Real Estate Brokers Ask the Minister of Finance to Better Protect the Public

L'ÎLE-DES-SŒURS, QC, Sept. 30, 2015 /CNW Telbec/ - The Québec Federation of Real Estate Boards (QFREB) is making public the brief it has written in response to the Finance Department's Report on the Application of the Real Estate Brokerage Act.

The 13,000 real estate brokers who are members of the province's twelve real estate boards want the Real Estate Brokerage Act to be clarified in order to improve the concept of public protection in the property resale sector.

Currently, real estate brokers are governed by the Real Estate Brokerage Act and the regulations that stem from this law. Real estate brokers' professional services must comply with ethical requirements and certain professional duties. Consumers who use the services of a broker are protected by the Fonds d'indemnisation du courtage immobilier (compensation fund) and the Professional Liability Insurance Fund.

However, in recent years, we have seen new stakeholders appear in the property resale sector: real estate coaches and advisers. Often, once these For-Sale-By-Owner (FSBO) companies are hired, they advise and accompany their selling clients without adhering to the requirements of the Real Estate Brokerage and Act and other regulations.

"These coaches and advisers confuse the public by using titles that are derived from that of a real estate broker and they provide consulting services that are similar to those of a real estate broker," said Mr. Patrick Juanéda, president of the QFREB. "However, these coaches and advisers are not trained in real estate and do not offer any protections should something go wrong, since they are not governed by a professional authority. It is clear that consumers are putting themselves at risk when they use the services of these companies," added Mr. Juanéda.

The QFREB is therefore asking Québec's Minister of Finance, Mr. Carlos Leitão, to clarify the Real Estate Brokerage Act so that these real estate coaches and FSBO companies are subject to the provisions of the Act. The real estate playing field must be the same for everyone so that buyers and sellers are better protected and to eliminate confusion among the public. As it currently stands, the public would have a hard time understanding the differences between real estate brokerage companies and FSBO companies.

The property resale market is an important component of the province's economy. For many Québec households, buying or selling a home is the largest transaction of their lives. Public trust and the protection of buyers and sellers must be the central focus in the upcoming legislative reform.

"Would we accept investment coaches providing financial advice, as opposed to a securities broker or financial planner? Of course not, because the public would obviously be at risk. The same logic applies to the property resale sector," concluded Mr. Juanéda.

About the Québec Federation of Real Estate Boards

The Québec Federation of Real Estate Boards is a non-profit organization composed of Québec's 12 real estate boards and the close to 13,000 real estate brokers who are their members. Its mission is to promote and protect the interests of Québec's real estate industry so that the boards and their members can successfully meet their business objectives.

SOURCE Fédération des chambres immobilières du Québec

Source: Québec Federation of Real Estate Boards; For more information: Josée Labrie, Coordinator, Writing and Communications, Communications and Public Relations, 514-762-0212, ext. 222, [email protected]; Manon Stébenne, Manager, Communications and Public Relations, 514-762-0212, ext. 157, [email protected]