Identifying and reporting illegal brokerage

What does “illegal practice” mean in real estate brokerage?

Illegal practice occurs when a person acts as a real estate broker without holding a valid licence issued by the OACIQ or leads others to believe that he or she is authorized to do so.

In Québec, all real estate agencies and brokers must hold such a licence.

The Register of licence holders allows you to check whether a real estate broker or agency holds a valid licence.

Consequences of illegal practice

Any individual or company that carries out real estate brokerage transactions for others and receives compensation in exchange¹ without a valid OACIQ licence is liable to, among other things:

Penal prosecution before the Court of Québec; and
A fine:
- Natural person: not less than $3,000 and not more than $150,000
- Legal person: not less than $5,000 and not more than $200,000

Good to know!

There are exceptions provided for by law² where a person may carry out a real estate brokerage activity without practising brokerage as a main activity, when this activity is ancillary to a main mandate.

Example of illegal practice: questions to ask yourself

Situation:

A property is for sale on social media. The seller offers a reward to any person who finds a buyer. Anyone tempted to put two parties in contact and accept this reward should ask themselves the following questions:

Question:

Can I receive a reward for putting these two persons in contact?

Answer:

No. Acting as an intermediary and receiving compensation could constitute an illegal real estate brokerage activity.

Question:

Are we protected when dealing with someone who acts this way?

Answer:

Using the services of someone who practises real estate brokerage illegally deprives you of the protection mechanisms provided for under the Real Estate Brokerage Act, such as access to the Real Estate Indemnity Fund (FICI), in addition to preventing you from benefiting from the expertise of a professional.

Investigation and reporting

The OACIQ may investigate to determine whether an individual or a company is carrying out real estate brokerage activities illegally or leading others to believe that they are authorized to do so.

Reporting illegal practice

To report a situation:

Complete and submit the Request for assistance form to the OACIQ
If necessary, the information centre Info OACIQ can help you complete your request

After receiving the notification:

You will be informed in writing of the results of the investigation
If penal proceedings are instituted, you could be summoned to appear as a witness during a possible trial before the Court of Québec.

Reporting money laundering

Any suspicion or attempt of money laundering or recycling of proceeds of crime involving a real estate broker or agency can be reported to the OACIQ via this form.

¹Sections 4 and 13 of the Real Estate Brokerage Act

²Sections 2 and 3 of the Real Estate Brokerage Act

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