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Representation, solicitation, promotion and advertising

3 minutes

8 Real estate agency’s and executive officer’s obligation to supervise

The real estate agency and its executive officer play a central role in overseeing solicitation, promotion, and advertising practices.

General principle of supervision

A real estate agency and its executive officer are responsible for the discipline of real estate brokers who represent them and for ensuring that they comply with the regulations.

This includes:

  • Compliance of representations
  • Solicitation activities
  • Promotional practices
  • Ads made by the real estate agency and its brokers

KEY POINT

Overseeing advertising practices is not solely the responsibility of real estate brokers; it is an active responsibility of the real estate agency and its executive officer.

Assessing advertising supervision practices ↓

Obligations of the real estate agency and its executive officer 

The real estate agency and its executive officer must oversee and monitor the advertising practices of their real estate brokers to ensure compliance.

1Establish a framework

To this end, they develop and implement policies and procedures governing representation, solicitation, promotion, and advertising.


2 Monitoring and control

Perform regular checks, for example:

  • Real estate brokers' social media
  • Real estate brokers' websites
  • Various other publications (newspapers, etc.)

Controls may be: 

  • Random
  • Based on the level of risk

3Expected content of policies and procedures

  • Concrete examples clearly illustrating what is permitted and what is prohibited
  • A validation process, particularly for the following types of advertising:

     

Promotional advertising


Contests, draws, remuneration reductions and other benefits


This ad must specify:

  • Who is offering the promotion: the real estate agency or the real estate broker
  • The applicable conditions and their availability
  • The duration or deadlines to take advantage of it or to participate
  • If a license from the Régie des alcools, des courses et des jeux is required

Comparative advertising and performance advertising


Whether it is from a banner, a real esate agency, or a real estate broker


  • The information used must be accurate and verifiable
  • Its source must be indicated

POINT OF CAUTION

The absence of clear policies or oversight mechanisms can lead to non-compliance, even when real estate brokers are acting in good faith.

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Key question

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Assessing advertising supervision practices ↓

Validation process

Internal oversight

Organization

Professional image

Consistency of messages

Risk management

Advertising mode

Regulatory content

Reference number
264699
Last update
October 31, 2022