Role of a real estate broker

Your protection in real estate brokerage

Selling an immovable requires extensive technical knowledge. This is why we recommend that you use the services of a real estate brokerage professional in order to make sure that all the operations involved in selling an immovable will be completed in accordance with standard practice. The main function of the real estate broker is to act as intermediary in the purchase, sale or rental of an immovable. He plays a prospecting role by finding an immovable for the buyer and a client for the seller; he plays a negotiating role by facilitating communications between the parties involved and, mainly, he plays an advisory role and helps the parties define their needs and complete their real estate transaction in a satisfactory manner.

Types of brokerage contracts:

Exclusive brokerage contract

In an exclusive brokerage contract, the seller agrees not to use the services of another intermediary for the sale of his property. This type of contract guarantees to the broker that the efforts made to sell the property will be compensated at the time of the sale. The seller can also expect his broker to devote maximum time and effort to sell his property.

Non-exclusive brokerage contract

In a non-exclusive brokerage contract, the owner retains the right to sell his immovable himself or through another person of his choice. This type of contract, although it may appear advantageous at first glance, can have a major drawback in that the broker risks losing his compensation to a competing intermediary, regardless of the effort he may have put in, which could lead him to devote less energy to the sale of your property

Content of the brokerage contract

The brokerage contract officialises the obligations to which the broker and his client have agreed. The following are the main elements the contract must contain for the sale of a chiefly residential immovable with less than five dwellings.

Selling price

An essential step in the sale of your home is to set a realistic selling price. To do so, you need to know the current status of the market. Your broker or agent can give you an idea of the actual value of your home by comparing it to similar properties currently up for sale or recently sold in the same area. This will make it easier for you to set a fair and competitive price.

You also have to identify the elements that can act positively or negatively on the value of your home:

  • location;
  • size;
  • construction year and condition of the immovable;
  • number and layout of rooms;
  • construction materials used;
  • landscaping;
  • features specific to the area;
  • etc.

This exercise may lead you to reduce the asking price for your property, because a price that is too high compared to the market will drive buyers away and therefore have a direct impact on the amount of time it takes to sell your property. Remember that an immovable that remains on the market for too long tends to lose value in the eyes of the buyers.

If the owner wishes to change the asking price during the contract, an Amendments and Notice of Fulfilment of conditions form must be completed.

Showing your home to its best advantage

Part of success in selling your home depends on the impression which potential buyers will have when they view it. Showing it off properly is therefore of prime importance. Many elements can help get you the best possible price for your property. Some require some expenses, which can probably be recovered when you sell your house. You will find on the next page a Preparation checklist to help you plan how you will prepare your home.

First impressions

First impressions have a considerable impact on a person’s perception after a visit. Therefore, certain visual aspects must be reviewed. Is the outside of the house in good condition? Do gutters need repairs? Is the garage neat? Have broken windows been replaced? Has the grass been cut and raked? Do the hedges and shrubs need trimming? In winter, has the snow been removed? Does the doorbell work? Are door trimmings in good condition?

Role of the real estate broker

Buying an immovable requires extensive technical knowledge. This is why we recommend that you use the services of a real estate brokerage professional in order to make sure that all the operations involved in buying an immovable are completed in accordance with standard practice.

The main function of the real estate broker or agent is to act as intermediary in the purchase, sale or rental of an immovable. He plays a prospecting role by finding an immovable for the buyer and a client for the seller; the buyer and a client for the seller; he plays a negotiating role by facilitating communications between the parties involved and, mainly, he plays an advisory role and helps , he plays an advisory role and helps the parties define their needs and complete ne their needs and complete their real estate their real estate transaction in a satisfactory manner.

Laissez votre agent d'immeuble vous guider dans vos recherches

Knowing how much you can afford before selecting a home

How much can I afford to invest in a home?

Analyzing your financial capacity

Before you even start looking for a new home, you must conduct an analysis of your needs and an accurate evaluation of your financial capacity. You must establish a realistic budget taking into account your lifestyle and your goals. The role of this exercise is to set a reasonable purchase price. This way, you can narrow down your search and avoid being tempted by an immovable that is above your means.

The key element in this exercise is accuracy. Remember that a budget is only useful if it takes into account your overall needs and personal or family situation.

Vérifications à faire durant une visite

Estimating your maximum mortgage loan

Most mortgage lenders use two ratios to calculate the maximum loan that can be granted to an owner-occupant, i.e. GDS and TDS. GDS ratio. The GDS (gross debt service) ratio sets the maximum amount that can be loaned at 32% of the borrower's gross income. GDS ratio = (capital + interest + taxes + heating + 50% of condo fees) ÷ gross annual income.

How much financing do I need?

One of the main concerns of real estate buyers is mortgage financing. To determine the amount you will need to borrow, you have to know the purchase price of the immovable and the total expenses you will need to pay cash. The summary of these calculations will enable you to determine the amount of financing you will need to purchase your home.

Cash expenses

You have to plan on several cash expenses when buying a home. These costs must be estimated to determine the amount you will need to borrow to finance the purchase of your new home.

Acquisition procedure

Choosing your home

Defining your needs

Once you have an accurate picture of your financial capacity and have established your budget, the next step is to define your needs. This exercise will allow you to reflect on your priorities, which will help you in your search and will guide your real estate broker or agent. Following are the main elements to consider when defining your expectations.

Type of property

Are you looking for a single-family dwelling, a duplex or a townhouse? Do you prefer a new or older house? Do you want to own the house and the land or would you prefer a condominium in which only one unit is yours?

Neighbourhood

Are you looking for a home downtown or in the suburbs? Do you prefer a new area? What is your tolerance is your tolerance to noise and pollution?  Are you looking to avoid high-traffic areas? Is the state of development of the area where you will be living important to you? Do zoning regulations allow room for change?

Outdoor aspect

What are your needs in terms of parking? Do you like gardening? If so, what are the sunlight requirements? Do you want a terrace, a patio, a balcony, a pool?
The promise to purchase

You have finally found the house you were looking for at a price you can afford. You are now ready to make a promise to purchase. Your real estate broker or agent's help will be very valuable to make this step easier.

The promise to purchase is a contract through which a person undertakes to purchase an immovable. In return, the document also indicates that the seller undertakes to sell the immovable once the promise to purchase has been accepted.

En conclusionIt should be noted that the use of the ACAIQ promise to purchase form by the real estate broker or agent is compulsory for chiefly residential  immovables containing less than five dwelling and owned by an individual.

Content of the promise to purchase

Identification of the parties

The promise to purchase must identify the parties bound by contract, i.e. the seller and the buyer. It should indicate the names and addresses of the seller and buyer.

Object of the contract

As its name indicates, the object of the promise to purchase is the purchase of an immovable.