Real Estate Indemnity Fund (FICI)
The FICI offers free protection to consumers who do business with a broker or agency and are victims of fraud, dishonest tactics or misappropriation of funds in the course of a transaction.
The Fund
It was created under the Real Estate Brokerage Act and is funded in part by contributions paid by all real estate agencies and brokers in Québec.
Decisions regarding claim admissibility and the amount of compensation to be paid, in accordance with the rules set out in the Organization’s regulations, are entrusted to an indemnity committee under the Real Estate Brokerage Act. The indemnity committee is independent, that is, it is not bound by any judicial decision and its purpose is not to cover the civil or professional liability incurred by licence holders for civil or ethical faults. This committee is made up of three to nine members, appointed by the OACIQ Board of Directors.
Although the OACIQ manages the FICI, the Fund’s assets are completely separate from those of the Organization and used exclusively to pursue the Fund’s mission. The OACIQ is responsible for compensating victims from the sums contained in the Fund, in accordance with the decisions of the Indemnity Committee. The maximum compensation that can be paid is $35,000 per claim for an act committed before May 10, 2018. The maximum compensation per claim will be increased to $100,000 for an act committed on May 10, 2018, or after.
Compensation cases
Brokers and agencies must comply with various regulations aimed at protecting the public. Although the actions described hereafter seldom occur, they can result in compensation.
It should be noted that an OACIQ licence holder may not submit claims as such.
Fraud and fraudulent tactics
The Indemnity Committee can assist a person who has been financially wronged. For example, if the latter was voluntarily misled by a broker in the course of a brokerage transaction, whether by misrepresentation or by voluntary omission. Fraud, like deceit, includes a voluntary and intentional element.
Misappropriation of funds
A person may also benefit from the protection provided by the Indemnity Fund if he or she is unable to recover the sums entrusted to a broker, which should have been deposited in a trust account.
What other recourses are available?
Some reprehensible actions may not necessarily constitute fraud, a fraudulent tactic or a misappropriation of funds. In this case, we encourage people who believe they have been victims of such acts to submit their questions, claims or requests to the information centre Info OACIQ so they can be forwarded to the appropriate department.
Fortunately, cases of fraud, fraudulent tactics and misappropriation of funds remain infrequent and the victims few, especially considering the thousands of brokerage transactions carried out each year in Québec.
HOW TO FILE A CLAIM WITH THE FICI?
To be valid, all claims must be filed in the two years where the action concerned came to the claimant’s knowledge, by filling a request for assistance with supporting evidence of the allegations and the damages claimed.
Eligibility criteria
Before filing a claim, the claimant must make sure that his or her situation meets the main admissibility criteria:
- The person concerned by the claim must have been a broker holding a licence issued by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) at the time of the incident;
- The broker must have been practising his or her profession at the time;
- The claim must be filed with the OACIQ by respecting the specified period of two years following the date upon which the claimant became aware of the facts;
- The claimant must be able to demonstrate, using relevant supporting documents and evidence, that the situation justifies compensation, in other words that the broker committed fraud, a fraudulent tactic or a misappropriation of funds.
ATTENTION: Certain reprehensible acts committed involuntarily by a broker, whether a case of fault, error, negligence or omission, do not fall under the indemnity committee’s responsibility. In case of doubt, the person may contact the information centre Info OACIQ.
Claim application
To file a claim application, the claimant must complete a request for assistance within two years of becoming aware of the alleged act and include the following information:
- Identity of the claimant
- Identity of the broker
- Claim amount
Note: the maximum indemnity that can be paid out of the Fund is $35,000 per claim for an act committed before May 10, 2018, and $100,000 for an act committed on or after May 10, 2018, with respect to fraud, fraudulent tactics or misappropriation of funds committed. - Property concerned
- Date at which the person became aware of fraud or misappropriation of funds.
- Facts related to the claim
Note: it is the claimant’s responsibility to demonstrate, using all relevant supporting documents and evidence, that he or she has been a victim of fraud, fraudulent tactics or misappropriation of funds committed by a licence holder. - Amount of damage suffered
Note: it is the claimant’s responsibility to demonstrate, using all relevant supporting documents and evidence, that he or she suffered damage in connection with the alleged fraud, fraudulent tactics or misappropriation of funds.
Once the application is duly completed, the claimant must send it to the OACIQ. The Organization may request additional information or documents from him or her to complete the file.
The claimant's application, the licensee's version of events and all documents submitted by both parties are forwarded to the Indemnity Committee, which is responsible for assessing the eligibility of the claim and determining the amount of compensation, if any.
The persons concerned will then be informed of the indemnity committee’s decision, which is final and cannot be appealed. Learn more about the Indemnity Committee and its members by reading this article.
