A Broker’s Legal Obligations: Buyer Protection!

A broker is a licensed professional that must adhere to a strict set of legal obligations to ensure they follow ethical practice standards in compliance with applicable laws.

The Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), is chiefly responsible for protecting the public by enforcing this self-employed worker’s obligations. Read on to learn more about your broker’s legal obligations.

1. Hold a Valid OACIQ License

All real estate brokers practising in Québec must hold a licence issued by the OACIQ. This licence certifies that they have completed the required training and passed the certification examination.

They must also renew their licence regularly and undergo ongoing professional training on market developments and regulatory changes.

At RE/MAX, brokers are well supervised and have the opportunity to receive training to improve their skills in specific fields, in addition to the mandatory training required to keep pace with industry developments.

Nathalie Bégin

Real estate broker

2. Comply With the Professional Code of Ethics

Real estate brokers are likewise subject to a Code of Ethics that governs their professional conduct. This code’s provisions include

the duty to conduct all transactions with integrity and honesty;
the duty to act with transparency with all their clients;
the duty to protect the confidentiality of the information they receive (the broker can’t divulge their clients’ private or financial information);
the duty to give their clients all relevant advice and information.

3. Act in Their Client’s Best Interest

Furthermore, brokers are legally obligated to act in their client’s best interests, whether they’re representing a buyer or a seller. This means the broker must

provide impartial and objective advice;
research the best opportunities and present them to their client;
protect their client’s legal and financial interests.

4. Verify and Divulge Essential Information

A broker must ensure that all information provided about a property is accurate and complete.

Above all, they must disclose any information that could affect a property’s value, such as the presence of known hidden defects, restrictions related to the property, or events in the property’s history (major renovations, past damage, etc.).

5. Respect Their Contractual Obligations

When a broker signs a brokerage contract with a client, they promise to act in accordance with the agreed terms and conditions. The broker must

carry out the tasks specified in the contract;
respect the brokerage contract’s term and clauses;
negotiate on behalf of their client in all good faith.

6. Comply With Applicable Laws

In addition to the OACIQ’s regulations, real estate brokers must equally abide by a number of Québec and Canadian laws, including the Real Estate Brokerage Act, the Consumer Protection Act, the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (under which brokers must, namely, report any suspicious real estate transactions), as well as several others!

Did You Know?

Although not legal experts, brokers are well versed in real estate legislation. This allows them to serve their clients more effectively.

7. Have Professional Liability Insurance Coverage

All brokers must be covered by professional liability insurance. This protects the client should the broker commit an error, fault, or omission in the course of their work. How reassuring!

8. Submit to the OACIQ’s Disciplinary Procedures

If a client believes that a broker has failed to fulfil their obligations, they can file a complaint with the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), which has the authority to investigate and impose sanctions. In the event of financial loss, the client may also obtain compensation from the Fonds d’assurance responsabilité professionnelle du courtage immobilier du Québec (FARCIQ), which protects the public through broker liability coverage.