Promoting one’s services: Reminder of rules to follow

The Public Assistance Department noted an increase in the number of requests for assistance received regarding advertising of agencies or brokers who offer money or gifts to people who find a buyer, seller or an owner wishing to refinance his property. In this regard, we deem it necessary to point out certain rules.

Are agencies or brokers allowed to offer benefits, gifts or money to promote their services?

Yes, the Real Estate Brokerage Act and its regulations allow brokers to offer reductions in remuneration, benefits or gifts to promote their services. It’s possible that a broker would like to thank a person who put him in contact with a buyer or seller to represent him in a transaction. However, the gift offered in exchange must not constitute a remuneration sharing.

To prevent a gift from being perceived by the Act and its regulations as an unauthorized remuneration sharing, it’s preferable not to be in the form of money. This could be a bottle of wine or a gift certificate for example. It’s difficult to precisely establish the acceptable value of such a gift. Everything depends on the circumstances.

It should be noted that brokers cannot promote the giveaway of gifts to people who refer clients to them. An ad inviting the public to refer buyers, sellers or homeowners who want to refinance their homes in exchange for a gift or an amount of money is not permitted. As referrals are considered as a brokerage act, the person receiving a gift could be sued for illegal brokerage practice.