Seller Declarations and the Inspection: The Broker's Role

A mandatory form in most sales

When taking the brokerage contract, the broker must complete, together with the seller, the Seller's Declarations on the Immovable form. According to the OACIQ, this form is a mandatory schedule to any brokerage contract for the sale of a mainly residential property of fewer than five units by a natural person. For a divided co-ownership, the condominium-specific form applies.

In other cases, for example when the seller is a legal person, using the form is strongly recommended. Through this document, the seller discloses all relevant information about the property, which protects both parties. It fits within the approach presented in our inspection guide for real estate brokers.

Completing the form with the seller, not for them

The broker's role is to help the seller answer completely and accurately by asking the right questions. Past leaks, foundation repairs, drain replacement, pest treatment, work done without permits: these topics are often forgotten if nobody raises them directly.

The broker must not, however, answer for the seller or rephrase their answers to soften them. A vague or incomplete answer can become the heart of a dispute. A frank declaration backed by documents is better than a reassuring answer that's hard to defend.

A practical approach is to go through the form room by room and system by system, asking the seller to picture specific events: the last heavy rain, the last time a contractor came, the last insurance claim. Concrete prompts bring back memories that general questions miss.

Linking the declarations to inspection reports

When an inspection report exists, whether a pre-sale inspection or an earlier report, its content must be consistent with the declarations. If the report notes adverse factors, the declarations must reflect them. A contradiction between the two documents is a red flag for the buyer, and a risk for the seller.

The OACIQ reminds brokers that a prior report must be given to the buyer in full. We explain this rule in giving a prior report in full, and the use of an inspection done before listing in the pre-sale inspection as a listing tool.

Updating when the situation changes

The declarations aren't frozen at the time of listing. If the seller makes repairs, receives a new report or learns of a problem, the form must be updated. The OACIQ suggests proposing that the seller declare how the problems noted were remedied, with invoices in support.

One common situation deserves particular attention: a first offer falls through after the inspection, and the seller learns of adverse factors from that buyer's report. Those factors must now be disclosed. We detail this in disclosing adverse factors.

Declarations don't replace the inspection

Even complete and honest, the declarations reflect what the seller knows. They don't describe what the seller doesn't know. That's why the obligation to recommend a pre-purchase inspection remains, whatever the quality of the declarations. The buyer's inspection confirms, complements or qualifies what was declared.

When the sale is also made without legal warranty, the link between declarations and inspection becomes even more important. We cover this case in sales without legal warranty and the inspection. On the financing side, a condo's declarations are also central to Bill 16 from a mortgage broker's perspective.

The most frequent omissions

Some items come up often in disputes because they were forgotten rather than hidden: a basement that flooded only once, a drain replaced on one side of the house only, a carpenter ant treatment, a roof redone without removing the old shingles, a water heater replaced after a leak. For the seller, these events are settled; for the buyer, they're valuable information.

A short list of these topics, reviewed with every seller, significantly reduces the risk of omission. It also shows the seller that the process is meant to protect them, not trap them.

Keep that list next to the form rather than relying on memory. Brokers who use the same checklist with every seller build a consistent practice, and consistency is exactly what protects them if a declaration is ever challenged.

Support for listing brokers

A well-done pre-sale inspection is often the best tool for completing thorough declarations: it reveals items the seller wouldn't have thought to mention and lets them document those items before listing.

To arrange a pre-sale inspection or a follow-up inspection after repairs, see our page for partner brokers. Our reports rank findings clearly, which makes them easier to carry over into the declarations.