Real Estate Talk:
Staying on top of things

Brokers must stay on top of every condition and deadline

By Joseph Marovitch

Updated August 29, 2024

In the practice of real estate brokerage, there are constant conditions and deadlines to adhere to. Promise to purchase offers include conditions such as inspection, financing, examination of expenses and signing date. Additional conditions can include visits by contractors or interior designers, as some buyers want to know to what extent and cost changes may be. In an offer, each condition must have a time frame and deadline so the condition is not indefinite, thereby prolonging the sale.

This is where the broker must stay on top of every condition and deadline. If the first condition is examination of expenses, the seller is given a period of time to provide the documents to the buyer. Once the buyer receives the documents, the buyer has a definite number of days to examine the documents and state in writing if the buyer is not satisfied. No written notice is required if the buyer is satisfied. Without written notice on or before the deadline, the condition is deemed satisfied.

… your broker may seem like a bulldog by constantly calling the bank, inspector, notary, surveyor and perhaps a few others, but that is the job.

The same process applies to inspection, financing, and any other condition. Each condition has a given number of days for buyers and sellers to comply. If no written notice by the buyer is provided by the deadline of each condition, then the condition is satisfied. Once all conditions are satisfied, the property is sold. Buyer and seller then proceed to signing at the notary, where transfer of title and funds take place.

If the seller does not meet the deadline for each condition they are responsible for, depending on the condition, the condition is either deemed satisfied or the buyer can cancel the offer if they choose.

In all cases of deadlines, it is the broker who reminds the buyer, seller, mortgage broker, inspector and notary of their duties. Sometimes this is not the case. Everyone knows to meet deadlines so as not to jeopardize the sale but when we are all busy with our lives and other responsibilities, some details may go by the wayside, causing the deal to fall apart.

‘If the broker does the job well, with balance, perseverance, and common sense, the party they represent will use this broker again…’

Therefore, your broker may seem like a bulldog by constantly calling the bank, inspector, notary, surveyor and perhaps a few others, but that is the job. The broker is also responsible for meeting all the deadlines and can be at fault if they do not keep the seller or buyer they represent abreast of conditions and deadlines.

If the broker does the job well, with balance, perseverance, and common sense, the party they represent will use this broker again, and refer the broker to their friends because the broker gets the job done by staying on top of things.

Should you have questions or comments, please refer to the comments section at the bottom of the page. As well, to view past articles, click here.

Next article: A window of opportunities for buyers

State of the market

According to the Quebec Professional Association of Real Estate Brokers, home sales in Montreal are up 25.5%. However, many economists believe interest rate decreases are not having a marked effect on buyers.

‘… according to a CIBC analyst, we should see a major change with increases in both supply and demand in the next year or two.’

One reason is home prices rise as interest rates fall. Another factor is municipal evaluations based on pandemic prices do not reflect market values, therefore, in many cases asking prices are higher than the current market. There is a balance the Bank of Canada must achieve for the housing market to be more affordable. The Montreal real estate market is slowly improving, and another interest rate decrease is expected in September, which will improve the market.

However, according to economists, there has not been a major effect on the market yet that would increase demand and inventory. The market is slowly improving and according to a CIBC analyst, we should see a major change with increases in both supply and demand in the next year or two.

‘Currently… there is a window of opportunity to purchase some properties at a reasonable price and at a reasonable rate for the first time in four years.’

These sentiments are based on the current conditions. There are still factors that will determine if the market goes north or south in the coming weeks, such as the Middle East conflict, the Ukraine conflict and the U.S. election in November.

Currently, for the next few months, there is a window of opportunity to purchase some properties at a reasonable price and at a reasonable rate for the first time in four years.

Have a great week.

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Other articles by Joseph Marovitch