Public articles
What happened to my ''For Sale'' signs?
Real estate brokers who had put up “For Sale” signs were surprised to find their signs gone a short time later. The reason was simple: they had erected their signs within a Ministère des Transports right-of-way.
The legal warranty of ownership and quality
A person selling movable or immovable property must warrant that the property is free from any defect in title and any latent defects.
About the brokerage contract expiry date
An expiry date must be entered in the appropriate space on the mandatory Brokerage contract form.
A suspended or revoked licence bars the holder from practicing
A real estate broker whose licence is suspended or revoked is no longer authorized to practice his profession or carry out brokerage transactions. He must cease any real estate brokerage-related activity.
Using the ''Counter-Proposal to a Promise to Purchase'' to respond to a Promise to Purchase or a Counter-Proposal
The mandatory form entitled Counter-proposal to a Promise to purchase has the advantage that it can be used by both the seller and the buyer, though its name can suggest that it can only be used to reply to a promise to purchase. In fact, it is also used to notify the other party that its ''Counter-proposal to a Promise to purchase'' has been refused and to submit a new proposal.
Web resources for reference purposes
Licence holders have a duty to provide accurate and verified information. This topic has been covered extensively in OACIQ articles, all of which are available on the OACIQ website. Here are a few handy web links and telephone numbers to facilitate the verification process:
Sub-franchising and "loaned" brokers
It is common for franchised real estate agencies to have a sub-franchised agency and to allow some of their brokers to act on behalf of this sub-franchised agency, including to carry out brokerage contracts or to present promises to purchase. These brokers are then said to be on "loan". The OACIQ would like to remind everyone that this practice is not in accordance with the provisions of the Real Estate Brokerage Act, which states that a real estate broker may not act on behalf of more than one agency. Thus a "loaned" broker cannot sign a brokerage contract on behalf of the sub-franchised agency or draft a promise to purchase and indicate that it is done through this agency, as this constitutes false and misleading representation, leading to confusion.
A heat pump and an air conditioner are two different things
When signing a brokerage contract with a seller, you must collect as much information as possible on the immovable and the equipment it contains. Under the Regulation respecting brokerage requirements, professional conduct of brokers and advertising, this information must be accurate and verified. The OACIQ’s Assistance Department has noted that it can sometimes be difficult to determine the true nature of components such as a building’s air conditioning or heating system.
The real estate broker acting as the client’s intermediary or mandatary
Under section 2 of the OACIQ’s Regulation respecting brokerage requirements, professional conduct of brokers and advertising (“the Regulation”), a broker must avoid placing himself in a conflict of interest.
Termination of a brokerage contract
Sometimes a seller decides that he no longer wishes to sell his immovable and wants to terminate the brokerage contract by which he entrusted the sale of his immovable to a broker or agency. A buyer or lessor can also sometimes wish to terminate a brokerage contract.
Remuneration payable by the seller
Before examining the various cases in which remuneration is payable by the seller to the agency or the broker acting on his own account, let us briefly consider what form the broker’s remuneration may have under the Exclusive brokerage contract – Sale.
The term of a brokerage contract
How long should a brokerage contract last? The answer is simple: it is up to the consumer and the agency or the broker to determine the length of the contract. There are no rules in the Act or the regulations stipulating a minimum or maximum term for a brokerage contract.
Avoid surprises with an up-to-date Detailed Description Sheet
The Detailed Description Sheet is an ever-evolving tool. A real estate broker can make changes to it at any time throughout the length of the brokerage contract. It is essential therefore that both the seller’s broker and buyer’s broker make sure they always have the most up-to-date description sheet when taking up a Promise to purchase.
Preliminary contract, a must for homes sold by a builder or promoter
When an existing or planned residential immovable is sold by the builder or a developer to a natural person who acquires it to occupy it, the Civil Code of Québec requires that the sale be preceded by a preliminary contract in which the person promises to purchase the immovable. This type of contract must be used regardless of whether a real estate broker is involved in the transaction as intermediary.
Do you know the Fonds d'indemnisation du courtage immobilier?
The Real Estate Indemnity Fund is created under the Real Estate Brokerage Act. The Fund, which is managed by the Organisme d’autoréglementation du courtage immobilier du Québec, is responsible for compensating victims of fraud, fraudulent tactics or misappropriation of funds for which a licence holder is responsible.
Pyrite Clause and Percentage: Ban It!
When a promise to purchase provides for a pyrite test and a real estate broker specifies a percentage above which the buyer can withdraw in the clause, the broker can be considered at fault professionally. This practice, which has often been reported to the Organization, presents a serious risk to clients.
Accuracy and verification of information
The real estate broker must ensure that the rights and obligations of the parties to a transaction are recorded in writing and reflect adequately their will. In addition, he must always be capable of proving the accuracy of the information he provides to the public or to another licence holder.
Signing a brokerage contract to sell, purchase or lease
When the owner (natural person) of a residential immovable containing less than five dwellings chooses to sell through a real estate agency or a real estate broker acting on his own account, he must sign a brokerage contract. The same applies to the buyer if the broker wishes to ask him for compensation and to the lessor concerning lease matters. This agreement gives the agency or broker the right to act as the exclusive or non-exclusive intermediary for a specific period.
Establishing the right selling price
One of the essential tasks of the real estate agency or broker is to help the owner establish a realistic selling price. Sometimes, the price requested is inadequate because the seller lacks information. To establish the property's fair market value, the real estate agency or broker may perform a comparative analysis with other similar properties on sale or recently sold in the vicinity.
Promise to purchase and financing of an immovable
Financing can make or break a real estate transaction. Therefore, in order to properly advise his clients, it is important that a real estate broker fully understand the obligations relating to new hypothecary loan.
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