Since 2012, the seller’s statement has become a mandatory document in Quebec in the world of real estate. This isn’t surprising since this piece of paper can avoid many conflicts.
The number of lawsuits related to the purchase or sale of a home has undoubtedly decreased since its official introduction. The seller’s statement is indeed beneficial for everyone, be it the seller, the buyer, or the broker. Its purpose is to highlight everything you need to know about a property for sale. Thus, the buyer can make an informed choice and the seller reduces the risk of future lawsuits, for example, a lawsuit for hidden defects. Also, this document allows the broker to establish a fair price. The buyer’s broker will also consult it to better advise his clients.
What Does It Consist Of?
The statement is full of questions about the house, sometimes general, sometimes more precise. It specifies any situation or problems that have occurred since its construction. The seller has a duty to disclose what he knows, even if he was not the owner at the time of the incident. The seller’s statement may include, for example, previous water infiltration, fires, renovations, insulation problems, or if there has ever been cannabis cultivation. It must also contain major renovations that will need to be carried out in the near future. Thus, the new owner will not have any surprises. It basically contains everything to help the buyer make an informed choice. In some cases, evidence will be required, such as an invoice that shows that decontamination work has been carried out in a pyrite-infected site.
Does It Take A Long Time to Fill Out?
The time it takes to complete the document varies from person to person and from property to property. Often, for newer homes, it is easier to fill it out quickly. Mostly because the home has not been through very much so there are often fewer situations to declare, and because the seller does not need to delve into his memories: events are often fresh in his mind. Another factor that can affect the time it takes to fill out the statement is the level of organization of the seller; if the invoices and receipts for the property are kept neatly, this will make the task easier.
Your Broker to The Rescue
Fortunately, your real estate broker can help you complete the seller’s statement so that no details are forgotten. He will be able to answer your questions if in doubt. Also, a broker who does not inform his clients of their obligation to fill out this statement may receive sanctions from his order.
In addition to being handed over to the buyer, this document may also be given to the building inspector, which will help him produce a more extensive report by checking important points. All in all, the seller’s statement benefits everyone!