What is the Declarations by the seller? We explain it all in detail here.

Since 2012, the Declarations by the seller have been mandatory for all real estate transactions involving a real estate broker.

Note that if you refuse to complete it or sign it, the broker will not be able to execute his brokerage contract.

Here's how the Declarations by the seller can save you a lot of headaches.

Declarations by the seller : what is it?

To give a simple picture of what this document is, it is the condensed biography of your home. Because any property has a dense history, this form points out the particularities and elements that could influence its value.

Simplified to avoid errors in interpretation, the Declarations by the seller provides a picture of the property's envelope. It covers the quality of the roof, the ground, the air, the heating, the plumbing and much more. It also allows a potential buyer to be informed, in good faith, of what may have happened and taken place within the four walls of the house. Thus, the seller must declare the presence of vermin, a cannabis cultivation or even an unnatural death (suicide or murder, for example).

In the case of an income property, this document also allows you to know if there is currently a dispute with the housing board between the current owner and one of his or her tenants.

For a condo, for example, it can also provide a picture of the financial state of the co-ownership. It covers common funds, reserve funds, common areas, etc.

This form also requires a description of the renovations that have been done. These may have been carried out with or without permits.

protect seller

The questions in the Declarations by the seller

You must therefore answer the questions in the form to the best of your knowledge and provide in good faith information on the history of your property as well as the documents justifying your declarations.

The questions cover various aspects, such as:

  • Year of construction of your property and its acquisition;
  • Status of your mortgage;
  • Type of foundations;
  • Easements;
  • Water damage;
  • Soil contamination;
  • Presence of pyrite, radon, weeping brown rot, asbestos, etc.;
  • Condition of the roof, plumbing, heating;
  • Presence of cracks or infiltrations;
  • The repair or renovation work carried out, with supporting evidence if possible;
  • Revenue (in the case of an income property).

What is the purpose of the Declarations by the seller?

At first glance, this few-page form seems to be of greater use to potential buyers to make an informed decision with full knowledge of what awaits them when taking possession of a property. Buyers could not, for example, sue the former owner upon discovering a colony of ants in the basement if it was highlighted in the declaration. Both parties greatly reduce unpleasant surprises!

However, the seller also benefits from a well-completed declaration. This allows him to protect himself from any lawsuits for latent defects or for omitting important details that may hinder the value and condition of the house. Be careful, however, if the document is completed by an individual, it is not expected that he becomes an inspection expert. It may then be relevant to seek advice from experts or at least to validate the information for which you have doubts.

Fortunately, your Proprio Direct real estate broker will be able to assist you at every stage of your project. Entrust him with the negotiations and the drafting of documents. It's his job! Get in touch with one of them now!