Licence Issue and Maintenance

• Identify the current brokerage contracts, including any co-listings
• Notify clients in writing of the:
  • Date of ceasing of activities
  • Options available to them 

1. Identify transaction proposals that have already been accepted: sale, purchase, and lease to determine:
   • Which ones can be finalized before ceasing activities
   • Which ones will have to be dealt with differently
2. Distinguish transactions whose conditions: 
   
   • Have been fulfilled, notarized before or after the date of ceasing of activities
   • Have not yet been fulfilled, but which could be notarized before the ceasing of activities
   • Have not yet been fulfilled and whose notarized deed is scheduled after the ceasing of activities
   • Concern leasing and could be subject to a lease renewal

NOTE

The parties to transactions (conditions fulfilled or not, leasing with lease renewal, client referrals)), real estate agencies and brokers, and other stakeholders must be informed of the date of ceasing of activities. Clear guidelines will also need to be provided to everyone regarding the proper procedure that has been established.

Identify any cases of referral of clients to another licensee, a mortgage lender, or other, for which remuneration is due, but has not yet been received.

Identify any remuneration to be received or paid.

Enter into an agreement with a real estate agency or broker acting on his own account to take over the records and registers, except those related to accounting, for a period of six years from the date of permanent ceasing of activities.

Perform a bank reconciliation of trust accounts (general and special) prior to making any refunds or transfers.

For a real estate agency, determine with each of its real estate brokers, if applicable, and for each of the above-mentioned records, the proper procedure to follow.

1. Identify the sums held in trust: advances on remuneration or costs
2. Identify the clients to be reimbursed, in whole or in part, if the conditions entitling the broker to remuneration were not fulfilled because no expense had yet been incurred at the time of termination of the brokerage contract
3. Transfer the sums to the new trustee if the client chooses to follow the real estate broker

1. Identify any down payments, security deposits or other sums provided for in the transaction proposals which are held in trust
2. Identify transaction records that will be finalized after the change
3. Transfer the sums to the new trustee: a new agency or notary

Commercial brokerage: the security deposit can be remitted to the lessor with the written consent of the parties.

Identify any sums held in special trust accounts.

1. Identify any investments maturing after the cessation of activities.
2. Cash in investments before maturity
   • Depending on the agreement:
     • The client may be entitled to the interests stipulated upon request. The agency or the broker acting on his own account will reimburse the difference in interest rates
3. Once the sums have been identified, the real estate agency or broker acting on his own account must:
   1. Obtain the required written consent of the parties
      • If applicable, obtain in writing any other change to the agreements between the parties
   2. Obtain the written consent of the new licence holder trustee for the transfer of the sums
   3. Transfer the investments in special accounts to the general trust account and reimburse the interest to the depositors
   4. Reimburse clients for sums held in trust as advances on remuneration or expenses as soon as the brokerage contracts are terminated
   5. Transfer (by electronic transfer, cheque, letter of exchange or transfer slip) the sums in the general trust account to the new trustees or others based on the agreements and changes made
   6. The new trustees will need a copy of the records with which transferred sums are associated 
      
      • Provide the new trustee with a copy of the records associated with the transferred sums so that they can be properly managed
   7. Comply with all record-keeping obligations, including making entries in the Register of trust transactions and maintaining all supporting documentation on file
   8. Reconcile the trust accounts once the balances are at zero