Profession Broker February 2013 Page 4

Profession Broker February 2013

Discover

good practices

The OACIQ Syndic invites you to discover his monthly series,
available on Synbad homepage. You will find therein scenarios
which are in direct line with your practice. You may also test
your knowledge by answering our quiz questions! You auto-
matically know if your answer is correct and why.

Do not miss

SenDIng FAlSe DOCumenTS

series which is

now online.

The broker who buys the property covered by

his brokerage contract
The good practice

Many breaches of ethical obligations were identified in this
scenario.

Section 22 of the

Regulation respecting brokerage requirements,

professional conduct of brokers and advertising

is clear and sets

out the conduct to be adopted when a broker offers to buy the
property that is the subject of his existing contract. In this con-
text, the broker must terminate his brokerage contract, since he
cannot defend both the seller's interests and his own interests.

Indeed, when a broker offers to buy his client's property, he is no
longer acting as an intermediary and therefore is not entitled to
remuneration.

The broker is also strongly advised to abstain from receiving a
proxy from his client, under any circumstances, as this may strong-
ly place him in a conflict of interest situation with the latter.

For more information on this topic, we encourage you to read the
following article: "

Marketing plan with guarantee of sale

" on our

website at www.oaciq.com.

Down payment
The good practice

The acts committed by the broker in this scenario shows things
that are unfortunately very often criticized by financial institutions.
Do not forget that the broker must check, in accordance with
generally accepted practices and usage, any information he pro-
vides to public or to another broker, and must be able to demon-
strate the accuracy of this information.

The broker has not only failed to comply with this rule, but has also
initiated it and was likely to cause harm to all stakeholders.
Although he was not the leader, a broker cannot in any case par-
ticipate in a fraud, even by the mere fact of completing a

Promise

to purchase. Courts have often stated that a willful blindness is
equal to knowledge!

Therefore, I encourage you to act with integrity; this virtue is to
scrupulously observe the rules of social morality and the duties
imposed by honesty and justice.

REmINdER

With every new series, you are invited to submit your questions
or share with us your comments by completing the

Questions

or comments section about the subject. The following month,
at the same place, we publish our answers to key questions that
caught your attention, if applicable, and the good practice asso-
ciated with the scenario.

Here are the good practices regarding November and Decem-
ber series. For a better understanding of their context, feel free
to go back and read the related scenario.

Syndic series

Obligation

to recommend

a building inspector

who has professional

liability insurance

Section 81 of the Regulation respecting brokerage require-
ments, professional conduct of brokers and advertising pro-
vides that a broker or agency executive officer must notably:

recommend to the person proposing to acquire an immov-

able that the person have a full inspection performed by a
professional or a building inspector who [...] has professional
liability insurance covering fault, error and omission".

The same section also stipulates that the broker or agency exec-
utive officer may "

furnish a list of more than one professional or

building inspector meeting the requirements".

Thereby, the broker or agency executive officer who recommends
a building inspector member of a professional order or a recog-
nized association of building inspectors is deemed to have made
the necessary prior checks and made sure that this inspector
meets the requirements of section 81, particularly in regard to
insurance.

In addition, the broker or agency executive officer may still refer
his client to a building inspector who is not a member of a profes-
sional order or an association recognized by the OACIQ. In such a
case, the broker or agency executive officer must make sure to
verify whether the inspector he recommends meets each of the
requirements set out in section 81, including that of having pro-
fessional liability insurance covering fault, error and omission.

For this purpose, we encourage you to read on our website the
article no. 119996 entitled "

Compliance with building inspection

rules: this concerns you closely