Consequences for a real estate agency that does not meet its obligations

The agency executive officer plays a key role–to ensure that the real estate agency and its brokers meet their regulatory obligations to keep their licences valid.

What are the main obligations?

Every year, the agency executive officer must notably ensure that:

• The real estate agency's information is up to date, and any changes during the year are reported immediately
• The agency licence fees are paid
• Real estate brokers and himself update their personal information and pay their licence fees via the Online Checkout
• The Mandatory Continuing Education Program (MCEP) is completed by him and his real estate brokers every two years

For more details, read the article Consequences for the broker who fails to meet his obligations.

What happens if the real estate agency fails to fulfil its obligations?

• If it does not update its information:
  The agency’s licence and that of its real estate brokers will be suspended after April 30.
• If it does not pay its annual licence fees:
  The agency’s licence will be revoked, and the licences of all its brokers will be suspended, retroactively to May 1.

If the real estate agency licence is suspended or revoked, the agency will need to:

• Stop carrying out real estate brokerage activities immediately (performing any real estate brokerage activity without a valid licence is considered illegal practice)
• Remove all ads
• Immediately notify in writing the parties with brokerage contracts in progress that the agency, the executive officer and the brokers acting on its behalf are no longer authorized to represent them

For this purpose, please read the article Notice – Agency or status change to choose the appropriate notice:

• Notice N if the agency was a co-lister
• Notice H in the opposite case, which leads to the automatic termination of brokerage contracts due to the cessation of the agency's activities

Resuming brokerage activities

To return to practice, the agency executive officer must take certain steps depending on the situation.

If the real estate agency’s licence is revoked

The agency executive officer must:

1. Send an Agency licence application to the Certification Department, including:

• The supplementary forms and other documents listed in section V – Declarations of the licence application, if you answered positively to questions in the (Form to be completed in case of conviction – Penal offence and criminal act (PDF) and Form to be completed in case of conviction – Ethical offence (PDF))
• The payment required for the issue of an agency licence
• The payment of $105.00 fee to lift the suspension of each agency broker's licence
• The form Request for lifting of licence suspension – Real estate broker  – Real estate agency  – Natural person, where the Declarations section must be completed by all brokers. This section is used to certify that the notices for all contracts in progress were sent to clients, and to declare that the agency executive officer and the agency brokers have not engaged in any real estate brokerage transactions during the suspension period. Otherwise, the Syndic will be informed and may take all the measures deemed appropriate. It is necessary to wait for the confirmation of the Certification Department, which will arrive a few weeks after sending the duly completed form to be able to resume activities.

2. After the analysis of the Certification Department, the agency executive officer will be contacted by the Inspection Department. He must develop a written compliance program if there is none already implemented within the agency or to adjust the existing one and undertake to comply with it.  In both cases, the program must meet the requirements of the OACIQ. For more information on the steps to obtain an agency licence, read this article.

If the real estate agency’s licence is suspended

The agency executive officer must:

• Update the real estate agency’s information
• Complete the Request for lifting of licence suspension – Agency form and send it to us along with the payment of the $400 fee
• Pay the $105.00 fee to lift the suspension of each agency broker’s licence
• Complete, have all agency brokers complete the section Declarations in the Request for lifting of licence suspension – Real estate broker  – Real estate agency  – Natural person (PDF) form and sent it to the Certification Department. This section is used to certify that the notices for all contracts in progress were sent to clients and to declare that the agency executive officer and agency brokers have not engaged in any real estate brokerage transactions during the suspension period. Otherwise, the Syndic will be informed and may take all the measures he deems appropriate.
• Wait a few weeks after sending the duly completed form for the confirmation from the Certification Department before resuming activities.

Mandatory declaration in the event of cessation of activities

In accordance with section 15 and following of the Regulation respecting records, books and registers, trust accounting and inspection of brokers and agencies, the agency executive officer must submit various important information to the Inspection Department by means of the form Mandatory Declaration – Ceasing of activities by a real estate agency or by a real estate broker acting on his own account (PDF).