Brokerage forms adapted to co-ownership

December 15th 2022 - When you wish to purchase a condominium unit, it is very important to obtain information not only on the private portion you would like to purchase, but also on the common portions, such as the foundation and the roof.

The purchase of a condominium is a little more complex in the sense that a lot of important information must be obtained, even if it does not specifically concern your unit. This is why the Organisme d'autoréglementation du courtage immobilier du Québec (OACIQ), in collaboration with the Ministère des Finances du Québec, has developed mandatory or recommended forms specifically for co-ownership transactions that can be used only by professionals licensed by the OACIQ.

When selling a condominium through a real estate broker, the latter must have his client fill out various forms before putting it on the market, including the very valuable Declarations by the seller of the immovable – Divided co-ownership (PDF).[1] This mandatory form, which can be commonly referred to as “a report card on the property,” contains all the information provided by the seller, to the best of his knowledge.

In addition to information about the desired unit, you will find, among other things, information about:

• Co-ownership management
• The amount of the monthly common expenses referred to as "condo fees"
• The contingency fund, which is mandatory under the Civil Code of Quebec
• The presence of a syndicate of co-owners; or
• Physical damage that occurred in the past few years, not only to the private portion in which you are interested, but also to the building as a whole
• Etc.

In fact, a section of the form is specifically dedicated to the common portions of the building, namely:

• The presence of safety devices (sprinklers, fire alarm system, intercom, etc.)
• The availability of charging stations for electric cars
• The planning of major work to be performed
• Voted special assessments that are due only in a few months, when you become owner of the property
• Etc.

Another non-mandatory OACIQ form can also be of great help in guiding you in your decisions. As a prospective buyer, you have the right to request important information from the syndicate of co-owners. If the buyer's broker has not already sent it to you, ask your real estate broker to obtain the Request for information to the syndicate of co-owners form (PDF). This form makes it possible to obtain accurate information while corroborating the information already provided by the seller, such as:

• The amount of "condo fees"
• The amounts of voted special assessments and their due date
• The amount accumulated in the contingency fund
• Whether an operating deficit or surplus is anticipated for the current fiscal year
• Etc.

As mentioned above, a lot of information is required in addition to that related to your fraction of the immovable.  Do what recruiters do when looking for the right person for a job: examine CVs carefully and ask questions! Do not be afraid, because ultimately it is an investment in your future.

We wish you a successful transaction!

You may at any time contact the information centre Info OACIQ. Our agents will be pleased to answer your questions and direct you to the appropriate resources.

Resources:

• Seller’s Guide
• Buyer’s Guide 
• Devenir copropriétaire – L’achat de mon futur condo (in French only)