May 17, 2022

How Do You Decide on Inclusions in a Real Estate Transaction?

When it comes time to make a purchase offer, how do you know exactly what is included and what is not? This is a question that many buyers ask themselves and that can be the source of many a dispute. By reading this article, you will discover how to negotiate the inclusions in the sale or purchase of a property and thus prevent misunderstandings.

Inclusions and Exclusions: A Negotiation Tool

From the outset, inclusions and exclusions represent sums of money that are of varying degrees of importance and could, in the case of the buyer, result in additional expenses. Therefore, the assets to be purchased must be specified in detail and be the subject of negotiations between the seller and the buyer.

What Items Are Automatically Included?

According to the Quebec Civil Code, the installations that are part of the building are automatically included in the sale:

  • Electricity
  • Heating
  • Lighting

Consequently, these items will not be included in the list of inclusions. However, a seller may decide to exclude them. In this case, the seller will have to add them to the list of exclusions in order to advise potential buyers.

Included or Not?

According to the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), anything that is not permanently attached to the house may or may not be included in the list of inclusions at the time of listing.

This may include:

  • Household appliances
  • Furniture
  • Curtains and blinds
  • A pantry
  • A spa
  • Above-ground pool
  • Outdoor pavilion
  • A garden shed
  • Certain decorative objects

To avoid any misunderstanding, the goods coveted by future buyers must be clearly identified in the list of inclusions. The description of each item should include the brand, colour, or the serial number.

In any case, a real estate broker will be able to help sellers determine what is included and what is not included to specify it in the brokerage contract. As stipulated by law, these goods will be transferred by the seller without legal warranty and at the buyer’s risk but must be available for normal use upon taking possession of the property.

As a buyer, the items you wish to include or exclude from the real estate transaction will have to appear in the promise to purchase.

Equipment Rented or Purchased on Credit: How to Proceed?

Certain equipment rented or purchased on credit, such as an alarm system, a water heater or a heat pump, can be problematic since they do not belong to the seller. If these items are indeed rented, they should be excluded from the real estate transaction. When in doubt, a real estate broker will make the necessary verification.

However, it is possible that the contract for a leased device can be assumed by the buyer, under certain conditions. Here again, it is important to make the necessary verification to avoid any dispute.

In conclusion, do not hesitate to ask for the help of a real estate broker to support you in these negotiations. Their help will allow you to avoid disappointment or certain unforeseen expenses.

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