The agency’s duty to supervise all the brokers

One of the responsibilities of an agency executive officer is the duty to supervise ALL licence holders acting on the agency’s behalf. The agency executive officer has primary responsibility within the agency.

Under this principle, the Real Estate Brokerage Act has eliminated the rules specific to supervision of beginner brokers since July 13, 2018 Therefore, the need to supervise them remains in fact a real responsibility of agency executive officers, just as they are required to supervise all licence holders of their agency according to their experience, situation and needs.

Supervision of all brokers according to their supervision needs

Here is what the OACIQ recommends:

1. Open a ''Human Resources'' record

• Verify the history of the broker (the number of agencies for which he/she has worked, as the case may be);
• Integrate into the hiring contract between the agency and the broker a mandatory number of education activities or conferences to attend annually (for example: two training programs or conferences);
• Enlist experienced brokers, if necessary, to supervise a broker.

2. Provide for a starter kit to be given to the broker containing in particular:

• A book of standard clauses;
• Disclosure notices and forms;
• A checklist of missing documents;
• A summary of the advertising rules;
• Copies of brokerage forms;
• The agency’s internal procedures;
• The list of resources and services offered by the OACIQ (article search, synbad.com, etc.);
• The list of resources and services offered by the Real Estate Board or any related service (search and listing of properties on Centris);
• The Land Register research guide;
• The digitization procedure, if the agency uses electronic document management;
• Relevant articles;
• Suggested education activities.

It may be important to offer to guide brokers in the physical and material organization of their workspace, suggest a filing method and provide them with an example of a work structure for a day, a week, a month, etc.

3. Verify brokerage contracts

Here is a suggested procedure to help you fulfill your duty to verify the brokerage contract records before an immovable can be put on the market:

• Prepare comparable properties sold in the sector;
• Look up the municipal assessment/tax amount;
• Search in Land Register (ensure that the broker understands the titles);
• Verify the impact of the property’s location (radon, iron ochre, pyrite, blue-green algae, dry rot);
• Verify the drafting of the brokerage contract clauses;
• Ensure that the ''Declarations by the seller of the immovable'' form (DS) will be completed when the brokerage contract is accepted;
• Verify that all the relevant documentation is included in the record;
• Supervise drafting of the property description, preparation of advertising, follow-up of calls and organizing of open houses;
• Provide for a tandem with an experienced broker, if required;
• Leave explanatory notes in the record on the follow-up given to the broker new to the profession.

4. Verify transaction proposals

To fulfill the obligation to verify the transactions and oversee their progress, here is what we suggest:

• • Review the legal principles governing the drafting of the transaction proposal (signature, deadlines, drafting of specific clauses);
  • Update the list of comparable properties sold in the sector;
  • Ensure that the broker has all the required forms in hand (Counter-proposal to a promise to purchase, Amendments form, Notice and follow-up on fulfilment of conditions, Annex G - General);
  • Carry out a few oral situation exercises with the broker and assure the broker of your availability to answer questions;
  • Recommend payment of a deposit and ensure that the broker is able to manage the stipulated deposit in accordance with the established rules. (For example, cheque remitted upon drafting of the Promise to purchase, under clause 4.2);
  • Review the drafting of the contract, establish a schedule (deadlines) and supervise follow-up of the transaction until fulfillment of the conditions and execution of the deed of sale;
  • Provide for a tandem with an experienced broker, if required;
  • Leave explanatory notes in the record on the follow-up given to the broker new to the profession.

6. Supervise the progress of brokers

• Provide for meetings on a regular basis;
• Frankly discuss difficulties, achievements and corrective actions required;
• Leave explanatory notes on these meetings and the education activities taken by the broker new to the profession, in the HR (Human Resources) record.

Brokers and inspection

The agency executive officer remains responsible in terms of his obligation to supervise ALL the brokers acting on behalf of the agency. This is one of the important aspects of an agency executive officer’s competency profile.

It is however important for the agencies to provide for a supervision system immediately and note the aspects of the broker’s practice that were supervised.

During the next inspection visit at your establishment, the type of supervision given by the agency to brokers may be verified.