Take a typical scenario: a broker has a promise to purchase in hand and is preparing to present it to the seller. The phone rings: the buyer informs him that he no longer wants to buy the immovable or present the promise to purchase. What should the broker do?
Should the buyer or the seller be notified, before the signing of the deed of sale, of any defect or irregularity whatsoever affecting the declarations and obligations of the seller, the buyer has a recourse provided under clause 10.5 of the Promise to purchase form.
Carrying out the activity of a real estate or mortgage agency or broker illegally is a violation of the Real Estate Brokerage Act.
The seller’s broker (whether acting on his own account or on behalf of an agency) cannot reduce his compensation in order to favour his own buyer in a transaction, as this situation could constitute an unfair practice against the buyer’s broker or agency.
Section 28 of the Real Estate Brokerage Act provides that: “Despite any stipulation to the contrary, the client may terminate the contract at the client’s discretion within three days after receiving a duplicate of the contract signed by the two parties, unless the client has written in its entirety and signed a waiver.
The contract is terminated by operation of law as of the sending or delivery of a written notice to the broker or to the agency.”
You are sitting at the notary’s, desperately waiting for the buyer to show up for his appointment. After more than an hour, you and your broker are still cooling your heels. What is going on? Although the date indicated under clause 11.1 of the Promise to purchase is not a mandatory delay, the consequences can be many for a party that fails to show up at the notary’s on the appointed date.
In the context of a real estate transaction, it frequently happens that a buyer makes a deposit on the sale price. The broker who receives this sum must then, if he is acting for an agency, gives it immediately to the agency to be put in its trust account or in the account of the agency to which your agency delegated its obligations. If the broker is acting on his own account, he must put it in his trust account. The sum received from the buyer must remain in the trust account until it is required by the notary for signing of the deed of sale.
As of tomorrow, you will receive by email the official invitation to the OACIQ Annual General Meeting, which will be held on May 8, 2013 at Mortagne hotel in Boucherville..
The OACIQ’s Inspection Committee has observed that brokers working in the field of mortgage brokerage are increasingly aware of the importance of maintaining records and registers in accordance with the Real Estate Act and applicable regulations. Indeed, several inspections of the records of brokers and agencies working in mortgage brokerage confirm that sound management is being applied by both brokers and agencies through the use of good professional practices.
The OACIQ Syndic has investigated the actions of real estate brokers in transactions involving properties used for marijuana grow operations. These inquiries, conducted simultaneously with police investigations, have led to the filing of complaints before the Discipline Committee.