FARCIQ – Claims

The Fonds d’assurance responsabilité professionnelle du courtage immobilier du Québec (FARCIQ) insures the professional liability of real estate agencies and brokers in Québec.

This insurance provides protection in the event of faults, errors or omissions committed in the course of a broker’s professional activities. Although liability lawsuits are part of the reality of the profession, many mistakes are avoidable.

Most frequent claims

Errors relating to the surface area on the detailed description sheet

The seller’s broker must indicate the area appearing on the cadastral plan or on an up-to-date certificate of location, rather than the gross area that appears on the architectural plans and which may not reflect reality. Under the Civil Code of Québec, a declaration of co-ownership can only be published if it is accompanied by a cadastral plan. The certificate of location is derived from the cadastral plan.

Failure to disclose the fact that the contingency fund of a co-ownership property is insufficiently funded and that the new buyer will have to pay a special assessment for work to be done in the near future.

Not only must the broker provide a copy of the co-ownership documents to the buyer and keep a copy on file, but he must also be aware of the content of such documents and inform the parties of any facts that may affect a buyer’s decision to purchase the property.

Errors in the nature and availability of parking spaces

The fact that the seller of the fraction is the sole user of a parking space does not necessarily mean that he is the divided owner of that space, or that he is using it legally.