OACIQ forms: For better prevention

To fulfil its public protection mission, the OACIQ developed no less than fifty brokerage forms. These documents were designed to provide maximum protection, while clearly establishing the terms under which real estate brokers must act. For residential real estate transactions, brokers are required to use the mandatory forms developed by the OACIQ.

Here is an overview of the mandatory forms developed by the OACIQ. For the full list of all OACIQ brokerage forms, visit the Brokerage forms page.

By using these forms, the client makes sure that the broker’s obligations are clearly defined and that the broker must fulfil them. Among these obligations, the broker must assist, advise and inform the client so he can fully understand the clauses of the forms and their implications.

Brokerage contract – Sale 

Real estate brokers must use one of the Exclusive brokerage contract – Sale forms developed by the OACIQ during the sale by a natural person of a:

• Chiefly residential immovable containing less than 5 dwellings; 
• Fraction of a residential immovable held in divided co-ownership;
• Share of an immovable held in undivided co-ownership;
• Mobile home placed on a chassis (with or without a permanent foundation) and located on a leased land.

Depending on the type of brokerage contract to sell chosen by the client, it will provide:

• In the case of an Exclusive brokerage contract - Sale
  • That the broker will be the sole intermediary with whom the client will do business for the sale of his property for the term of the contract
  • That the broker be remunerated for his work once the client accepts a promise to purchase and all conditions have been fulfilled (except the signing of the deed of sale and the payment of the purchase price)
  • In the case of a Non-exclusive brokerage contract - Sale
  • That the client will be able to do business with several brokers simultaneously for the sale of his property during the term of this contract
  • That the broker be remunerated for his work if the property is sold during the term of the contract and the broker was the efficient cause of the sale

In addition, all brokerage contracts to sell provide for the client’s rights and obligations and those of his broker.

The broker must present both types of contract to his client, i.e. the exclusive brokerage contract - sale and the non-exclusive brokerage contract - sale.

Finally, the seller may always put the property up for sale by himself, whether under the exclusive or non-exclusive contract.

Declarations by the seller of the immovable

Developed  by the OACIQ to protect the parties concerned, this mandatory form for a residential transaction with a natural person enables the prospective buyer to get detailed information on the condition of the property, and allows the seller to protect himself against potential suits. It is available in two versions – for a residential immovable containing less than five dwellings and for divided co-ownership.

This form is a valuable tool to help the broker fulfil his verification obligation and identify any factor that could affect the transaction. When reviewing this form and making the necessary verifications, if the broker has a doubt on any factor that could have an impact on the transaction, he must disclose it to and advise his client on the steps to take.

Brokerage contract – Purchase 

To be represented by a real estate broker in a transaction involving the purchase of a property, the buyer must enter into a Brokerage contract to purchase developed by the OACIQ with his broker.

The broker who represents him under this contract will advise the buyer on the best price to offer in the promise to purchase based on comparable properties on the market, among other things. If necessary, he will recommend that special conditions be drafted according to the buyer’s needs and criteria, and will negotiate the terms of a promise to purchase on his behalf with the seller.

The brokerage contract to purchase form includes:

• the essential features of the desired property;
• the desired price and terms of purchase;
• the respective obligations of the buyer and the broker, including the remuneration of the buyer’s broker (which can be paid directly by the buyer at the notary or added to the purchase price offered for the property and included in the mortgage loan).

The contract can also stipulate what type of follow-up will be done by the broker and the nature of the services to be rendered to clarify expectations. In addition, if the seller of the property the buyer is considering is not represented by a broker, the buyer’s broker will make all the necessary verifications that would otherwise be the responsibility of the seller’s broker. This contract also allows the broker to canvass and solicit people for properties that are not on the market.

Without signing a brokerage contract to purchase, a broker cannot represent the buyer, i.e. he cannot advise him on the best price to offer or negotiate the terms of a promise to purchase on his behalf with the seller.

Annexes to the brokerage contract to sell or purchase

Annex G – General (AG), Annex RC and Amendments

The Annex G – General form can be used to add or modify certain terms and conditions. The Annex RC – Remuneration and Costs form must be attached to include any additional provisions concerning the broker's remuneration. The Amendments form is also mandatory to amend a residential or commercial brokerage contract.

Promise to purchase

Brokers must use one of the Promise to purchase forms developed by the OACIQ for the purchase of a chiefly residential immovable containing less than five dwellings, a vacant residential lot, fraction of a residential immovable held in divided co-ownership, a share of an immovable held in undivided co-ownership or a mobile home located on leased land. These forms are mandatory regardless of whether or not the seller or the buyer is a natural person. In the case of a new or off-plan property, a preliminary contract must be used instead of the Promise to purchase form.

Annexes to the Promise to purchase

Annex F, Annex R and Counter-proposal

Annex F and Annex R forms are annexes to the Promise to purchase and must be used where appropriate. The Counter-proposal form is used to reply to a promise to purchase prior to its acceptance, whereas the Amendments form is used to amend a Promise to purchase form after its acceptance.

Enhancements prior to acceptance

The Enhancements

form must be used to amend a Promise to purchase form, prior to acceptance, when the amendment is to enhance the promise, i.e. make it more advantageous for the seller, more consistent with or superior to the wills and requirements expressed in the description sheet.

Note that if several enhancements are submitted consecutively, the last one does not automatically cancel the previous ones. In this case, the broker shall indicate on the new Enhancements prior to acceptance form that the previous forms will be replaced, while retaining the benefits offered in clause B2.2 of the previous forms and specifying that the new price offered will replace all previous price enhancements.

Contract or promise to lease – Residential

The Exclusive brokerage contract – Residential lease form must be used when a brokerage contract is signed with a view to concluding the lease of a dwelling located in a chiefly residential immovable containing less than five dwellings, regardless whether or not it is held in divided or undivided co-ownership.

Moreover, the Promise to lease – Residential and Counter-proposal – Residential lease forms are mandatory to conclude the lease of a dwelling by a natural or legal person or a corporation, regardless of the number of dwellings that the immovable contains. They must also be used to lease a dwelling held in divided or undivided co-ownership.

Finally, the Amendments – Residential lease form is mandatory under the same circumstances as the forms it amends, i.e. the Brokerage contract or Promise to lease.

Contract to sell or promise to purchase a mobile home located on leased land

The use of forms designed specifically for the sale of a mobile home placed on a chassis, with or without a permanent foundation, and located on leased land is mandatory when the seller is a natural person. In addition to the brokerage contract, a Promise to purchase form has also been developed.

NOTE: It is important to note that no brokerage contract developed by the OACIQ must be renewed automatically. To this end, the mandatory form states that unless the date and time of termination of the contract is stipulated, the contract shall end 30 days after its making.