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.
Which copy goes to whom when signing the paper version of a contract, a transaction proposal or a form?
The Info ACAIQ Information Center has observed a lack of consistency among licence holders in the way the paper versions of completed and signed contracts, transaction proposals or forms are remitted to the parties concerned. In residential real estate, omitting to give a duplicate of the brokerage contract to sell or to purchase to the client can lead to serious repercussions, as we will discuss below.
How long should a brokerage contract last? The answer is simple: it is up to the consumer and the agency or the broker to determine the length of the contract. There are no rules in the Act or the regulations stipulating a minimum or maximum term for a brokerage contract. The agency or broker must act according to the client’s wishes.
Are you an agency executive officer or a real estate or mortgage broker in another province and now wish to practice in Québec? Here is how:
In the last several years, the culture of cannabis, also known as marijuana, has seriously expanded across Canada. Because the climate in Québec is cold, offenders tend to favour indoor growing. More productive and more discreet, indoor installations allow residential growers to harvest three or four crops a year, versus just one outdoors.
Real estate brokers and agencies are very familiar with the difficulties involved in determining the area of a divided co-ownership unit. On the one hand, the current practice of selling new co-ownership properties ''on plans'' means that measurements are based on architectural plans. On the other hand, the Civil Code of Québec requires that the cadastral plan from which the creation of the co-ownership originates be determined from an actual measuring of the inside of the private portions based on established physical boundaries.
Brokers must sometimes face difficult situations, especially where they suddenly found out that a property concerned in a brokerage contract or a promise to purchase (in progress or accepted) had been used as a marijuana growing operation. Here are the OACIQ’s recommendations in such cases. As soon as he has reason to believe or is informed that the property has been used to grow cannabis, the broker, depending on the nature of his involvement in the transaction and the stage it has reached, must do the following:
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.
Newspapers often include real estate features in their pages. For content, some journalists turn to real estate agencies and brokers asking for detailed description sheets of sold properties for which the deed of sale has been notarized. A photograph and the selling price of the property are published. In cases such as these, it is important to remember that a licence holder may not do any advertising without being expressly authorized to do so in writing. In addition, he must respect the confidentiality of all personal information collected in the course of his activities.
When a promise to purchase provides for a pyrite test and a real estate broker specifies a percentage above which the buyer can withdraw in the clause, the broker can be considered at fault professionally. This practice, which has often been reported to the Organization, presents a serious risk to clients.
What is a ''legal warranty''? A person selling movable or immovable property must warrant that the property is free from any defect in title and any latent defects, except those declared before the sale. That is what is generally known as the ''legal warranty'', which has two components, i.e. the warranty of ownership and the warranty of quality. These warranties exist by operation of law, i.e. they do not have to be specified in the contract.