The declarations by the seller: all you need to know
Buying or selling a property is sometimes a complex process, involving legal requirements and extensive documentation. One of the most important documents is the declarations by the seller of the immovable. It provides important information about the property being sold and it is crucial to complete it correctly to help prevent disputes and ensure transparency in the selling process.
SUMMARY
What are the declarations by the seller?
What is it for?
Are the declarations by the seller mandatory?
Informations to be included in the form
The role of the real estate broker
What are the declarations by the seller?
The declarations by the seller of the immovable is a legal document, a kind of curriculum vitae prepared by the seller and given to the promising buyer which provides details on the state of the property as part of the sale process.
The seller is required to complete the declarations by the seller form to the best of his knowledge and goodwill with everything he knows about the condition of the property.
What is it for?
The purpose of the declarations by the seller is to ensure transparency and avoid unpleasant surprises for both parties. It will serve as a document of proof before the Court in the case of a hidden defect.
For the buyer
The declarations provide the buyer with a detailed picture of the property and allow him to be made aware of its conditions before completing the purchase. The buyer must read it carefully and ask all the relevant questions in order to obtain clarification on the points that do not seem clear. This process will allow the buyer to make an informed decision.
For the seller
The declarations by the seller form allows the seller to protect himself in the event of a possible recourse. This is because it helps prevent disputes or legal issues from being removed after the sale closes.
In some cases, failure to disclose certain property information may result in legal action against the seller. Therefore, complete and accurate declarations by the seller are essential for a successful, hassle-free transaction. This is the time for the seller to act transparently. It is even necessary to declare cases of violent death.
Are the declarations by the seller mandatory?
Yes, since July 1, 2012, the declarations by the seller form is mandatory for each sale of a residential property, meaning a chiefly residential immovable containing less than 5 dwellings.
The declarations by the seller form must also be attached to the seller's brokerage contract and be signed BEFORE signing the brokerage contract. In the event that a client refuses to complete this form, the licence holder must give up serving this client.
Although not mandatory for properties with more than five dwellings or a chiefly commercial immovable, the declarations by the seller form is strongly recommended by the OACIQ.
Information to be included in the form
Here are some examples of what you will find in the declarations by the seller of the immovable form created by the OACIQ:
- The physical condition of the property, including any known defects or issues.
- Age and condition of the roof, foundations, plumbing, electrical and heating systems.
- Any renovations or repairs that have been made to the property.
- Easements, encroachment on the property, zoning regulations or other restrictions on the right of ownership.
- Any environmental problems or hazards that may be present, such as asbestos or mould.
Even if they are resolved, any problems that may affect the property in the short, medium and long term must be indicated. The seller must mention the corrective work carried out and ensure that he has the supporting documents in his possession (invoices, guarantees, permits, etc.).
If the seller has not lived in the house...
If the seller has not lived in the house, during an estate sale or a sale by a mandatory for example, it is likely that he does not have the information necessary to answer all the questions on the form. In this case, the seller should not declare what he does not know. He must still complete the declaration and specify why he does not have the answer to one of the questions.
The role of your real estate broker
The role of the real estate broker is to facilitate the transaction between the seller and the buyer by ensuring that all the required documents are completed accurately and on time. He is also required to verify and disclose anything that could significantly affect the value of the property in order to protect both parties to the transaction. His role is, among other things, to ensure that the declarations by the seller form is correctly completed.
Concretely, the real estate broker:
- Provides the mandatory form created by the OACIQ;
- Ensures that the seller understands the importance of providing accurate, precise and complete information;
- Shares his advice and accompanies the seller for the completion of the form;
- Performs the necessary checks to ensure the accuracy of the information.
Once completed and signed, the declarations by the seller are attached to any promise to purchase received, must be signed by the buyer, and submitted to the mortgage lender. It will allow the lender to establish the conditions of the loan to be granted to the buyer with full knowledge of the condition of the property. The lender may even require and perhaps finance certain work that they may deem important, and in some cases, make it a condition for granting financing.
Your real estate broker will also accompany you with the other important steps and documents required in a sales process.
Contact your Sutton broker now to ensure a successful transaction for both parties.
SOURCE
The Declarations by the seller of the immovable form: A report card on a property
