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11. Collaboration and remuneration sharing in commercial real estate

All licence holders have a duty to collaborate. A broker who engages in a commercial transaction is not exempt from his information-sharing obligation, which includes all information relevant to the completion of transaction.

The commercial broker must also comply with his duty to collaborate with other licence holders while ensuring that no confidential, strategic or sensitive information related to the brokerage contract is communicated to anyone.

To discharge his ethical obligations to his client, the licence holder can require any prospective buyer to sign an agreement to the effect that all information provided will be kept confidential and will not be shared. This confidentiality agreement must be consistent with the Act and its regulations.

Remuneration sharing

In any type of real estate transaction, brokers must collaborate, according to reasonable conditions previously agreed upon between them.

In residential brokerage, the mandatory brokerage contract spells out the remuneration sharing terms offered to the broker who collaborates in the transaction. In commercial brokerage, these terms are not mandatory in the brokerage contract, but the broker must still inform his client of them in writing and explain the implications of the terms proposed.

Whether in residential or commercial brokerage, the broker must also respect the exclusive nature of the brokerage contract entered into with another broker. This means that a broker representing a buyer cannot solicit the seller directly.

Thus if a broker represents the owner of the immovable under an exclusive brokerage contract, the broker representing the buyer or lessee must not engage in acts that are incompatible with the terms of the exclusive contract. He must first contact the owner’s broker to agree on a remuneration sharing arrangement.

Finally, a broker can sign a brokerage contract with the buyer or the lessee he represents for the purpose of receiving additional remuneration from this party.

Last updated on: September 20, 2022
Numéro d'article: 253774