2. Brokerage licence categories
2.1 Brokerage licence categories
2.1.1 Residential
2.1.2 Commercial
2.1.3 Residential and commercial (full-service licence)
2.2 Modifications to licence categories
2.3 Obligation to take the limits of one’s knowledge into account
2.1 Brokerage licence categories
2.1.1 Residential
The holder of a residential real estate broker’s licence1 may engage in a brokerage transaction described in section 3.1 of the Real Estate Brokerage Act (CQLR, c. C-73.2) respecting the following buildings:
- part or all of a chiefly residential immovable comprising less than five dwellings; or
- a vacant residential lot; or
- a fraction of a residential immovable that is the subject of an agreement or declaration such as a divided or undivided co-ownership property.
A residential real estate broker may also act as an intermediary for the leasing of a dwelling, regardless of the number of dwellings in the immovable. He may also give a client the name and contact information of a person or partnership offering loans secured by immovable hypothec or otherwise put them in contact with one another.
1Section 3 of the Regulation respecting broker’s and agency licences.
2.1.2 Commercial
The holder of a commercial real estate broker’s licence1 may only act as an intermediary for:
- The holder of a commercial real estate broker’s licence1 may engage in a brokerage transaction described in section 3.1 of the Real Estate Brokerage Act (CQLR, c. C-73.2) respecting: A vacant commercial lot;
- An enterprise if the enterprise’s property, according to its market value, consists mainly of immovable property;
- A commercial immovable, excluding a chiefly residential immovable comprising less than five dwellings, or a vacant residential lot or a fraction of a residential immovable that is the subject of an agreement or declaration such as a divided or undivided co-ownership property.
A commercial real estate broker may also act as an intermediary for commercial leasing. He may also, in accordance with the conditions set out in the Act respecting the distribution of financial products and services, give a client the name and contact information of a person or partnership offering loans secured by immovable hypothec or otherwise put them in contact with one another.
1Section 4 of the Regulation respecting broker’s and agency licences.
2.1.3 Residential and commercial (full-service licence)
The holder of a full-service licence may carry out all the residential and commercial real estate brokerage activities detailed in sub-sections 2.1.1 and 2.1.2 above.
2.2 Modifications to licence categories
It is possible to apply for a licence modification1 in order to:
- change one’s method of practice: act on one’s own account2 or for an agency;
- add or remove a right to practice (field of practice): residential or commercial.
Under the Real Estate Brokerage Act, the right to practice in a particular field may be acquired by successfully taking the OACIQ certification examination. After passing the exam, an applicant may add this new field of practice to his real estate brokerage licence by applying for a licence modification.
To do so, the licence holder must complete the form Application for licence modification • Real estate broker (PDF), pay the applicable fees and forward the whole to the Certification Department.
1Section 2 of the Regulation respecting broker’s and agency licences.
2 See section 3.2 to determine if you have the skills required to act on your own account.
2.3 Obligation to take the limits of one’s knowledge into account
Regardless of the licence category he holds, a broker has an obligation at all times to take into account his aptitudes, limits on knowledge and means available to act in a real estate transaction. Thus he must not agree to engage in a brokerage transaction that is outside of his field of expertise without seeking the necessary assistance, including from another licence holder who has the required skills.1
1Section 73 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising.
Examples:
Is a brokerage transaction involving an agricultural property considered to be within the field of a licensee authorized to practice commercial brokerage?
A: Yes. However, such a transaction will be considered as coming under the residential field of practice if the property, though located in an agricultural zone, is used mainly for residential purposes and the agricultural element is secondary (e.g. a small farm used mainly as a residence rather than for farming).
Can a broker restricted to residential brokerage be a co-lister on a contract concerning a commercial property with a broker restricted to commercial brokerage or a full-service broker?
A: No. A co-listing situation cannot be used to allow a licensee to act outside of the field of practice to which his licence is restricted. Whether or not it is a co-listing situation, the brokerage contract cannot provide for a licence holder to act as intermediary in a brokerage transaction that is not covered by his field of practice.
If the area of an immovable comprised of less than five dwellings is half commercial and half residential, a broker restricted to residential brokerage could act as intermediary, but a good practice would be to get the necessary assistance as appropriate. Section 73 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising stipulates that the broker “must take into account his or her aptitudes, limits on knowledge and means available.”
