REBA

Question 1

[Regulation Respecting] The issue of broker’s and agency licenses ***

Answer 1

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

Question 2

[…] Records and registers, trust accounting and inspection of brokers and agencies ***

Answer 2

Provides rules concerning the keeping, books and registers, trust accounting and inspection rule

Question 3

[…] brokerage requirements, professional conduct of brokers, advertising and additional training ***

Answer 3

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

Question 4

[…] disciplinary proceedings of the OACIQ

Answer 4

Provides rules concerning the syndics, the syndic decision review committee, and the discipline committee

Question 5

[…] the RE indemnity fund and determination of the professional liability insurance premium

Answer 5

Provides rules for indemnity committee, claims and indemnities, and the indemnity fund fee and professional liability insurance premium

Question 6

[…] contracts and forms

Answer 6

Provides terms and conditions of use for contract and forms, and the mandatory designations that must be specified within

Question 7

[…] transitional measures for the application of the act

Answer 7

provides for amendments between old and new legislation

Question 8

Professionals not required to hold a license from OACIQ to engage in brokerage transactions

Answer 8

• 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

Question 9

Missions of OACIQ

Answer 9

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

Question 10

Powers of the OACIQ

Answer 10

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

Question 11

Assistance department

Answer 11

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

Question 12

License Issue and Maintenance Committee (LIMC)

Answer 12

Responsible for everything relating to brokerage and agency licenses

Question 13

Inspection Committee

Answer 13

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

Question 14

Syndic

Answer 14

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

Question 15

Syndic Decision Review Committee (SDRC)

Answer 15

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

Question 16

Possible opinions the review committee may issue

Answer 16

• 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

Question 17

Discipline Committee

Answer 17

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

Question 18

Disciplinary process

Answer 18

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

Question 19

3 Categories of penal offenses

Answer 19

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

Question 20

Indemnity Committee

Answer 20

Responsible for receiving indemnity claims from the public and deciding on their admissibility

Question 21

Real Estate Indemnity Fund (FICI)

Answer 21

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

Question 22

Suspension related to agency

Answer 22

License is suspended if agency’s license is suspended

Question 23

Suspension/revocation reasons related to broker

Answer 23

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

Question 24

Suspension of the agency license

Answer 24

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

Question 25

Consequences of suspension

Answer 25

Cannot engage in brokerage transactions Cannot use title of broker Cannot engage in advertising, client solicitation, representation in relation to Real Estate brokerage services

Question 26

Brokerage license revocation (Agency or broker)

Answer 26

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)

Question 27

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

Answer 27

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

Question 28

General requirements

Answer 28

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

Question 29

Registers

Answer 29

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

Question 30

Records

Answer 30

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

Question 31

Claim to indemnity fund admissibility

Answer 31

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

Question 32

Who can remuneration be shared with

Answer 32

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