2023-06-01 09:44:31
Hiring a real estate broker is one of the first steps for many people in the process of buying or selling a property. But changes to the law, in effect since June 10, 2022, have changed ways of doing things in the field.
We continue, even today, to answer questions from our brokers that are still not clear to them.
testifies Marc Lacasse, real estate broker and president of the Professional Association of Real Estate Brokers of Quebec (APCIQ). It was a big challenge. It’s not easy, changes in the law, to apply and make people understand
believes the one who represents more than 15,000 brokers in Quebec.
Same story with the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), which applies this law. He notes, compared to 2021, when 42,900 calls were received, an upsurge in calls for legislative changes […]from both brokers and consumers
. The Ministry of Finance should soon unveil the figures for 2022.
No more double representation in 2022
Future buyers are undoubtedly the most affected by the changes to the Real Estate Brokerage Act.
In a context of one-upmanship, many had the impression of being victims of a lack of transparency and of being less well represented in view of one of the most important transactions of their lives.
Average home prices won’t retreat in 2023, back to pre-pandemic levels, but should soon stabilize after the recent slide, the Canada Mortgage and Housing Corporation (CMHC) said. (File photo)
Photo : Radio-Canada / Olivia Laperrière-Roy
Thus, since June, the principle of dual representation has been prohibited, except for a few exceptions.
A permit holder cannot have a brokerage-sale contract and a brokerage-purchase contract as part of the same transaction, on the same property
specifies Sandra Barrette, director of the Information Intelligence Center OACIQ and the certification service of theOACIQ.
If a broker finds himself in a situation of double representation, he must necessarily terminate his contract with the buyer, adds Ms. Barrette.
The purpose of this change is to ensure that the buyer’s interests are fully met.
Exceptions
Two exceptions may allow a broker to do dual representation, particularly in remote areas, where the services of a broker are rare.
If no other permit holder is available to represent the buyer and his office is located within a radius of 50 km from the immovable for which the buyer client intends to make a promise to purchase, the broker can provide dual representation.
Agencies are also exempt. For example, if two brokers from the same agency bound by separate brokerage contracts work on the same transaction, they are not considered to be in a situation of dual representation.
Since June 2022, it is prohibited for a real estate broker to place himself in a conflict of interest by representing both the buyer and the seller regarding the same property. This was called dual representation.
Photo: Credit: OACIQ
The contract-purchase now mandatory
To ensure that they are fully represented, buyers must be bound by a contract-purchase of theOACIQ with their broker. This is a second change to the law: no more verbal agreements.
To represent a client, you must have signed a brokerage contract with him. Representing him means defending his interests, protecting his confidential and strategic information. When [un courtier] has a brokerage contract for the sale and for the purchase, it becomes an unsustainable situation for the broker because he cannot simultaneously respect the interests of both sides
hence the legislative changes, says Sandra Barrette.
To ensure that they are fully represented, buyers must be bound by a purchase contract with their broker.
Photo : iStock
This is why, upon signing, the broker must inform the buyers that he may be able to terminate the contract if he is faced with a situation of dual representation.
If he has to terminate the contract, the broker must inform the buyers that his role is becoming limited and that he will not be able to fully represent him, warns Ms. Barrette. He must also recommend that he be represented by another broker.
Finally, if the client-buyer decides not to sign a contract-purchase, the broker must still grant him fair treatment
.
The fair treatment“,”text”:”fair treatment””>fair treatment
according to’OACIQ : objectively provide information on all the facts relevant to the transaction as well as on the rights and obligations of all parties to the transaction, whether they are represented by a broker or not.
Adaptation
On the ground, these changes have led to situations plus complexes
, says Anne-Marie Lussier, real estate broker and administrative director at Royal LePage Blanc & Noir, a real estate agency in Quebec. She finds that these changes are not understood by everyone and are often perceived as an addition to their workload.
Anne-Marie Lussier, real estate broker at Royal LePage Blanc & Noir, in Quebec
Photo : Radio-Canada
At the same time that we have to educate our brokers on the changes in the law, we also have to bring them new approaches, how to explain how it will happen
illustrates Marc Lacasse, of theAPCIQ.
Often, these changes result in more interaction between brokers and clients. The public is much more protected. On the other hand, we should not underestimate the time that it can take us for the information to be communicated and integrated to all brokers in Quebec and after that, to all Quebecers who want to make a transaction.
.
L’OACIQ has implemented several online tools to help brokers and clients. I’APCIQ also contributes to this awareness-raising effort. We document a lot. We will communicate the major issues between the two organizations to supervise both brokers and clients.
concludes Marc Lacasse.
1685620736
#Real #Estate #Brokerage #Act #Misunderstood #Quebec