Westmount, QC

When my clients are ready to sell, 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.

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)

Homes in Quebec are sold with a warranty of ownership and quality. The Quebec Civil Code 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 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.

Your first barometer on market is buyer interest or number of visits, second, buyer offers and last an accepted offer.

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 conditions when you go to market. While some properties just need that one buyer to find them, an overpriced listing sits and grows stale. This seller must 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. A good agent protects you, removes barriers and keeps transactions safe.

Becoming more common are children inviting their parents to move into their home providing as much independence as possible. These properties have of recent been identified within the real estate community as Intergenerational Properties.

An Intergenerational Property includes an additional dwelling that allows for home-sharing between parents and children and does not usually generate revenue. A revenue property is a single-family residence that has a rental unit that brings in additional revenue for the owner.

On the Montreal Island, I have seen converted basements added kitchens, patio doors and elaborate bathrooms mostly. Off island or on occasion in town the garage is converted or another dwelling on the property is used.

If you seek to create or purchase an intergenerational space or property, remember that this status must be recognized by your municipality.

The term Condominium is used in Quebec to describe shared co-ownership. There are 2 categories set out by the Quebec government with very distinct differences.

Divided co-ownership is the right of ownership held by many people ("co-owners"). Each co-owner owns a fraction (%) of the property that is physically divided into a private portion and a share of the common portions. The private portion is typically determined from the gyprock walls inward. A condo association ("syndicat" in French) is established to govern the building's common areas and to set rules of conduct and process. The government has fairly strict rules on how divided condo associations must manage the building and owner relationships.

Undivided co-ownership is ownership of the same property, jointly and at the same time by several persons or companies called "undivided co-owners", each of whom privately owns a share (percentage) of the right of ownership and not a physical division of the property. The governance of this category can be less rigidly structured depending on the owners viewpoints on how to manage theier shared property.

One most notable difference between the two are the property taxes you can expect to pay. A divided co-ownership property can expect to pay almost double that of an undivided property.

When it comes to mortgage such properties, the government has more restrictions placed on undivided properties to protect its citizens. The mortgage must be held within one financial institution who has a set of rules to follow. Clients are never thrilled about this, even if however, it is to their benefit.

Some undivided property owners will want to convert their property to divided status so that it will sell eaiser and / or to sell for more. The property must then be converted. This process is done with the government, and can take a number of months and cost $7,000 - $10,000 to complete.

As here in Quebec we follow the French originating Civil Code and not British-based Common law, property and ownership have different perspectives from a law point of view. There are subtle differences in many jurisdictions and so it is important to consult with local real estate agents to learn more about the sector you want to live in.

For an interesting real-life variation and use of these 2 co-ownership categories, please read my blog titled: "Divided and Undivided Condominiums Together in One Complex in Montreal".