Training and career in real estate

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.

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.

Since July 1, 2012, the new mandatory form Declarations by the seller of the immovable must be used for all transactions involving the sale, by a natural person, of a chiefly residential immovable containing less than 5 dwellings, including immovables held in divided or undivided co-ownership. The broker must complete this form with the seller and have him sign it at the same time as the brokerage contract is entered into. This is done for the purpose of transparency as well as to protect the interests of the parties to the transaction and those of the broker. The seller must provide the information to the best of his knowledge; the form does not require the seller to declare something that he does not know.

The OACIQ developed a new accreditation program for external trainings. This program encourages industry stakeholders to work together in order to promote the quality and importance of the mortgage and real estate brokerage continuing education.

On June 8, 2012, the OACIQ unveiled the commemorative plaques on which the names of rooms and spaces of its premises were engraved. These were chosen in memory of persons who helped make the Organization what it is today. Directors and committee members and some distinguished guests were invited to the event.

The Real Estate Brokerage Act and brokerage transactions relating to the sale of an enterprise

Under the Real Estate Brokerage Act, which came into force on May 1, 2010, a brokerage transaction relating to the sale of an enterprise remains subject to this Act only if the transaction is made under a single contract and the enterprise’s property, according to its market value, consists mainly of immovable property.

In the field of mortgage brokerage, the Real Estate Brokerage Act states that a broker must “without delay give a written disclosure statement to the borrower (…) containing all pertinent facts relating to the loan applied for.” (Section 49 – Regulation respecting brokerage requirements, professional conduct of brokers and advertising).

Since July 1, 2012, it’s the rules set forth in the new Regulation respecting contracts and forms which govern any brokerage contract or transaction proposal. These rules apply to residential and commercial real estate brokerage as well as mortgage brokerage.

To ensure a better protection of public, the OACIQ published mandatory forms regarding chiefly residential immovables containing less than 5 dwellings. These forms were designed taking into account the rules provided in the new Regulation respecting contracts and forms. We will deal with them in the first part of this article. Then, we will discuss the mandatory statements that brokers must include in their contracts or transaction proposals regarding a chiefly residential immovable containing less than 5 dwellings, in particular cases where the forms will not necessarily be used by brokers.

The OACIQ did not publish any mandatory forms for brokerage contracts and transaction proposals concerning an immovable containing five dwellings or more, a commercial or industrial immovable, an enterprise or a vacant land. However, brokers should include in the contract or transaction proposal the mandatory statements set out in the regulation.