What a brokerage contract or transaction proposal must contain
Mandatory statements in brokerage contracts and transaction proposals
commercial real estate leasing brokerage, there are no mandatory OACIQ forms for brokerage contracts or transaction proposals. Most brokerage contracts and transaction proposals in this field are documents drafted by the parties (lessor, lessee). However, OACIQ recommended forms may be used.
In all cases, a real estate broker who wishes to represent a client must set the terms of his service offer in a written contract that includes the price and remuneration terms.
As for the transaction proposal, the conditions of acceptance of the proposal must be indicated therein. In this regard, you may read the article Commercial immovable or enterprise: mandatory statements in any brokerage contract or transaction proposal.
Remuneration
Remuneration terms must be included in the brokerage contract. If a broker representing a lessee or a lessor chooses not to use the OACIQ form, he must ensure to set down in writing the terms of his remuneration. It is important to respect the exclusive nature of the commercial brokerage contract, even if it does not use the OACIQ form.
In commercial leasing brokerage, it is possible for a broker representing the lessee to enter into a remuneration sharing agreement with the lessor under the following conditions:
- The lessor is not represented;
- The agreement is disclosed to the lessee before the drafting of the promise to lease.
If the lessor is represented by a person who is not licensed or specially authorized by the OACIQ, the broker representing the lessee may share his remuneration with this person under a written agreement disclosed to his client.
For more on this topic, read the article Commercial brokerage: Are the rules relating to remuneration sharing and the exclusive nature of a brokerage contract different?
Beware of verbal agreements that sometimes occur in commercial brokerage. To ensure the protection of all parties to a transaction, the broker must ensure that their rights and obligations are recorded in writing and that they reflect their wishes.1 Collaboration problems can arise from the absence of a written contract, especially when it comes to remuneration.
1 S. 86 Regulation respecting brokerage requirements, professional conduct of brokers and advertising
