What will happen to brokerage contracts in progress if a broker’s licence is not maintained on April 30 or suspended?

The OACIQ regulations provide a mechanism to be followed for brokerage contracts in progress when a real estate broker fails to maintain his licence, update his information or complete his 2023-2025 cycle of the Mandatory Continuing Education Program (MCEP).

If the real estate broker is acting for an agency and notifies his agency executive officer, before April 30, of his intention not to maintain his licence

The real estate agency will immediately notify in writing clients that their broker will cease his activities on April 30, or the broker may do so himself by giving them the option to:

1. remain contractually bound to the agency which will appoint another broker to replace him; or
2. terminate the brokerage contract.

In this regard, the real estate agency or broker can use the Notice D. In this case, the notice must be adapted to include the term “ceased” to carry on his activities.

Failure to receive a notice of termination from clients, the real estate broker’s brokerage contracts will continue with the agency, represented by the new appointed broker.

If the real estate broker is acting for an agency, but does not notify his agency executive officer that he will not maintain his licence on April 30

Brokerage contracts will continue to be valid after April 30. However, the real estate agency shall notify clients immediately and in writing that their broker’s licence is revoked and give them the option to:

1. Remain contractually bound to the real estate agency which will appoint another broker to replace him or
2. Terminate the brokerage contract

In this regard, the real estate agency or broker can use the Notice D. In this case, the notice must be adapted to include the term “ceased” to carry on his activities.

Failure to receive a notice of termination from clients, brokerage contracts of the real estate broker whose licence is revoked will continue with the real estate agency, represented by the new appointed broker.

If the real estate broker is acting on his own account and does not maintain his licence on April 30

The real estate broker acting on his own account shall notify his clients immediately in writing that he will cease or ceased his activities on April 30. This real estate broker’s brokerage contracts shall be deemed to have been terminated as of the date his licence is revoked.

In this regard, he can use the Notice P.com. In this case, the notice must be adapted depending on his situation.

If the real estate broker acting on behalf of an agency maintains his licence on April 30, but his licence is suspended, including when he fails to update his information or complete his 2023-2025 cycle of the Mandatory Continuing Education Program (MCEP)

Brokerage contracts will continue to be valid. However, the real estate agency shall notify clients immediately and in writing that their real estate broker’s licence is suspended and give them the option to:

1. Remain contractually bound to the agency which will appoint another real estate broker to replace him or
2. Terminate the brokerage contract

In this regard, the real estate agency or broker can use the Notice D. In this case, the notice must be adapted depending on their situation.

Failure to receive a notice of termination from clients, brokerage contracts of the broker whose licence is suspended will continue with the agency, represented by the new appointed broker.

If the real estate broker is acting on his own account maintains his licence on April 30, but his licence is suspended, including when he fails to update his information or complete his 2023-2025 cycle of the Mandatory Continuing Education Program (MCEP)

This real estate broker's brokerage contracts will be deemed terminated as of his licence suspension date. The broker must immediately notify clients in writing.

In this regard, he can use the Notice P. In this case, the notice must be adapted depending on his situation.

To learn more, read:

• A suspended or revoked licence bars the holder from practicing
• Ceasing of activities by a broker acting on behalf of a real estate agency

Note:The real estate agency or broker’s obligations to notify clients in the situations mentioned above are provided in the brokerage contract forms. Section 24 of the Regulation respecting brokerage requirements also states that “An agency that has entered into a brokerage contract must without delay notify the contracting party in writing of any change in the identity of the broker acting for the agency with the contracting party”.