How to prepare for an inspection

An inspection should be seen as a privileged opportunity for training and prevention. The Inspection Department is responsible for overseeing the activities of the members of the OACIQ, specifically by verifying their records, books and registers.

The steps of an inspection

First, the Inspection Department sends a notice to the broker acting on his own account or to the agency executive officer. This notice is sent to the establishment to be inspected. The presence of the broker or agency executive officer is required during this visit. The inspection visit takes place at the establishment itself.

When a notice of inspection is received, the broker acting on his own account or the agency executive officer must review the list of documents required. These are the documents which the inspector will examine during his visit; they include transaction records, the register of brokerage contract and the register of transactions, the register of operations in the trust account, if applicable, the trust account (deposit books, cheques, receipts, bank statements for the last 12 months), and other bank accounts, the register of disclosure notices and brokers’ register, if applicable.

At the beginning of the visit, the inspector may verify several aspects of the broker’s or agency’s professional practice, including:

• Registers: keeping records and verifying their conformity; 

• Trust account: verify register of operations in the trust account and its conformity, verify bank accounts and conformity of withdrawals;

• Competence of broker acting on his own account or of brokers acting on behalf of the agency:

• Keeping records: verify important elements of the record and content thereof;

• Transaction records: analyse each step in a transaction, if applicable;

• Remuneration: verify methods of payment to brokers;

• Conflicts of interests: verify understanding of conflict of interest situations and disclosure forms to be completed;

• Confidentiality, conservation and destruction of documents: verify existing procedures;

• Supervision of brokers acting on behalf of the agency or administrative staff: verify existing procedures.

In addition to being on hand himself, the broker acting on his own account or the agency executive officer usually designates someone in his establishment to help fulfill the inspector’s requests, including fetching records, etc. Note that the broker or the executive officer must provide access to all books, registers, accounts, records and other documents pertaining to his activities and the inspector is authorized to make copies thereof.

At the end of the visit, the inspector meets with the broker or the executive officer and provides a brief verbal summary of his observations and any actions required. The information is then put in writing in an inspection report and in the competence reports of brokers acting on behalf of the agency. In the weeks following the inspection visit, an email will be sent to the broker acting on his own account or to the agency, as well as to each of the brokers inspected to invite them to read the report posted under My record on synbad.com, under the Inspection report section.

It is important for the broker or agency executive officer to read these reports. It contains the observations made by the inspector and the actions required to correct any discrepancy noted.

Finally, the broker or the agency executive officer is encouraged to complete the ''Appreciation questionnaire'' sent to him afterwards. The comments provided on this form are very useful to help the Inspection Department make ongoing improvements to the inspection process. It is important to remember that the approach adopted by the OACIQ during an inspection is meant to be constructive. Therefore, a visit by an inspector is considered a privileged opportunity to provide brokers and agencies with assistance and support. The inspector will suggest tools, continuing education activities or any other means of maintaining or improving their current level of competence. This ensures that the public has access to quality real estate brokerage services at all times.