The Quebec Professional Association of Real Estate Brokers (QPAREB) says recent regulatory reforms to co-ownership are a sign of progress, but the group is advocating for changes it says are crucial to transparency in condo transactions. 

Bill 16 in Quebec is primarily known for its significant overhaul to condominium law, impacting almost every aspect of divided co-ownership in the province. The goal is to improve condo management, increase transparency, and ensure adequate funding for building maintenance and repairs.

In a news release issued July 31, the association welcomed the final regulation completing Bill 16, which is set to take effect Aug. 14. But it cautioned that aspects of the law, particularly the timing of required documentation, could leave buyers without crucial information at the moment they make an offer.

 

Key information not required upfront

 

The regulation requires sellers to provide buyers with a certificate from the syndicate of co-owners. This document outlines financial details, major work, insurance, legal matters, and amendments to the co-ownership declaration.

However, QPAREB says that under current interpretations, the certificate may only be available after a buyer submits a promise to purchase.

“This constraint would deprive sellers of useful information for setting their selling price and buyers of essential information when making their offer,” the release states.

The association adds that real estate brokers must have full access to this information before their clients make legal or financial commitments.

“Real estate brokers must also have all the information they need to fulfill their duties of verification, disclosure, information, and advice to their clients,” said Nathalie Bégin, chair of QPAREB’s real estate brokerage practice committee.

 

Buyers and sellers at risk for added stress, says association

 

According to the current wording and interpretation, a buyer will have to submit a promise to purchase for a condominium without having all the information at hand or the sound advice of their broker, since the syndicate’s certificate will not be immediately available, says the association.

“For the seller, this means that disclosing the certificate to the buyer could, in many cases, force the reopening of negotiations even after the promise to purchase has been accepted,” reads the release.

“In addition, the sale price may prove to be too high if it does not take into account important factors contained in the certificate, such as work to be done, special assessments, etc. This situation will make the transaction even more stressful for many buyers and sellers.”

 

RIS form may be left in limbo

 

QPAREB is also urging the government to clarify how the RIS (Request for Information to the Syndicate) will fit into the revised legal framework. The RIS is widely used by brokers to gather key property details in advance of a sale.

“The RIS is a tool that is recognized, appreciated, and used by the vast majority of real estate brokers and their buyer clients to obtain relevant information prior to a transaction. Its future in the revised regulatory context remains uncertain, which could create confusion in the field,” said Bégin.

 

The association’s requests

 

The QPAREB is asking the government to decide on:

 

• The possibility for sellers to obtain the syndicate’s certificate before even putting their condominium on the market

• The harmonization between the RIS and the new certificate