John B. Joseph

Choosing An Agent Or Falling Over One? The Cost Rests With The Client! Westmount, Quebec

Quite simply:

- If the client uses the quick reference from a friend and does not question the referred agent, they have just fallen over one.

- If they see an agent's signs often and draw the conclusion this is a good agent, then again they have fallen over one.

My best clients are those I find, pick up off the ground, dust off and clean up after they have had a bad experience. They are also the ones who did not do their research.

So, why don't clients research their real estate agent?

For many reasons I am sure. I think the nature of selling someone's personal, and I mean very personal property and space factors in here.

In our industry there is little control of how an agent conducts themselves away from the office. And all our work is performed away from the office. Since there is little supervision combined with scant relationship training, it is difficult for the average client to learn about what an agent can offer especially when an agent's initial client contact, if not referred or invited in, is limited to just trying to get their foot in the door to present themselves.

Then, once in the door and in the client's personal space, there is that natural threat and ensuing hesitation for a client to open up to a "sales person".

And so what follows is a power struggle where either the agent or the client wrestles for control of the meeting.

The agent who has prepared a professional approach to educating their leads and prospects to learn about what they have to offer and how they differentiate themselves from other agents in the hood BEFORE they work for an appointment will have a distinct advantage over those agents who are "taught" and pay to be "coached" to work the numbers exclusively.

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Welcome Tax Is A Land Transfer Tax

Or in French, commonly referred to in Montreal as the "taxe bienvenue" is a misnomer that has creeped into common language use in Quebec.

Minister Bienvenue made recommendations leading to the collection of transfer duties by Quebec municipalities.

Since January 1, 1992, every Quebec municipality must collect duties on the transfer of any property on its territory in compliance with the Act respecting Duties on Real Estate Transfers. Some circumstances provide for exemptions as in the case of public corporations, farms, woodlots or mines.

As a real estate agent in Westmount and NDG, in Montreal, I always inform my clients on the land transfer duty due when clients go to the notary to sign the act of Sale (Deed).

Here is an example of how this is calculated is:

Purchase Price $400,000

Range Rate Amount
$0 - $50,000 0.5% $250
$50,000 - $250,000 1.0% $2,000
$250,000 + 1.5% $2,250
Transfer Tax to Pay: $4,500

"Declarations By The Seller" Form When Selling, Move Forward, Don't Look Back

When my clients are ready to sell in Westmount or NDG and other sectors I serve, I have them complete our "Declarations by the seller of the immovable" form to reduce potential disputes. This verification tool helps both the agent and sellers identify existing and past issues on the property. Unfortunately, the absence of adequate verifications by agents becomes a frequent source of requests for assistance received by our provincial association, the ACAIQ*.

Consumers are not always made aware that agents have a duty to verify all information regarding the property they are contracted to sell; and as well, that sellers must fulfil their disclosure obligations when selling. The form "Declarations by the seller of the immovable" was developed by the ACAIQ, in cooperation with the AIBQ**, so that the sellers and their agent can easily review the immovable without specialized construction knowledge.

The existence of this form, completed, helps the buyer feel confident, and facilitates a transaction. It will become more difficult for a buyer to hold sellers responsible for any defects of which he has already been informed of before committing to a transaction.

If the agent fails to prepare a seller's declaration when entering into a brokerage contract, crucial information will never be conveyed to a potential buyer before a Promise to Purchase (offer) is presented. It will also save the buyers inspector from asking questions that may put the seller and the agent in an awkward position and risk undermining the buyer's confidence.

Selling older homes in Westmount, NDG, Montreal-Ouest, Outremont or in other older sectors of Montreal can add a level of complexity and unknowns to the buyers list. Both the seller and the buyer are not always aware of what is behind the walls of their home. Renovations from years gone by may have been done to varying degrees of completion and correctness. The declaration as well as the completion of the MLS listing description to the best knowledge of the seller will protect both parties.

The detailed description listing sheet on MLS/SIA (www.realtor.ca) must also mention its existence and the buyer's agent must not only read it, but also inform the buyer of it. A copy of the seller declarations form must be attached to the Promise to Purchase for the buyer should one exist.

The primary role of the ACAIQ is to ensure the protection of the public by enforcing the rule of professional ethics of its members (agents and brokers) by overseeing that its members respect REBA*** and its regulations.

* ACAIQ - Association des courtiers et agents immobiliers du Québec / Association of Real Estate Brokers and Agents of Quebec

** AIBQ - l'association des inspecteurs en bâtiments du Québec / The Association of Building Inspectors for Quebec

*** REBA - The Real Estate Brokerage Act of Quebec (Quebec legislation governing the business of Real Estate in the Province of Quebec)

Legal Warranty When Selling A Property

A legal warranty when selling a property is attached to the property in Quebec and sold with a warranty of ownership and quality.

The Quebec Civil Code (QCC) addresses home owners who sell their property that they must warrant a property is free from any defect in title (ownership) and any latent defect (quality), except those declared before the sale.

I ask my clients to consider this before lifting the warranty of quality when selling. It is a condition I have found adds a level of difficulty to the sale of the property. Especially in residential housing, first-time buyers get queasy and wonder what is not being said and what elevated level of risk they might expose themselves to by buying such a property.

It is more common to see this done when the seller has not lived in the home and presumed unaware of any potential latent defects or, becoming common in this uneasy climate, when a bank is selling a repossession. Should the seller consider this clause, then performing a pre-inspection before going to market is something I have learned can uncover issues that may negatively affect the sellers ability to sell or the value a buyer may place on the property. I recommend my clients consult with a qualified and experienced inspector regarding the risks and benefits before deciding whether to do a pre-inspection before selling.

I find this even more important in Montreal, Westmount, NDG, Montreal-Ouest, Outremont, Le Plateau Mont-Royal and Mile End where I serve clients with older properties up to and surpassing 100 years.

I encourage my client sellers to speak openly with me regarding the true condition of their home before going to market. Discovering and evaluating repairs and renovations, assembling proper documentation, understanding a client's family status with regards to ownership of the property and listening to the agent's advice when I recommend they seek expert or legal advice can all help reduce potential problems once that great offer shows up. A conscientious agent will help clients investigate these important areas and advise on how to appropriately protect their clients sale.

Has Your House Been On Market Too Long? Will It Sell? When? Westmount, Quebec

The first barometer on the market is whether these is buyer interest or a number of visits. Second, have there been any buyer offers and last, have you had any accepted offers?

As the market is always changing, and given the factors at play, the best agents will provide you a likely selling range and timeframe given market conditions, area activity and your home condition when you go to market.

While properties just need that one buyer to find them, an overpriced listing will sit and grow stale. This seller will wait for the market to elevate itself, to reach their price. If a property is priced too low, some buyers will wonder what is wrong with the property, speculators and renovators will jump at the opportunity.

Make sure you are not seduced by the agent offering the highest price for your property and rather choose an attentive agent who backs up their case with facts and who you trust will be there to support and communicate well with you from start to finish as you move through the sales process. This agent will take the time to present their sales process and how they will communicate with you while your property is in the marketplace.

Remember, you are signing a multiple month brokerage (listing) contract valid in Quebec under Quebec laws whether you are in Westmount, NDG, Montreal West, Cote St. Luc, Cote-des-Neiges, Saint-Laurent, Nun's Island, downtown, Old Montreal, Outremont, Le Plateau Mont-Royal, Mile End or any other sector.

A good agent protects you, removes barriers and keeps transactions safe.