Inspection as a means to ensure the compliance of real estate brokerage practice
As a regulator, the OACIQ’s mission is to protect the public by enforcing the Real Estate Brokerage Act and ensuring that licence holders abide by their ethical obligations. Inspection is one of the means implemented to achieve this goal.
Working in accordance with accepted trade practices does not only instil confidence in brokers and agency executive officers, but also in the members of the public who use their services.
The Inspection Department oversees brokers’ and agency executive officers’ activities and, therefore, helps strengthen this trust relationship.
Inspectors
Specially trained for the purpose, inspectors are members of the OACIQ’s permanent staff. They hold a real estate broker’s licence, but are not authorized to practice the profession.
In addition to specific inspection work, inspectors play a support and training role by facilitating conferences, startup sessions considered as first inspection and some of the education sessions offered by the OACIQ.
Notice of Inspection
The broker acting on his own account and or the agency executive officer receives a notice of inspection by email indicating the date and time of the inspector’s visit at the establishment.
The broker acting on his or her own account or the agency executive officer must be present during the inspection. In some cases, an inspector may visit an agency or a broker acting for his or her own account without prior notice.
Scope of the Inspection
In accordance with the Act, an inspection covers all aspects of practice of the broker acting on his or her own account or of the agency and brokers authorized to act on its behalf. The inspector verifies whether trust account(s), accounting procedures, the keeping of records and registers, and the disclosure of conflicts of interest are properly managed. The inspector also verifies brokers' competency.
If the inspector notes a violation that can compromise public protection, he may refer it to the Inspection Committee, which will issue any recommendation deemed appropriate, or refer the case directly to the syndic.
Inspection Report
Following the inspection, a report is submitted to the broker acting on his or her own account or to the agency. All of the inspector's findings concerning the management of the establishment or the agency are included, and the corrective measures to be taken with regard to the non-conforming items are formulated. The report also includes an overall picture of the practice of the broker acting on his or her own account, or that of brokers authorized to act for the agency and who have been inspected.
In addition, each inspected broker receives an individual report. The competency report identifies errors or omissions noted by the inspector in the verified records: selection and completion of forms, drafting of specific clauses, record documentation and follow up on transactions.
The reports also indicate whether a commitment to comply with one or more sections of the Real Estate Brokerage Act and its regulations or to complete training activities must be signed.
Inspection Follow-up
Other actions may need to be taken following the inspection to ensure that the agency executive officer or the broker complied with any recommendations made by the inspector or any commitments required by the Inspection Committee.
Another inspection could also be scheduled within 6 to 12 months.
It is essential to ensure that you take the necessary measures immediately to avoid the recurrence of deficiencies. Otherwise, disciplinary action may be taken.
Inspection Committee
Under the Act, the OACIQ is required to create an Inspection Committee. It is made up of agency executive officers and of brokers acting on their own account.
Following a protocol, the Inspection Committee meets and inspectors present the inspection reports regarding brokers and agency executive officers who require various interventions. The committee may also recommend to inspected brokers and agency executive officers any appropriate recommendation and have them sign an undertaking to comply with a section of the Act or one of its regulations. In addition, it may require an agency executive officer or a broker to successfully attend a course or other education activity. If the committee finds that a violation to the Act or a regulation has been committed, it notifies the syndic immediately.
