10. Collaborating with licence holders from other jurisdictions
Collaboration and remuneration sharing can occur with brokers from other jurisdictions or with representatives working in the financial services industry.
According to the Real Estate Brokerage Act and its regulations, an agency or a broker may share remuneration resulting from a transaction involving a residential immovable comprised of less than five dwellings with:
- another holder of a licence issued by the OACIQ;
- a person or a partnership authorized to engage in a brokerage transaction described in section 3.1 of the Real Estate Brokerage Act outside Québec;
- a firm, an independent representative or an independent partnership within the meaning of the Act respecting the distribution of financial products and services, in accordance with the terms of this Act;
- a dealer or adviser governed by the Securities Act or the Derivatives Act.
An agency or broker may also share remuneration with a person or partnership referred to in section 3 of the Real Estate Brokerage Act:
- advocates, notaries, chartered appraisers, liquidators, sequestrators, trustees in bankruptcy or trustees, provided the real estate brokerage contract is entered into in the exercise of their functions;
- forest engineers, provided the real estate brokerage contract concerns a forest property;
- members in good standing of the Ordre professionnel des comptables professionnels agréés du Québec, provided the real estate brokerage contract concerns the purchase or sale of an enterprise, a promise to purchase or sell an enterprise, or the purchase or sale of such a promise;
- chartered administrators, provided the real estate brokerage contract is entered into incidentally to the exercise of their real estate management functions and is not governed by section 23;
- trust companies authorized under the Trust Companies and Savings Companies Act (chapter S-29.02), provided the real estate brokerage contract concerns an immovable they hold or administer for others;
- the spouse, child, father, mother, brother or sister of the owner of an immovable, provided the real estate brokerage contract is entered into with the owner of the immovable and concerns that immovable; and
- the sole shareholder of a legal person if the real estate brokerage contract is entered into with the legal person.
To ensure that the sharing of remuneration complies with the regulations, it is important to make the necessary verifications to confirm that the person or partnership receiving the share actually falls into one of the categories mentioned above.
It is each person’s duty to make these basic verifications in order to comply with the Real Estate Brokerage Act and not encourage the illegal practice of real estate brokerage in or outside Québec1.
It is also important to note that a licence holder sharing or proposing to share remuneration must without delay disclose that fact in writing to the party represented and retain a copy of the notice given to that effect. In addition, if any other remuneration is or may be payable, the licence holder must disclose the identity of the other person or partnership and, in the case of a non-monetary benefit, the nature of the compensation2.
Verifying the right to practice of a person or partnership from Québec or another jurisdiction
1. For the holder of a licence issued by the OACIQ:
The OACIQ keeps a Register of licence holders which can be checked here.
2. For a person or partnership authorized to engage in a brokerage transaction described in section 3.1 of the Real Estate Brokerage Act outside Québec:
In these cases, it is necessary to identify the official agency or organization responsible for overseeing real estate brokerage, as applicable, in the jurisdiction concerned. A good starting point to identify the regulating organization is the website of the Association of Real Estate License Law Officials (arello.com). By browsing this regulator’s websites or contacting them by phone, it is possible to confirm that the person or partnership is actually authorized to engage in real estate brokerage acts in this jurisdiction.
3. For a firm, an independent representative or an independent partnership within the meaning of the Act respecting the distribution of financial products and services, or for a dealer or adviser governed by the Securities Act or the Derivatives Act:
The Autorité des marchés financiers keeps a register of individuals and partnerships authorized to practice. This register is accessible at https://lautorite.qc.ca/en/professionals.
A reminder that it is up to each person to make these basic verifications in order to comply with the Real Estate Brokerage Act and to avoid encouraging the illegal practice of real estate brokerage in or outside Québec.
