Buy without risking everything |The press

The real estate market is frantic and, in the hope of seeing their offer selected, some buyers sometimes agree to run unnecessary risks.To give up your rights, to silence your intention to rent the coveted property or to follow poorly informed advice could however have disastrous consequences.Small guide for errors to avoid.

A median price up $ 100,000 over a year, around twenty offers for a property, financing times of less than 14 days ...: the first buyers and small real estate investors sometimes have the impression that everything playsagainst them in the Greater Montreal market.

After months of research and disappointments, the temptation to turn round corners or to ignore details that are not likely to be great for some.

Take the following example: a broker presents housing at a very reasonable price located on the Mont-Royal set as a "perfect first condo or for investment".However, the condo located in an undivided condominium is already rented.And an owner cannot resume, even for him, a accommodation located in an undivided condominium ... which does not specify the registration.It would be a shame to realize it after having signed a promise to buy!

Acheter sans poser toutes les questions, « ça pourrait être catastrophique », affirme M^e Caroline Champagne, vice-présidente, encadrement, à l’Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ).

There is this excitement in the market, and we can sometimes be impulsive, but a promise to buy, it is a contract.From the moment it is made, the buyer is linked to it.It’s not a banal document.

M^e Caroline Champagne, vice-présidente, encadrement, à l’OACIQ

Another case of species: a beginner investor wishes to buy a first property in order to resell it to one day be able to acquire a condo big enough to house your family.As an investor, he must however provide a set of funds of 20 % of the sale price, unlike 5 % if he buys a property to live in him.Just to be able to conclude a transaction despite the high prices, the buyer may want to claim that he will occupy the accommodation, then offer it to the rental once the case is completed.Badly would take it.

"This is fraud," reacts Sylvain Poirier, president of the Quebec Mortgage Broker Association (ACHQ)."If a mortgage broker was involved in a transaction like this, he would risk a suspension of his right of practice.»»

Borrowers who make false declarations to purchase, specifies the Canadian Mortgage and Housing Company (SCHL) by email can also be careful.

Fortunately, this is not a common practice, says Mr. Poirier.The fact remains that doing business in a market as agitated as that of Montreal has its share of challenges."Right now, pressures come from the market," he said.Twenty-three offers on a property, it exists.The seller takes the best offer for him.His real estate broker can recommend taking the offer with the shortest funding period, five days or eight days.Normal deadlines, 14 days, are not respected, mortgage lenders are overwhelmed ... and that puts a lot of pressure on buyers.»»

Without inspection or legal guarantee?

What is much more common these days is to see potential buyers renouncing their right to a pre-selling inspection or the quality legal guarantee in their promise to sell, in order to gain the favor of a seller.In Montreal, this practice even tends to become almost normal.

Or, un courtier immobilier a l’obligation déontologique de recommander une inspection. Si l’acheteur préfère y renoncer, le courtier doit expliquer les conséquences potentielles de cette décision, rappelle M^e Caroline Champagne, de l’OACIQ. Surtout si l’acheteur accepte aussi de réaliser une transaction sans garantie légale de qualité.

You must not let your emotions supplant your reason.

M^e Caroline Champagne, vice-présidente, encadrement, à l’OACIQ

A buyer would also have any interest in reminding his broker that a prior inspection also protects the seller, maintains the building inspector André Dumont."It is the obligation of the inspector to reveal all the apparent vices and the signs of hidden vices," he recalls.What is contained in the report cannot then be considered as a hidden defect.There are therefore much fewer unpleasant surprises for the seller after the transaction.»»

In addition, even if the sale is without quality legal warranty, a buyer can bring a pursuit for dol against the seller if he has falsely reassured him, adds André Dumont."Hence the importance of asking sellers about the presence of vermiculite in the roof or other potential vices," he said.And to record your answers in writing the same day to keep a good mark.»»

In the event of a false declaration of the seller, the buyer who has given up the legal guarantee is not without recourse.

André Dumont, building inspector

For new constructions, checks are also essential, recalls the guaranteed residential construction organization (GCR), which accredits construction companies offering a warranty plan.GCR has just launched an awareness campaign to encourage buyers to check on its website the accreditation of the companies with which they do business.

“The majority of entrepreneurs are honest, competent and adequately fulfill their obligations vis-à-vis their customers.The fact remains that we are also regularly witnesses of sad stories-even horror-experienced by consumers, "recalls Daniel Laplante, Chairman and CEO of GCR, in a recent press release.

What if a broker is mistaken?

Obviously, the life of the real estate broker is far from simple at the moment, because the line is sometimes very thin between advice or not.How to help a buyer find a property without recommending that he renounce his rights if everyone does?Certainly, a buyer who feels badly advised or pressed by a broker who claims a rapid signature, disparages an inspection report or modifies the clauses of a purchase promise can file a complaint.

Un acheteur qui se croit lésé peut d’abord « challenger le courtier », propose M^e Caroline Champagne, de l’OACIQ. Si ses réponses ne sont pas satisfaisantes, il peut se tourner vers le dirigeant de son agence (s’il est associé à une enseigne), qui a une obligation de supervision. Le site de l’OACIQ peut aussi servir de guide. Un acheteur peut même y vérifier le dossier d’un courtier. « Il peut aussi communiquer avec notre centre d’appels Info-OACIQ, où des agents d’information répondent à des questions tous les jours », rappelle M^e Champagne. Enfin, s’il veut porter plainte, l’acheteur doit se tourner vers le Service d’assistance au public, qui peut intervenir très rapidement si la transaction est toujours en cours.

« L’OACIQ ne tolère pas les comportements insistants des quelques courtiers qui peuvent réduire les protections légales dont bénéficie le public dans le cadre de transactions immobilières », a déclaré M^e Champagne dans un communiqué diffusé en janvier.

In 2020, the OACIQ received 2,430 assistance requests, almost the same number as in 2019 (2470), but much more than in 2018 (2036).In the event of suspicions of ethical failure or fraud, the Oaciq trustee takes over, investigates and can bring disciplinary procedures against brokers.In 2020, the trustee continued 140 agencies and brokers.During the same year, the disciplinary committee issued 70 disciplinary decisions and imposed 234 sanctions (a decision often leads to more than one sanction).These sanctions can notably take the form of fines, suspension and revocation of brokers permit.

"In the event of fraud, dishonest operation or embezzlement of funds committed by a broker, the real estate brokerage compensation fund can pay up to $ 100,000 per complaint, also makes the organization.In 2019, 40 compensation requests were received and $ 70,678 were paid.»»

> Consultez le site de l’OACIQ

> Consultez le site de GCR

In a version of this previously published text, certain sanctions imposed on agencies and real estate brokers in 2020 had not been recorded.