4 Promotion

To promote their services, an agency or broker may offer certain benefits, gifts or organize contests to attract clients.¹ Certain conditions apply based on the promotions offered.

¹ Section 39 of the Regulation respecting brokerage requirements, professional conduct of brokers and advertising

4.1 Contests, draws

A real estate broker who wishes to hold a contest must inquire about the time at which he will have to declare the contest by filing a notice of publicity contest (in French only) with the Régie des alcools, des courses et des jeux.

To conduct a draw (in French only), a license must be obtained and specific rules must be followed. For more information, visit the Régie's website (in French only) and check the legislation in force in this regard.

4.2 Referring clients and offering gifts or other benefits

A real estate broker cannot promote the giveaway of gifts to people who refer clients to him. Therefore, an ad inviting the public to refer buyers or sellers in exchange for a gift or an amount of money is not permitted because referrals are considered as a real estate brokerage act.

Click here to view the example.

4.3 Remuneration and reductions and other benefits

Under certain conditions and in accordance with applicable rules, a real estate broker may offer his clients a remuneration reduction, a cash rebate, or other benefits and incentives and is authorized to advertise them.

Ads must specify who, of the real estate agency or broker, is offering the promotion. If it is the real estate broker, he must make sure not to lead others to believe that the promotion is offered by all real estate broker of his agency, if any.

In addition, the essential conditions for obtaining a rebate must appear in the ad. The promotion’s non-essential conditions must be available and a statement to this effect must appear in the ad.

The ad must indicate the duration of the promotion, otherwise it will apply until such time as the agency or broker publishes in the same medium or website a notice announcing that it is terminated.

Finally, when a discount is made to the seller, it constitutes a remuneration reduction. Any advantage offered to the buyer is more like a "gift" that will have to be paid independently from the agency’s remuneration. Moreover, it is recommended that "gifts" not be in the form of cash back. A gift certificate, for example, may be a preferable option. Note that the maximum acceptable value of gifts is not established.

Remember that real estate brokers must ensure that the promotion offered is not considered as a form of illegal remuneration sharing. It is prohibited to pay money to a person who does not hold a real estate brokerage licence and who has referred clients to the real estate broker.

Real estate brokers must ensure that the discount, rebate or benefit is not intended to favour one client over another, for example, in the context of multiple promises to purchase.