the brokerage contract, so that the price can be adjusted in response to market changes or any other relevant circumstances.
The comparative analysis or method used, the list of comparables (with adjustments), excerpts from the Land Registry, the municipal assessment roll, and the listing service, as well as notes explaining the approach and the adjustments made.
No. Every opinion must be the broker's own and based on their own verifications and analyses, even if the result is similar.
Differences in floor area, state of maintenance, landscaping, location, roof age, the presence of extras (pool, garage), specific inclusions, market conditions at the time of sale, etc.
Yes. The opinion must be accompanied by relevant information presented in a manner that is readily understandable to the client, so as to help them develop realistic expectations.
It may be presented verbally, but it must be supported by written and verifiable documentation. In practice, it is strongly recommended that a written version be provided to the client.
The warranty of ownership and the quality warranty. Both exist by operation of law alone, without any need to provide for them in the contract.
That the property is free of all rights other than those declared by the seller, that the seller will have discharged all hypothecs affecting the property (except those assumed by the buyer), that the property is not subject to any encroachment by the seller or a third party, and that it does not violate any public law restriction, except those disclosed by the seller or that the buyer ought to have discovered.
That the immovable is free of latent defects existing at the time of sale that would render it unfit for the use for which it was intended, or that would so diminish its usefulness that the buyer would not have purchased it — or would not have offered the same price — had the buyer known of them.
No. The seller does not warrant against a defect known to the buyer, nor against a defect that a prudent and diligent buyer could have discovered. This underscores the importance of a pre-purchase inspection.
No. The fact that the seller was unaware of the defect, or that the defect only manifests after the sale, in no way diminishes the warranty.
The seller's liability is increased: in addition to the diminution in the value of the immovable, it covers all other damages suffered by the buyer.
Yes, but such an exclusion carries significant consequences. The broker has a duty to inform and advise both the seller and the buyer of the consequences of the exclusion, and any exclusion clauses must be drafted with great care.
It expresses the buyer's intention to purchase the immovable without any warranty whatsoever. The buyer waives not only the warranty of the immediate seller, but also those of all previous sellers, thereby breaking the chain of warranty transmission.
To avoid unnecessarily nullifying the legal warranties granted by previous sellers, which could otherwise continue to benefit the buyer. It is preferable to draft a partial exclusion clause specifying the nature of the warranty being excluded (quality) and identifying which sellers are excluded (the immediate seller only, for example).
Notably in the case of a repossession or an estate sale (where the seller has limited knowledge of the property), the sale of a property in poor condition or slated for demolition (complexity of disclosure), where the seller does not wish to warrant a change of use contemplated by the buyer, or where the seller is an elderly person wishing to avoid potential legal action against themselves or their estate.
Yes. The buyer may waive solely the warranty of the immediate seller while retaining the warranties assigned by previous sellers (provided those sellers sold with the legal warranty). A clear, unambiguous clause that reflects the parties' intent is then required.
Yes. It is possible to exclude the legal quality warranty specifically with respect to certain identified elements (swimming pool, fireplace, air conditioning or heating systems, household appliances, condition of the land, etc.).
Because if any prior sale was made "at the buyer's own risk," the chain of warranties was reset from that point forward, and the warranties of all sellers prior to that transaction are no longer available to subsequent buyers.
The buyer loses the right to pursue claims for latent defects against the seller (unless the seller was aware of the defect and failed to disclose it), the purchase price may be negotiated downward, buyer interest may decrease, and a more thorough pre-purchase inspection becomes essential.
No. It does not shield the seller from legal action if the seller was aware of defects affecting the immovable at the time of sale and failed to disclose them.
In the brokerage contract, in the detailed listing sheet (fiche descriptive), and in the promise to purchase.
Yes, the seller may wish for it to apply only for a limited period. The broker must then inform the parties of the issues that arise from such a limitation.
To a legal adviser, given the serious consequences that a warranty exclusion may have on the rights and obligations of the parties.
That the information must appear on the listing sheet (fiche descriptive), that the exclusion may reduce buyer interest and affect the price, that it does not protect against legal action for known but undisclosed defects, and that, depending on the circumstances, it may be appropriate to exclude or limit the legal warranty.
That in the event of an unknown defect, the buyer will have no recourse against the seller (except for a defect knowingly concealed by the seller), that a full exclusion also causes the buyer to lose the warranties of previous owners, that the terms of the waiver must be clearly set out in the promise to purchase, that a more thorough pre-purchase inspection should be carried out, and that the price offered must reflect the absence of warranty.
To exclude the legal warranty granted by the immediate seller only, while not waiving those transmitted by previous sellers, provided those sellers sold with the legal warranty (standard clause 3.5).
No. The broker must not automatically transcribe the exclusion clause from the listing sheet without explaining it to the buyer and obtaining their consent. The broker must objectively inform the buyer of the consequences and of the possibility of tailoring the clause.
The broker should not recommend excluding it, except in very rare circumstances. Unlike the quality warranty, it relates to fundamental matters (title, hypothecs, encroachments) that it would be imprudent to waive.
Recent judgments have reaffirmed the scope and limits of legal warranty exclusion clauses, particularly the effect of an "at the buyer's own risk" clause on the chain of warranty transmission from previous sellers.
The inspector must be informed that the property is being sold without the legal warranty, so that this can be taken into account during the inspection and the scope of their review adjusted accordingly.
To arrange a more thorough pre-purchase inspection than is typically conducted, to adjust the offer price to account for the absence of warranty, to clearly set out the terms of the waiver in the promise to purchase, and to consult a legal adviser.