Archives des buyer - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/buyer/ Plateau Mont-Royal, Outremont, Rosemont La-Petite-Patrie, Mile-End, Ville Marie Fri, 25 Apr 2025 19:58:28 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.5 https://yanicksarrazin.com/wp-content/uploads/2020/11/77174542_2673133149440852_8670214071997431808_n-60x60.png Archives des buyer - Courtier Immobilier Montréal Yanick E Sarrazin https://yanicksarrazin.com/en/immobilier/tag/buyer/ 32 32 Financial repossession: advantages and disadvantages https://yanicksarrazin.com/en/immobilier/real-estate-information/financial-repossession-advantages-and-disadvantages/ Fri, 25 Apr 2025 19:54:41 +0000 https://yanicksarrazin.com/?p=75445 If you’re looking for your new home, chances are you’ve already noticed the Repossession search criterion on Centris, which allows you to filter the properties involved in this type of procedure. To help you better understand this type of sale, our Montreal real estate team presents the main advantages and disadvantages associated of a financial […]

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If you’re looking for your new home, chances are you’ve already noticed the Repossession search criterion on Centris, which allows you to filter the properties involved in this type of procedure. To help you better understand this type of sale, our Montreal real estate team presents the main advantages and disadvantages associated of a financial repossession. 

What is a financial repossession?

Repossession of finance, also known as mortgage foreclosure, is a legal process whereby a financial institution repossesses a property when the owner has failed to meet his or her payment obligations. In other words, if a homeowner stops repaying his or her mortgage for an extended period, the lender can take legal steps to repossess the property and put it up for sale to recover the sums owed.

However, this procedure is relatively complex and costly, often prompting lenders to offer homeowners a second chance. In most cases, the financial institution begins by sending a notice of default, followed by a letter of formal notice, before handing the file over to its foreclosure department.

When the property is seized, the financial institution calls in professionals to assess its market value. Once this step has been completed, the house is put up for sale on the market, usually through a real estate broker mandated by the lender.

The advantages of a financial repossession

Buying at a lower price

Since lenders generally wish to sell this type of property as quickly as possible, they are often marketed at a lower price than comparable properties. According to Centris, finance repossessions typically sell for 10% to 25% below market value.

Less competition

Not all buyers are attracted to this type of property. Indeed, finance repossessions sometimes require renovation work, which can dissuade some buyers who are looking for a turnkey home, ready to move into without repairs. This context reduces competition between buyers, which can be very advantageous in today’s real estate market.

Opportunity for value appreciation

Financial repossessions often require renovation work, providing an excellent opportunity to significantly increase their value. By carrying out well-targeted renovations, these properties can see their price rise significantly, offering attractive appreciation potential for discerning buyers. What’s more, for those with renovation skills who wish to carry out the work themselves, these properties represent an ideal opportunity to maximize their return on investment while reducing renovation costs.

Accelerated procedure

Since financial institutions are looking to recover sums owed rapidly, finance repossessions considerably limit protracted negotiations, speeding up the sale process and enabling the transaction to be completed in a shorter timeframe than a normal sale.

The disadvantages of a financial repossession

Buying without legal warranty

Since financial institutions do not have complete information on the property’s actual condition or maintenance history, finance repossessions are sold without a legal warranty. As a result, the buyer assumes full responsibility for the property’s condition, and has no recourse against the seller in the event of a hidden defect. In short, this type of transaction is carried out at the buyer‘s own risk.

Uncertainty about the state of the property

Some finance repossessions may show damage that occurred when the previous owners left, or require major repairs. What’s more, since creditors don’t have access to the property’s complete history, it’s crucial to carry out a thorough pre-purchase inspection. This step enables us to better assess the property’s actual condition and identify any work that needs to be carried out, thereby reducing the risks for the buyer.

Observing a lack of available information

Another major challenge when buying finance repossessions is the lack of information available. As creditors are not responsible for maintaining the property, it is often difficult for buyers to obtain details of the home’s history, repairs carried out or recurring problems. This lack of information can lead to uncertainty and increased risk for the buyer, who may end up having to invest much more than expected to bring the property back into good condition.

All in all, buying a finance repossession can offer considerable advantages, such as lower prices, less competition and the chance to make a profitable investment through renovations. However, it’s essential to weigh these advantages against the associated risks, such as uncertainty about the property’s condition and the lack of legal guarantees. Before embarking on such a transaction, it’s vital to fully understand the implications and take all the necessary precautions, including calling in experts for a thorough inspection. Being accompanied by an experienced real estate broker will enable you to benefit from sound advice and determine whether a financial repossession represents a wise investment for you.

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]]> Key interest rate maintained at 2.75%: A favorable environment for the real estate market! https://yanicksarrazin.com/en/immobilier/buyer-information/real-estate-news-buyer-information/key-interest-rate-maintained-at-2-75-a-favorable-environment-for-the-real-estate-market/ Wed, 16 Apr 2025 18:40:38 +0000 https://yanicksarrazin.com/?p=75229 Montreal, April 16, 2025 – The Bank of Canada has decided to maintain its key rate at 2.75%. This stability is explained by economists’ desire to await developments in the ongoing trade war between Canada and the United States before making any adjustments. Source : Bank of Canada Maintaining this rate continues to have a […]

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Montreal, April 16, 2025 – The Bank of Canada has decided to maintain its key rate at 2.75%. This stability is explained by economists’ desire to await developments in the ongoing trade war between Canada and the United States before making any adjustments.

Source : Bank of Canada

Maintaining this rate continues to have a positive impact on the Canadian economy. In particular, it encourages consumer spending, since lower interest rates reduce borrowing costs for financial institutions, which can then offer advantageous terms to their customers. This favorable environment could encourage more buyers to realize their real estate projects.

While this decision is particularly favorable for buyers, it also has advantages for sellers. Increased demand on the real estate market, supported by easier access to credit, increases the likelihood of selling quickly at a competitive price. In short, the improvement in household purchasing power could breathe new life into the real estate market as a whole.

To better understand the impact of the 2.75% key interest rate on your real estate projects, don’t hesitate to contact our real estate brokers in Montreal.

Sources

Bank of Canada. https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/?theme_mode=light&_gl=1*1v19lw8*_ga*MTQ5NjYzMjA2Ni4xNzQ0ODEzNzU2*_ga_D0WRRH3RZH*MTc0NDgyODMwMC4yLjAuMTc0NDgyODMwMC42MC4wLjA.

Bank of Canada.
https://www.bankofcanada.ca/2023/12/how-higher-interest-rates-affect-inflation/?theme_mode=light&_gl=1*112lhw*_ga*MTQ5NjYzMjA2Ni4xNzQ0ODEzNzU2*_ga_D0WRRH3RZH*MTc0NDgyODMwMC4yLjEuMTc0NDgyODM1OC4yLjAuMA. 

La Presse. https://www.lapresse.ca/affaires/economie/2025-04-16/banque-du-canada/le-taux-directeur-reste-inchange-a-2-75.php


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]]> How to write a competitive offer to purchase? https://yanicksarrazin.com/en/immobilier/buyer-information/how-to-write-a-competitive-offer-to-purchase/ Fri, 14 Mar 2025 18:58:23 +0000 https://yanicksarrazin.com/?p=72416 You’ve been looking for a property for several months and, despite several offers, you’re having trouble standing out from the crowd? Our team of Montreal real estate brokers has a few tips to help you formulate a more competitive offer to purchase and increase your chances of success in today’s real estate market, where multiple […]

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You’ve been looking for a property for several months and, despite several offers, you’re having trouble standing out from the crowd? Our team of Montreal real estate brokers has a few tips to help you formulate a more competitive offer to purchase and increase your chances of success in today’s real estate market, where multiple offers are common.

Learn more about the current market

Use an experienced real estate broker

It’s essential to work with a qualified real estate broker when looking for a property. Thanks to their expertise in the current real estate market, they’ll be able to guide you effectively and help you make the best decisions when making your purchase offers.

Analyze the real estate market

By working with a real estate broker, you’ll benefit from his or her expertise in in-depth analysis of the current market. For example, he can study recent sales of comparable properties in the area you’re interested in, giving you a clear picture of prices in the area. This data will enable you to formulate a more competitive offer, adapted to the realities of the market.

Research on the property

Before making an offer, it’s essential to do your research on the property in question. You can check publicly available data. Having a thorough knowledge of the property will enable you to submit a more solid offer.

Make sure you have a solid financial position

Get pre-approved for a mortgage

Our team of real estate brokers strongly recommends that you obtain a mortgage pre-approval before making an offer to purchase. This document inspires confidence in the seller, as it demonstrates the buyer‘s seriousness and financial capabilities.

Offer a down payment

Although the down payment is not a common practice in today’s real estate market, our real estate brokers strongly suggest that you consider it when submitting your offer to purchase. It shows you’re serious about finalizing the transaction, and strengthens your position vis-à-vis other potential buyers.

Make a clear and precise offer to purchase

Offer a competitive price

Based on your research, offer a competitive price. If the real estate market is very competitive, we suggest that you make a promise to purchase that is higher than the advertised price, in order to have a better chance of standing out from the crowd, especially in the case of multiple offers.

Be precise in your conditions and clauses

Our real estate team suggests that you be clear and concise in the conditions of your promise to purchase, avoiding superfluous clauses that could be perceived as an obstacle by the seller. However, certain conditions, such as inspection, should be mentioned in the promise to purchase, as they protect the buyer‘s interests.

Be flexible with the closing date

We recommend you be flexible about the closing date, and offer a date that also suits the seller. For example, if the seller needs to relocate quickly, we recommend that you propose an early closing date to facilitate the process for all stakeholders.

Add a personal touch to your offer to purchase

Present a letter to the seller

Our team of real estate brokers strongly recommends that buyers write a letter to the seller, expressing their interest in the property and why they have chosen it. This letter is then reviewed by your real estate broker to ensure that it contains all the necessary information.

In some cases, your real estate broker could also present your promise to purchase directly to the sellers. This approach would personalize the transaction and add a more human dimension, which could reinforce the impression of seriousness and foster a better connection with the seller.

Be available and flexible

Be responsive

In a competitive real estate market, speed is of the essence. For example, it’s crucial to react quickly when sellers approach you for information or when you have to respond to a counter-offer. A quick response not only demonstrates your interest in the property, but also strengthens your position with sellers.

Be ready to negotiate

It’s important to be flexible and open during negotiations. Sellers sometimes ask for minor adjustments, and buyers shouldn’t be inflexible in the face of these requests. On the contrary, they must be ready to discuss with the sellers in order to find common ground that satisfies both parties.

In short, a successful offer to purchase requires good preparation, thorough research and a certain amount of flexibility. By working with one of our Montreal real estate brokers, you’ll be guided every step of the way, including the drafting of your promise to purchase.

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]]> 5 tips for selling your property with total serenity https://yanicksarrazin.com/en/immobilier/seller-information/5-tips-for-selling-your-property-with-total-serenity/ Thu, 27 Feb 2025 15:40:57 +0000 https://yanicksarrazin.com/?p=71610 You are thinking of selling your property in the next year, but don’t know where to start? Our team of real estate brokers in Montreal shares 5 tips for selling your property with total serenity.  Put your trust in a real estate broker It can be tempting for some sellers to want to sell their […]

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You are thinking of selling your property in the next year, but don’t know where to start? Our team of real estate brokers in Montreal shares 5 tips for selling your property with total serenity. 

Put your trust in a real estate broker

It can be tempting for some sellers to want to sell their property on their own to avoid certain costs. However, this represents a risk, as most sellers are not familiar with the real estate market. That’s why it’s essential to use the services of a qualified real estate broker. This professional will be able to provide you with the necessary advice throughout the process of putting your property up for sale. By working with a broker, you’ll save a considerable amount of time, gain access to a large network of potential buyers, and reduce the legal risks involved in real estate transactions.

Establish a fair and competitive price

Price is a crucial factor when putting your property up for sale. It must be both fair and competitive, as this directly influences buyer demand. Indeed, a price that is too high in relation to the real value of the property, or to that of other similar properties on the market, can dissuade potential buyers. That’s why it’s vital to work with an experienced real estate broker to determine the optimum price. Thanks to their in-depth knowledge of the market, they will be able to make comparisons with other properties for sale similar to yours, and advise you on the right price to set.

Prioritize professional photographs

Professional photos play a crucial role when putting your property up for sale. They highlight the unique assets of your property. What’s more, professional photos help future buyers to imagine themselves in their new home.

If you’d like some tips on how to maximize your professional photography, we invite you to read our article on the subject here.

Source : Studio Point de vue

Highlight the neighborhood's assets

When describing your property, it’s crucial to highlight the assets of your neighborhood. After all, buyers don’t just buy a property, they also invest in its environment and location. To generate their interest, don’t hesitate to highlight the strong points of the location, such as green spaces (parks, public gardens), proximity to schools, as well as other amenities that contribute to quality of life, such as shops, public transport and road links.
Green areas

Source : Unspash

Make any necessary improvements

Finally, it’s essential to complete minor repairs to your property so that it looks at its best. For example, replace faulty light bulbs, fill in small holes in the walls, and carry out any other minor repairs that will help improve the overall appearance of the property.

By applying these 5 tips, you’ll be well on your way to selling your property quickly and under the best possible conditions. These tips will not only enhance the value of your property, but also maximize its attractiveness to potential buyers. Don’t hesitate to contact a member of our team of brokers for more advice on putting your property on the market.

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]]> 8 must-have decorating trends for 2025 https://yanicksarrazin.com/en/immobilier/real-estate-news/8-must-have-decorating-trends-for-2025/ Wed, 15 Jan 2025 15:41:13 +0000 https://yanicksarrazin.com/?p=68271 As a real estate team, it’s essential to stay on top of the latest trends in interior design. Embracing these trends can not only modernize a property’s appearance, but also increase its appeal and market value. Whether you’ve just bought a property or simply want to add value to your home before putting it up […]

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As a real estate team, it’s essential to stay on top of the latest trends in interior design. Embracing these trends can not only modernize a property’s appearance, but also increase its appeal and market value.

Whether you’ve just bought a property or simply want to add value to your home before putting it up for sale. Our team of Montreal real estate brokers presents 8 must-see decorating trends for 2025, to enhance your space and attract the maximum number of buyers.

Earthy colors

Earthy colors are making a comeback in decorating trends for 2025. Natural hues such as beige, sand and brown are essential choices for creating a warm ambience in your home. Among the leading colors, terracotta, which evokes the warmth of terracotta, will be particularly popular for interior design. This color brings a touch of character and conviviality to your property.

Coffee areas

If you’re looking for a suggestion for furnishing a small corner of your home, we strongly recommend opting for a stylish yet practical café area. It will add a touch of conviviality while optimizing your space.

Green: the trend color of the year

Green is this year’s star color, particularly popular in bathrooms and kitchens. If you prefer a more refined aesthetic, we recommend sage green. This color is a subtle, timeless hue that will enhance the decor of your property.

The return of the striped

Stripes are making a comeback in interior design. Whether in accessories or wallpaper, it’s establishing itself as an essential trend.

Our pro tip: stripes have the power to create an illusion of height and space, ideal for visually enlarging a room. This pattern is therefore recommended for adding a new dimension to small spaces.

Real plants

Whether natural or artificial, plants have always played an essential role in interior design, adding a touch of freshness and greenery. However, in 2025, real plants will be the preferred choice. Although their upkeep can sometimes prove tricky, we invite you to discover our article on 5 easy-to-maintain plants, for a green and welcoming interior all year round.

Creating a sophisticated office corner

Sophisticated corner offices will be ubiquitous this year. Interior design experts recommend deep colors such as navy blue or charcoal gray. In terms of decoration, materials such as leather, velvet and metallic accents will be at the heart of this trend. These will bring a touch of luxury and refinement to your workspace.

Limewash

Although limewash has gained in popularity since last year, it remains a strong trend and is set to continue to mark the coming year. This painting technique offers an elegant, timeless touch, ideal for enriching a minimalist decor. Our team of Montreal real estate brokers recommends applying it to an accent wall, choosing tone-on-tone shades to create a warm, harmonious atmosphere.

L’article 8 must-have decorating trends for 2025 est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

]]> Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? https://yanicksarrazin.com/en/immobilier/seller-information/sellers-and-buyers-what-are-the-costs-to-pay-at-the-notary-and-the-mandatory-documents-to-provide/ Wed, 19 Apr 2023 20:18:23 +0000 https://yanicksarrazin.com/?p=39526 Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? – Key information In a real estate transaction, going to the notary is the last step in formalizing the sale of a property. Signing the act of sale can cause some anxiety, excitement and many questions. Since […]

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Sellers and buyers: what are the costs to pay at the notary and the mandatory documents to provide? - Key information

In a real estate transaction, going to the notary is the last step in formalizing the sale of a property. Signing the act of sale can cause some anxiety, excitement and many questions.

Since our real estate brokers accompany many clients in this last important step, whether for the sale or purchase of their property, our members want to help you better distinguish all the subtleties of the transition to the notary. Documents required at the various costs involved: this major step will no longer have any secrets for you!

The role of the notary

In a real estate transaction, the notary holds a neutral and central role. He/she must respect the rights of both the seller and the buyer. His/her tasks are many: 

 • The notary will receive the promise to purchase, examine the title deeds, the seller’s certificate of location, if applicable, the marriage certificate or the divorce certificate.

 • The notary will write the deed of sale of the property, making sure that the facts are true in the promise to purchase. It is the signing of the bill of sale that formalizes the sale.

 • The notary will write the mortgage deed. This is a document detailing all the components of the buyer’s loan (loan principal, interest rate, amortization period, etc.) related to the financing of the property. The notary verifies that the provincial and municipal taxes have been paid and that the mortgage balance has been paid in full by the seller. This will result in the seller’s mortgage being written off.

 • The notary then publishes the deed of cancellation in the land register. The land register is a report that determines the property rights. The deed of cancellation in the land register then allows the suppression of the right of ownership and then, its sale.

Required documents

During the visit to the notary, different documents will be requested.

For the buyer and seller

• Two pieces of identification that are valid, including one with a photo (e.g., driver’s license, health insurance card, passport, birth certificate, etc.),

• The detailed contact details of the parties,

• A marriage contract if you are married

• A judgment and divorce certificate if you’re divorced,

• A court file number if you are in the process of divorce.

For the buyer

• Mortgage instructions from your financial institution

• Proof of home insurance

For the seller

For more detailed information on these many mandatory documents when selling, see this article.

• The bill of sale,

• The mortgage deed,

• The certificate of location,

• Act of transmission if it is an estate,

• Statement of school and municipal taxes.

Montreal, typical victorian house with exterior staircase in the Plateau Mont-Royal district in autumn

Documents specific to different types of properties

Divided co-ownership

• The declaration of co-ownership

• The DRCOP (Request for information to the syndicate of co-ownership). This document is completed by the union to ensure there is no arrears, special dues or other necessary information on the property.

Undivided co-ownership

• Joint ownership agreement

Plexes: duplex, triplex, quadruplex (...)

• Leases

• Notices of renewal or non-renewal

Fees payable to the notary

Fees are also involved in the transaction and will have to be paid by the buyer and seller.

Costs incurred by the buyer

• The chain of title to a property. 

• Analysis of the certificate of location

• Copies of the bill of sale

• Preparation of allocations (e.g., school and municipal taxes, condo fees, revenues, heating oil)

• Registration in the land register of the deed of sale and the mortgage deed

• Notary fees (notary fees vary depending on the type of property, as well as its value)

Costs incurred by the seller

• Title correction (if required)

• Mortgage discharge:

○ Application to the creditor of the statement of account for repayment

○ Preparation of the mortgage discharge

○ Sending the draft discharge and repayment to the creditor

• Verification of taxes (municipal and school taxes)

• Administration of money in trust:

○ Preparation of cheques to various parties (real estate broker, land surveyor, mortgage creditor and payment of municipal taxes)

○ Preparing the transfer of funds to the mortgagee for repayment

• Bank transfer sales product:

○ Preparation of a bank transfer for the sale product and scan the confirmation into a file

○ It should be noted that picking up your cheque by hand avoids this cost

• Taxable disbursements (e.g., school and municipal tax audits)

• Notary fees: the notary’s hourly rate varies depending on the notary’s expertise and the urgency of the situation

In the case of a co-ownership

• Communication with the co-ownership manager or syndicate 

○ Obtaining information relevant to the transaction (condo fees, union compliance, etc.)

○ Obtaining a copy of the syndicate co-ownership

○ Payment of condo fees, if applicable.

○ Sending information to transfer the Syndicate

In some situations, the notary may incur unexpected additional charges. This is important to expect. A popular example of additional costs is title insurance.

• Title insurance: title insurance is a damage insurance. When the notary examines the securities and the certificate of location, he/she can detect irregularities (risks). If the transaction takes place soon and there is not enough time to correct these irregularities, the notary can then find a title insurance provider to cover these risks. It is the buyer who will be the insured and the seller who will have to assume the payment of the premium due to the right of ownership to which he/she is bound.

Notaire-Courtiers Immobiliers Montréal

Your real estate broker at your side

Don’t forget that your real estate broker is always at your side, even during the transition to the notary. If misunderstandings arise before, during or after the notary, do not hesitate to let your real estate broker know in order to clarify everything. 

With this information in hand, whether as a buyer or as a seller, we hope that your transition to the notary takes place with confidence!

Summary

The sale of a property is formalized by signing the act of sale with the notary. However, documents are mandatory for both the buyer and the seller. For example, during the visit to the notary, each party is asked for two pieces of identification and, if necessary, marriage or divorce certificates. For the buyer, mortgage instructions from the financial institution as well as proof of home insurance are required. For the seller, several documents are necessary such as previous sales documents, the mortgage deed, the certificate of location and others.

In addition, fees must be paid by the buyer and seller. These fees differ. Among the costs incurred by the purchaser is the registration of the deed of sale in the land registry and the mortgage deed. At the seller, one of the fees is a mortgage discharge. 

Although this last stage of the real estate transaction can be complex, know that your real estate broker is there to accompany you and answer your questions. Let him/her know your concerns. He/she’s here to provide his/her expertise. 

Questions about going to the notary? Contact one of our real estate brokers to enlighten you on the subject.

Consult other real estate news

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]]> End of dual agency: bill 5 https://yanicksarrazin.com/en/immobilier/news/end-of-double-agency-bill-5/ Wed, 24 Aug 2022 22:03:14 +0000 https://yanicksarrazin.com/?p=22225 End of dual agency : bill 5 – Key Information This article was updated on August 24, 2022.  Bill 5 Given the current overheated real estate environment and in the interest of better protecting buyers in a real estate transaction in Quebec, Bill 5 was passed by the National Assembly. This amendment to the Real […]

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End of dual agency : bill 5 - Key Information

This article was updated on August 24, 2022. 

Bill 5

Given the current overheated real estate environment and in the interest of better protecting buyers in a real estate transaction in Quebec, Bill 5 was passed by the National Assembly. This amendment to the Real Estate Brokerage Act was adopted on June 10, 2022. Bill 5 involves various tax measures, but also measures related to the real estate market. It prohibits, among other things, the dual agency of a real estate broker with a buyer and a seller for a residential immovable, as well as the verbal brokerage contract. These measures would then avoid a potential conflict of interest.

With the arrival of this new law, many questions arise. What exactly does this law consist of? What are the benefits for buyers? Does it have any exceptions regarding its application? What are the advantages of the brokerage purchase contract for buyers? What is the opinion of our team’s real estate brokers regarding this important change?

Implications of the prohibition of dual agency

As mentioned previously, Bill 5 prohibits a real estate broker from representing a buyer and a seller at the same time in a transaction involving a residential immovable property. A real estate broker is licensed by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). The broker works with his client, must protect his interests and ensure loyalty. Respect for confidential customer information is essential. In a case of dual agency, these obligations cannot always be fulfilled and can give rise to major conflicts of interest, hence the importance of the establishment of this law.

The real estate broker must then represent only one part of the transaction (the buyer/the seller or the tenant/the lessor), thus ensuring a fairer treatment vis-à-vis the buyer.

The prohibition of dual agency is also combined with the prohibition of the verbal purchase brokerage contract. A written purchase brokerage contract must then be established between the buyer and the real estate broker in order to formalize the transaction.

If a case of dual agency occurs, i.e. a real estate broker is bound by a sale brokerage contract and a purchase brokerage contract, he must then notify the buyer in writing as to the termination of the purchase contract. As soon as this writing is sent, the termination of the purchase contract takes effect. The broker will then have to recommend a new real estate broker to this buying client. However, the buying client can choose not to be represented by anyone and make the decision they desire for the rest of the real estate transaction. If this is the case, the real estate broker must grant him fair treatment.

The concept of fair treatment is fundamental here. The real estate broker must inform the unrepresented buyer with objectivity. Indeed, the broker must demonstrate the accuracy of the information transmitted and indicate to the buyer any adverse elements concerning the desired property. However, the representation of the buyer and the defense of his interests are not possible without the signature of the purchase contract. In this case, the real estate broker will work in collaboration with the broker-seller. 

Dual agency exceptions

It should be noted that the OACIQ will establish certain exceptions with regard to compliance with the law of double agency. For example, for certain regions of Quebec that would be underserved, real estate brokers in that region would be authorized to represent buyers and sellers. Additional exceptions are expected in the coming months.

New real estate broker roles in a transaction

Broker-Seller: The broker-seller is the real estate broker who is bound by a Brokerage Sale Contract (BSC) with a seller. Since the broker has a signed contract, he must represent his client’s interests. 

Broker-Buyer: The broker-buyer is the real estate broker who is bound by a Brokerage Purchase Contract with a buyer (BPC). He can therefore represent the buyer and must defend his interests.

Broker-Collaborator: The broker-collaborator is the real estate broker who accompanies the buyer in the transaction, but is not bound by a brokerage purchase contract (BPC). As mentioned above, the broker-collaborator must work in collaboration with the broker-seller and cannot represent the buyer and his interests.

Brokerage purchase contract: what are the benefits for buyers?

Among the new obligations of this law, the brokerage purchase contract became mandatory as of June 10, 2022. In order to formalize the agreement between the buyer and the broker, the purchase contract must be signed by both parties. Signing this type of brokerage contract has many advantages for buyers:

  • Representation: the buyer can be represented by the real estate broker and the latter can defend his interests.
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  • Personalized service: the buyer benefits from the custom search carried out by the broker (such as the creation of a portal of properties to visit). The buyer will also be better protected with regard to his personal information and interests.
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  • Access to comparables: the buyer has access to market comparables obtained by the real estate broker’s expertise and the tools at his disposal.
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  • Advice: The buyer receives advice and recommendations based on their needs and criteria throughout the purchase process. This advice will allow him to have a better knowledge of the situation (for example: are we in a situation of multiple offers) and in the real estate market more generally. 
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  • Negotiation: the buyer is represented by his broker during the negotiation. The real estate broker’s negotiation skills will allow the buyer to acquire the desired property at a fair price and to stand out in multiple offers. 
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  • Writing the promise to purchase: the buyer is advised by the broker on the conditions and clauses to be added to the promise to purchase in order to be further protected and distinguished. 

Dual agency exceptions

The OACIQ has established certain exceptions regarding compliance with the dual agency law.

-For certain areas of Quebec that would be underserved, real estate brokers in that area would be allowed to represent buyers and sellers. 

-A seller and a buyer can be represented by two brokers from the same real estate agency.

-For residential buildings with more than 5 units and commercial buildings, the brokerage purchase contract is not mandatory. The end of dual agency does not apply here. 

Summary

Bill 5 was adopted by the National Assembly and involves changes to the law on real estate brokerage. These changes have been in effect since June 10, 2022. Among other measures, this new law prohibits the dual agency of a real estate broker with a buyer and a seller for a residential building. It also indicates that in order to formalize a transaction, a written brokerage purchase contract must be established between the two parties. Certain exceptions to this dual agency will be granted, such as in small regions of Quebec where there is a deficit of real estate brokers. It also states that in order to formalize a transaction, a written brokerage purchase contract must be established between the two parties. With the mandatory purchase brokerage contract, this reduces potential conflicts of interest that can arise when a real estate broker represents a buyer at the same time as a seller. In addition, this provides additional protection to the buyer, strengthens the relationship of trust and loyalty between the two parties. 

*The use of the pronoun “He” was used to lighten up the text.

Questions? Contact one of our real estate brokers to enlighten you on the subject

L’article End of dual agency: bill 5 est apparu en premier sur Courtier Immobilier Montréal Yanick E Sarrazin.

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