Question 1
Yesterday you signed a brokerage contract (BCG) for the sale of an apartment building (6-plex). No additional conditions have been inserted in the contract. You also gave the seller, Gaston Lagaffe, the double of the contract at the same time yesterday. Gaston calls you today because he had a very bad night’s sleep. Indeed, he has changed his mind and no longer wants to sell his 6-plex.
What do you answer him?
Clause 2 of the BCG mentions that this is an exclusive contract, so it is not possible to change your mind.
It is possible to terminate the contract because it has not been stipulated as non-cancellable in its clause 11.1.
It is possible to terminate the contract because we are within 3 days of the day Gaston received the double of the signed contract.
The contract can only be terminated for a serious reason. Otherwise, it would be detrimental to you as a broker.
It is possible to terminate the contract because it has not been stipulated as non-cancellable in its clause 11.1.
Question 2
Your buyer client is interested in an office building. He would like to make a promise to purchase but wants to check that he can review the existing leases and see the certificate of location.
How would you draft clause 9? DOCUMENT REVIEW BY THE BUYER submitting a promise to purchase.
This promise to purchase is conditional to examination and verification by the BUYER of current leases, renewal notices and expenses related to the IMMOVABLE, as well as the following documents: N/A.
This promise to purchase is conditional to examination and verification by the BUYER of current leases, renewal notices and expenses relating to the IMMOVABLE, as well as the following documents: certificate of location.
This promise to purchase is conditional to examination and verification by the BUYER of current leases, renewal notices and expenses relating to the IMMOVABLE, as well as the following documents: leases.
This promise to purchase is conditional to examination and verification by the BUYER of current leases, renewal notices and expenses relating to the IMMOVABLE, as well as the following documents: certificate of location and existing leases.
This promise to purchase is conditional to examination and verification by the BUYER of current leases, renewal notices and expenses related to the IMMOVABLE, as well as the following documents: N/A.
Question 3
You are drafting a commercial promise to lease (PLC) with a tenant who is not represented by a broker. Giving fair treatment to this tenant since you are the landlord’s broker, you know you cannot advise this tenant. At clause 8.2 of the PLC, you ask the tenant what use he intends to make of the premises and whether he wishes to include an exclusivity clause. The tenant tells you that he intends to operate a clothing store in the premises and would like an exclusivity clause.
What is the best practice under the circumstances?
Indicate in clause 8.2 as use of the premises: clothing store and check the box for the exclusivity clause.
Indicate in clause 8.2 as use of the premises: clothing store, check the box for the exclusivity clause and write on the lines: the tenant will have the exclusivity to operate a clothing store.
Confirm with the buyer the type of clothing that he will be selling in the store to add this clarification to clause 8.2 and recommend that he consult a lawyer to incorporate an exclusivity clause in the lease.
Confirm with the buyer the type of clothing that he will be selling in the store to add this clarification to clause 8.2, check the box for the exclusivity clause and add an exclusivity clause that takes into account this precise description of the activities, duration, radius of application and the consequence if this clause is not respected.
Confirm with the buyer the type of clothing that he will be selling in the store to add this clarification to clause 8.2, check the box for the exclusivity clause and add an exclusivity clause that takes into account this precise description of the activities, duration, radius of application and the consequence if this clause is not respected.
As part of a commercial lease brokerage contract (BCC) with 1234-5678 Québec Inc., which of the following documents must be included in your brokerage contract file and submitted to your real estate agency?
Brokerage contract BCC.
Proof of identity verification.
Printout from the Quebec Enterprise Registrar (REQ).
Resolution of the board of directors.
List of beneficial owners (organizational chart).
Index of immovable.
Cadastral plan.
Floor plan.
1 to 8.
1 to 5.
6 to 8.
2 to 5.
1-8
Question 5
The company 9887-6554 Québec Inc. owns a commercial building and wishes to sell it. During your preliminary checks at the Land Registry, you notice that one of the 6 tenants of the building has published his commercial lease by notice of lease. How important is this information to the sale of this building?
Not very important: it is only one of the 6 tenants so you do not have to mention it anywhere.
Moderately important: a new buyer will then be obliged to follow a specific procedure to cancel this lease following the purchase.
Very important: a new buyer cannot terminate this lease and must honor its content, including any renewal option.
Not very important: the verification of this type of legal limitation must be done by the notary and therefore does not fall under your role as listing broker.
Very important: a new buyer cannot terminate this lease and must honor its content, including any renewal option.
