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.
The agency’s and broker’s duty to disclose during a real estate transaction is not new. Since May 1, 2010, the Real Estate Brokerage Act provides that this obligation does not concern only the agency’s or broker’s interest in an immovable, but also its or his interest in an enterprise. The duty to disclose is now extended to include a transaction relating to a loan secured by immovable hypothec. The Inspection Department deems it necessary to remind everyone of a few rules in this regard.
When a real estate agency or broker owns or intends to acquire a direct or indirect interest in an immovable that is being purchased, sold or exchanged, he must disclose his professional status. This applies, for example, to a broker who sells or buys for himself or who represents a close relative in a real estate transaction.
Agreement reached between the CREA and the Commissioner of Competition What is the actual impact on you?
The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) has reviewed the Consent Agreement reached by the Canadian Real Estate Association (CREA) and the Commissioner of Competition. The Agreement was ratified by CREA Members on Sunday, October 24, 2010 and made public the next day.
Good professional practices dictate, among other things, that an agent should discover and disclose any unfavourable factor related to an immovable in order to inform the buyer. To do so, he must question the seller and inform him of his obligations.
It is the person with whom the broker or the agent expects to conclude a purchase, sale or exchange contract.
As an experienced real estate agent, you know quite well that you must fill out a Notice of disclosure whenever there is a potential conflict of interest situation in any real estate transaction, whether you are acting in your professional capacity or not.
The disclosure of your interest when buying or selling an immovable or enterprise applies to you as well
The Inspection Department notes that many mortgage brokers believe that they are not subject to this rule. It is therefore important to read the following.
It is important to note that the Small Claims Court decision changes nothing to current Discipline Committee jurisprudence, which is very clear on that subject, nor to the Rules of Professional Ethics of the ACAIQ. An agent who is apprised of the fact that a suicide has occurred on a property still has an ethical obligation to disclose this fact.
Since the coming into force of the Act on May 1, 2010, you are no longer required to forward your disclosure notices to the OACIQ. Notices of disclosure (purchase, sale, exchange or loan) are to be remitted to your agency, which will enter them in a specially designated register and file them in a record created for that purpose.