Brokers suspended for sending false documents
Licence suspensions of up to one year and fines of up to $6,000 were imposed on brokers for participating in a scheme to obtain fraudulent financing for the purchase of properties.
Recap of the facts
The OACIQ Discipline Committee sanctioned brokers who, in order to obtain mortgage financing as part of real estate transactions, sent or allowed someone to send false documents and/or information to lending financial institutions, including the following documents:
- False employment letters;
- False investment statements;
- False bank statements;
- False notice of assessment;
- False gift letters;
thus undermining their clients’ trust and misleading third parties, such as financial institutions and parties involved in transactions.
As confirmed by the committee, this is really a very serious offence. This kind of offence undermines the credibility of real estate brokers in the eyes of the public and tarnishes the image of the profession. Such an offence may also have serious consequences for the client, who may be denied a mortgage loan or have his reputation tarnished with his financial institution, employer, etc.
The purchase, sale and financing of a property are likely to be the biggest transactions in a person’s life. They are complex processes involving many important steps. That’s why, it is important to read all the documents you signed or certified. If your financial situation seems precarious, beware of what seems too good to be true.
Click here to read full disciplinary decisions related to this topic:
- Decision on guilt and sanction 33-18-2065;
- Decision on guilt and sanction 33-17-1999;
- Decision on guilt 33-11-1362 and Decision on sanction 33-11-1362, confirmed by the Court of Québec;
- Decision on guilt 33-14-1740, 33-14-1741 and Decision on sanction 33-14-1740, 33-14-1741, confirmed by the Court of Québec, not classified, CQ decision dated May 29, 2018.
Broker’s duty to verify
Your real estate or mortgage broker must show the accuracy of the information he gives you by relevant documents and he is responsible for all the information he disseminates. In addition, the Regulation respecting brokerage requirements, professional conduct of brokers and advertising of the OACIQ requires that the broker verify the information provided to the public or to another broker. He must be able to prove the accuracy of this information.
Want to learn more on your broker’s duties and obligations? Please read the following articles published by the OACIQ:
- Duties and ethical obligations of my broker
- “Residential” or “Commercial” Brokerage: Ethical obligations are the same for all
- Mortgage fraud and illegal brokerage
Want to check a broker’s licence history to see if he has ever been the subject of a disciplinary decision for example? Check the Register of licence holders on the OACIQ’s website.
About the Discipline Committee
The Discipline Committee hears ethical complaints brought against real estate brokers or agencies and imposes penalties on those found guilty at public disciplinary hearings. Created under the Real Estate Brokerage Act, the Discipline Committee is completely autonomous and independent from the Board of Directors and staff of the OACIQ.