The Declaration by the seller of the immovable, commonly referred to as the seller’s declaration, is a key document for both the seller and the buyer during a real estate transaction.
Just like the certificate of location, the declaration of co-ownership, and the mortgage deed, this form is essential in the context of a sale. It is therefore crucial to fully understand its scope and implications.
Read on to learn everything you need to know about this fundamental real estate document.
What is the seller's declaration of the property?
Created by the OACIQ, the seller’s declaration is a form that provides a detailed overview of the property being sold. The seller answers various questions with "yes" or "no," adding clarifications, when necessary, with full knowledge and in good faith.
Often compared to a résumé for the property, this declaration aims to be as complete as possible. It includes all relevant information that could influence the value of the property, such as its overall condition, history, or any other significant detail.
The main goal of this document is to protect both parties involved in the transaction: the seller, who provides the information, and the buyer, who reviews it.
An essential protection for the buyer and seller
When completed carefully, the seller’s declaration of the property helps limit the seller’s liability regarding the condition of the property, while also protecting them from potential legal action.
By disclosing, to the best of their knowledge, any information that could affect the condition or value of the home, the seller reduces the risk of being held responsible if hidden defects are later discovered. Although it does not offer absolute protection against legal claims, this declaration remains an important protective tool.
For the buyer, this document also provides a sense of reassurance about the property’s condition, thanks to the details it contains. It allows them to make an informed decision by highlighting elements that could impact the transaction.
If certain parts of the document raise concerns for the buyer or their broker, and further verification confirms those doubts, it may then be appropriate to include conditions in the offer to purchase.
Is the seller's declaration enough to guarantee the condition of the property?
Even though the seller’s declaration aims to give an accurate picture of the property’s condition, it should by no means be seen as a full guarantee of its quality. The buyer is strongly encouraged to supplement this information by using other methods to assess the actual state of the building and identify potential issues the seller may have missed or failed to disclose.
It is therefore highly recommended to consult professionals, especially a building inspector, to carry out a thorough pre-purchase inspection. This step is an essential precaution and a vital complement to the seller’s declaration.
What information is included in the seller's declaration?
The seller, with the help of their real estate broker, must ensure that each section of the form is properly completed. If needed, certain verifications, such as consulting the land register or past inspection reports, may be required to ensure the accuracy of the information and to avoid the consequences of a false declaration.
To provide as complete a picture of the property as possible, the seller’s declaration includes, in addition to the seller’s identification, the following information:
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The year the property was built
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The year it was acquired
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The status of the current mortgage
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The existence of easements
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Any limitations to property rights
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The condition of the roof, plumbing, heating system, and electrical system
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Known issues related to the property (water damage, contamination, structural problems, etc.)
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Renovations and work completed
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Whether the property is in a risk zone (such as a flood zone)
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Rental income generated by leases, if applicable
When renovations have been completed or disclosed problems have been resolved, it is helpful for the seller to provide supporting documents, such as invoices or professional reports.
Once the form is completed and signed, it is attached to the offer to purchase and submitted to the mortgage lender, who will use it to determine the terms of the loan granted to the buyer.
Where to obtain an OACIQ form?
Want to see what this document looks like? A sample of the seller’s declaration is available on the official website of the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). You can review each section and see the required information.
Note that, to ensure the clarity of the document and avoid confusion, most questions require a simple yes or no answer.
Is there a specific form for divided co-ownership properties?
For transactions involving a divided co-ownership property, a specific form is required: the Declaration by the seller of the immovable — divided co-ownership. This document, which must be used by the real estate broker in such cases, follows the general structure of the standard seller’s declaration while including questions specific to this type of property.
It includes sections on the contingency fund, condo fees, co-owner meetings, and any planned major work. This form ensures that the unique features of divided co-ownership properties are properly addressed and disclosed transparently.
Is this document mandatory in Quebec?
Yes, in Quebec, this form is mandatory in several cases. Since July 1, 2012, the seller’s declaration must be used in all real estate transactions involving a permit holder of the OACIQ; a licensed real estate broker.
It is required when selling a residential property with fewer than five units, including properties held in undivided co-ownership. Any offer to purchase in this context must therefore be accompanied by this fully completed and signed form.
If a seller refuses to answer the questions or sign the document, their real estate broker is legally prohibited from representing them.
For properties with five or more units, properties used mainly for commercial purposes, or land without buildings, the form is not mandatory but is strongly recommended by the OACIQ to ensure transparency in the transaction.
Buyer: how to obtain the seller's declaration?
When a buyer expresses their intent to make an offer to purchase, the seller, with the assistance of their real estate broker, must provide them with the seller’s declaration of the property. The buyer must then sign this document, which will be attached to the offer to purchase.
The form can also be given to the building inspector, who can use it to guide their inspection and prepare a detailed report on the condition of the property.
What is the seller has not lived in the home?
In some cases, the seller has never lived in the property they are selling, such as when the property is sold through an estate or by a representative, often after the death of a loved one, and typically without legal warranty.
In this situation, the seller is not required to provide information they do not know. However, they are still obligated to complete the seller’s declaration and must indicate, in the appropriate section, why they are unable to answer certain questions. This helps clarify the situation for the buyer and ensures transparency in the transaction.
What are the consequences of a false declaration by the seller?
If the seller provides false information, the buyer may pursue legal action against them, even if the sale was made without legal warranty. In this case, the deceived buyer has several options:
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Cancel the sales contract: The buyer may request to annul the sale, which involves refunding the purchase amount and returning the property.
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Claim damages: The buyer may seek financial compensation for the harm suffered due to the seller’s false declaration.
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Demand repairs at the seller’s expense: If undisclosed issues in the seller’s declaration require repairs, the buyer may demand that the work be carried out and paid for by the seller.
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