I Got a Promotion...and Other Changes to Real Estate Law in Quebec

By
Real Estate Agent with RE/MAX Royal (Jordan)/Ready, Set...Sold! www.readysetsold.ca

I got a promotion but I swear I'm not bragging because it has everything to do with changes to real estate law in Quebec and nothing to do with anything I did to deserve the promotion.  But I got it just the same, as did all real estate agents in Quebec.

What happened?  On May 1, 2010, the new Real Estate Brokerage Act came into effect in Quebec.  As part of this, I got a promotion from real estate AGENT to real estate BROKER, as did all real estate agents in Quebec.  Other changes will be implemented over the next 18 months.

Legal gavelHere are some of them:

  • It used to be that real estate agents worked for real estate brokers.  Now, real estate brokers work for real estate agencies.  Agents turned into brokers overnight, and brokers turned into agencies.

 

  • We now must disclose to our clients, in writing, the commission we intend to share with a buyer's broker (called a collaborating broker).  The disclosure states that an unreasonable sharing commission or remuneration could reduce a collaborating broker's interest in proposing this property to their buyers.  

 

  • The conflict of interest rules are more stringent.  A real estate broker can no longer represent a seller if the broker intends to purchase that seller's property.  And a real estate broker can no longer represent the buyer in the sale of the broker's own property.

 

  • When a real estate broker decides to change agencies, the client who is already in a contract with that broker now has three choices: 1.  to follow the broker to the new agency; 2. to stay with the current agency, without the broker in question; or 3. to terminate the contract.  Previously, the client could not request to follow the broker to the new agency without first terminating their contract.  (The principle was that the client's contract was with the agency, not the broker.  The broker merely represented the agency.)

 

  • We are now required to check the identity and legal capacity of the parties to a real estate transaction.  Previously, this was simply good practice.  Now it is a requirement.

 

  • We are now required to recommend to someone proposing to buy a property that they have it inspected by a building inspector or other professional.  Again, previously this was simply good practice.

 

  • The rules have been relaxed regarding the minimum amount of information that must go on advertising or any other representation by a broker or agency.  (Hooray!)

 

  • chalkboard with word "exam" written on itThe exam to obtain a real estate brokerage license or mortgage broker license has changed significantly.  Previously the exam was a multiple-choice format with a minimum passing grade for the exam as a whole.  Now, it is competency based, with minimum-pass requirements for each subject area, and apparently it is much more difficult.

 

  • The forms we use will continue to be used for the next 18 months, at which point new forms will come into effect.

 

  • Higher fees for real estate brokers!!  With all of these changes come increased annual dues, of course, and a requirement that license holders like me pay our professional liability insurance ourselves.  (My broker agency used to pay for it.)

Nota bene: I am NOT a lawyer, and the above information is not intended as legal advice.  This is my interpretation of the changes that have come, or are coming, into effect based on the information provided to date by our governing organization, the Organisme d'autoréglementation du courtage immobilier du Québec (OACIQ).

I will be formally trained in the new Real Estate Brokerage Act on July 13.  If I learn more about the changes then, I'll of course share them here.

How do these changes compare with the law governing real estate in your jurisdiction? 

Posted by

 

 

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I stage all of my listings and hire a professional photographer...at no charge to my sellers.  It's part of my service package as a Montreal West Island real estate broker.  

Professional home staging and professional photography: two critical factors to making sure your home looks its best, both in person and on the Internet, and neither of them cost you a penny when you list with me.

Put your best house forward.

Tanya Nouwens

Montreal Real Estate Broker, RE/MAX Royal (Jordan) Inc., www.remax-quebec.om

Owner & President, Ready, Set...Sold!, a Montreal Home Staging Company  www.readysetsold.ca 

T. 514-919-8468    tanya@readysetsold.ca

RE/MAX Royal (Jordan) logoLogo for Ready, Set...Sold! Inc.

 

This blog is written with my opinions. My opinions are presented with accuracy but not guarantees. Copyright Tanya Nouwens - 2012. If you want to reprint parts of this, just email me for my permission at tanya@readysetsold.ca.

 

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Location:
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Posts to Localism
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Tags:
quebec real estate brokerage act
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changes to real estate law in quebec
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Comments 13 New Comment

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Rainmaker
894,344
Brian Madigan
LL.B., Broker
RE/MAX West Realty Inc., Brokerage (Toronto)

Tanya,

I have noted some of the differences from Ontario law, and this seems more progressive.

Brian

June 29, 2010 09:10 PM
Rainmaker
864,435
Jane Peters
Connecting you to the L.A. real estate scene
Power Brokers Int'l

Your new rules look look a lot more like our existing ones.  I can't believe what you guys got away with in the past.  I would love a promotion to broker without having to take the exam.

June 29, 2010 10:08 PM
Rainmaker
297,787
Larry Estabrooks
REALTOR®, Moncton-NB-Canada
Undivided Loyalty from an Independent Real Estate Agent

Tanya, in New Brunswick (an officially bilingual Province) since 1983 the Real  Estate  Agents  Act provides for three types of real estate licences, in English and French:

  • Agent - Agent   (the top level licence issued to an individual or a corporation)
  • Manager - gérant   (issued when the Agent is not an individual as in the case of a corporation or partnership)
  • Salesman - vendeur
June 30, 2010 09:57 AM
Rainer
35,853
Mahmoud H. Hussein

Information will presented, what about business brokers are they still regulated by the real estate brokerage act? I heard that with the new ACT it’s not mandatory to get licensed.

June 30, 2010 05:54 PM
Rainmaker
185,134
Tanya Nouwens
Montreal Real Estate Broker & Stager
RE/MAX Royal (Jordan)/Ready, Set...Sold! www.readysetsold.ca

Tammy: Still growing into my new title : )  We were not required to disclose how much we were sharing but I can't imagine not doing so anyway.  It's part of the sales strategy, no?  And we were  always required to put it right into the MLS listing and then provide a copy of the listing to our clients anyway.

Bob: I am thankful to live here.  My heart dragged me here...for my husband : )

Sergio:  Thank you very much.  And yes, the amount of info we were required to provide was a bit much.

Brian: I know this is your domain so I'll take your word for it.

Jane: You can have it too, cherie. Just move to la belle ville : )

Larry: Very interesting to learn about the differences between jurisdictions, even within the same country.

Mahmoud: Thank you.  My reading of the information is that the Real Estate Brokerage Act provides for two kinds of licenses: real estate broker and mortgage broker.  Not sure what happens with a business broker.  I'm sure the OACIQ will tell you, or perhaps the FAQs they put out on the Synbad web-site.  Hope you're doing well.

 

June 30, 2010 06:12 PM
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Rainmaker
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Tanya Nouwens

Montreal Real Estate Broker & Stager
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