Notice to future property buyers. Don’t be fooled by smart brokers who take advantage of the current boom in the real estate market to sell under pressure by advising clients to waive certain rights in order to speed up the transaction process.
In any market in turmoil, there are always exploiters who want your “good”, obviously with the intention of lining their pockets.
The Quebec real estate market has just had a crazy year, recording abnormal price increases. The median price of single-family homes has exploded by 24%, and that of condominiums by 14%.
It’s crazy ! Across the province, the median price of single-family homes has jumped by $ 63,000 in a single year and that of condos by $ 35,000. Worse still in the Montreal area, where the single family increased by $ 75,000 and the condo by $ 40,000.
Some 112,476 properties were sold in 2020 in the province, which generated a record sales volume of $ 40 billion, up 32% from 2019.
The real estate market appears to be out of balance
The number of listings for properties for sale has fallen by 29%, creating a certain scarcity.
The health crisis has led to a sharp increase in teleworking, thus prompting many families to improve their living environment.
Disposable income has increased substantially due to the exceptional financial assistance offered by the government of Justin Trudeau.
The abnormally low level of mortgage rates makes the purchase of a property artificially accessible.
Don’t give up your rights
How do smart real estate brokers go about rushing through transactions?
Under the pretext that several buyers are interested in the property coveted by his client, the clever broker will try to get him to sign an offer to purchase by convincing him to renounce in particular the legal guarantee against hidden defects and / or the inspection. from the property by an expert, to the updating of the certificate of location of the property, three really important consumer rights when buying a property.
It is the Chambre des notaires du Québec and the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) who wish to recall the consequences, for a buyer, of waiving rights by rushing the signing and acceptance of a bid.
Unfortunately, waivers of warranties and inspections can lead to serious financial consequences for the buyer.
The Vice-President of the OACIQ, Mr.e Caroline Champagne wishes to remind real estate brokers that the OACIQ will not tolerate “insistent behavior” aimed at reducing the legal protections enjoyed by the public in the context of real estate transactions.
“The deadlines provided for in the promises to purchase for the fulfillment of inspection, financing or other conditions must be long enough to allow the professionals involved in the transactions to provide quality services, and thus contribute to reducing the risks inherent in the real estate transaction, which is often the most important in a person’s life. “
For his part, Me Hélène Potvin, president of the Chambre des notaires du Québec, says she is concerned about the increase in buyers who come to the notary to carry out the deed of sale, with waivers of their rights in order to speed up the process.
“A real estate purchase is always a big decision, sometimes filled with emotion or excitement, but this decision must be made in an informed way. It is essential to fully understand the legal scope of our choices, starting with the purchase offer ”, specifies Mr.e Hélène Potvin.
You should know that an offer to purchase, as soon as it is signed, is indeed a contract. It will be very difficult to change the terms or cancel it.
Buyers should avoid playing with fire!