The term of a brokerage contract
How long should a brokerage contract last? The answer is simple: it is up to the consumer and the agency or the broker to determine the length of the contract. There are no rules in the Act or the regulations stipulating a minimum or maximum term for a brokerage contract. The agency or broker must act according to the client’s wishes. The client, for his part, must understand that the period needed to promote or search for an immovable and get the best possible price for the seller or an acceptable purchase price for the buyer depends on current market conditions. And of course, the term of the contract must be agreed upon and indicated on the Brokerage contract form before signing.
Every brokerage contract concluded between a natural person or partnership and a real estate broker or agency for the sale, lease or exchange of a chiefly residential immovable containing less than five dwellings must contain a specific expiry date and time. If no expiry date is indicated, the contract shall automatically terminate 30 days after coming into effect. For more details, read the article entitled “About the brokerage contract expiry date”.
Under no circumstances can the expiry date be replaced by phrases such as “until the immovable is sold” or “indeterminate”, nor can a clause be added providing for the automatic renewal of the brokerage contract. Also, if the immovable is listed with an information listing service, the duration of the listing may be subject to rules specific to this service.
It is possible, prior to the expiry date, to extend the initial term of the contract by entering a new expiry date and time under clause M2.1 of an Amendments form.
For any questions on this topic, please contact Info OACIQ by email at firstname.lastname@example.org or by telephone at 450-462-9800 or 1-800-440-7170.