
Since the new regulations under Bill 16 came into effect, the sale of a condominium now requires an essential document: the syndicate attestation. This tool is intended to provide greater transparency to buyers… but in reality, its application raises several issues in the industry, and several stakeholders are attempting to influence the next steps in its implementation.
The AQGC’s comprehensive proposals on the attestation have been slightly misrepresented in recent weeks by certain influential market players through various media outlets, particularly with regard to the concept of the annual attestation.
Here is the official recommendation that the AQGC has made to Quebec managers and condominium syndicates:
By creating two types of certificates, the AQGC aims to streamline the real estate transaction process, which puts a lot of pressure on volunteer administrators and managers to confirm information at various stages, either through the attestation, the DRCOP, or confirmation to the notary at the end of the process.
The production and validation of all these documents requires work, which means costs are billed to the applicant. Since they are often required on very short notice, this creates tension between brokers or sellers and administrators or managers, sometimes making relationships difficult. Hence the importance of avoiding unnecessary duplication of these documents and producing them only for sellers or prospective buyers who see added value in them.
The role of professionals involved in a real estate transaction (broker and notary) who may assist a buyer is to explain the risks of their decisions so that they can give informed consent. This advisory role with regard to the type of attestation to be preferred (annual or “current”) is important, as is that with regard to the pre-purchase inspection, but the final choice between an annual certificate or a “current date” certificate must remain with the buyer, who will be able to assess whether the annual certificate provided by the seller is sufficient or whether they want a more recent one for which they will pay the cost.
Moreover, in the recent press release from the Chambre of Notaries of Quebec, mention is made of the importance of the attestation being up-to-date, but the Chambre of Notaries of Quebec does not dictate the “lifespan” of the attestation. However, in its last paragraph, it emphasizes the importance of the notary’s duty to advise. Ultimately, it implicitly confirms that it is the buyer who will have the final say on whether the attestation provided by the seller is sufficiently “current” or not, or whether they want to pay to obtain a “current” certificate before giving their informed consent. In our opinion, real estate brokers should take the same approach.
Translated excerpt from the Chambre of Notaries of Quebec press release (bold characters by us)
Even if the notary does not have to verify whether the content of the attestation has been modified since it was issued by the syndicate, unless specifically instructed to do so by the mortgagee, nor request that the seller provide the attestation before proceeding with the sale, the notary has a duty to advise the parties on the importance of the contemporaneity of the information contained in the attestation.
We believe that the AQGC‘s proposal resolves serious issues experienced by stakeholders in the field, while ensuring the protection of the public that was the intended goal of this new attestation. This approach ensures:
Elise Beauchesne, CPA, Adm.A
President and CEO
SolutionCondo
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