Since June 10, 2022, revolutionary legislation on real estate brokerage has come into force, radically transforming the way brokers engage with their client's buying process. This new law expressly prohibits real estate brokers from representing both buyer and seller in the same transaction, considered a clear conflict of interest.
The seller's declaration (DV). The first document to consult before visiting a property.
This article discusses one of the most important documents for a buyer when purchasing real estate. I am very proud to present this document:
The importance of Seller’s Representations in Real Estate Transactions
Transparency and clarity are paramount in any real estate transaction, for both seller and buyer. With this in mind, the “Seller’s Declarations on the Property” form has been designed to play a key role in the property sales process. Here’s a detailed guide to this essential form and the best practices for managing it.What is the Seller’s Declaration Form?
The “Declarations by the seller concerning the immovable” form is a document that the real estate broker fills out, with the seller’s collaboration, when putting a property up for sale. This document is integrated into the brokerage sales contract and must be appended to it. It is designed to provide the buyer with precise information on the property’s condition, enabling him or her to make an informed decision. Refusal to complete or sign this form may prevent the broker from proceeding with the brokerage contract.Information to be included in the form
Here is the main information that the seller must provide, in good faith and to the best of his knowledge:-
- Year built and property acquired: These details provide an overview of the property’s age and history.
- Current mortgage status: Information on the financial commitments associated with the property.
- Servitudes: Rights granted on the property to third parties, such as passages.
- Water damage, soil contamination: Potential problems affecting the structure or usability of the property.
- Presence of hazardous materials or conditions: Includes pyrite, radon, weeping merula, asbestos, etc.
- Condition of roofing, plumbing, heating: Critical information about the property’s vital systems.
- Repair or renovation work: Details of improvements made to the property, with proof if possible.
- Income (for income properties): Data on the property’s profitability.
The procedure for buyers and the role of the broker
When a potential buyer shows an interest in the property and is considering making a promise to purchase, the broker must give him or her access to this form, while protecting the seller’s personal information. The form must be signed by the buyer and attached to the promise to purchase, ensuring that all parties have the same essential information.Special case: divided co-ownership
In the case of a transaction involving divided co-ownership, a specific form must be completed. This includes detailed information on the contingency fund and the condominium inclusions, ensuring a clear understanding of the financial responsibilities and rights associated with co-ownership.Conclusion
The “Seller’s declarations concerning the immovable” form is an indispensable tool for ensuring the integrity and transparency of a real estate transaction. It both protects the seller from potential recourse and enables the buyer to make an informed purchase. For brokers and sellers, completing this form accurately and honestly is not only an obligation, but also a practice that reinforces confidence and security in the sales process. Sources OaciqÉtiez-vous informé qu’un courtier immobilier dédié aux acheteurs peut vous guider lors de la visite de toutes les propriétés qui pourraient susciter votre intérêt ?
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