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.
(offered in French only)
Québec real estate agents and brokers are asking Government to regulate the building inspection practice
Montréal, February 17, 2004 – The Association des courtiers et agents immobiliers du Québec (ACAIQ) is asking Government to implement, as soon as is feasible, a set of regulations for the building inspection practice. For a majority of people, the purchase of a home represents the greatest investment of a life time. An effective inspection aims at identifying any potential problems in order to ascertain the repairs that may be necessary, thus allowing the buyer to conclude his transaction with full knowledge of the facts and the buyer to greatly diminish the risk of a civil action for hidden defects.
Presently, to qualify as a building inspector, a person need not follow any particular training, nor is there any standardize code of deontology. Certain inspectors voluntarily subscribe professional liability insurance. While tens of thousands of inspections are conducted yearly by a few hundred persons in Quebec, the majority of these persons are no longer able to subscribe professional liability insurance. Indeed, the Quebec Association of Building Inspectors, at the present time, is no longer requiring of its members that they subscribe such a coverage for that very reason.
Even though the building inspection practice is not legally regulated, a real estate agent must recommend to a buyer that he make his offer to purchase conditional on an inspection, said Mr. Robert Nadeau, President and CEO of the ACAIQ. Given this situation, we have undertaken to define a minimum inspection standard to protect one and all, which standard, in fact, is the strictest in North America.
While waiting on the Government to act, the ACAIQ and the Quebec Association of Building Inspectors (QABI) have provided forms to buyers and sellers of real estate that, once completed, include all of the relevant and required information (work conducted, plans, permit, invoices, warranties) for a just and successful transaction. Designed as a data collection tool, the Declaration by the seller of the immovable form enables the seller to describe, to the best of his knowledge, the major components of the property involved in the transaction. The ACAIQ believes that the Declaration by the seller of the immovable should, in the future, be an obligation imposed upon the seller under the offer to purchase.
The recent coming into effect of certain provisions of the Act respecting the Agence nationale d’encadrement du secteur financier (also known as Bill 107) is resulting in amendments to the Real estate Brokerage Act. Beginning January 1, 2005, the loan secured by immovable hypothec will be removed from the field of application of the Real Estate Brokerage Act. Consequently, the oversight of real estate brokers working in the field of mortgage brokerage will be transferred to the Agence nationale d’encadrement du secteur financier.
The Agence nationale d’encadrement du secteur financier, which also goes by the name of Autorité des marchés financiers, replaces the Bureau des services financiers, the Fonds d’indemnisation des services financiers, the Commission des valeurs mobilières du Québec and the Régie de l’assurance dépôts du Québec. The new agency is also taking over the responsibilities and powers of the Inspector General of Financial Institutions with regards to certain laws. Moreover, the Association des courtiers et agents immobiliers du Québec now reports to another new entity, the Enterprise Registrar, effective February 1, 2004.
Please note that the electronic version of the Real Estate Brokerage Act on the ACAIQ website will soon be updated to reflect these changes. For any question on this topic, please contact the Info ACAIQ information center at (450) 462-9800 or 1 800 440-7170.
Duration: 3 hours
Duration: 3 hours
(offered in French only)