Further actions to tackle real estate market overheating
Since the beginning of the pandemic, the OACIQ has stepped up and intensified its intervention efforts to protect consumers to ensure that they are well informed and that brokers are properly trained and equipped.
The overheated housing market is the result of several factors that are beyond the control of the OACIQ, including low interest rates, a property inventory that is lower than the demand, the exploding cost of building materials, and the new behaviours and needs created by the pandemic, including teleworking.
In addition to what has already been achieved, and considering the urgency and importance of the situation, the OACIQ will implement three additional initiatives. We are confident that these initiatives will further promote the compliance of real estate transactions and adherence to the ethical obligations of brokers.
Moreover, the Ministry of Finance announced certain additional measures that will be implemented in response to the various issues raised by the overheated housing market.
Got questions? We have the answers!
Promise to purchase forms modified (June 2021)
Changes to clause 8.1 (pre-purchase inspection)
As part of the measures implemented to address the issues raised by the overheated housing market, the Ministry of Finance and the OACIQ have agreed to amend the promise to purchase forms to reinforce the messages pertaining to the risks of waiving a pre-purchase inspection. Click here for all the details.
What are the forms amended in Juin 2021?
The French and English versions of the following mandatory forms:
- Promise to purchase– Chiefly residential immovable containing less than five dwellings excluding co-ownership (PP)
- Promise to purchase – Divided co-ownership– Fraction of a chiefly residential immovable held in divided co-ownership (PPD)
- Promise to purchase – Undivided co-ownership – Share of a chiefly residential immovable held in undivided co-ownership (PPU)
- Promise to purchase – Mobile home situated on leased land (PPM)
- Promise to purchase – Public Curator (PPC)
- Annex – Undivided co-ownership – Public Curator (AUC)
- Annex – Divided co-ownership – Public Curator (ADC)
The French and English versions of the following recommended forms:
- Promise to purchase – Immovable (PPG)
What are the amendments
The amendments concern clause 8.1 (pre-purchase inspection) of the promise to purchase forms.
- An addition specifying that the buyer is informed by the broker of the risks of waiving an inspection is intended to further raise the buyer's awareness and to ensure that this matter has indeed been discussed between the buyer and the broker. Remember that this is not a new obligation for the broker, who is required to inform the buyer of these risks if an inspection is waived.
- Clause 8.1 will also contain a warning to raise the buyer's awareness that he should not waive the pre-purchase inspection, except in exceptional cases, such as the replacement or major renovation of the building.
Since when have the revised forms been available?
Mandatory training
Booming housing market: Take the time to do things right
To ensure that all residential real estate brokers have a uniform message on the issues related to the overheated real estate market and, above all, to remind them of the applicable ethical rules, a mandatory training activity was provided by the OACIQ from May 15 to June 15, 2021. This initiative allowed the OACIQ to train 14,425 brokers. New real estate brokers and those in acquired rights period who are returning to practice have 30 days to complete it after their licence issuance. This approximately 45-minute self-study is offered free of charge.
How to sign up for the mandatory training?
The training has been accessible via the Professional Development Portal since May 15, 2021. New real estate brokers and those in acquired rights period who are returning to practice will receive the link by email or can access it by clicking here. New brokers have 30 days to take it after their licence issuance.
Do I have to take the training?
All licensed residential real estate brokers must take the training. Note that brokers authorized to work in commercial brokerage only are not required to take this training. However, they can access it and if they wish to take it, it will entitle them to 1 elective CEU.
What happens if I do not complete the training within the specified period?
Enhanced supervision program
Mystery shoppers
The vast majority of real estate transactions go off without a hitch. In order to reinforce best practices, the OACIQ uses mystery shoppers to provide increased prevention and enhanced supervision of brokers’ skills. This new approach allows the OACIQ to intervene with agility, both as part of the Mandatory Continuing Education Program and in the application of the ethical obligations of real estate brokers.
The interventions of mystery shoppers are carried out anonymously and based on risk factors. They help identify areas of non-compliance that need to be improved and reduce public protection risks. Remember that no fictitious transaction will be concluded, and everything is carried out in compliance with the applicable rules in this regard.
Will I know if I have been targeted by a mystery shopper?
No. The very concept of mystery shoppers is to simulate real-time actions to obtain a clear picture of the actions to be taken by the OACIQ, especially in terms of prevention. These interventions are therefore confidential.
What happens if a mystery shopper notes ethical issues in my practice?
The usual supervisory measures arising from the powers set out in the Real Estate Brokerage Act will be used.
Awareness and information campaign
Take the time
It may be tempting for a buyer or seller to want to speed up the transaction process by overlooking or waiving important elements such as building inspection, legal warranty or certificate of location. This can have serious consequences, especially financially.
Since ensuring smooth transactions is a shared responsibility, we launched a public awareness and information campaign from April 22 to May 19, 2021.
Click here to hear the radio ad and see the different forms of this campaign.
