Designed for licensees and made available for public information, some of the hyperlinks in this guideline are not publicly available. Due to recent regulatory changes, much of the content of this guideline is currently being updated.

1. Keeping of records and registers

Licensees must keep and maintain up to date the registers and records prescribed by the regulation.

Where a broker acts for an agency, the obligations related to the keeping of registers and records are delegated to the agency. However, the broker must send all the information required for that purpose to the agency without delay.1

Attention – It is the agency that legally "holds” the personal information. Thus, the broker acting on behalf of the agency must forward all the information collected in the course of a mandate to the agency without delay. Although the broker may keep a copy of the information during the performance of the mandate, he must immediately destroy his copy when the information is no longer required for the performance of his duties (for example, after the completion of the real estate transaction or the refusal of the promise to purchase, etc.). See the Guideline – Privacy protection to learn more about the rules for keeping, using and destroying personal information.

Various types of registers and records must be kept at the agency or at the establishment of the broker acting on his own account. They must be accessible, available and secure. The following registers and records must be maintained and kept up to date2:

1.1 Register and record for each real estate brokerage contract

1.2 Register and record for each transaction

1.3 Record for unaccepted transaction proposals

1.4 Accounting register for the amounts held in trust if any

1.5 Register and record of disclosure notices

1.6 Register on the accounting of the agency or the broker acting on his own account

1.7 Register of brokers and record of business corporations owned by the agency's brokers (not required for brokers acting on their own account)

Attention – Les exemples donnés dans la présente section ne sont pas limitatifs. En effet, que ce soit en courtage résidentiel ou commercial, la documentation d’un dossier doit toujours être rassemblée en fonction de ses particularités (ex. : une propriété non desservie par le réseau d’aqueduc de la municipalité ou comportant un système de traitement des eaux usées, une propriété ayant déjà été inondée, une copropriété divise ou indivise, la mise en marché d’une construction neuve, un immeuble à vocation agricole, la cession ou la sous-location d’un bail commercial, etc.).

The broker must always keep the following documents on record:

  • Documentary evidence of the steps taken to discover factors that may adversely affect the parties to a transaction or the object of the transaction3, including verification of the description sheets and the seller's previous declarations.
  • Evidence supporting the information included in the description sheet.
  • Proof of information and advice given to clients or the reasons motivating the parties' decisions (e.g., setting the selling price, excluding the legal warranty, waiving the use of an information listing service, choosing one promise to purchase over another, etc.).
  • Proof of transmission and receipt of documents.
  • Proof of fulfillment of conditions of a transaction.
  • Communications (e.g., emails, text messages, letters, etc.).

As of June 10, 2022, certain documents related to the prohibition of double representation must be on record, including:

  • The form Notice from the broker without an exclusive brokerage contract – Purchase must be attached to any residential promise to purchase drafted by a collaborating broker without a brokerage contract. The buyer's acknowledgement of receipt confirms that he has read the notice and received relevant information to fully understand the broker's role, obligations and method of remuneration.
  • Warning the buyer bound by a brokerage contract to purchase of the possible termination of the contract if the buyer wishes to make a promise to purchase on an immovable for which the broker is bound by a brokerage contract with the seller.

UPCOMING REGULATORY CHANGE: The broker must place on file the document that fulfills his obligation to immediately provide the party for whom he agrees to act as an intermediary with an informative text that presents, among other things, the OACIQ's mission (mandatory form or other if no mandatory form is used).4

If necessary, additional registers and records can be created for documents that do not have a designated place (e.g., records for notices signed by buyers without a brokerage contract and not associated with an accepted transaction or an unaccepted transaction proposal).

SELF-STUDY COURSES :

1 S. 1 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.
2 S. 2 and 10 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.
3 Section 84 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising.
4 Section to come of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising: “Where the party for whom a licence holder agrees to act as an intermediary does not receive a mandatory form containing an informative text in particular on the mission of the Organisme d’autoréglementation du courtage immobilier du Québec, the licence holder must, without delay, give that party a document containing such text.”

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1.1 Register and record for each real estate brokerage contract

A real estate brokerage contract is any type of contract concluded for compensation for the purchase, sale, exchange or lease of an immovable, whether or not it is written on an OACIQ form.

Therefore, a mandate from a financial institution whose sole purpose is to establish the market or economic value of an immovable is not considered a real estate brokerage contract.

Register of real estate brokerage contracts

The register of real estate brokerage contracts is the compilation or inventory of all contracts entrusted to brokers representing the agency or to brokers acting on their own account. It must include the following minimum information3:

  • A unique number from an ascending series of consecutive numbers chosen by the agency or broker acting on his own account and attributed to each real estate brokerage contract                      
  • The date the contract was entered into with the licensee (in the case of a real estate brokerage contract that is being transferred, the date of transfer from the broker to the agency or the date the broker began acting on his own account)
  • The name of the broker acting for the agency for the performance of the contract
  • Address of the immovable or the enterprise to which the transaction pertains (purchase, sale, exchange or lease), or its cadastral description if there is no address
    • For a brokerage contract to purchase that does not involve an immovable, the field can be left blank
  • The sum received in trust, where applicable.

Of course, additional elements relevant to the licensee's practice may be recorded in the register.

OUTIL :

Real estate brokerage contract record

A real estate brokerage contract record is created upon signing the contract and contains6:

  • The real estate brokerage contract
  • Any document that is used or was used in the performance of the contract, including:
    • Proof of identity verification and legal capacity
    • Those used to show the accuracy of the information provided to the public and other licensees, notably proof supporting the information included in the description sheet
    • Documentary evidence of the steps taken to discover factors that may adversely affect the parties to a transaction or the object of the transaction7, including verification of the description sheets and the seller's previous declarations
    • Any unaccepted (refused or unanswered) transaction proposal relating to the object of this brokerage contract. For example, all unaccepted transaction proposals in the case of multiple proposals or a brokerage contract to purchase
    • Proof of information and advice given to clients or the reasons motivating the parties' decisions. For example, establishing the selling price using comparables, excluding the legal warranty, waiving the use of an information listing service, choosing one promise to purchase over another, etc.
    • Communications (e.g., emails, text messages, letters, etc.).
  • The content of the transaction record, where applicable.

IMPORTANT!

The real estate brokerage contract record must be updated throughout the performance of said contract when the situation so requires, i.e. when new information becomes available. For example, the updating of the municipal tax document, the minutes of a co-owners' meeting held after the signing of the brokerage contract, etc.

Note that new information or documents that appeared during the performance of the brokerage contract could lead brokers to make changes to the declarations by the seller of the immovable, to the information in the description sheet, etc. For example, the receipt of a new certificate of location with a different surface area, changes to flood zones, inspection report after the cancellation of an accepted promise to purchase, etc.

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1.2 Register and record for each transaction

A transaction is any accepted contractual proposal for the purchase, sale, exchange or lease, whether or not it is drafted on an OACIQ form.

Under the regulations, a transaction occurs once a proposal is accepted, regardless of whether or not the conditions have been fulfilled or the deed of sale, lease or transfer has been signed.

A transaction is also considered to be any compensation received under a compensation agreement (commonly referred to as a "referral").

Register of transactions

The transaction register is the compilation or inventory of each transaction proposal accepted and compensation received for referrals. It must include the following minimum information8:

  • A unique number of an ascending series of consecutive numbers chosen by the agency or broker acting on his own account and attributed to each transaction
  • Date of acceptance of the transaction proposal
  • The sum received in trust, where applicable
  • Address of the immovable or the enterprise to which the transaction proposal pertains (sale, exchange, lease), or its cadastral description if there is no address
  • The name of the broker to whom the transaction proposal has been entrusted (i.e., the broker's name appearing on the transaction proposal as an intermediary for the buyer or lessee)
  • The name and licence number of the agency or broker acting on his own account with whom the agency or broker shares compensation
    • There is no information to record if there is no sharing
    • If the agency or broker acting on his own account shares compensation with a person who is not an OACIQ licence holder, indicate:
      • The name of the company or person with whom the sharing is made
      • Where applicable, the number of the permit, licence, certificate or any other form of authorization issued outside Québec or under an Act other than the REBA of this person or company

Of course, additional elements relevant to the licensee's practice may be recorded in the register.

Good to know

For amounts received as compensation agreements, the mandatory information of the transaction register is not always available. In this case, the licensee will indicate only the information he has.

For more information, see the Guideline – Collaboration and remuneration sharing.

 

Transaction record

A transaction record must be created upon acceptance of the transaction proposal without waiting for the conditions to be fulfilled. It contains9:

  • The accepted transaction proposal (or proof of compensation when the transaction concerns only a client referral with the compensation agreement)
  • Any other document used to complete the transaction.

Therefore, when there is a residential or commercial transaction for the purchase, sale, exchange or lease of an immovable, the following documents must be on record. This must be done without delay following acceptance of the proposal and the record must be updated in the course of transaction:

  • The accepted transaction promise or disclosure of compensation agreement;
  • Follow-up on conditions including proof of their fulfillment and acknowledgement of receipt (when there is a request for documents included in the transaction proposal)
  • Proof of information and advice given to clients or the reasons motivating their decisions. For example, establishing the selling price using comparables, excluding the legal warranty, etc.
  • Administrative documents, such as a copy of the electronic transfer or deposit cheque, trust receipt, invoicing, proof of payment to agency brokers and to the agencies and brokers acting on their own account involved in the transaction

8 S. 4 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.
9 S. 13 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.

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1.3 Record for unaccepted transaction proposals

An unaccepted transaction proposal is any proposal that was refused by the other party or received no response.

Unaccepted proposals must be placed in:

  • The real estate brokerage contract record if they relate to the object of a brokerage contract of the agency or broker acting on his own account
  • The record for unaccepted transaction proposals if they are not associated with any brokerage contract in progress at the agency or broker acting on his own account

Attention – A transaction proposal that was first accepted and then cancelled due to non-fulfillment of conditions must not be placed in the unaccepted transaction record. Since this was initially an accepted proposal, it must instead be placed in the transaction register upon acceptance and put on the transaction record.

Example 1 :

A broker has a Brokerage contract – Sale with a selling client. He drafts a transaction proposal for a buyer who is not represented by a broker. He presents it to his selling client who refuses it. Since it is part of the documents proving the performance of the contract, the refused transaction proposal will therefore be placed in the real estate brokerage contract record.

Example 2 :

A collaborating broker without a brokerage contract drafts a transaction proposal for a tenant. It is a broker from another agency who has a brokerage contract and represents the lessor. The proposal is refused. The refused transaction proposal, together with any related forms or annexes, will therefore be placed in:

- The record of unaccepted transaction proposals (for the collaborating broker without a brokerage contract)

- The real estate brokerage contract record (for the lessor's broker)

 If these brokers were working within the same agency, the proposal would be placed in the real estate brokerage contract record.

Example 3 :

A broker with a brokerage contract to sell receives a promise to purchase drafted by a broker having a brokerage contract to purchase with the buyer. Both brokers are acting for the same agency. The promise to purchase is refused. The refused transaction proposal, together with any related forms or annexes, will therefore be placed in:

  • The real estate brokerage contract record for the seller's broker
  • The real estate brokerage contract record for the buyer’s broker

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1.4 Accounting register for the amounts held in trust

Agencies and brokers acting on their own account, except for agencies that have delegated the management of this account and those benefiting from a legislative exception, must establish and strictly keep up to date a trust transaction register.

As soon as amounts collected for others, such as deposits or advances on remuneration or costs, are deposited or withdrawn from the account, they must be entered in the register.

The register must include the following minimum information10:

When it comes to a deposit:

  • The date of the deposit
  • The unique number that has been assigned to the transaction record (down payment made at the time of the transaction promise) or to the brokerage contract record (advance on remuneration or costs)
  • The number of trust receipt issued
  • The name of the depositor* (legal or natural person to whom the sum belongs);
  • The amount that was deposited
  • The trust account balance

*Attention – The depositor’s name is not necessarily that of one of the parties to the transaction. For example, the amount of money could come from the parents of a party to the transaction or from a natural person when the party to the transaction is a legal person.

In this regard, remember that such cases may constitute money laundering indicators and that the licensee is required to take the necessary measures to prevent and report any suspicious transactions. For more information, read the Guideline – Preventing money laundering and real estate fraud.

When it comes to a sum whose depositor expressly requested that the interest on that sum be remitted to him, the licensee must immediately transfer the sum from the general trust account to a special trust account. In addition to the information required for any deposit, the following information must be specified in the register:

  • Identification of the special account that was opened in the depositor's name;
  • Name of the financial institution with which the account was opened.

When it comes to a withdrawal:

  • Date of bank withdrawal
  • Withdrawal number (cheque, transfer, etc.)
  • The beneficiary’s name or any relevant information (the name of the person to whom the payment is made or a description if it is a correction to the register)
  • The amount that was withdrawn from the account
  • The trust account balance

Withdrawal from a special account

If the amount received in trust is withdrawn from a special account, it must be deposited, along with any interest incurred, into the general trust account before being remitted to the beneficiary. In this case, the beneficiary of the “interest” portion is the initial depositor.

In addition to the information required for any withdrawal, the following information must be specified in the register:

  • Identification of the special account from which the sum comes
  • Name of the financial institution with which the account was opened

The licensee shall keep evidence in the brokerage contract or transaction record that he is authorized to withdraw the amount held in the trust account to remit it to a third party.

Attention – In his practice, the licensee must, at all times, take into account his aptitudes, limits on knowledge and means available.11 This particularly applies to the management of trust accounts. It is therefore strongly recommended that the services of a Certified Professional Accountant (CPA) be enlisted to help with this task.

For full details on opening and closing, managing and keeping trust accounts, see the corresponding articles.

Legislative exception relating to the opening and maintaining of a trust account12

Le titulaire de permis qui produit une déclaration à l’OACIQ indiquant qu’il se trouve dans l’une des situations suivantes n’a pas à tenir un compte en fidéicommis :

  • A licensee who files a declaration with the OACIQ stating that he is in one of the following situations does not have to maintain a trust account:
  • He is employed by the Organizatio
  • He is employed by a person who is not an agency and he engages, as such, in no real estate brokerage transaction
  • He does not receive any deposits, advance on remuneration or costs from the clients, or any other amount for other persons. As soon as the situation changes and the licensee receives a deposit, an advance on remuneration or costs, or an amount for other persons, he must, without delay, notify the OACIQ in writing and comply with the requirements relating to trust accounts set forth in the Real Estate Brokerage Act and its regulations.
10 S. 5 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.
11 S. 73 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.
12 S. 24 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.

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1.5 Register and record of disclosure notices

A licensee who is a party directly or indirectly involved in a real estate transaction must, before drafting or accepting a transaction proposal, disclose his status as a broker and the nature of his interest in the transaction.13

Good to know

The OACIQ has designed the recommended form Notice of disclosure – Purchase-Sale-Exchange. Remember that this form was not designed to disclose a situation where the licensee's interests are in conflict with those of a client, but to:

  • Disclose his status as a licensee because of his brokerage expertise (section I)
  • Disclose the nature of the interest he has or proposes to acquire; or
  • Disclose the nature of the relationship between the broker and the natural or legal person he represents (section II)
  • Disclose the nature of the interest the person with whom the broker has a financial link holds or proposes to acquire (section II)
  • Inform the unrepresented party that the broker cannot represent him in this transaction (section II)
  • Inform the unrepresented party that they may enlist the services of another licensee (section II)

For more information, see the Guideline - Conflicts of interest.


Register of disclosure notices

The Register of disclosure notices is the compilation or inventory of all notices that have been completed by brokers representing the agency or by the broker acting on his own account. It must include the following minimum information14:

  • A unique consecutive number assigned to each disclosure notice
  • The name and licence number of the broker who produced the notice
    • Only notices generated by the agency's broker or the broker acting on his own account shall be entered into the register
  • Address of the immovable or the enterprise to which the transaction pertains, or its cadastral description if there is no address
  • The nature of the transaction: purchase, sale, exchange, lease or loan secured by immovable hypothec
  • Nature of interest which licensee has or proposes to acquire
  • Identification of the parties to the transaction
  • Sale price accepted or the amount of the mortgage loan granted
  • Date and time of drafting of the transaction proposal
  • Date and time of acceptance of the transaction proposal
  • The date and time the notice is received by each prospective contracting party

Notice of disclosure record

The disclosure notice record is a single record containing all disclosure notices completed by brokers. It contains15:

  • Duly completed disclosure notices and proof of their receipt
  • The transaction proposal and all documents related thereto, unless such documents have been filed in the transaction record or in the record of unaccepted transaction proposals 

Attention – An agency or broker whose licence is suspended – and not revoked – still has an obligation to produce the disclosure notices required by regulation. A broker whose licence was suspended while he was acting on behalf of an agency has the following obligations:

  • Keep his own register of disclosure notices
  • Send this register to the OACIQ by March 31 of the following year
  • Keep any notice given in a single record

13 S. 18 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising
14 S. 6 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising
15 S. 14 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising

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1.6 Register on the accounting of the agency or the broker acting on his own account

The regulation16 provides that agencies and brokers acting on their own account are required to maintain and keep up to date accounting reflecting the operations of their enterprise and incorporating generally accepted accounting principles.*

The licensee may use the accounting system of his choice or enlist the services of a professional to manage his accounting. However, the licensee's books, registers, accounts, records and other documents must be available for inspection. The inspector may ask any person having custody, possession or control of the books, registers, accounts, records and other documents to make them available to him and facilitate their examination, regardless of the means by which they may be accessed. Upon request, the broker or agency is required to provide the inspector with the contact information of the person who has custody of the books, registers, accounts, records and other documents and to allow him to access them without delay.

In addition to helping the licensee meet his obligations, the accounting registers will keep him informed of the financial situation of his enterprise. Properly kept registers determine the profits or losses of the company and its value. They also allow us to monitor company trends, compare returns over several years and prepare budgets and forecasts

*Generally accepted accounting principles 

Generally accepted accounting principles (GAAP) are a set of standards and rules that serve as a general guide for financial reporting. The term "generally accepted" means that these principles are validated by leading authorities in the field. 

In Canada, accounting standards are set by the Accounting Standards Board (AcSB) and the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada.

What do we mean by accounting registers?

These are organized accounting and financial records summarizing transactions and the documents supporting those transactions. These documents include ledgers, journals, registers, tables, charts, financial statements, statements of account, income tax returns, goods and services tax and harmonized sales tax (GST/HST) returns, excise tax returns, sales invoices, purchase receipts, vouchers, contracts, cashed cheques, cash register receipts, bank statements, credit card statements, emails, logbooks, working papers and any correspondence supporting the transactions

Note that according to the regulations, the person conducting the inspection may examine and make copies of the books, registers, accounts, records and other documents relating to the licensee's activities and require any information or document pertaining to the carrying out of the Real Estate Brokerage Act.17

Attention – Brokers acting on their own account are subject to the same obligations and requirements regarding the information and documents to be provided during an inspection. This includes everything related to accounting.

16 S. 8 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.
17 S. 78 of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies.

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1.7 Register of brokers and record of business corporations owned by the agency’s brokers

Register of agency brokers

The obligation to maintain and keep the register of brokers up to date applies only to the agency, since a broker acting on his own account cannot be represented by other brokers. The register of agency brokers includes the following minimum information18:

  • The full name and licence number of the broker representing the agency
  • If applicable, a mention to the effect that the broker operates within a business corporation

Record of business corporations owned by brokers representing the agency

A record must be created for all business corporations authorized by the OACIQ and owned by brokers representing the agency. It contains19:

  • An up-to-date statement of the information published with the Registre des entreprises du Québec for each corporation in which brokers carry on their activities   
  • If the corporation is constituted under a statute other than a statute of Québec, written confirmation from a competent authority attesting to the corporation’s existence
  • Where the broker is not the sole shareholder of the business corporation within which the broker carries on activities, the updated information relating to the names of all the shareholders of the corporation and, for each of them, the percentage of voting rights and the terms of dividend participation attached to the shares they hold
    • The broker must hold at least 90% of the voting rights attached to the corporation’s shares and be the president of the corporation
  • The contract between the corporation represented by the broker and the agency

The agency must ensure that the register is kept up to date, especially when a broker arrives and leaves, and the OACIQ must be informed of any change in the broker's business corporation status.20

Last updated on: August 24, 2023
Numéro d'article: 264777