Duties and Obligations of the Broker
The practice of real estate and mortgage brokerage is regulated in order to ensure that members of the public are protected when engaging in a real estate transaction through a broker’s intermediary. The rules and conditions of practice governing the profession are set out in the Real Estate Brokerage Act, the Regulations thereunder and the Rules of Professional Ethics. Read this section to learn more about the duties and obligations of your broker.
Although this situation occurred before May 1, 2010 and was therefore governed by the old Real Estate Brokerage Act, R.S.Q., c. C-73-1, it is a good example to illustrate that a verbal agreement makes no difference when it comes to the illegal practice of brokerage activities.
Carrying out the activity of a real estate or mortgage agency or broker illegally is a violation of the Real Estate Brokerage Act.
Sometimes a real estate or mortgage broker can be faced with an illegal brokerage situation as part of his brokerage transactions. In such situations, there are particularly activities relating to mortgage fraud, putting public protection at increased risk. Here are a few examples of illegal and fraudulent practices, brought to the attention of the Organization’s investigators in the course of their investigations.
One of the OACIQ’s mandates is to conduct investigations and bring criminal charges, if any, against the non-licence holders who engage in acts that are reserved for brokers. In recent years, the assistance requests addressed to the OACIQ concerning illegal practice of real estate or mortgage brokerage have increased substantially.
In Québec, any real estate brokerage transaction, for others and for remuneration, must be carried out by a real estate agency or broker, holding an OACIQ licence. Failure to comply with this rule constitutes a violation under the Real Estate Brokerage Act and exposes the offender to legal proceedings before the Court of Quebec.
A real estate or mortgage broker whose licence is suspended or revoked is no longer authorized to practice his profession or carry out brokerage transactions. He must cease any real estate or mortgage brokerage-related activity.
In Quebec, any real estate brokerage transaction, for compensation and for others, must be carried out by a duly certified real estate broker or agent, i.e. one who holds a certificate to practice issued by the ACAIQ.
All real estate and mortgage agencies and brokers practicing in Québec must hold a licence issued by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). The OACIQ’s mission is to protect the public by enforcing rules of professional conduct and by inspecting the affairs of brokers and agencies.