Selling a multi-unit building

Understanding the process

A buyer of an income property analyses numbers: rents, leases, expenses, condition of the building. The more complete and verified the file is from the start, the simpler the analysis for the buyer, and the fewer surprises for you.

This guide presents the steps, the documents specific to income properties and who does what. The brokerage contract is drafted according to the type of building: OACIQ form for a residential building of fewer than five units, tailored contract for larger buildings.

The steps and who does what

• You
• Together
• Me, the broker

1. 1

   Step 1 : Preparation

   indicative When : Before going to market

   We analyse income and expenses, validate the leases and gather the documents.

   You

   • Tell me about your goals (timeline, reinvestment, personal situation)
   • Gather the leases, renewal notices, income and expenses, and the list of documents below
   • Tell your tenants about the coming steps (photos, showings), with the notices required

   Together

   • On-site meeting: physical audit of the building and inventory of inclusions and exclusions
   • Analysis of income (review of the leases) and of expenses
   • Discussion of the legal warranty of quality
   • Agree on the listing price and on the terms of the brokerage contract (compensation and duration)
   • Validation of the ownership structure (individual or company), identity verification and Law 25 consent
   • Seller’s declaration on the property: I guide you in completing it

   Me, the broker

   • Preliminary remote meeting and timeline of milestones
   • Value by comparison and by the gross and net income approaches
   • Compliance review of the leases and renewal notices against the Tribunal administratif du logement standards
   • Measuring, photos, electronic document register and notice of anything missing
2. 2

   Step 2 : Marketing

   indicative When : After the brokerage contract is signed

   The presentation targets buyers who analyse profitability: the figures file matters as much as the photos.

   You

   • Validate the listing sheet and the unit table (rents, leases, inclusions)
   • Facilitate access to the units, with the 24-hour written notice provided for in the Civil Code of Québec

   Together

   • Review of the Centris listing before it is published
   • Choice of optional services, if any

   Me, the broker

   • Standardized profitability sheet to make serious buyers’ analysis easier
   • Publication on Centris and the platforms; distribution to a network of investors and brokers specialized in multi-unit buildings
   • Showing co-ordination; financial qualification of prospective buyers before any unit visit
3. 3

   Step 3 : Negotiation

   indicative When : When an offer to purchase is received

   Each offer to purchase is presented objectively, with its effect on the net price and on the conditions.

   You

   • Read each offer to purchase: price, possession, inclusions, conditions
   • Decide: accept, decline or make a counter-offer
   • Consult your accountant or notary if needed

   Together

   • Analysis of the offer and of the options for responding
   • Drafting of counter-offers

   Me, the broker

   • Present each offer received, objectively
   • Represent your interests in the negotiation, without guaranteeing its outcome
4. 4

   Step 4 : Conditions

   indicative When : Between acceptance of the offer and signing

   The buyer verifies the leases, the figures and the condition of the building within the time limits set in the offer to purchase.

   You

   • Give access to the building for the inspection, with notices to the tenants
   • Provide the requested documents or clarifications promptly
   • If needed, obtain from the tenants the statements the buyer requests

   Together

   • Review of the inspection results and the possible follow-up

   Me, the broker

   • Rigorous follow-up of the conditions of the offer to purchase (inspection, financing, document review)
   • Sending documents to the buyer, their broker and the notary
5. 5

   Step 5 : Notary

   indicative When : Up to the signing of the deed of sale

   The notary verifies title, hypothecs and the leases transferred to the buyer.

   You

   • Choose your notary and send them the information requested
   • Ask the lender for the mortgage balance and the discharge terms
   • Tell the tenants about the change of owner, with the notices provided for

   Together

   • Check that the commitments of the offer to purchase are met

   Me, the broker

   • Work with the notary through to signing
   • After-sale follow-up: I remain available to answer your questions

Indicative timeline

The stakeholders

Role and responsibilities of the broker

• Keep you informed in plain terms: the process, the forms, the documents and the deadlines of each stage.
• Advise you with honesty, competence, loyalty and diligence, in line with Quebec’s Real Estate Brokerage Act and OACIQ rules.
• Tell you the important facts I am aware of that may influence your decision.
• Draft, or guide you through, the OACIQ forms, and explain what they mean.
• Verify the identity of the parties and protect your personal information (Law 25 consent).
• Co-ordinate communications, documents and the follow-up of conditions between the parties and the professionals involved.
• Refer you to the right professional — notary, lawyer, accountant, inspector, lender — for any legal or tax advice: a broker does not give it.
• Promise no result: price, timelines, number of showings or offers depend on the market and on the parties.

My brokerage activities are governed by Quebec’s Real Estate Brokerage Act. As a client, you benefit from the Fonds d’indemnisation du courtage immobilier (FICI) and from brokers’ professional liability insurance.

Services provided