OACIQ forms: For better prevention
To fulfil its public protection mission, the OACIQ published no less than fifty forms. They were designed to provide you with maximum protection, while clearly establishing the terms under which the broker will act. The most important ones must be used by brokers in real estate or mortgage transactions in the residential field.
Here is an overview of the main OACIQ forms used when the seller and the buyer are individuals (natural persons). For the full list of all OACIQ brokerage forms, visit the Brokerage forms page.
By using them, you make sure that the broker’s obligations are defined and that he will fulfil them. Among these obligations, the broker must assist you and provide you with tools to help you fully understand the clauses of the forms and their implications.
Brokerage contract – Sale
Brokers must use one of the Exclusive brokerage contract – Sale forms published by the OACIQ during the sale, by an individual:
- of a chiefly residential immovable containing less than 5 dwellings;
- of a fraction of a residential immovable held in divided co-ownership;
- of a share of an immovable held in undivided co-ownership;
- of a mobile home placed on a chassis (with or without a permanent foundation) and located on a leased land.
All versions of this contract provide in particular:
- that your broker will be the sole intermediary with whom you will do business for the sale of your property for the term of the contract;
- your rights and obligations and those of your broker;
- that the broker will be remunerated for his work once you accept a Promise to purchase and all conditions are fulfilled (except the signing of the deed of sale).
Declarations by the seller of the immovable
Created by the OACIQ to protect the parties concerned, this mandatory form enables the buyer to get detailed information on the condition of the property, and allows the seller to protect himself against potential suits. It is available in two versions –for a residential immovable containing less than five dwellings and for divided co-ownership.
This form is a valuable tool to help your broker meet his verification obligation and discover any factor that could affect the transaction. When reviewing this form and making the necessary verifications, if your broker has a doubt on any factor that could have an impact on the transaction, he must disclose it to you.
Annex RC and Amendments
The Annex RC – Remuneration and costs form must be annexed to any mandatory brokerage contract, where appropriate. The Amendments form is also mandatory to amend a mandatory brokerage contract.
Brokerage contract – Purchase
Brokers must use one of the Brokerage contract – Purchase forms published by the OACIQ. These forms are mandatory when the broker decides to be contractually bound in writing with a person for the purchase of a chiefly residential immovable containing less than five dwellings. They enable the broker to be remunerated by the buyer for the purchase of such immovable.
It specifies, among other things:
- the essential features of the desired property;
- the desired price and terms of purchase;
- the respective obligations of the buyer and the broker, including as regards the remuneration of the buyer’s broker (which can be paid directly by the buyer or added to the purchase price offered for the property and included in the mortgage loan).
The contract can also stipulate what type of follow-up will be done by your broker. In addition, if the seller of the property you are considering is not represented by a broker, your broker will make all the necessary verifications that would otherwise be the responsibility of the seller’s broker. This contract also allows the broker to canvass and solicit people for properties that are not on the market.
Promise to purchase
Brokers must use one of the Promise to purchase forms edited by the OACIQ for the purchase of a chiefly residential immovable containing less than five dwellings, fraction of a residential immovable held in divided co-ownership, a share of an immovable held in undivided co-ownership or a mobile home located on leased land. These forms are mandatory regardless of whether or not the seller or the buyer is a natural person. Note that in the case of a new or off-plan property, a preliminary contract will then be used instead of the Promise to purchase.
Enhancements prior to acceptance
The Enhancements form must be used to amend a Promise to purchase, prior to acceptance, when the amendment is to enhance the promise, i.e. make it more advantageous for the seller, more consistent with or superior to the wills and requirements expressed in the description sheet.
Annex F, Annex R and Counter-proposal
Annex F and Annex R forms are annexes to the Promise to purchase and must be used where appropriate. The Counter-proposal and Amendments forms must also be used to respond or to amend a Promise to purchase.
The Exclusive brokerage contract – Residential lease form must be used when a brokerage contract is signed with a view to concluding the lease of a dwelling located in a chiefly residential immovable containing less than five dwellings, regardless whether or not it is held in divided or undivided co-ownership.
Moreover, the Promise to lease – Residential and Counter-proposal – Residential lease forms are mandatory to conclude the lease of a dwelling by a natural or legal person or a corporation, regardless of the number of dwellings that the immovable contains. They must also be used to lease a dwelling held in divided or undivided co-ownership.
Finally, the Amendments – Residential lease form is mandatory under the same circumstances as the forms it amends, i.e. the Brokerage contract or Promise to lease.
Sale of a mobile home located on leased land
The use of forms designed specifically for the sale of a mobile home placed on a chassis, with or without a permanent foundation, and located on leased land is mandatory regardless of whether or not the seller is a natural person. In addition to the brokerage contract, a Promise to purchase form has also been developed.
The OACIQ imposes a mandatory minimum content for any brokerage contract involving a real estate broker and targeting a residential immovable, including:
- The names and contact information of the parties;
- The object and duration of the contract;
- The identification of the immovable or the characteristics of the immovable sought;
- The price and terms of sale, purchase, exchange or lease of the immovable;
- The fact that the information contained in the contract can be used only in accordance with the terms and conditions set forth in the contract or in accordance with the regulation;
- The remuneration sharing conditions offered to the broker collaborating in the transaction and the consequences of those conditions (except in the case of a brokerage contract to purchase);
- Agency or broker remuneration method and terms of payment of that remuneration;
- The possibility for the parties to resort, in case of a dispute, to the services of conciliation, mediation, and arbitration offered by the OACIQ in accordance with the Real Estate Brokerage Act;
- The rules set out in the regulation regarding the status of the brokerage contract when a broker ceases acting on his own account to go and work for an agency, when he changes agency or when the broker or agency ceases operating completely;
- Any declaration by the seller or lessor concerning the immovable and relevant to the transaction;
- The right of termination of three days set forth in section 28 of the Real Estate Brokerage Act;
- Any other right or obligation of the parties.
The statements which must also be contained in such contract, where appropriate, are:
- the exclusivity of the contract;
- the fact that in some cases the contract cannot be terminated;
- the authorization to transmit information about the immovable to an information listing service (e.g.: Centris); and
- the fact that any amounts of money received as disbursements or remuneration advance will be deposited without delay in the broker’s or agency’s general trust account and can be withdrawn only when the services have been rendered or the disbursements have been incurred, and these amounts have been billed and sent to or accepted by client.
Also note that in the absence of a stipulation regarding the date and time of the contract, the latter will expire 30 days after its conclusion.
Furthermore, the OACIQ imposes a mandatory minimum content for any transaction proposal concerning a residential immovable. The statements that should be included therein are:
- The names and contact information of the parties;
- The object of the transaction proposal;
- The identification of the immovable and the description of the enterprise, if applicable;
- The price and terms of sale, purchase, exchange or lease of the immovable and the amount of the down payment deposited in the broker’s or agency’s trust account in accordance with the terms provided for the trust, if applicable;
- The payment method of purchase, sale or exchange price, including, as the case may be, the payment terms of additional funds, new mortgage loan, assumption of obligations related to existing mortgage loans and selling price balance;
- The inspection conditions and the transaction proposal termination conditions following inspection, if applicable;
- The occupancy date of premises and, if applicable, terms and conditions thereof if it is subsequent to the signing of the deed of sale;
- The terms and conditions regarding the signing of the deed of sale, lease or exchange contract by the parties;
- The fact that any declaration by the seller or lessor of the immovable made prior to the transaction proposal constitutes an integral part thereof;
- The acceptance conditions of transaction proposal, particularly the date and time of its expiry;
- Any other right or obligation of the parties.
It is prohibited for a broker to amend in any way whatsoever a residential form published by the OACIQ to decrease his obligations or increase to his benefits those of the party he represents, failing which he would face a penalty.
For more information
- Full list of the OACIQ brokerage forms
- What’s an exclusive brokerage contract?
- How to use the mandatory form Declarations by the seller of the immovable
- The importance for the parties of clearly understanding the promise to purchase