For real estate transactions involving a divided co-ownership, one might assume that the parties only include the seller, the buyer, their respective real estate brokers and the notary who will finalize the transaction at the end of the process. However, the syndicate of co-owners also plays a key role in the transaction. By fulfilling their obligations, the board will allow the promisor to obtain all relevant information to make their decision, and the parties to the transaction can ensure that the promisor is able to give enlightened consent.
Article 1068.2, paragraph 1, of the Civil Code of Québec also gives the promisor the right to request that the syndicate “provide him with the documents or information concerning the immovable and the syndicate that will enable him to give enlightened consent”. The syndicate is then obligated, “subject to the provisions relating to the protection of privacy, to provide them with diligence to the promisor, at the latter’s expense”. Furthermore, paragraph 2 explains that the syndicate must also provide the seller with the documents or information it provided to the promisor. This way, both parties to the real estate transaction have access to the same documents for negotiation purposes.
Obviously, it is in the promisor’s interest to be represented by a real estate broker who specializes in co-ownership. As real estate brokers have a duty to advise their clients, they must ensure that they collect all relevant information about the co-ownership being considered. It is also in the seller’s interest to be represented because, as real estate brokers have a duty to inform their clients, they must inform them that documents regarding the immovable will have to be provided to a prospective promisor. The seller’s broker will contact the syndicate to obtain the documents so they can familiarize themselves with the co-ownership and be able to answer questions from prospective buyers’ brokers.
What documents and information does the syndicate have to provide?
The promisor’s broker may request that the syndicate complete the form entitled “Request for information to the syndicate of co-owners”. Although this form is not mandatory, it is recommended by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). This form makes it possible to learn more about different aspects of the co-ownership such as monthly co-ownership fees, any special assessments voted on at the co-owners’ meeting, the amount of money in the contingency fund and any legal proceedings against the syndicate.
However, it is section 9.1 of the promise to purchase, which is much more thorough, that truly allows us to answer the question. This section stipulates that the promise to purchase “is conditional upon the BUYER’s examination and verification of the declaration of co-ownership, including the by-law of the immovable and any amendments thereto, the information provided by the syndicate of co-owners if available, the minutes of meetings of the co-owners and of board meetings for the last ___ years, the insurance policy for the entire co-ownership, the description of the private portion or, if applicable, the description of the private portion of the reference unit, the documents and information pertaining to the self-insurance fund, the financial statements of the co-ownership, including the statement of sums deposited in the contingency fund”, as well as any other documents that may be added to this section.
This section also provides that the promisor must receive copies of the aforementioned documents within a specified period (usually about seven (7) days) following the acceptance of the promise to purchase. In the event that it is not possible to provide them with a certified copy of the declaration of co-ownership, a copy certified by the land registry office may be provided instead. The section also stipulates that a certified copy of the by-law of the immovable must be provided to the buyer by the syndicate.
If, upon examining the documents, the buyer is not satisfied or if they do not receive them within the specified period, they can nullify the promise to purchase by notifying the seller by writing within seven (7) days of the expiry of the time given to the seller to provide the documents.
Not only is the syndicate of co-owners’ collaboration mandatory in accordance with the Civil Code of Québec, it is also essential to ensuring that the real estate transaction is carried out properly and that the promisor gives enlightened consent. Without the documents mentioned above, the seller may lose a sale! This is why it is important for buyers, sellers and real estate brokers to be able to rely on the syndicate of co-owners’ co-operation to complete the transaction.
It’s important to know that brokers affiliated with RE/MAX’s Coproprié-T program are qualified co-ownership professionals. RE/MAX’s Coproprié-T program is an exclusive training program that allows brokers to maintain high quality service standards for transactions involving divided co-ownerships. Are you a member of your syndicate of co-owners and have questions after receiving a request for documents from a broker affiliated with RE/MAX’s Coproprié-T program? Feel free to contact them. They’ll be happy to help you!
Me Julie Smythe, MBA
Legal Affairs Director
RE/MAX Québec
https://www.remax-quebec.com
For the list of our Coproprie-T Affiliated brokers : https://www.remax-quebec.com/en/real-estate-brokers?Copropriet=1
