REBA Flashcards
[Regulation Respecting] The issue of broker’s and agency licenses ***
Provides rules concerning the issuance of licenses, including the documents and information to be provided upon application, license fees to be paid and causes of suspension and revocation
[…] Records and registers, trust accounting and inspection of brokers and agencies ***
Provides rules concerning the keeping, books and registers, trust accounting and inspection rule
[…] brokerage requirements, professional conduct of brokers, advertising and additional training ***
Provides rules for brokers and agency activities, including specific brokerage transactions relating to loans secured by immovable hypothec, rules of professional ethics, and rules for advertising and information on immovables
[…] disciplinary proceedings of the OACIQ
Provides rules concerning the syndics, the syndic decision review committee, and the discipline committee
[…] the RE indemnity fund and determination of the professional liability insurance premium
Provides rules for indemnity committee, claims and indemnities, and the indemnity fund fee and professional liability insurance premium
[…] contracts and forms
Provides terms and conditions of use for contract and forms, and the mandatory designations that must be specified within
[…] transitional measures for the application of the act
provides for amendments between old and new legislation
Professionals not required to hold a license from OACIQ to engage in brokerage transactions
- Advocates and notaries (in the exercise of their functions)
- Liquidators, sequestrators, syndics and bailiffs (in the exercise of their functions)
- Tutors, curators, liquidators of a succession, fiduciaries and trustees (in the exercise of their functions)
- Forest engineers (if the contract concerns a forest property)
- Chartered appraisers who exercise a function referred to in paragraph J of section 37 of the professional code
In addition to the following exceptions, the act applies to any person engaged in a brokerage transaction as an intermediary in return for remuneration
Missions of OACIQ
Primary is to protect the public in RE brokerage dealings
Dispense training courses to brokers or agency execs, with the exception of basic training for the purpose of obtaining a license
Advise Quebec Finance Minister, who is responsible for the administration of the REBA. Minister may require OACIQ to provide advice on any matter within their jurisdiction
Powers of the OACIQ
Act as a conciliator or mediator
Stop an advertisement
Make a search
Refuse to issue a license or suspend or revoke a license
Regulate
Determine specialist titles
Establish an insurance fund
Assistance department
Individuals who believe they have been wronged in the course of a brokerage transaction may seek assistance from OACIQ by contacting the Assistance Department
Roles are to:
- Analyze any requests submitted to the OACIQ
- Decide on the appropriate treatment for a given request
- Assist anyone in submitting a request
License Issue and Maintenance Committee (LIMC)
Responsible for everything relating to brokerage and agency licenses
Inspection Committee
Responsible for overseeing activities of brokers and agencies and for auditing their records, understandings, books and registers
Inspection may be conducted at OACIQ’s request, or on the Inspection Committee’s initiative
Potential inspector requests:
- Require any docs or info related to the application of the REBA
- Have access, at any reasonable hour, to the establishment of the broker or agency under inspection
- Examine records, accounts, books, registers, and any documents relating to the agency’s activities
Once the inspection is complete, Inspection Committee may make any recommendations it deems appropriate, notify the syndic ot the offence, or require a broker or agency exec to successfully complete a course or other training
Syndic
Appointed by OACIQ
Role of Syndic is to investigate, on the advice of the assistance department, any allegation of a breach of the REBA, or investigate if they have grounds to believe that an offence has been committed and, if warranted, file a complaint with the discipline committee
When investigating, syndic may question a license holder, interview any witness, issue a warrant against a witness who oes not wish to appear, conduct searches
Syndic Decision Review Committee (SDRC)
Any person who is not satisfied with the Syndic’s decision not to file a complaint following their request may request a ruling from the SDRC within a certain period of time. The request must be made in writing
Review process of the SDRC
- Review the entire file and all documents
- Hear the syndic
- Hear the person who requested the investigation
- Issue a decision
Possible opinions the review committee may issue
- Find that there is no cause for a complaint with the discipline committee and close the file
- Suggest that the Syndic complete the investigation and subsequently make a new ruling
- Find that there is cause to file a complaint and suggest that the syndic refer the case to the inspection committee to review certain points in greater depth
- Find that there is cause for complaint and suggest that an ad hoc syndic be appointed to the case
Discipline Committee
Act as a disciplinary court
Must deal with any complaint filed by syndic
Has power to hear or punish any license holder if found guilty
Disciplinary process
File a claim with the assistance department, which will examine the request and decide whether to forward claim to syndic
Syndic must investigate. If they do not find a complaint, must send its ruling to the complainant, who may request a review
Complaint is filed with the discipline committee. The accused must then provide their version of the facts in writing
Parties summoned before a hearing
Discipline committee decision and penalty
Possible appeal to the court of Quebec
3 Categories of penal offenses
Person uses the title of broker or agency but does not have the license to do so
Person practices the activity of a broker/agency but does not hold license to do so
Person hinders the work of an OACIQ inspector
Indemnity Committee
Responsible for receiving indemnity claims from the public and deciding on their admissibility
Real Estate Indemnity Fund (FICI)
Dedicated to payment of indemnities to victims of fraud, fraudulent tactics or misappropriation of funds for which a license holder is responsible (intentional/bad faith)
Managed by OACIQ
Prescription 2 years from knowledge of fraud
Suspension related to agency
License is suspended if agency’s license is suspended
Suspension/revocation reasons related to broker
Failed to pay any sum owing to the Insurance fund other than the premium
Failed to successfully complete any courses or training program required by any committee of the Organization
Failed to setup and maintain a trust (independent broker)
Failed to update info required under REBA
Failed to meet a requirement for the issue or maintenance of the license
Ceased to carry on activities for a license
Suspension of the agency license
Failed to pay any sum owing to the insurance fund
Exec officer failed to complete courses/training required by any committee of the Org
Failed to set up/maintain trust account
Agency failed to update any info/document required under REBA
Failed to meet qualifications required to head an agency
Failed to meet a requirement for the issue or maintenance of the license
Consequences of suspension
Cannot engage in brokerage transactions
Cannot use title of broker
Cannot engage in advertising, client solicitation, representation in relation to Real Estate brokerage services
Brokerage license revocation (Agency or broker)
Failed to pay required annual license fees or annual fees to RE indemnity fund or professional liability insurance premium
No longer has an establishment in Quebec
Failed to repay prn, int and costs of any amount imposed by a judgment that the RE indemnity fund was required to pay or failed to comply with an order made by a committee
Failed to pay or repay any amount of money owed to a party following a commitment made during mediation or conciliation
Through misrepresentation, obtained the issue or maintenance of a license or modification/lifting of a license suspension
Is no longer a Canadian citizen, no longer has perm. res. or no longer has a work permit (broker only)
In the event of default by the license holder, partners (in the case of a partnership) or directors (in the case of a legal person) (agency only)
Natural person holding an agency license no longer holds a brokerage license (agency only)
For brokerage activities engaged in occasionally, a person or partnership engaged in RE brokerage activities outside of Quebec may request special auth for a period of 12 months. Name the conditions
Must file an application specifying the reasons and prove that they are authorized to engage in brokerage transactions outside of QC
Enumerating specific purposes
Paying required fees
Paying fee to RE indemnity fund
Paying civil liability insurance premium
Person must be assisted by a holder licensed by OACIQ and comply with REBA
General requirements
Disclosure of professional status to clients
If conflict of interest cannot be avoided, must be disclosed without delay in writing
Must not neglect brokerage work to pursue other work
Must not discriminate
License holders must verify all information provided to the public or to another license holder and be able to prove its accuracy
License holder may not elude or avoid their professional civil liability (e.g. insert a clause in a contract of professional services that excludes that liability)
May never lend your name to anyone whose license is suspended, revoked, or never held a license
Every disclosure statement required under REBA must be written in plain language that is simple, clear and concise
Remuneration must be determined at the time of the signing of the BC, either in % or $
May not use or lend property placed in holder’s care by a party you represent or another party to a transaction
As soon as updated forms or new forms are available, license holder must stop using the old forms
Registers
Register of brokerage contracts
Register of transactions
- Transaction = accepted proposal
Accounting register of sums held in trust
Register of disclosure notices
Register of accounting of the broker or agency
Register of brokers acting on behalf of the agency
Records
Record for each brokerage contract
Record for all transaction proposals not accepted
Record for each transaction
Record for all disclosure notices
Record for all corporations within which brokers acting on behalf of the agency carry out their activities
Claim to indemnity fund admissibility
Request made in writing
Amount claimed is specified
Request identifies the license holder
Person/agency named in claim must be a broker/agency who held an OACIQ license at the time of the events
Request filed within a year of the date on which claimant became aware of act(s) in question
Request must include details, persons involved, witnesses and relevant supporting docs that can be used as evidence
Who can remuneration be shared with
Other license holders or person/partnership authorized to engage in Brokerage transactions outside of QC
Authorized person/partnership under section 3 of REBA
Independent representative or partnership within the meaning of the Derivatives Act
