Amendments to the co-ownership brokerage forms and the Exclusive brokerage contract – Purchase - Highlights
The amendments to the mandatory brokerage forms for divided and undivided co-ownership and to the Exclusive brokerage contract – Purchase (BCP) form came into force on November 29, 2023. Below are the highlights of the changes made, along with the forms and their explanatory leaflets.
Background
In June 2022, following the launching of the revised versions of the real estate brokerage forms for residential immovables containing less than 5 dwellings, the OACIQ, in collaboration with the Ministry of Finance, continued revising the other mandatory forms. The aim of this revision is to align all the mandatory forms with the changes made in 2022 and, of course, to ensure that they comply with the Real Estate Brokerage Act (REBA) (CQLR, c. C-73.2) and its regulations.
During this review, the OACIQ wanted to improve these forms to address certain concerns collected over the years by both the regulator and various industry players. These proposals were also discussed by the Advisory Committee on Training and Professional Practices in Residential Brokerage, made up of real estate brokers working in this field.
In addition, the Ministry of Finance has made some additional changes to these forms.
Amended forms
The amendments affect the forms relating to immovables held in divided and undivided co-ownership, as well as the current Exclusive brokerage contract – Purchase. Click on each form to read highlights of the amendments.
Chiefly residential immovable containing less than 5 dwellings
Divided co-ownership
- Exclusive brokerage contract – Sale – Fraction of a chiefly residential immovable held in divided co-ownership (EBCD)
- Non-exclusive brokerage contract – Sale – Fraction of a chiefly residential immovable held in divided co-ownership (NEBCD) - NEW
- Promise to purchase – Co-ownership – Fraction of a chiefly residential immovable held in divided co-ownership (PPD)
- Declarations by the seller of the immovable – Divided co-ownership (DSD)
Undivided co-ownership
- Exclusive brokerage contract – Sale – Share of a chiefly residential immovable held in undivided co-ownership (EBCU)
- Non-exclusive brokerage contrat – Sale – Share of a chiefly residential immovable held in undivided co-ownership (NEBCU) - NEW
- Promise to purchase – Co-ownership – Share of a chiefly residential immovable held in undivided co-ownership (PPU)
Divided and undivided co-ownership
- Exclusive brokerage contract – Purchase – Chiefly residential immovable held in divided or undivided co-ownership (BCPDU) - NEW
Highlights of the changes made to the BCP form include the following:
- Integration of the Warning to the buyer in the BCP, which eliminates the need to include standard clause 1.16 in section 10.1 or in Annex G - General.
- Clarification indicating that the buyer has the right to search for a property on his own. The concept of exclusivity applies only between licensees.
- Clarification that in the event of an exception to the double representation prohibition rule, the broker must notify the buyer in writing and obtain his written consent to continue representing him.
- Broker's obligation to disclose any remuneration agreement relating to the object of the brokerage contract.
See the amended BCP form and its explanatory leaflet for more details on the changes made.
The highlights of the changes made to the EBCD/NEBCD form include the following:
- Introduction of a non-exclusive brokerage contract similar to the non-exclusive brokerage contract for a chiefly residential immovable containing less than 5 dwellings.
- Seller's obligation to provide his broker with documents relating to the self-insurance fund and the description of the private portion.
- Broker's obligation to disclose any remuneration agreement relating to the object of the brokerage contract.
- Other amendments to align form clauses with the brokerage contract to sell relating to chiefly residential immovables containing less than 5 dwellings, revised in June 2022.
See the amended EBCD form and its explanatory leaflet, as well as the new NEBCD form and its explanatory leaflet for more details on the changes made.
The highlights of the changes made to the PPD form include the following:
- Seller's obligation to provide the buyer with documents relating to the self-insurance fund and the description of the private portion.
- Other amendments are intended to align form clauses with the promise to purchase form for chiefly residential immovables containing less than 5 dwellings, revised in June 2022.
See the amended PPD form and its explanatory leaflet for more details on the changes made.
The highlights of the changes made to the DSD form include the following:
- Addition of a new question on the self-insurance fund.
- Rewording of the question on the asset management plan to include the maintenance log:
- The other amendments are intended to align form clauses with the seller's declarations form for residential immovables containing less than 5 dwellings, revised in June 2022.
See the amended DSD form and its explanatory leaflet for more details on the changes made. To see what changes have been made to the sections and the questions themselves, see the concordance table.
The highlights of the changes made to the EBCU/NEBCU forms include the following:
- Introduction of a non-exclusive brokerage contract similar to the non-exclusive brokerage contract for a chiefly residential immovable containing less than 5 dwellings.
- Removal of the buyer’s obligation to obtain a loan from the financial institution indicated by the seller. The parties may provide for this particular condition in clause 11.1.
- Removal of the clause relating to the assignment of remuneration by the seller's broker, as this clause does not concern the obligations of the parties to the contract.
- Broker's obligation to disclose any remuneration agreement relating to the object of the brokerage contract.
- Other amendments to align form clauses with the brokerage contract to sell relating to chiefly residential immovables containing less than 5 dwellings, revised in June 2022.
See the amended EBCU form and its explanatory leaflet, as well as the new NEBCU form and its explanatory leaflet for more details on the changes made.
The highlights of the changes made to the PPU form include the following:
- Removal of the buyer’s obligation to obtain a loan from the financial institution indicated by the seller. The parties may provide for this particular condition in clause 12.1.
- Other amendments are intended to align form clauses with the promise to purchase form for chiefly residential immovables containing less than 5 dwellings, revised in June 2022.
See the amended PPU form and its explanatory leaflet for more details on the changes made.
Highlights – BCPDU form (new):
- The amendments made in 2022 to the Real Estate Brokerage Act concerning the double representation ban and the obligation to have a written brokerage contract to represent a buyer necessitated the creation of a specific brokerage contract to purchase form specific to co-ownership.
See the new BCPDU form and its explanatory leaflet for more details on the changes made.
All revised forms contain the box on the role of the OACIQ provided for in s.16.2 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising (c. C-73.2, r.1). If the licensee submits one of these revised forms, he does not have to provide any other separate documents about the mission of the OACIQ.
Once the new forms mentioned above come into force, the old forms will no longer be used.
