Real estate indemnity fund
April 2010 • The Real Estate Indemnity Fund is dedicated to the payment of compensation to victims of fraud, fraudulent tactics or misappropriation of funds for which a broker or agent is responsible. It is funded by the fees paid into the Fund each year by brokers and agencies licensed by the OACIQ. The Fund’s assets are distinct from those of the OACIQ but are managed by the Organization. These assets are used solely for the purpose of the Fund, which is the payment of compensation to victims of fraud, fraudulent tactics or misappropriation of funds.
Decisions regarding claim admissibility and the amount of compensation to be paid, in accordance with the rules set out in the Organization’s regulations, are entrusted to an indemnity committee under the Real Estate Brokerage Act. This committee is made up of three to nine members, appointed by the OACIQ board of directors. The Fund is available to victims of fraud, fraudulent tactics or misappropriation of funds at no charge. The OACIQ is responsible for paying compensation to a victim in accordance with the indemnity committee’s decision.
Fortunately, cases of fraud, fraudulent tactics and misappropriation of funds by real estate or mortgage brokers or agencies remain infrequent and the victims few, especially considering the thousands of brokerage transactions that are carried out each year in Québec.
For consumers who wish to sell, lease or buy a house, a building, or any other type of property or who wish to obtain a mortgage loan, it is often very beneficial to be able to rely on a middleman for one’s brokerage transaction. In order to fulfill its mandate, the Indemnity Fund offers a protection to consumers who deal with a professional holding a licence issued by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ).