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 OACIQ has recently announced that as of December 1, 2012, the following forms must be used to conclude the lease of a dwelling: New forms for residential lease
The seller remains free to refuse a promise to purchase even if it meets all the conditions in the brokerage contract
In 2010, the Court of Appeal, the highest court in Québec, handed down a major decision for real estate brokerage in a case where the Association des courtiers et agents immobiliers du Québec (ACAIQ) – now the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) – appeared, first in the trial court, and later in the Court of Appeal, to argue its position.
Can I guarantee to my client the sale of his property and thus acquire it if the sale does not take place with a third party before the deadline?
All will depend on your real intention.
Since December 1, 2012, the mandatory form Exclusive Brokerage contract – Residential lease must be used when an agency or broker acting on his own account signs a brokerage contract with a natural person to conclude the lease of a dwelling located in a chiefly residential immovable containing less than five dwellings.
The regulation respecting contracts and forms provides many statements that must be included in a mortgage brokerage contract, i.e., the contract by which a broker acting on his own account or for an agency agrees to act as intermediary to obtain a loan secured by immovable hypothec.
When seeing a sign "House for Sale by Owner", you start up a conversation with the owner and suggest that he deal with you to sell his house. Then the owner answers you: "There's no way I'm signing a brokerage contract, but if you find me a buyer, I'll give you a little something." Not to worry you think, and off you go in search of a buyer, evidently unaware that this could turn out to be a very costly proposition.
When the seller of a residential immovable containing less than five dwellings chooses to deal through a real estate agency or broker or a real estate broker acting on his own account, he must sign a brokerage contract to sell, except if he is not a natural person (e.g.: business corporation). The same applies to the buyer if the broker wishes to ask him for compensation and to the lessor concerning lease matters. This agreement gives the agency or broker the right to act as the exclusive or non-exclusive intermediary for a specific period.
– INSPECTION CAPSULE –
The Professional Inspection Department has noticed a lack of understanding of the principles governing the receipt of a sum for another and the management of a deposit.
– PROFESSIONAL PRACTICES SERIES –
Under the Real Estate Brokerage Act, a seller (natural person) may, at his own discretion, cancel a brokerage contract concerning a residential immovable within three days following the day on which he receives a duplicate of the contract signed by both parties.
Before examining the various cases in which remuneration is payable by the seller to the agency or the broker acting on his own account, let us briefly consider what form the broker’s remuneration may have under the Exclusive brokerage contract – Sale.