We wish at this time to comment on an article published this morning in La Presse, in which the OACIQ and the CNQ are concerned about a recent market trend where important conditions protecting buyers are being removed from promises to purchase.
Via Capitale du Mont-Royal shares this sentiment and in turn wishes to make both buyers and sellers aware of the importance of due diligence during a real estate transaction. Buying a home is an expensive investment that comes with its share of risks. Giving up clauses such as inspection can be detrimental to buyers, but also to sellers, who are more exposed to recourse.
In the central areas of Montreal, the market has been unbalanced in favour of sellers for several years now. This gives them the upper hand, and buyers mistakenly feel forced to reduce their conditions to the bare essentials. They have become exasperated with competing against each other and are attempting to do it all without realizing that they could lose everything if they win!
Our agency and the brokers who represent it do not endorse these practices, such as telling buyers not to have the property inspected. On the contrary, it is our duty to advise and support buyers by recommending that they proceed with a home inspection and reminding them of the risks of not doing so.
It may happen that an informed or knowledgeable buyer does not wish to have the building inspected, or that a recent inspection report on the building is available and is sufficient for the buyer, or that the buyer already lives in the building in which he or she wishes to purchase another unit. In all cases, before having the renunciation clause initialled by his/her client, the broker must have a serious discussion on the subject with him/her.
We have at heart the rules of fairness, transparency and collaboration that are dear to our industry and we denounce another point raised by La Presse. The article also sheds light on brokers who take advantage of improper conduct, in particular by revealing confidential elements of a promise to purchase or clues as to the price to be offered “to win the bid”. These actions are not tolerable since they are contrary to the protection of the public and to the Québec Real Estate Brokerage Act and its regulations. Brokers must at all times treat all parties fairly and promote the best professional practices in real estate brokerage.
At Via Capitale du Mont-Royal, selling or buying is a matter of heart and expertise.