What will happen to brokerage contracts in progress if a broker’s licence is not maintained on April 30 or suspended?

The OACIQ regulations provide a mechanism to be followed for brokerage contracts in progress when a real estate broker fails to maintain his licence, update his information or complete his 2023-2025 cycle of the Mandatory Continuing Education Program (MCEP).

If the real estate broker is acting for an agency and notifies his agency executive officer, before April 30, of his intention not to maintain his licence

The real estate agency may immediately notify clients in writing that their broker will cease his activities on April 30.

With his agency executive officer’s consent, the real estate broker may himself notify clients.

In all cases, clients should be given the option to:

1. Remain contractually bound to the agency which will appoint another broker to replace him; or
2. Terminate the brokerage contract.

In this regard, the real estate agency or broker can use the Notice D. In this case, the notice must be adapted by using the term “ceased” to carry on his activities.

If the real estate broker is acting for an agency, but does not notify his agency executive officer that he will not maintain his licence on April 30

Brokerage contracts will remain valid after April 30. However, the real estate agency must notify clients immediately and in writing that their real estate broker’s licence is revoked and give them the option to:

1. Remain contractually bound to the real estate agency which will appoint another broker to replace him or
2. Terminate the brokerage contract

In this regard, the real estate agency or broker can use the Notice D. In this case, the notice must be adapted by using the term “ceased” to carry on his activities.

If the real estate broker is acting on his own account and does not maintain his licence on April 30

The real estate broker acting on his own account shall notify his clients immediately in writing that he ceased or will cease his activities on April 30. This real estate broker’s brokerage contracts will be deemed to have been terminated as of the date his licence is revoked.

In this regard, he can use the Notice P. In this case, the notice must be adapted depending on his situation.

If the real estate broker acting on behalf of an agency maintains his licence on April 30, but his licence is suspended, including when he fails to update his information or complete his 2023-2025 cycle of the Mandatory Continuing Education Program (MCEP)

Brokerage contracts will remain valid. However, the real estate agency must notify clients immediately and in writing that their real estate broker’s licence is suspended and give them the option to:

1. Remain contractually bound to the agency which will appoint another real estate broker to replace him or
2. Terminate the brokerage contract

In this regard, the real estate agency or broker can use the Notice D. In this case, the notice must be adapted depending on their situation.

If the real estate broker is acting on his own account maintains his licence on April 30, but his licence is suspended, including when he fails to update his information or complete his 2023-2025 cycle of the Mandatory Continuing Education Program (MCEP)

This real estate broker's brokerage contracts will be deemed terminated as of his licence suspension date. The real estate broker must immediately notify clients in writing.

In this regard, he can use the Notice P. In this case, the notice must be adapted depending on his situation.