An undivided co-ownership property in Montréal, comprising a duplex, is being sold. The co-ownership agreement specifies that any sale of a share must first be offered to the other co-owners. What is this clause commonly known as, and what is its implication for a real estate broker representing a seller?

Question: An undivided co-ownership property in Montréal, comprising a duplex, is being sold. The co-ownership agreement specifies that any sale of a share must first be offered to the other co-owners. What is this clause commonly known as, and what is its implication for a real estate broker representing a seller?

Answer options: ✅ Right of first refusal; the broker must ensure the seller respects this right before accepting an offer from an external buyer.

• Pre-emption clause; the broker must advise the seller that this clause is illegal in Québec for residential properties.
• Option to purchase; the broker should market the property widely and disclose the clause only upon receiving an offer.
• Right of redemption; the broker should ensure the other co-owners are informed of the potential sale after the notarial deed is signed.

Correct answer: Right of first refusal; the broker must ensure the seller respects this right before accepting an offer from an external buyer.

Explanation: This is a right of first refusal (or pre-emptive right) which is common in undivided co-ownership agreements. The real estate broker has a duty to advise their client of this clause and ensure it is respected before marketing the property to external buyers or accepting an offer from them, in accordance with the co-ownership agreement and their ethical obligations.