Hiring a real estate broker is one of the first steps for most people in the process of buying or selling property. But changes in the law, which came into effect on June 10, 2022, have changed the way things are done in the field.
We will continue today to answer questions from our brokers that are still unclear to them.
Marc Lacasse, a real estate broker and president of the Professional Association of Real Estate Brokers of Quebec (APCIQ), testified. This is a big challenge. It is not easy, changes in the law, implementation and making people understand
Trusted person representing more than 15,000 brokers in Quebec.
The same article with the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ) which applies this law. Compared to 2021, there were 42,900 calls, he said. Increase in calls for legislative changes […] From brokers and consumers
. The Finance Ministry should release the figures for 2022 soon.
There will be no double representation in 2022
Prospective buyers will undoubtedly be most affected by changes in real estate brokerage legislation.
In the context of one-upmanship, many feel victimized by a lack of transparency and underrepresented in one of the most important transactions of their lives.
Average home prices won’t fall back in 2023 to return to pre-pandemic levels, but will stabilize soon after the recent slide, the Canada Mortgage and Housing Corporation (CMHC) said. (File Photo)
Photo: Radio-Canada / Olivia Laperriere-Roy
Therefore, since June, the principle of dual representation has been banned except for a few exceptions.
A permit holder may not have a brokerage-sale contract and a brokerage-purchase contract as part of the same transaction on the same property.
Names Sandra Barrett, director of the Information Intelligence Center OACIQ and verification serviceOACIQ.
If a broker is in a situation where he is double-representing himself, he must terminate his contract with the buyer, Ms. Barrett adds.
The purpose of this change is to fully respect the interests of the buyer.
Exceptions
Both exemptions may allow a broker to provide dual representation, particularly in remote areas where broker services are rare.
If no other permit holder is available to represent the buyer and his office is within 50 km from the fixed place, the broker may provide dual representation if the buyer’s client intends to undertake the purchase.
Agencies are also exempt. For example, if two brokers from the same agency work on the same transaction under separate brokerage contracts, they are not considered to be in a dual representation situation.
From June 2022, a real estate broker is prohibited from engaging himself in a conflict of interest by representing both the buyer and seller of the same property. This is called dual representation.
Photo: Credit: OACIQ
Contract-buying is now mandatory
Buyers must adhere to a contract-to-purchase to ensure they are fully representedOACIQ with their intermediary. This is the second change to the law: no more oral contracts.
To represent a client, you must sign a brokerage agreement with him. Representing him means protecting his interests, protecting his confidential and strategic information. when [un courtier] Brokerage has a contract for sale and purchase, which becomes an unsustainable situation for the broker because he cannot simultaneously honor the interests of both sides.
Hence the legislative changes, says Sandra Barrett.
Buyers should sign a purchase agreement with their broker to ensure they are fully represented.
Photo: iStock
That is why, after signing, the broker should inform the buyers that he can cancel the contract if he encounters a situation of dual representation.
If he has to cancel the contract, the broker should inform the buyer that his role is limited and cannot fully represent him, Ms. Barrette warned. He should also recommend representation by another broker.
Finally, if the client-buyer decides not to sign the contract-purchase, the broker must still grant it to him. Fair treatment
.
The Fair treatment
according toOACIQ : Provide information impartially on all the facts of the transaction as well as on the rights and obligations of all parties to the transaction, whether or not they are represented by a broker.
Adaptation
At the field level, these changes led to conditions Very complicated
, says Anne-Marie Lucier, real estate broker and administrative director at Royal Lepage Blanc & Noir, a real estate agency in Quebec. She finds that these changes don’t make sense to everyone and feel like an addition to their workload.
Anne-Marie Lucier, Real Estate Broker at Royal Lepage Blanc & Noir in Quebec
Photo: Radio-Canada
At the same time we need to educate our brokers on the changes in the law and bring in new procedures to explain how it works.
Marc Lacasse explainsAPCIQ.
Often, these changes lead to more interaction between brokers and clients. People will be more protected. On the other hand, we should not underestimate the time it will take us to inform and integrate all brokers in Quebec and subsequently all Quebecers who wish to transact.
.
i amOACIQ Implemented several online tools to assist brokers and clients. i amAPCIQ This will also contribute to the awareness raising effort. We document a lot. We address major issues between the two firms to monitor brokers and clients.
Marc Lacasse concluded.
About The Author
More Stories
Scotiabank customers can't get their pay: “We've fixed the problem”
His wife was badly beaten at CHSLD
Here is my response to Minister Pierre Fitzgibbon's insult about the school tax