Contaminated soil, dry rot, radon, cannabis, etc.: how to protect yourself

Each property has its own history and particularities. During a real estate transaction, whether you are a seller or a buyer, how can you ensure that you give and have the right information regarding the possibility that the property is on a former landfill site, or that there is a presence of radon, pyrite, dry rot, etc.?

Here are some valuable tips to reduce the risk of recourse and make informed decisions, as well as details on the role and duties of the broker who will support you in your transaction.

A step for your protection

Since you are represented by a real estate broker, you have many resources to ensure a transaction that complies with the rules of the art.

Indeed, as the government-mandated regulator of real estate brokerage activities in Quebec, the OACIQ applies the Real Estate Brokerage Act to ensure your protection. This law and its regulations impose various duties on your broker, including verifying and disclosing any information of interest to the transaction. Please also note that the agency manager is responsible for ensuring that his brokers comply with the law and regulations.

Risks to be assessed

In order to supervise all transactions carried out with a real estate broker, the OACIQ has designed around fifty forms, including the one on the Declarations of the seller on the immovable (in two residential versions: for a building with less than five dwellings and for a divided co-ownership), very useful for adequately informing the buyer, and which the seller's broker must complete with him.

If clues are identified, both the seller's and buyer's brokers will recommend, for example, having a recognized expert check the presence of:

• weeping dry rot ;

• pyrite ;

• radon ;

• contaminated soil ;

• cannabis .

If the risk is confirmed, discuss it with your broker; he will be able to advise you on how to make an informed choice among the options available to you.

A transparent seller

As its name suggests, it is in the Seller's Declarations of the Property form that the seller must disclose, in good faith and to the best of his knowledge, everything he knows about the condition of the property, its history as well as the improvements or repairs made, and provide proof to this effect.

The seller's broker has a duty to accompany the seller to help him fill out the form, and to make the appropriate checks. He could even suggest a pre-sale inspection to his client in this context.

A well-informed buyer

For his part, after having read the contents of the Seller's Declarations on the Property form with his client, the buyer's broker will advise him based on the issues disclosed. For example, after recommending a full inspection of the property , as he is required to do, the broker could:

• propose a more in-depth inspection of a component of the building;

• draft a specific condition to the Promise to Purchase allowing the examination or verification of documents;

• recommend calling on an expert when a particular situation requires it;

• check the municipal certificates on the conformity of the septic tank or recommend water quantity or quality tests (in both cases, the forms for this purpose and certificates will be attached to the Promise to Purchase );

• carry out appropriate checks to determine whether the desired property is located on land that has previously been used as a landfill site .

Still have questions?

Contact an Info OACIQ agent . They will assess with you the best course of action to protect your interests.

To learn more

• The main steps to buying a house

• The property's CV

• Tornadoes and other natural disasters: your broker's duties

• The broker's disclosure obligation: additional protection

• Aging Fuel Tanks - How to Minimize the Difficulties Associated with Them

• Shedding light on hidden defects

Last updated: June 11, 2020

Item number: 205918