OACIQ forms: For better prevention

To fulfil its public protection mission, the OACIQ developed 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 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, advise you and inform you so you can fully understand the clauses of the forms and their implications.

Brokerage contract – Sale

Brokers must use one of the Exclusive brokerage contract – Sale forms developed 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.

Depending on the type of brokerage contract to sell you choose, it will provide:

In the case of an Exclusive brokerage contract - Sale
- 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;that the broker will be remunerated for his work once you accept a promise to purchase and all conditions have been fulfilled (except the signing of the deed of sale and the payment of the purchase price).
- In the case of a Non-exclusive brokerage contract - Sale
- that you will be able to do business with several brokers simultaneously for the sale of your property during the term of this contract;
- that the broker will be remunerated for his work if your property is sold during the term of the contract and the broker was the efficient cause of the sale.

In addition, all brokerage contracts to sell provide for your rights and obligations and those of your broker.

The broker must present both types of contract to his client, i.e. the exclusive brokerage contract - sale and the non-exclusive brokerage contract - sale.

Finally, the seller may always put the property up for sale by himself, whether under the exclusive or non-exclusive contract.

Declarations by the seller of the immovable

Created by the OACIQ to protect the parties concerned, this mandatory form enables the prospective 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 and advise you on the steps to take.

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

If you wish to be represented by a broker in a transaction involving the purchase of a property, you must enter into a written brokerage contract to purchase with your broker.

The broker who represents you under a brokerage contract will advise you on the best price to offer in your promise to purchase based on comparable properties on the market, among other things. If necessary, he will recommend that you draft special conditions according to your needs and criteria, while negotiating the terms of a promise to purchase on your behalf with the seller.

Brokers must use one of the brokerage contract – purchase forms developed by the OACIQ.

It includes :

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 and the nature of the services to be rendered to clarify expectations. 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.

Without signing a brokerage contract to purchase, a broker cannot represent you, i.e. he cannot advise you on the best price to offer or negotiate the terms of a promise to purchase on your behalf with the seller.

Promise to purchase

Brokers must use one of the Promise to purchase forms developed 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 must be used instead of the Promise to purchase form.

Enhancements prior to acceptance

The Enhancements form must be used to amend a Promise to purchase form, 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.

Note that if several enhancements are submitted consecutively, the last one does not automatically cancel the previous ones. In this case, the licensee shall indicate on the new Enhancements prior to acceptance form that the previous forms will be replaced, while retaining the benefits offered in clause B2.2 of the previous forms and specifying that the new price offered will replace all previous price enhancements.

Annex F, Annex R and Counter-proposal

Annex F and Annex R forms are annexes to the Promise to purchase form 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 form.

Residential lease

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 following are the elements contained in the mandatory brokerage contract form signed with an individual: The stipulation as to whether the contract is exclusive or non-exclusive;
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.

Other dispositions could be agreed upon in the mandatory form, if appropriate:

The fact that in some cases the contract cannot be terminated;
The authorization to transmit information about the immovable to an information listing service for brokers and agencies, if applicable (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.

It is important to note that a brokerage contract must not be renewed automatically. To this end, the mandatory form states that unless the date and time of termination of the contract is stipulated, it shall end 30 days after its making.

In addition, here are the elements contained in the mandatory promise to purchase form:

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.