The top 5 questions Quebecers ask about buying and selling a home
Whether it’s a small condo or a large family home, buying a home can be both confusing and exciting. So it’s normal for buyers and sellers to have questions about their rights, the transaction process and the responsibilities of their real estate professionals.
That’s where the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) comes in. In Quebec, the OACIQ’s mission is to protect consumers at every stage of their real estate transaction, and provide support whenever necessary. In order to help sort out some of the basics, we sat down with the organization to explore the top five questions they answer on a regular basis.
IS A REAL ESTATE BROKER ALLOWED TO SOLICIT ME IF I AM SELLING MY HOME MYSELF?
They are. That said, real estate and mortgage brokers are bound by their code of ethics, and must always act professionally. They should not make a seller feel urged or compelled in any way to use their services. Moreover, brokers must abide by CRTC rules regarding unsolicited telecommunications.
“That means if you’re on the no-call list, a broker should not solicit you, unless he or she has done business with you in the previous 18 months,” said Sofy Bourret, OACIQ’s vice-president of communications. “We’re here to make sure that they respect the law and act responsibly; if you feel uncomfortable or have questions about your broker’s actions, you can contact us without hesitation.”
CAN I CANCEL MY PROMISE TO PURCHASE?
A promise to purchase is a firmly stated intention to purchase the property of the seller under certain conditions. Once issued to the seller, a buyer is bound by the promise to purchase and cannot cancel it except in the event that the conditions outlined in the agreement are not met.
“If the results of the home inspection reveal problems that were previously unknown, for example, then a buyer can declare the promise null and void,” Bourret said. “But generally, a promise to purchase in which the conditions are met cannot be cancelled once it is received by the seller.”
WHAT IS A LATENT DEFECT?
A latent defect is a serious problem with a property that existed at the time of purchase, of which the buyer was not aware. The nature of the defect in question is so serious that it’s reasonable to assume the buyer would likely not have purchased the property had they known about it, or would have at least asked for a reduction in price.
“Latent defects can be a surprise to the seller, too,” Bourret said. “The seller has the obligation to disclose all known defects in the OACIQ’s Seller’s Declaration form, but if something should arise like mould in the walls or problems with the wiring, it’s possible the seller did not know of these problems at the time of sale.”
Brokers for both the buyer and seller have the duty to inform and advise their clients, and help identify any known issues that may result in a nullified transaction, or potential problems down the road.
IF I RECEIVE SEVERAL PROMISES TO PURCHASE AT THE SAME TIME, CAN I CHOOSE WHICH ONE TO RESPOND TO?
Yes, but your broker should help guide you in deciding which offer is right for your situation.
“It’s not always a question of price,” Bourret said. “Sometimes the conditions of an offer can make it extremely appealing to the seller.”
Favourable conditions include a promise to purchase without the condition of having to sell a property first. Similarly, if a seller is in a rush, they may be particularly attracted to offers with quick occupancy dates.
I AM DISSATISFIED WITH THE SERVICES OF MY BROKER. WHAT CAN I DO?
The OACIQ has several mechanisms in place to help people who are dissatisfied or concerned about the service they’re receiving.
“There’s a course of action we follow for each case depending on the nature of the complaint,” Bourret said. “Whether it’s through our call centre or using our Assistance to the Public form, each case needs to be evaluated on an individual basis. If you have reason to believe your real estate or mortgage broker did not follow the law or did not act ethically, we are here to help, and we have the capacity to address any situation you may be facing.”
The OACIQ Information Centre receives upwards of 55,000 requests each year regarding real estate transactions. Should a formal complaint need to be filed, the OACIQ has a standard Assistance to the Public form on its website, which simplifies the process for the complainant.
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