On December 17, 2023, the Quebec Court rendered a judgment highlighting the responsibility of a real estate broker and a notary in a case of missing parking space during a real estate transaction within a divided co-ownership.
Importance of knowing the provisions of co-ownership
It is important to remember that the legal status of parking spaces may vary from one co-ownership to another, depending on the provisions of the declaration of co-ownership. These spaces, whether located underground or outside the building, must be distinguished between private areas, common areas or common areas with restricted use.
The facts of the case relate to the omission, both by the real estate broker and the notary, to verify the number of parking spaces included in the property acquired by the plaintiffs.
The legal issues raised were:
- Did the real estate broker fail in his duty by incorrectly stating on the co-ownership description sheet that the sale included two indoor parking spaces?
- Did the notary breach her duty by entering in the deed of sale that the housing unit included the right to the exclusive use of two indoor parking spaces, even though one of them didn’t have this status?
The responsibilities of the real estate broker and of the notary
The defendants’ responsibilities were analyzed based on their professional obligations. The real estate broker must prove the accuracy of the information provided and is responsible for its dissemination. Likewise, the notary must verify the property titles and advise the parties to the deed of sale.
The court concluded that the real estate broker had misled the buyers by falsely stating that the housing unit included two indoor parking spaces without verifying its veracity. The judge emphasized that the broker should have acted with prudence and diligence, which he did not do, thus incurring his extra-contractual civil liability.
Read the decision by clicking here.
Regarding the notary’s liability, the court found that she had not acted with prudence and diligence by not sufficiently carrying out her checks regarding the buyers’ right to the use of two indoor parking spaces.
The defendants were ordered to pay compensation to the buyers. The real estate broker must pay $8,400 with interest, and the notary $4,800 with interest, as well as the additional compensation provided for by the Civil Code of Quebec.
In conclusion, this case highlights the need for real estate professionals to act with the greatest caution and diligence. Mistakes in real estate transactions can have serious consequences.
Do not hesitate to contact us at 514.975.1133 or by email, UpperBee immo your reference in co-ownership real estate brokerage.
Source Condolegal
