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Representation, solicitation, promotion and advertising

4 minutes

4 Promotion

The promotion is designed to showcase the services of a real estate broker or agency to the public. It must always be presented in a clear, accurate, and non-misleading manner to avoid any confusion regarding the services, results, or benefits described.

 The promotion can take various forms, including:

  • Advertising messages
  • Promotional initiatives
  • Contests and draws
  • Benefits or gifts offered to the public1

Section 39 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising

KEY POINT

In all cases, any promotion must comply with the current rules and be conducted in a transparent, regulated, and non-misleading manner to enable consumers to clearly understand the nature of the services offered, without creating confusion.

4.1 – Contests and draws

To conduct a draw, a license must be obtained, and specific rules must be followed. For more information regarding contests and draws, visit the website of the Régie des alcools, des courses et des jeux and check the legislation in force in this regard.

4.2 – Referring clients and offering gifts 

A real estate broker cannot promote the giveaway of gifts to people who refer clients to him, because a referral is a real estate brokerage act.

4.3 – Remuneration reductions and other benefits

A real estate broker may, under certain conditions, offer clients a remuneration discount, a rebate, or another benefit, and promote them.

All ads must clearly indicate 

  1. Who offers the benefit (the real estate broker or the real estate agency)?
  2. The main eligibility requirements
  3. The period during which the offer is valid
For the seller
  • The benefit often takes the form of a discount on the real estate broker's compensation. 
For the buyer
  • The benefit often takes the form of a gift offered independently of the remuneration received by the real estate broker or agency.

It is recommended that the gift not be a sum of money.

POINT OF CAUTION

A real estate broker must be careful not to favour one client over another, for example, when there are multiple offers to purchase.

These benefits are permitted if the conditions are clearly explained and if this remains fair for all clients.


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Key questions

Encourage real brokers to think carefully before creating a promotion

Before offering a discount, cash rebate, benefit, or bonus, real estate brokers should ask themselves certain questions to ensure that their offer is clear, complies with applicable rules, and is fair to all clients.

  • Can the client easily understand what is being offered?

  • To whom is the offer made?

  • Does the ad clearly state who is offering the promotion?

  • Are the conditions visible, accessible, and mentioned in the ad?

  • Is the duration of the promotion specified?

  • If a benefit is offered to the buyer, is it given independently of the remuneration?

  • Is the form of the benefit appropriate?

  • Could the offer favour one client over another?

  • Does the real estate broker comply with the applicable rules before advertising the offer?

TO NOT DO

Not use promotions or benefits to:

  • Attract consumers without clarifying the applicable terms
  • Give the impression that results are guaranteed
  • Minimize the importance of real estate brokerage services

Role and responsibility

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Real estate brokers are responsible for the promotional initiatives they carry out

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The real estate agency is responsible for overseeing the activities carried out on its behalf

Key compliance benchmarks

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TO DO
NOT TO DO

Clearly presenting the eligibility criteria

Creating the impression that the benefit is automatic or guaranteedi

Specifying the terms of the contest or draw

(e.g., deadline, exact description of the prizes and their value, method for selecting the winner)

Using ambiguous or incomplete conditions

Ensuring that the benefit is real and awarded as presented

Highlighting an exaggerated or hard-to-obtain benefit

Maintaining a transparent presentation

Using a benefit to exert pressure or undue influence
Reference number
264695
Last update
December 11, 2024