Considerations for the real estate broker in a residential leasing situation
Discrimination against lessees
Remember that in accordance with section 4 of the RBR you must offer your services without discrimination, whether for the purchase, sale or leasing of an immovable or a dwelling. For instance, you cannot accept a lessor’s request to exclude individuals who present a certain profile for the leasing of a dwelling.
Representation of the parties
If you have entered into an Exclusive brokerage contract – Residential leasing with the lessor, you must inform the lessee that you are not representing him, but provide fair treatment. Remember that in a residential transaction, a broker may not represent by brokerage contract both the lessor and the lessee, including for leasing. See the article Amendments to the Real Estate Brokerage Act for more information.
Background check
In the event that the lessor wishes to verify the payment history of the lessee, it is possible to use the Consent to check payment habits (PDF).
Security of personal information
Make sure also that the collection and communication of the information required from the lessees by the lessor respect the provisions of the Act respecting the protection of personal information in the private sector, and the Act to modernize legislative provisions as regards the protection of personal information.
Thus, it is recommended to collect only the information necessary for the purpose of the transaction, and to pay particular attention to the security of the technological tools used in the collection, communication and storage of personal information.
Identity verification
Finally, it is important for the broker to comply with the requirements of the Real Estate Brokerage Act when it comes to verifying the identity of the parties when he is involved in a leasing transaction, whether residential or commercial. Although this identity verification is not required in leasing brokerage by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), the REBA makes no such distinction and requires it all times.
Publication of the lease
Unlike commercial leases, residential leases cannot be published,1 but some lessees can benefit from protection in the case of a dwelling used as a family residence.
1 S. 2999.1 of the Civil Code of Québec.
