When should the enhanced Notice of disclosure form be used?

In May 2024, the OACIQ made available to real estate brokers the enhanced recommended form Disclosure notice of the real estate agency or broker – Purchase – Sale – Loan (DPSL), which replaces the two old forms Notice of disclosure – Purchase-sale-exchange and Notice of disclosure – Licence holder proposing to act as mortgage lender.

The enhanced Notice of Disclosure form helps the real estate broker fulfil the obligations set out in sections 18 to 22 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising, C-73.2, r. 1, (RBR), i.e. disclose his status as a broker and his direct or indirect financial or economic interest in the immovable.

To fully understand how to complete the Notice of disclosure form, see the explanatory leaflet available on the OACIQ’s website and in InstanetForms^TM.

What is the purpose of the enhanced Notice of disclosure form?

Disclosing one’s status as a broker or agency

Disclosing the nature of one's economic and financial interest in the transaction

• The real estate broker represents his or her spouse for the sale of the family home or any other immovable in which he or she has a financial interest.
• The real estate broker represents his or her child for the sale or purchase of a residence belonging to the child.
• The real estate agency or broker represents their business partner for the sale of an immovable or an enterprise in which they have a financial interest.
• The real estate broker represents the liquidator of a succession in which he has an interest as an heir.
• The real estate broker represents his or her brother for the purchase of a residential building on behalf of a company in which he or she also holds interests.
• The broker or agency is selling an immovable owned in whole or in part by a legal entity in which they own shares.

What happens when the real estate agency or broker is related to their client, but has no economic or financial interest in the immovable?

The real estate agency or broker may represent a close relative (e.g. brother, sister, colleague, friend, family member, business partner, creditor, company in which a family member is a shareholder or director, etc.) in a transaction.

Representing a close relative does not constitute a conflict of interest insofar as the broker's loyalty is in the interests of that relative, independently of his own personal interests. There is no conflict between the interests of the party the broker represents and his own. However, the real estate broker who represents a relative must be aware that he may not have all the independence and objectivity required to properly Inform this close client.

In addition, the relationship between the broker and his close relative may give the impression that the broker is not able to treat the other party to the transaction fairly.

In a transaction in which a real estate broker is representing a close relative without having a financial interest in the immovable, the broker must be transparent and inform all other parties of the relationship that binds him or her to this close relative. For example, a real estate broker may represent a friend, colleague, aunt or other family member for the sale or purchase of an immovable in which the broker has no financial interest.

The OACIQ does not have a pre-established form for these cases. A good practice is to do this in writing, ask the other party to acknowledge receipt, and keep proof on record.

The broker may also enter this information in the Remarks section of the description sheet of the immovable for the public.