Public articles

OACIQ Annual General meeting • Innovating to better protect the public

Brossard (Québec), May15, 2014 – During an eventful day organized by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), where conferences and an annual general meeting were held, real estate and mortgage brokers acquired new ideas and concrete tools to enhance their skills and better protect the public.

Shedding light on hidden defects

In real estate field, a defect is considered hidden if it has all the following features: […]

Disclosure of a suicide: the Superior Court confirms the usefulness of the declarations by the seller

On November 21, 2013, the Superior Court determined, in Fortin c. Mercier⁽¹⁾ judgment, that the seller of an immovable had the obligation to inform buyers that a violent death had occurred therein.

LAWSUIT AGAINST STELLIUM IMMOBILIER INC. - The OACIQ is claiming $513,000

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Brossard (Québec), November 29, 2013 – The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) is filing penal proceedings against Stellium Immobilier Inc. before the Court of Québec.

The public can rely on real estate and mortgage brokers who are always better trained

Brossard (Québec), November 27, 2013 – Brokers who are always better equipped to guide buyers and sellers in one of the most important transactions in their lives. Determined to pursue this goal, the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) will step up its continuing education efforts with real estate and mortgage brokers in the province.

LAWSUIT AGAINST DUPROPRIO INC. - The OACIQ filed a motion for declaratory judgment

Montréal (Québec), October 11, 2013- the Organisme d’autoréglementation du courtage immobilier (OACIQ) has just filed a motion for declaratory judgment against DuProprio inc. company with the Quebec Superior Court in Civil Matters. The aim of this motion is to determine whether the activities of DuProprio violate the Real Estate Brokerage Act, as maintained by the OACIQ.

The importance for the parties of clearly understanding the promise to purchase

When drafting the promise to purchase, the real estate broker must discuss each phase of the buying process with the buyer in order to avoid surprises along the way. This step must include an analysis of the buyer’s needs and objectives and an evaluation of his financial capacity. It is up to the broker to ensure that the buyer clearly determines what he is looking for based on his means.

Basic training for future brokers, mandatory since September 1, 2013: The OACIQ welcomes this measure that will protect the public even better

Brossard (Québec), September 11, 2013 – It is also back-to-school in the real estate field. Since September 1, 2013, all prospective real estate and mortgage brokers must successfully complete a basic training recognized by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) before being admitted to take the certification exam.

Lawsuit against DuProprio Inc. – Concerned by the decision of the Court, the OACIQ is assessing its options

Brossard (Québec), July 24, 2013 – On July 19, the OACIQ received from the Superior Court of Québec, chaired by the Honourable François Huot, a judgment confirming the one rendered in November 2011 by the Court of Quebec, acquitting DuProprio Inc. of the six (6) charges laid against the company.

Exercising servitude rights when using the distribution grid

During a real estate transaction, real estate brokers often have to deal with cases of non-compliance with the obligations or rights contained in Acts of Servitude. Infringement of a servitude may delay the finalization of a transaction, and often causes problems between the seller, buyer and creditor. Hydro-Québec regrets having to do so, however, as the owner of a distribution network, it must assume its obligations and responsibilities.

Publication of sold price

The OACIQ’s position is the following: as long as the deed of sale has not been published in the land register, the price indicated in the deed of sale constitutes confidential information and must be treated as such by real estate brokers. They may not make this price public without the written consent of the parties to the transaction (i.e. of the buyer and the seller), nor use it in any advertising or allow anyone else to do so.

Payment of rent: the first payment and terms of payment

Concerning the payment of rent, section 1904 of the Civil Code of Quebec provides that:

“The lessor may not exact any instalment in excess of one month's rent; he may not exact payment of rent in advance for more than the first payment period or, if that period exceeds one month, payment of more than one month's rent.

Nor may he exact any amount of money other than the rent, in the form of a deposit or otherwise, or demand that payment be made by postdated cheque or any other postdated instrument.”

Clause 10.5 of the promise to purchase, to ward off unpleasant surprises

Should the buyer or the seller be notified, following the fulfilment of conditions, but before the signing of the deed of sale, of any defect or irregularity whatsoever affecting the titles of the immovable or the declarations and obligations of the seller, the buyer has a recourse provided under clause 10.5 of the Promise to purchase form (for the Promise to purchase – Divided co-ownership (PPD) form, it’s under clause 10.7). If the buyer learns that the immovable has a defect or irregularity (e.g. an inground pool encroaching on a Hydro-Québec servitude), he is not bound to purchase the immovable with this irregularity.

Heavy fines for carrying out the activity of an agency and broker illegally

Carrying out the activity of a real estate or mortgage agency or broker illegally is a violation of the Real Estate Brokerage Act.

Aging oil tanks - How to lessen the difficulties they can cause

Insuring an immovable with an oil tank that is aging⁽¹⁾ or has been improperly or inadequately maintained can prove difficult. This in turn could jeopardize a transaction. When selling such an immovable, real estate brokers must be mindful of their duty to inform and advise, which will help reduce the problems that the presence of such a tank can cause.

Can a promise to purchase be withdrawn?

The promise to purchase signed by the buyer shall be binding on him until the expiry of the acceptance period indicated in clause 14.1. The broker must always inform the buyer that his promise to purchase binds him to the seller as soon as it is signed.

Property Transfer Duties

As indicated in section 2.1 of the Act respecting Duties on Transfers of Immovables, the tax brackets are increased each year according to the Consumer Price Index for Quebec.

Notice to the Land Register in case of land contamination

The Environment Quality Act (''the Act'') establishes rules regarding land protection and rehabilitation in case of contamination. It is supplemented by the Land Protection and Rehabilitation Regulation, whose purpose includes setting out the types of industrial or commercial activities that require a particular treatment and establishing contamination limit values beyond which rehabilitation measures must be undertaken.

Understanding first refusal clause R2.2 of the mandatory form Annex R - Immovable

Clause R2.2 of the mandatory form Annex R – Immovable, the so-called “first refusal", generates a lot of questions from brokers and consumers. In fact, the OACIQ Info Center receives many calls to this effect. Followings are a few clarifications to help understand how it works.

Share purchase for exclusive use of a dwelling

There is a method of acquiring real estate that all real estate brokers must acquaint themselves with. It is a process, sometimes called ''securitization'', by which a buyer acquires, on the one hand, a number of shares in a corporation (formerly called company) whose main asset is an immovable and, on the other hand, under a leasing agreement inseparable from the share acquisition agreement, the exclusive use of a given apartment in the immovable. The buyer then holds all rights of use to this apartment and may, in principle, occupy it or lease it. In this type of transaction, the acquisition of shares is therefore indivisible from the right to occupy an apartment specifically tied to the shares acquired.