The Inspection Department also verifies the operating accounts of agencies and brokers acting on their own account
Although it is stated in the regulations and in the invitation letter, some agency executive officers and some brokers acting on their own account are sometimes reluctant to allow an inspector to verify their bank accounts (statements, cheques and deposit book) other than their trust account.
In the context of a real estate transaction, it frequently happens that a buyer makes a deposit on the sale price. The broker who receives this sum must then, if he is acting for an agency, gives it immediately to the agency to be put in its trust account or in the account of the agency to which your agency delegated its obligations. If the broker is acting on his own account, he must put it in his trust account. The sum received from the buyer must remain in the trust account until it is required by the notary for signing of the deed of sale.
The OACIQ’s Inspection Committee has observed that brokers working in the field of mortgage brokerage are increasingly aware of the importance of maintaining records and registers in accordance with the Real Estate Act and applicable regulations. Indeed, several inspections of the records of brokers and agencies working in mortgage brokerage confirm that sound management is being applied by both brokers and agencies through the use of good professional practices.
In October 2012, after analyzing the system compliance regarding preservation, storage and maintenance of records and registers, the OACIQ found that “Prospects” met the requirements of the normative framework and technical specifications available on the OACIQ website. Therefore, the Organization certified the “Prospects” EDM system.
Every year, the OACIQ invites brokers and agency executive officers to conduct a self-inspection. This exercise is an excellent means for us to collect many statistics to help you consolidate and improve certain aspects of your practice.
As reported in an article published back November 2003, mortgage referrals have been ruled to constitute brokerage transactions. Many of you are compensated for referring clients to financial institutions. We would like to remind you of some of the obligations this carries under the law.
Your “2010 Self-Inspection” is now available on line. It is straightforward and user-friendly. Simply follow the instructions.
Since the coming into force of the Real Estate Brokerage Act on May 1, 2010, all real estate or mortgage agencies, as well as all real estate or mortgage brokers acting on their own account must submit an annual report on the sums held in trust and a copy of their disclosure notice register before March 31, 2011.