FAQ on the 2018 amendments to the Real Estate Brokerage Act
FAQ
1. What are the key dates and when will these changes come into effect?
For all the details in this regard, check out the Quick reference guide.
2. If I represent a buyer without signing a brokerage contract to purchase (BCP), will my services be subject to the Real Estate Brokerage Act (REBA)?
Yes. However, following the amendments to the Real Estate Brokerage Act (REBA) to strengthen consumer protection, since June 10, 2022, it is no longer possible to represent a buyer (question 10) without first signing a written brokerage contract to purchase with him. The broker without a brokerage contract is considered a "collaborating broker without a contract" and can only treat the buyer fairly (question 8). His remuneration is established based on the remuneration sharing provided for in the brokerage contract to sell.
For more information on the amendments to the REBA concerning the prohibition of double representation and verbal brokerage contracts in residential brokerage, read this article.
3. What practices and rules pertaining to remuneration, commission sharing and client referrals have been in effect since May 1, 2020, when the mortgage brokerage supervision was transferred to the Autorité des marchés financiers?
The Autorité des marchés financiers has determined that the real estate broker who does not hold an AMF’s certificate:
- May continue to refer clients directly to mortgage lenders and be compensated by them if this compensation does not depend on the conclusion of the loan (e.g. a lump sum, an annual amount).
- May refer clients to mortgage brokers and receive from them a share of their commission because the Act respecting the distribution of financial products and services allows mortgage brokers to share their commission with real estate brokers.
To receive compensation based on the conclusion of a mortgage loan, the real estate broker must obtain a mortgage broker certificate. For more details, see the page dedicated to the mortgage brokerage referrals on the AMF’s website.
4. I hold a real estate brokerage licence with the OACIQ and a mortgage brokerage certificate with the AMF, do I have to take out a new liability insurance policy?
Yes. FARCIQ cover only the real estate brokerage activities set out in the Real Estate Brokerage Act. You must take out separate professional liability insurance with another insurer to cover mortgage brokerage activities.
5. I am a real estate broker’s licence holder and wish to carry out leasing transactions. Am I subject to the requirements of the Real Estate Brokerage Act during these transactions? Am I covered by the Fonds d’assurance responsabilité professionnelle du courtage immobilier du Québec (FARCIQ)?
Yes. As an OACIQ licence holder, you are subject to the requirements of the Real Estate Brokerage Act and its regulations at all times. You also benefit from the insurance coverage offered by FARCIQ, as for any other transaction performed as part of your professional activities.
6. What should a broker do in case an offer to lease is presented through a non-licence holder?
An offer to lease can be presented through a non-licence holder.
Individuals carrying on leasing brokerage activities (residential or commercial) in Québec are not required to obtain a licence to do so.
However, if a person (for example, a real estate broker or agency) from another jurisdiction wishes to engage in leasing brokerage in Québec and this activity requires a licence in his jurisdiction of origin (for example, Ontario), he must also obtain a licence or special authorization from the OACIQ in accordance with section 2 of the Real Estate Brokerage Act (CQLR, c. C-73.2). Therefore, if the leasing offer is presented by a broker or agency from outside Québec, it is recommended that you check whether this activity is regulated in their jurisdiction of origin and, if so, obtain confirmation that they have obtained a licence or special authorization from the OACIQ. Otherwise, the person may not engage in leasing brokerage activities in Québec.
The broker must present his client, the lessor, with all transaction proposals he receives, including those completed on a document that is not an OACIQ form, pursuant to section 102 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising. When a promise to lease that is not recorded on an OACIQ form is received, the broker must properly advise his client in order to protect him. If the promise to lease is inadequate or incomplete, it may be necessary to advise the lessor to add or modify certain conditions set out in the promise to lease received by using the OACIQ form Counter-proposal – Residential lease.
Remember that OACIQ licensees must protect and promote the interests of the party represented and act towards all the parties to a transaction in a fair and equitable manner, even if they are represented by another licensee or by a non-licence holder.
Ref.: s. 15 and 16 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising (C-73.2, r.1)
7. I perform a leasing brokerage transaction involving a person who is not an OACIQ licence holder. What about remuneration sharing and the obligation to offer fair treatment?
Individuals carrying on leasing brokerage activities (residential or commercial) in Québec are not required to obtain a licence to do so. Therefore, it is possible for a licensee to share his remuneration with a person who is not an OACIQ licensee, but only in the context of a leasing brokerage transaction (commercial or residential).
Ref.: S. 37 and 16 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising (C-73.2, r.1)
8. Can a non-licence holder use the OACIQ forms for leasing?
No. To get and use the OACIQ forms, you must be an OACIQ licence holder. However, for consultation purposes, the OACIQ puts at the public’s disposal unusable versions for a transaction. All reproduction rights are reserved.
9. Can a licence holder hire an unlicensed telemarketing company to conduct potential client identification surveys?
Yes, a licence holder can hire an unlicensed telemarketing company to conduct potential client identification surveys. The role of this company must however remain very limited: the purpose is only to build a database of potential clients, which will be made available to brokers. The telemarketing company must first obtain the consent of the individuals concerned to provide their personal information and inform them, among other things, of the name of the licensee on whose behalf the information is being collected. For more information, see the Guideline – Privacy protection.
The agency or broker will thereafter solicit clients using this database of potential clients.
Therefore, the telemarketing company is not required to hold an agency or broker licence to conduct potential client identification surveys. But it cannot engage in client solicitation. In fact, client solicitation to conclude a real estate brokerage contract is a brokerage act within the meaning of the Real Estate Brokerage Act. Only a licence holder can perform such an act, as this entails representational tasks.
For example, in commercial leasing, a brokerage agency may enlist the services of a telemarketing company to interview people about the expiry date of their leases, the surface area of their premises and their desire to be contacted by a real estate broker.
For more information, see the following articles:
10. Was the Annual General Meeting (AGM) of May 17, 2018 the last?
Yes. The AGM is abolished. The OACIQ maintains a discussion channel with brokers, especially through its annual report.
11. Can I continue using the current brokerage forms after the coming into force of the amendments to the Real Estate Brokerage Act?
Pursuant to section 11 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising, the licensee must ensure that the most recent version of the forms is used. Watch for our communications regarding the effective dates of the revised forms. When the new forms come into effect, the old versions become invalid and unusable.
12. Am I still required as agency executive officer to supervise brokers new to the profession?
Yes. The notion of beginner broker is replaced by an obligation to supervise licence holders by agency executive officers. This in no way alters the fact that brokers must comply with legislation. For more details, check the Guideline - Selection and oversight of agency licensees and employees.
13. What are the requirements to be able to act on my own account?
Since the 2018 amendment to the Real Estate Brokerage Act, a broker may act on his own account as soon as he obtains his OACIQ licence (the concept of beginner broker has been removed).
However, pursuant to section 73 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising, all brokerage licence holders who wish to act on their own account must take into consideration their abilities, the limits of their knowledge and the means available to them in the course of their activities. Acting on one's own account involves a number of duties and responsibilities that require specific skills and requirements to fulfil this role. Thus, the OACIQ encourages brokers who wish to act on their own account to complete the basic training for agency executive officers.
Note that licence holders who obtained their licence before 2010 and wish to act on their own account must complete certain continuing education activities before they can apply to the OACIQ for a licence modification. For more information, read the article Mandatory basic training: Becoming agency executive officer or acting on your own account.
In addition, within 10 days of the licence modification, you must open a trust account, failing which your licence will be suspended (see the article Opening and closing of trust accounts). Note that brokers are exempt from this obligation if they receive no deposit, advance on remuneration or costs from clients or any other sum for others. If a licence holder is no longer in this situation, he or she must immediately notify the OACIQ in writing and comply with the obligations related to trust accounts. Read this article for more details.
Please note that when acting on your own account, you may not use a pseudonym, hire brokers or act through a business corporation.
14. Given the abolition of the notion of beginner broker, what are the requirements to act as agency executive officer?
To obtain the agency executive officer qualification, it is important to:
- hold a real estate broker’s licence that is neither suspended nor subject to restrictions or conditions unless it is a restriction related to the area of practice (residential or commercial);
- show that you have the necessary experience to run an agency:
- having carried on the activity of real estate broker in an agency for at least 3 of the last 5 years; OR
- if you obtained your licence before May 1, 2010 (former real estate agent, real estate broker or former affiliated real estate agent), the regulations require you to have worked as a real estate broker for at least 3 of the last 5 years, either on your own account or within an agency.
- show that you have the necessary skills to manage professional activities:
- have successfully completed one of the training programs recognized in an agreement between the Organization and an educational institution that deals with the skills a real estate brokerage agency licence holder must have, provided for in the competency framework available on the OACIQ website, and have passed the examination; OR
- have qualified as an executive officer of a real estate agency for three of the last five years; OR
- be authorized to represent, direct or qualify a person or partnership that engages in brokerage transactions in a province, state or territory for which an agreement on the mutual recognition of professional qualifications has been entered into by the Gouvernement du Québec and another government.
- After qualifying as an agency executive officer, have taken and, where applicable, passed all continuing or additional training required for some or all brokers to qualify as agency executive officers.
15. To help agency executive officers in their oversight role, is the information on brokers’ years of experience still available?
Yes, information regarding the number of years of practice is available in the Monitoring of my brokers section, intended for AEOs, in My record on synbad.com (e.g. less than 3 years, 3 to 5 years, over 5 years).
- Reference number
- 204941
- Last update
- January 28, 2025