In the field Series THE BUYERS’ BROKER, MR. GOODHOUSE, CONTACTED THE OACIQ INFO CENTER. HERE ARE THE ANSWERS HE RECEIVED TO HIS QUESTIONS. This column presents situations that come from actual cases referred to the OACIQ Info Center, as well as concrete examples of things one should and should not do. Clause 8.1 of the Promise to purchase form explains the procedure to follow. To withdraw, the buyer must notify the seller (not the seller’s broker) in writing, and include a copy of the inspection report, no later than four (4) days following the expiry of the period indicated in the clause (in this case, ten [10] days). The form Notice and followup on the fulfilment of conditions (clause NF4.3), which the broker completes with the buyer, can serve as notice. This form is used to send the various notices and follow-ups on fulfilment of conditions found in the various forms used in a transaction. The form already includes the most common notices (e.g. the 72-hour notice). If the form Notice and follow-up on the fulfilment of conditions is used by the broker, he must obtain the seller’s signature in order to release the buyers. In this specific case, the broker is responsible for sending the document and must obtain the acknowledgement of receipt from the seller within the deadline to ensure that the notice has been given on time. The buyer’s broker can contact the seller’s broker beforehand and ask him to have the seller sign the acknowledgement of receipt of the notice. The buyer’s broker must keep a proof of receipt on file. If the parties wish to amend the promise to purchase to reduce the offering price instead of withdrawing, can they use clause NF5. of the form Notice and followup on the fulfilment of conditions? NO. The signatures section on the Notice and follow-up on the fulfilment of conditions form does not contain a section to acknowledge receipt. If the parties wish to amend the promise to purchase, they can agree beforehand; the broker will enter their wishes on an Amendments form and have it signed by the parties. The Amendments form is the mandatory form to use to change the content of a Promise to purchase form concerning a residential immovable. For more information on this, we also recommend the article entitled Compliance with building inspection rules: this concerns you closely (no. 119996) on our website at www.oaciq.com. Cancelling a PROMISE TO PURCHASE following an inspection Learn how to use the Notice and follow-up on the fulfilment of conditions form Mrs. Pleasant and Mr. Abode are looking for a home in the suburbs where they plan to start a family. They decide to call on the services of a broker, Mr. Goodhouse, to help them in their search, protect their interests and represent them effectively throughout the transaction. With their broker’s invaluable assistance, the couple makes an offer on their dream property. The deadline for the building inspection (clause 8.1) is 10 days following acceptance of the promise to purchase. Mr. Goodhouse presents the promise to purchase to the sellers who, after discussion, accept it. He shares the good news with Mrs. Pleasant and Mr. Abode and has them sign the “Acknowledgement of receipt” section of the Promise to purchase form to confirm that they received the seller’s written reply. A few days later, the couple has the property inspected to find out more about their planned investment. Upon reading the inspection report, the couple learns of problems noted by the inspector, leading them to reconsider purchasing the property. After careful consideration, the buyers decide to withdraw their offer. Questions arise: What steps must be taken in the case of a buyer who wishes to withdraw? Is there a specific form for this purpose? THE OACIQ INFO CENTER A WEALTH OF INFORMATION AT YOUR FINGERTIPS! Are there other ways to prove receipt of the notice? YES. Any means where receipt can be confirmed may be used. When a period is almost expired, and to avoid disputes, the broker can suggest sending the notice by bailiff. The bailiff’s report serves as proof of receipt. The OACIQ Information Center is there to answer all your real estate and mortgage brokerage questions. The Info Center’s agents work quickly and efficiently, processing over 60,000 requests each year. Don’t hesitate to contact them! info@oaciq.com 450 462-9800 or 1 800 440-7170 between 9:00 AM and 4:00 PM on Mondays, Tuesdays, Thursdays and Fridays, and between 10:00 AM and 4:00 PM on Wednesdays In the event where the parties insist to send the notice themselves, they may not use the form Notice and follow-up on the fulfilment of conditions. In this case, the broker must make a note in the file that it was the parties’ wish to proceed this way, but he must still make sure that everything gets done and keep proofs on file. 20 Profession Broker September 2013 Profession Broker September 2013 21