Duties and Obligations of the Broker
The practice of real estate and mortgage brokerage is regulated in order to ensure that members of the public are protected when engaging in a real estate transaction through a broker’s intermediary. The rules and conditions of practice governing the profession are set out in the Real Estate Brokerage Act, the Regulations thereunder and the Rules of Professional Ethics. Read this section to learn more about the duties and obligations of your broker.
The agency’s duty to supervise the brokers acting on its behalf, and supervision of brokers new to the profession
The new Real Estate Brokerage Act has abolished certain rules regarding the duty to have one or more managers, based on the number of brokers acting within an agency. This new Act is meant to be less interventionist regarding the management of a brokerage firm’s business.
When a chartered real estate broker is going to be absent for vacation or for any other reason, he is looking to entrust his operation to a member on whom he can rely. He also wants to do in a way that will be legal and secure for all parties involved.
Mechanisms in case of ceasing of activities by a broker acting on his or her own account or for an agency, and in case of ceasing of activities by an agency
The regulations adopted under the new Real Estate Brokerage Act that has been in force since May 1, 2010 stipulate that when a broker: leaves an agency to join another agency or to work for his or her own account; ceases to work for his or her own account and joins an agency;
The client has the option to: continue dealing with the broker; continue dealing with the agency, if applicable; or terminate the brokerage contract.
Some real estate brokerage firms offer services in more than one field of practice, for instance residential and commercial and therefore do not specialize only in commercial transactions.
Hidden defects insurance is a new product available to buyers of residential properties containing five dwelling or less. As real estate brokers and agents will surely be solicited to provide information about this product, the ACAIQ would like to make the following clarification.
Agency delegating the opening and maintaining of a trust account to another agency: What does it involve?
Since May 1, 2010, an agency may delegate to only one other agency the opening and maintaining of a trust account. The agency delegating this responsibility is not required to open its own trust account.
Due to the appearance of conflict of interest that could result from the payment of professional fees by a real estate broker or agent acting as intermediary in a real estate transaction, this practice is not recommended by the ACAIQ.
Under the Rules of Professional Ethics of the ACAIQ, a member must avoid placing himself in a conflict of interest. Consequently, a real estate broker or agent should not accept to act as proxy for one of the parties to a transaction in which he is acting as intermediary, especially if the power of attorney allows him to negotiate, accept or refuse offers made as part of the transaction.
Following the deposit of the new three-year assessment roll by Ville de Montréal, several brokers have called us to point out that the amount of taxes appearing on some detailed description sheets refers to the year 2010, whereas the municipal assessment is the one for 2011, without this being specified.
It is common practice for clients looking for a mortgage loan to sign an exclusive mortgage brokerage contract, otherwise known as an “exclusive mandate”, with a mortgage broker.