building inspections must be regulated

Transcription

The publication for Québec real estate brokerage professionals
Volume 5 | Number 2 | July 2005
The real estate community agrees:
building inspections
must be regulated
Stakeholders in the real estate sector are unanimous in their opinion that the time has come to act in order to control and regulate building inspections. Representatives from the Association
des courtiers et agents immobiliers du Québec (ACAIQ), the Quebec Association of Building Inspectors (QABI) and several professional bodies that include engineers, technologists, architects
and chartered appraisers have concluded that the prevailing situation regarding building inspections conducted as part of real estate transactions poses obvious risks to the protection of the
public and the credibility of the inspectors themselves. All were gathered last April to take part in an education event organized in La Malbaie by the ACAIQ.
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ASSOCIATION DES COURTIERS ET AGENTS IMMOBILIERS DU QUÉBEC
6300 AUTEUIL, SUITE 300, BROSSARD (QUÉBEC) J4Z 3P2
TELEPHONE: (450) 676-4800 OR 1 800 440-5110 • FAX: (450) 676-7801
[email protected] • WWW.ACAIQ.COM
Publications Mail • Agreement No. : 40065526
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has come to act to ensure the protection of
the public and regulate this practice.
Participants also discussed the many
problems that inspectors encounter when
trying to get professional liability insurance coverage. The loss of credibility,
a direct consequence of the presence of
unqualified inspectors, has led to astronomical hikes in insurance premiums and
even to a systematic denial of coverage by
insurers.
In their opinion, essential to remedy
this situation are the implementation of
standards of practice common to all building inspectors and the creation of a central
registry of inspectors who meet regulatory
requirements and are covered by professional liability insurance.
Regulating the practice will require
such things as a definition of the very
framework of building inspections and of
the role of all stakeholders, i.e. not only
the inspectors themselves, but also real
estate agents, buyers and sellers, whose
declarations about the immovable are vital
to the production of an inspection report
that is credible and accurate.
As for the ACAIQ, it has clearly
stated in its comments on the Report on
the Application of the Real Estate Brokerage Act that it recommends this activity
be governed by law, which is essential to
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guarantee the protection of the public.
This way, building inspectors would be
governed by regulations and a code of ethics in addition to being covered by professional liability insurance.
“The ACAIQ has already issued
guidelines to real estate brokers and
agents. These are first and foremost aimed
at providing buyers with the best possible
advice in this area. In addition, together
with the Quebec Association of Building Inspectors, we have developed a set of
Standards of Practice, a Service Agreement
and a Declarations by the Seller form that
could be used by all inspection professionals”, commented President and CEO
Robert Nadeau.
The ACAIQ has said that it is
willing to discuss with other stakeholders
its potential role in the application of this
new supervisory structure, which it
would like to see implemented as soon
as possible.
Photo : Zonart7
C
urrently in Québec, building
inspections are not subjected
to any rules or governed by any
codes. This means that anyone can call
themselves a building inspection specialist,
which can cause serious damage to the real
professionals. It is estimated that half of
the 500 inspectors who work in this sector
have no insurance, no recognized training
and no code of ethics. They are acting in a
complete legal void. The other half of the
inspectors, who are members of the QABI
or of one of the professional bodies represented at the meeting, feel that the time
The panel on building inspection oversight included Sylvain Dionne, President of the Quebec Association of Building
Inspectors, Claude Tanguay, representative from the Ordre des architectes du Québec, Robert Nadeau, President and
CEO of the ACAIQ, Denis Beauchamp, General Manager and Secretary of the Ordre des technologues professionnels
du Québec, Céline Viau, General Secretary of the Ordre des évaluateurs agréés du Québec, and Claude Lizotte, Director of Professional Affairs at the Ordre des ingénieurs du Québec.
Elections
to the ACAIQ Board of Directors
M
r. David J. Farber and Mrs. Johanne
Roy were re-elected and elected
to the ACAIQ Board as Director for the
Montréal region respectively. The counting of the votes took place on May 31 at
the Association’s offices. Other candidates
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in the running were Mrs. Jacinthe Daigle,
Mr. Jocelyn Gagnon and Mr. Paul Robert.
Remember that having been the only
candidates to apply for the positions of
Chairman of the Board and Board Director, Western Region respectively, outgoing
candidates Serge Brousseau and Robert
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Aubin were re-elected to these positions
by acclamation at the close of the nomination period, on Friday, March 18, 2005
at 4:00 p.m.
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To practice the activity of real estate broker or agent
Lawyers, like notaries, must act
“in the course of their practice” or be members
of the ACAIQ
I
n February 2005, the Court of Québec
ruled in another case involving the illegal practice of the activity of real estate
broker or agent, this time against a lawyer.
The decision in Association des courtiers et
agents immobiliers du Québec v. Carrier 1
confirms that lawyers or notaries may
only carry out acts reserved for real estate
brokers and agents as part of a general
mandate entrusted to them in their capacity as lawyer or notary.
In this case, the ACAIQ essentially
reproached the lawyer for entering into an
agreement with a municipality that owned
some real estate, under which he was authorized to sell the lots, buildings, equipment and goodwill in return for compensation of 8% of the selling price. In the
end, a lease was signed with an option to
purchase. The compensation was amended
accordingly to the payment of $5,000 a
year for the term of the lease. Two invoices
were sent by the lawyer, payable in 2003
and 2004 respectively.
The Court recognized from the outset
the evidence that the lawyer had practiced
the activity referred to in section 1 of the
Real Estate Brokerage Act 2 without holding
a real estate broker or agent certificate.
The lawyer argued that he was not governed by the Act because of the exemption
provided under section 2 (1), saying there
was no doubt that he had always been
acting in his capacity as lawyer. The Court
had to establish whether he had acted in
his capacity as lawyer “in the course of
his practice” in order to determine if the
exemption applied in this case.
As in the decision in Association des
courtiers et agents immobiliers du Québec v.
St-Pierre 3, the Court ruled that the lawyer
could not use his title exclusively to engage
in a real estate brokerage transaction. In
addition, he had to show that he was engaging in a brokerage act in the course of
his practice as a lawyer – in other words as
part of a general mandate entrusted to him
as a lawyer –, which he was unable to do.
He was therefore found guilty of illegally
practicing the activity of real estate broker
or agent.
Two similar cases
In our October 2004 edition, we reported
on two previous decisions handed down
by the Court of Québec in Association des
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courtiers et agents immobiliers du Québec v.
St-Pierre4 and Association des courtiers et
agents immobiliers v. Hudon5 . Although
these two cases involved notaries, they
raised the same issues as the case of lawyer
Carrier.
The ACAIQ had then sued the
notaries for illegally practicing real estate
brokerage. In its decisions, the Court recognized that the exemption under section
2 (1) of the Real Estate Brokerage Act applied to lawyers and notaries who engaged
in a real estate brokerage act incidentally,
in the course of their normal practice.
In other words, the Court ruled that the
brokerage transaction had to be secondary
to the lawyer’s or notary’s normal practice
and not represent the main object of the
mandate entrusted to them.
1 EYB 2005-86003 (C.Q.).
2 R.S.Q., c. C-73.1, hereinafter the Act.
3 REJB 2004-70012 (C.Q.).
4 REJB 2004-70012 (C.Q.).
5. REJB 2004-70014 (C.Q.) and REJB 2004-70013.
These decisions were upheld by the Superior Court
( Hudon v. Association des courtiers et agents
immobiliers du Québec, EYB 2005-87195 (S.C.) ;
Application for leave to appeal, C.A. Québec, 20010-001732-051, March 23, 2005 ; Withdrawal of an
appeal, C.A. Québec, 200-10-001732-051, April 18,
2005).
Notice of suspension of certificate
(file: 33-04-0781)
NOTICE is hereby given that Mr. Stéphane
Bisson, chartered real estate agent (certificate No.
A3193) employed by or authorized to act on behalf
of Olivex, chartered real estate broker (certificate
No. D2343) whose establishment is located at 72
Saint-Raymond Blvd. in Gatineau, has been found
guilty by the Discipline Committee of the Association des courtiers et agents immobiliers du Québec
of the offence summarized below:
1st count: During the year 2001, failing to demonstrate integrity, committing an act that is derogatory to the honour and dignity of the profession,
using unfair competition and solicitation practices,
namely by modifying the data of the Chambre immobilière de l’Outaouais in order to appropriate 33
sold listings, whereas these had been listed by other
agents from his office, and thus be able to claim a
high number of sold listings or a better sales performance that actual, contrary to sections 1 and 44
of the Rules of Professional Ethics of the ACAIQ and
to section 103 of the By-Law of the ACAIQ.
On April 7, 2005, the Discipline Committee ordered
the suspension of Mr. Stéphane Bisson’s certificate for a period of 15 days on this count.
The decision of the Discipline Committee is binding
from the date of the appeals deadline, i.e. May 24,
2005. The suspension of Mr. Stéphane Bisson’s
chartered real estate agent certificate is therefore effective as of May 24, 2005 for a period of
15 days.
This notice is given in accordance with section 137
of the Real Estate Brokerage Act (R.S.Q., c. C-73.1).
Longueuil, Borough of Brossard, May 24, 2005
Chantal Peltier
Discipline Committee Secretary
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July 2005 | INFO-ACAIQ
ACAIQ’s comments
2005 Québec Real Estate
Brokerage Award
presented to Bernard Girard
on the Report on the Application of the
Real Estate Brokerage Act
F
ollowing the publication of the
Report on the Application of the
Real Estate Brokerage Act in June 2004
by Québec’s Minister of Finance, the
ACAIQ undertook a series of consultations and discussions. This exercise
enabled us to observe that there is a
widespread consensus within the industry concerning the Report’s proposals.
For instance, it is clear that maintaining self-regulation is a priority.
The ACAIQ has published its
comments and suggestions concerning this issue and each of the Report’s
proposals in a document entitled “Comments of the Association des courtiers et
agents immobiliers du Québec on the
Report on the Application of the Real
Estate Brokerage Act”.
he Association des courtiers et agents
immobiliers du Québec (ACAIQ)
presented the 2005 Québec Real Estate Brokerage Award to Bernard Girard who, until
just recently, was President and principal
shareholder of La Capitale Est de Montréal. He remains active on the Board of
Directors of the Fonds d’indemnisation du
courtage immobilier. Mr. Girard has made
significant contributions to the profession
throughout his exceptional career.
Those who have worked with him
through the years hail him as a passionate
and dedicated individual, and an everavailable advisor. Working successively
for Canada Permanent Trust, General
Trust and La Capitale, the 2005 winner of
the Real Estate Brokerage Award has been
instrumental in increasing the profile of
and redeploying the real estate brokerage industry in Québec for the last two
decades. In the 80’s, he helped bring about
the changes to the tax status of real estate
agents, the implementation of a computerized listing management system at MLS,
and the revision of the Real Estate Brokerage Act.
By creating the Québec Real Estate
Brokerage Award, the ACAIQ seeks to
single out those men and women who
work in the field of real estate brokerage
and who have distinguished themselves
Photo : Zonart7
T
The recipient of the Québec Real Estate Brokerage 2005
Award, Bernard Girard, is congratulated by ACAIQ
Chairman Serge Brousseau and Keith Collins, president
of the jury.
through their outstanding commitment,
behaviour, skill and influence. The winner
is selected by an independent jury.
The ACAIQ also wishes to recognize
the commitment of its 15,000 members
or so to the highest standards of civicmindedness and professionalism toward
their clients, the public and their peers.
It is not an exhaustive analysis of
the government’s proposals, but rather an
expression of the practical considerations
that they raise, given the main purpose
of this Act, which is to protect the
public.
This document may be downloaded from the ACAIQ
website at: http://woapp.acaiq.com/PDF/An/
CommentsReportREBA.pdf
Job Opportunity
O
The Association des courtiers et agents immobiliers du Québec (ACAIQ) is the body responsible for overseeing real
estate brokerage in Québec. Its mission is to ensure the protection of the public by supervising the professional activities of all real estate brokers and agents, in accordance with the Real Estate Brokerage Act.
SYNDIC
YOUR ROLE
Reporting to the Board of Directors, the incumbent will act as manager of the Office of the Syndic and,
as such, will:
•
supervise assistant syndics and support staff in their functions and provide appropriate oversight and
coaching;
•
examine all current files and make appropriate decisions;
•
act as investigator and plaintiff in cases of alleged disciplinary violations by professionals;
•
receive and analyse requests for investigation, file complaints and prepare for disciplinary hearings;
•
act as advisor with real estate brokers and agents and the public;
•
give conferences and training sessions to real estate brokers and agents.
DESIRED PROFILE
Training and knowledge
•
Holder of a real estate broker or agent certificate for at least 5 years (compulsory)
•
In-depth knowledge of the field of real estate brokerage
•
Relevant studies in business administration or law
•
General understanding of civil law and professional law legislation
•
Fluency in French and English (spoken and written)
•
General computer skills
Experience
•
Minimum of 3 years’ experience in team management
•
Experience in investigative processes an asset
Skills and aptitudes
•
Leadership
•
Coaching
•
Tact and diplomacy
•
Interpersonal communication
•
Education and knowledge transfer
•
Judgement and analysis
If you are interested in taking up this challenge and joining a dynamic team, please send your
resumé by August 31, 2005 to:
Claude Barsalou
Senior Vice President and Secretary
Association des courtiers et agents immobiliers du Québec
6300 Auteuil Street, Suite 300
Brossard, Québec J4Z 3P2
Thank you in advance for replying to this job opportunity. Only those applicants selected
for an interview will be contacted.
The ACAIQ is an equal opportunity employer.
3
ACAIQ Education 2005
(file: 33-04-0769)
NOTICE is hereby given that Mr. Michel
Baril, affiliated real estate agent (C6965), while
he was employed by or authorized to act on behalf of Groupe Sutton Sélect, chartered real estate
broker (C0412), whose establishment is located at
228 Labelle Blvd. in Sainte-Thérèse, has been the
subject of a complaint before the Discipline Committee of the Association des courtiers et agents
immobiliers du Québec, for the offences summarized below:
Speakers from all over
1st count: On or around the month of November
2000, abusing another member’s good faith and
using unfair practices against him, engaging in an
act that is incompatible with an exclusive brokerage contract awarded to another chartered real
estate broker, represented by a chartered real estate agent, concerning an immovable, namely by,
without the knowledge or the authorization of the
other chartered real estate agent:
1
2
3
4
a) directly contacting the sellers designated on the
exclusive brokerage contract;
In addition to the panel on the oversight of building inspections (see story
on front page), the ACAIQ Education Event 2005 featured a conference by
Me Claudie Tremblay (1) on recent jurisprudence in the area of real estate
brokerage, as well as a conference by Germain Fréchette (2) on the quality
of a building and the importance of the declarations by the seller.
On a lighter tone, comedian Marcel Leboeuf (3) shared his “La passion
selon Marcel”, about the passion he inherited from his grandfather that
has guided and even driven his colourful career. With “Pas à pas vers son
sommet” (step by step to your own peak), Bernard Voyer, (4) an unusual
explorer and wonderful storyteller, for his part came to tell participants
that each and every one of us is capable of reaching great heights.
b) having a prospective buyer visit this immovable;
c) negotiating directly with the sellers;
d) preparing and having the sellers, and the prospective buyer, sign a promise to purchase, annexes and a counter-proposal;
e) failing to remit copies of a promise to purchase,
annexes and a counter-proposal to the sellers, the
chartered real estate broker and his own broker;
contrary to sections 1, 43 and 48 of the Rules of
Professional Ethics of the ACAIQ.
Photos : Zonart7
Honours
2nd
count: On or around February 2 and 8, 2001,
using unfair practices against, seeking to gain
an unfair advantage over another member, i.e. a
chartered real estate agent, participating in an act
or a practice in real estate matters which may be
illegal or which may cause prejudice to the public or to the profession, concerning an immovable,
namely by:
a) having the sellers sign an exclusive brokerage
contract and by reducing his compensation as
specified in an Amendments form, in order to carry
out a sale between these sellers and the prospective buyer, knowing that the buyer had been interested in the immovable during the course of an
exclusive brokerage contract held by another chartered real estate broker, which was in force until
January 30, 2001;
1
2
3
4
contrary to sections 1, 13 and 43 of the Rules of
3rd count: On or around February 7 and 8, 2001,
failing to demonstrate integrity, participating in
acts or practices in real estate matters which may
be illegal or which may cause prejudice to the public or to the profession, concerning an immovable,
namely by:
a) preparing and having the sellers and the prospective buyer sign a new promise to purchase
as well as annexes referencing this promise to
purchase in order to hide and replace another promise to purchase, annexes and a counterproposal signed by the same individuals on or
around November 8, 2000;
The popularity of continuing education has been on a steady increase
with the members of the Association. The year 2004 was an outstanding one with 350 education activities and almost 9,000 registrants.
This huge success is due in great part to the exemplary participation of
individuals, companies and organizations connected with the profession.
These include Gilles Corbeil (1), Chairman of the Board of the Chambre
immobilière des Laurentides, Jean-François Toutant (2), Chairman of
the Board of the Chambre immobilière de l’Estrie, Jocelyne Harton (3) of
Re/Max 2001, and Michel Selyé of Groupe Sutton Excellence. In this last
case, Robert Daoust (4) accepted the commemorative plaque on behalf of
Mr. Selyé from the hands of ACAIQ President and Chief Executive Officer
Robert Nadeau.
Photos : Zonart7
b) having the sellers acknowledge receipt, on a
bank’s notice of mortgage approval, addressed to
the prospective buyer, on which the date of November 15, 2000 had been altered and replaced
with the date of February 7, 2001 in order to hide
the fact that the mortgage approval had been
obtained while an exclusive brokerage contract
awarded to the other chartered real estate broker
was in force;
c) destroying the copies of a promise to purchase,
annexes and a counter-proposal;
contrary to sections 1 and 13 of the Rules of Professional Ethics of the ACAIQ.
On March 30, 2005, the Discipline Committee ordered the suspension of Mr. Michel Baril’s certificate for a period of 60 days on each of the
counts, to be served concurrently, to come into
effect when the respondent applies for reinstatement or for the delivery of a new certificate. The
decision of the Discipline Committee is binding as
of May 5, 2005.
This notice is given in accordance with section
137 of the Real Estate Brokerage Act (R.S.Q., c. C73.1).
Chantal Peltier
4
The lucky ones...
Several door prizes were awarded to participants by the event’s sponsors, Manoir Richelieu and the ACAIQ.
Photos : Zonart7
Francine Forget, of Collège de
l’immobilier du Québec, presented
a gift certificate from Fairmont Hotels to Roger Mondoux, of Royal
LePage Vallée de l’Outaouais.
Sylvie Giguère, of Stewart Title
Guaranty Company, was thrilled to
offer a champagne bucket and two
“Veuve-Clicquot” bottles to Gilles
Langlais of Chambre immobilière de
l’Abitibi-Témiscamingue.
Francine Dubois, of Service de
Titre FCT, gave a digital camera
to Michel Beauchamp, of La
Capitale Saint-Jérôme.
Marc Lessard, of Dale Parizeau
LM, gave a $250 gift certificate
from la Forfaiterie to Marjolaine
Villeneuve, of Groupe Sutton
Accès Plus Courtier.
Francine Forget, of Collège de
l’immobilier du Québec, gave
a gift certificate for an online
training session to Michel Lamontagne, of Lamontagne courtier
immobilier.
Daniel Ouellette, of Amérispec,
presented a digital camera to
David Chiasson, of Groupe
Sutton AccesPlus Saguenay.
Sacha Mattiolo, of Bell Mobility,
presented a Black Berry 7250 to
Hélène Lavoie, of Re/Max Énergie.
Alain Beaulieu, of Location Park
Avenue, presented a pen set to
Marina Lefrançois, of Remax 1er
choix.
A package at Auberge Beauséjour
including one night for two with
breakfast, was awarded to Robert
Shelso, of Immobilier Playground,
by Lisa Lalancette, of Multi-Prêts
Hypothèques.
Robert Nadeau, of the ACAIQ,
presented Luc Mailloux, of
Royal LePage Inter-Québec,
with a Cyber-Shot digital
camera.
Geneviève Janelle, of Magex
technologies, handed out a real
estate management software
package to Claude Bergevin, of
Immeubles du Comté.
Mr. Nadeau also gave a photo
iPod to Nicole Armstrong, of
Groupe Sutton Accès NA .
Micheline Couillard-Després, of
La Capitale Saint-Jérôme, received the same digital camera
from Daniel Ouellette.
5
6
Synbad technologies
Assisted Purchasing
The ACAIQ is pleased to offer its members an
assisted purchasing service for office automation equipment
T
echnology offers new ways for real
estate brokers and agents to perform
their work. It also gives them access to
more information anywhere, any time, in
response to professionals’ ever-increasing
need for mobility. Aware of information technology’s potential for increasing
productivity within our profession, the
ACAIQ has taken steps to help members
make the most of it.
Last April, the new Synbad Technologies Assisted Purchasing TM service was
officially launched at the 2005 ACAIQ
Education Event. This new service provides real estate brokers and agents with
unsurpassed purchasing power for office
automation equipment, access to helpful
advice and the ability to choose from a
wide variety of leading brand products.
Unsurpassed purchasing power
With more than 14,000 members, the
ACAIQ enjoys significant purchasing
clout with manufacturers of office automation equipment. Real estate brokers and
agents can now benefit from special agreements with computer equipment suppliers.
Access to helpful advice
Faced with an ever-growing number of
office automation solutions, how can real
estate brokers and agents be sure they are
making the right choices? Synbad Technologies Assisted Purchasing TM makes it
easier for ACAIQ members by providing
the services of trained consultants who
will help them match their purchases with
their needs.
Choosing from a wide variety of
leading brand products
Synbad Technologies Assisted PurchasingTM
promotes trusted brands and suppliers who
offer better warrant programs and top-rate
service:
• Dell
• Lexmark
• Hewlett Packard (HP)
• IBM
• Toshiba
• Other recognized brands
A range of products has been selected to
meet the needs of the profession:
• Desktops
• Laptops
• Servers
• Network connectivity
• Printers/scanners
• Multi-function equipment
• Printer cartridges
Software
Digital cameras
ACAIQ members may view the electronic
catalogue at www.synbad.com for details
on the products selected.
•
•
A simple purchasing process
A four-step process has been developed to
simplify your purchases:
• Needs are assessed and product selection
assistance is provided;
• Spec sheets on the products selected,
related service offerings, terms and conditions and warranties are reviewed;
• Orders are placed with the help of our
purchasing consultants;
• A payment option is selected
(credit card, preauthorized debit,
certified cheque, financing with credit
approval).
To learn more about this new service, visit the
ACAIQ Extranet at www.synbad.com, call tollfree at 1-866-SYNBAD6 or send us an e-mail at
[email protected]..
(file: 33-04-0709)
NOTICE is hereby given that Mr. Guy Marie
Sully, affiliated real estate agent (A8495), while
he was employed by or authorized to act on behalf of Les Immeubles Atlantic inc., chartered real
estate broker (A2803), whose establishment is located at 4929 Jarry St. East, Suite 207, in St. Léonard, was found guilty by the Discipline Committee
of the Association des courtiers et agents immobiliers du Québec of the offences summarized
below:
1st count: In Montréal, on or around September
3, 2001, failing to demonstrate integrity and participating in an act or practice in real estate matters which may be illegal or which may cause prejudice to the public or to the profession, namely by
drafting and using a false document entitled “confirmation of mortgage financing” concerning an
immovable and by letting it be believed that this
document had been signed by an employee of a financial institution, contrary to sections 1 and 13 of
the Rules of Professional Ethics of the ACAIQ.
2nd count: In Longueuil, borough of Brossard,
on or around December 11, 2001, misrepresenting information during an inquiry held by an assistant syndic, namely by falsely stating that a person
had given him a document entitled “confirmation
of mortgage financing” concerning an immovable
and that this document had been issued by a financial institution, whereas in reality he had drafted this document himself, contrary to section 55 of
The decision of the Discipline Committee being
binding as of April 2, 2005, the suspension of Mr.
Guy Marie Sully’s affiliated real estate agent
certificate, currently expired, will become effective
from the date of any future application for renewal, for a period of 2 years.
Longueuil, Borough of Brossard, April 4, 2005
Chantal Peltier
7
PROFESSIONAL PRACTICES SERIES
(file: 33-04-0725)
Vermiculite insulation
NOTICE is hereby given that Mr. Mathew
Mundiyamkal, affiliated real estate agent
(B9777) employed by or authorized to act on
behalf of Groupe Sutton-Royal inc. chartered real
estate broker (C0350), whose establishment is
located at 3869 des Sources Blvd., Suite 110, in
Dollard-des-Ormeaux, was found guilty by the
Discipline Committee of the Association des
courtiers et agents immobiliers du Québec of the
offences summarized below:
1st count: In Montréal (previously known as
Dollard-des-Ormeaux), begining on February 1,
2001, with respect to an immovable, the defendant did not send without delay to the manager
of the place of business to which he is assigned
the information and documents required in order to maintain the records, books and registers
provided for in Chapter XI of the By-law of the
Association des courtiers et agents immobiliers du
Québec, namely:
I
n April 2004, Health Canada issued
an advisory and other information
concerning vermiculite insulation,
certain types of which may contain
asbestos. Based on this information, the
presence of this type of insulation must
be considered as a factor that could unfavourably affect an immovable in a real
estate transaction.
a) a promise to purchase;
b) a counter offer;
c) another counter counter offer;
d) another promise to purchase;
e) an addendum;
f) another promise to purchase;
When a real estate broker lists an
immovable, he must, as for any unfavourable factor, ask the seller whether he has
any knowledge of the presence of vermiculite insulation containing asbestos.
This information must be included on the
Declarations by the seller form so that any
prospective buyer is duly informed before
making a promise to purchase.
The broker representing a buyer must
advise his client to ask about the possible
presence of vermiculite insulation, to have
the necessary verifications made during
the building inspection and, if applicable,
to request a more in-depth analysis to
make sure there is no asbestos.
For more information concerning
vermiculite insulation, visit the Health
Canada website at: http://www.hc-sc.gc.
ca/english/index.html, from which the
following text is excerpted.
the whole contrary to section 147 of the By-law
of the Association des courtiers et agents immobiliers du Québec.
2nd count: In Montréal (previously known as
Sainte-Geneviève), on or about May 22, 2001, the
defendant directly or indirectly accepted compensation for a transaction concerning an immovable
from a person other than his broker, the holder
of a chartered real estate broker’s certificate that
employs him or authorizes him to act on its behalf, namely, in receiving from the vendor, a sum
of money through a numbered company he coowned and controlled with another person, contrary to section 72 of the By-law of the Association
des courtiers et agents immobiliers du Québec.
3rd count: In Montréal and Dollard-des-Ormeaux,
beginning on or about April 10, 2001, with respect
to an immovable, the defendant participated in an
act or practice which may be illegal or which may
cause prejudice to the public or to the profession by
falsely representing that a company he co-owned
and controlled with another person, a numbered
company, was a real estate broker when it did not
hold a real estate broker’s certificate issued by the
Québec, namely by:
Frequently Asked Questions
Source: Health Canada
These products can cause health risks if
disturbed during maintenance, renovation
or demolition. However, there is currently
no evidence of risk to your health if the
insulation is sealed behind wallboards and
floorboards, isolated in an attic, or otherwise kept from exposure to the interior
environment.
Vermiculite Insulation
Containing Asbestos
The Government of Canada is informing Canadians about the potential risks
to health posed by vermiculite insulation
containing asbestos. Some vermiculite
insulation may contain asbestos fibres.
What is vermiculite?
Vermiculite is a naturally occurring mineral mined around the world. It has been
used in numerous commercial and consumer products, including insulation since
the 1920’s. It has not been shown to pose a
health problem, and no serious health risks
have been found resulting from exposure
to vermiculite.
INSURANCE PROGRAM FOR ACAIQ MEMBERS
1) presenting for signature a promise to purchase
to the vendor where a numbered company appeared as the beneficiary of the broker’s remuneration in section 10.3;
2) invoicing the vendor, a commission of a sum of
money via a numbered company;
the whole, contrary to section 3 of the Real Estate
Brokerage Act and section 13 of the Rules of professional ethics of the Association des courtiers et
agents immobiliers du Québec.
The insurance program of the
Association des courtiers et agents
immobilers du Québec is the only
one that meets all your insurance
needs; the only one with such
favourable rates; and the only
one with a multi-disciplinary team
in place to serve you.
TIO
ASSOCI
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Chantal Peltier
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Automobile and home insurance
Life, accident, disability and health insurance
Drug insurance
Dental insurance
Travel and international assistance insurance
Critical illness insurance
Legal insurance
Commercial insurance
Professional liability insurance
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8
•
E
TH
Longueuil, Borough of Brossard, May 26th, 2005
ED
END BY
M RE C O M
RA
M
Following a discontinuance of the appeal filed
by Mr. Mathew Mundiyamkal on May 19 th,
2005, the decision of the Discipline Committee
is executory since that date. The suspension of
Mr. Mathew Mundiyamkal’s affiliated real estate agent certificate became effective on May
19 th, 2005 for a period of 30 days.
N • PR O G
On August 2nd, 2004, the Discipline Committee ordered the suspension of Mr. Mathew Mundiyamkal’s certificate for a period of fifteen (15) days
as regard count No. 1, and for a concurrent fifteen
(15) days as regard count No. 2, and a concurrent
period of thirty (30) days as regard count No. 3.
•
www.dplm.com/acaiq
Does vermiculite insulation contain
asbestos?
Of concern is vermiculite ore produced
from the Libby Mine in Montana from
the 1920s to 1990. This mine supplied the
majority of the world market in vermiculite insulation. It has been determined that
vermiculite from this mine may contain
asbestos.
Products made from
vermiculite ore produced by
the Libby Mine were not
widely used after the mid1980’s and have not been
on the market in Canada
for more than 10 years.
Not all vermiculite insulation produced before
1990 contains asbestos.
However, it is prudent, in the
absence of evidence to the contrary, to assume that vermiculite insulation products produced before 1990 may
contain some asbestos.
Am I at risk from my home’s insulation?
If sealed behind wallboards and floorboards, isolated in an attic, or otherwise
kept from exposure to the interior environment, vermiculite insulation poses very
little risk to health because the asbestos
fibres it may contain are unlikely to become airborne and enter the living areas of
the home.
It is important to avoid disturbing
vermiculite insulation as asbestos poses
the greatest health risk when its fibres
are present in the air that people breathe.
If you plan to remodel or renovate in a
manner that would disturb the vermiculite, seek advice from a qualified asbestos
professional first.
How do I minimize my risk of
exposure?
The best way to minimize your risk of asbestos exposure is to avoid disturbing vermiculite insulation in any way. If isolated
in the attic or sealed behind floorboards or
wallboards, vermiculite insulation poses
very little risk to health.
What are the health effects associated
with exposure to asbestos?
Asbestos related illnesses are usually
associated with frequent and prolonged
exposure to asbestos. The time it takes to
develop a disease from exposure to asbestos is usually quite long - up to decades.
Exposure to asbestos (by breathing
airborne asbestos fibres into the lungs) has
been associated with the development of mesothelioma (a rare
form of cancer), asbestosis
(a serious, progressive, long
term disease of the lungs)
and lung cancer.
Various factors determine how exposure to asbestos affects an individual:
• the concentration of asbestos
fibres in the air;
• how long the exposure lasted;
• how often the person was exposed;
• the size of the asbestos fibres inhaled;
• the amount of time since initial
exposure.
What can I do to protect myself and my
family?
If the insulation is not exposed to your living space in your house, and is not being
disturbed, it poses very little risk to health.
The important thing is not
to touch or disturb it. If
you think you have
vermiculite insulation in your attic,
you should take
these precautionary
steps:
• Do not touch or
disturb it;
• Do not allow children
to play in the attic;
• Do not use the attic for storage if
retrieving items from it may disturb the
insulation;
• If you are currently using the attic for
storage and are concerned, contact your
local health authority for advice on what
to do;
If you find vermiculite insulation on the
floor, contact your local health authority
for advice on what to do;
• If you absolutely must go into the attic,
make sure that you do not disturb the
insulation. Do not remain in the attic
any longer than absolutely necessary;
• If you plan to remodel or renovate in a
way that might disturb the vermiculite
insulation, seek advice from a qualified
asbestos professional first;
• Never attempt to remove insulation
yourself; and,
• Make sure anyone working in the attic
knows about the possibility of the presence of asbestos.
If you have concerns about your
health due to possible exposure to asbestos,
you should talk to your doctor or primary
health care provider.
Is horticultural vermiculite safe?
Based on current information, there is no
evidence that vermiculite currently available for horticultural purposes (eg. potting
plants) is a health risk if used as directed.
Will the Government of Canada ban
the production and sale of asbestos?
Not all types of asbestos are the same. The
only type of asbestos mined in Canada
today is chrysotile asbestos which has very
different properties from the tremolite
variety thought to be contained in
Zonolite (R) insulation. Products
made with chrysotile fibres, such
as chrysotile cement products,
when produced and used under
controlled conditions, do not
pose any discernable risk to human health.
•
(file: 33-04-0723)
NOTICE is hereby given that Mr. Bruce
Lemieux, chartered real estate broker, operating
under the name Inter-Finances Lemieux (certificate
No. C2702), whose establishment is located at
818 chemin Doherty in L’Ange-Gardien, while he
was successively chartered real estate agent employed by or authorized to act on behalf of Services immobiliers Royal LePage Ltée/Royal LePage
Real Estate Services Ltd., 9107-1142 QUÉBEC inc.,
operating under the name Royal LePage Vallées
de l’Outaouais, 3942414 CANADA inc., operating
under the name Avantage Immobilier and chartered real estate broker operating under the name
Inter-Finances Lemieux, has been found guilty by
the Discipline Committee of the Association des
courtiers et agents immobiliers du Québec of the
offences summarized below:
1st count: From November 2001 to February
2002, participating in acts or in practices in real
estate matters which may be illegal or which may
cause prejudice to the public or to the profession,
namely by signing four forms as witness to the signature of a client whereas such signature was not
that of the client, contrary to sections 1, 13 and 35
of the Rules of Professional Ethics of the ACAIQ.
2nd count: In Hull, on or around May 19, 2003
and February 18, 2004, failing to collaborate and
misrepresenting information during an investigation conducted by an assistant syndic, namely by
stating that he had witnessed the signing of four
forms by a client, contrary to sections 54 and 55 of
3rd count: Between February 2001 and March
2002, committing acts that are derogatory to the
honour and the dignity of the profession, participating in acts or in practices in real estate matters
which may be illegal or which may cause prejudice
to the public or to the profession, failing to provide fair treatment to all parties to a transaction,
abusing the good faith of other members and using unfair practices against such members, namely by participating in fraudulent practices aimed at
making a profit on the sale of immovables not yet
acquired, i.e. by:
i) soliciting visits from agents without revealing that he would not have visitors draft and sign
promises to purchase;
http//www.hc-sc.gc.ca/english/insulation/faq.html
ii) soliciting visits from agents without revealing
that the visitors’ transaction proposals were not
meant for the seller contemporary to their visit, but
rather for a third party;
iii) having prospective buyers visit immovables
without revealing to them the identity of the seller contemporary to their visit or this seller’s asking price;
iv) hiding from visitors who expressed an interest
in acquiring an immovable the fact that the respondent was to collaborate in the acquisition of
this immovable by a third party;
v) referring visitors who expressed an interest in
acquiring an immovable back to the individuals who had asked him to show them the property, whereas he knew that these individuals would
have them sign promises to purchase meant to be
accepted by a seller who was not the seller contemporary to these visits;
before and on the occasion of eight visits, contrary to sections 1, 13, 24, 35 and 43 of the Rules of
4th count: In Hull, on or around May 19, 2003,
and in Buckingham, on or around February 18,
2004, failing to collaborate and misrepresenting
information during an investigation conducted by
an assistant syndic, namely regarding the presence of certain persons during the visits, contrary
to sections 54 and 55 of the Rules of Professional
Ethics of the ACAIQ.
On January 13, 2005, the Discipline Committee ordered the suspension of Mr. Bruce Lemieux’s
certificate for a period of five years on the 1st
count, ten years on the 2nd count, ten years on
the 3rd count and five years on the 4th count, to be
served consecutively.
binding from the date of service, the real estate
broker certificate of Mr. Bruce Lemieux is suspended for a period of 30 years as of January 25,
2005.
Longueuil, Borough of Brossard, February 22,
2005
Diane Heppell
9
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he Ski-don Jean Lapointe, under
the honorary presidency of Robert
Nadeau, President and CEO of the Association des courtiers et agents immobiliers du Québec, was held in March.
This event, organized jointly with Mont
Saint-Bruno, the mortgage brokerage
firm of Multi-Prêts and the ACAIQ,
helped raise $7,000 for Fondation Jean
Lapointe. The foundation uses the funds
to help youth and adults with serious alcohol, drug and gambling addictions.
The ACAIQ is proud to support this
organization.
(file: 33-04-0745)
(file: 33-04-0732)
NOTICE is hereby given that Mr. Robert Asselin,
former holder of an affiliated real estate agent certificate (C0815) and employed by or authorized to
act on behalf of Groupe Sutton Synergie inc., chartered real estate broker (C4029), whose establishment is located at 472 Notre-Dame St., Suite
300, in Repentigny, was found guilty by the Discipline Committee of the Association des courtiers
et agents immobiliers du Québec of the violation
summarized as follows:
NOTICE is hereby given that Mr. Vincent
Trudel, affiliated real estate agent (C0087), while
he was employed by or authorized to act on behalf of Groupe Sutton Futur, chartered real estate
broker (C5835), whose establishment is located
at 3075 chemin des Quatre-Bourgeois, Suite 430,
Sainte-Foy, has been the subject of a complaint before the Discipline Committee of the Association
des courtiers et agents immobiliers du Québec, for
the offence summarized below:
1st count: Between February 20, 2002 and October 10, 2002, while his affiliated real estate agent
certificate was suspended, engaging in brokerage
transactions referred to in section 1 of the Real Estate Brokerage Act for and on behalf of the broker
Groupe Sutton Synergie Inc. and using the title of
real estate agent, notably with regards to transactions regarding immovables, contrary to section 70
of the By-Law of the ACAIQ.
1st count: Prior to the signing of a promise to
purchase on December 21, 2000 regarding an immovable and indicating as the buyer an imperfect
designation of a company in which he was a shareholder and director, failing to, without delay and
in writing, disclose his quality as affiliated real estate agent to the prospective contracting party, in
the manner prescribed in sections 81 and following
of the By-Law of the Association des courtiers et
agents immobiliers du Québec, contrary to section
22 of the Real Estate Brokerage Act.
On March 1, 2005, the Discipline Committee ordered the suspension of Mr. Robert Asselin’s
certificate for a period of two years effective from
any application for reinstatement or delivery of a
certificate by Mr. Robert Asselin. The decision of
the Committee is binding as of April 22, 2005.
On September, 29, 2004, the Discipline Committee
ordered the suspension of Mr. Vincent Trudel’s
certificate for a period of 30 days, to come into effect when the defendant applies for the reinstatement or issuance of a certificate. The decision of
the Discipline Committee is binding as of November 8, 2004.
Chantal Peltier
10
Chantal Peltier
Consequences of a seller refusing
a conforming promise
A
seller who refuses a promise to purchase that conforms to the requirements of the brokerage contract must pay
his real estate broker’s compensation. This
is the conclusion reached by the Court
of Appeal of Québec in Royal LePage Des
Moulins v. Baril.
Obligation to pay the broker
In this case, a couple signed a brokerage
contract with a real estate broker for the
sale of their home. They were presented
with a first promise to purchase, conditional to mortgage approval and some
minor repairs. For personal reasons, the
woman no longer wanted to sell. Her
spouse still wanted to sell and, following discussions with the buyers, the latter
presented a new promise to purchase for
the asking price, without conditions and
in every way conforming to all the requirements of the brokerage contract. The seller
accepted this promise to purchase, but
his spouse refused it and the transaction
aborted. The listing broker sued the sellers
for payment of the compensation stipulated in the brokerage contract.
The Court of Québec rejected the
broker’s suit, arguing that since a seller is
not obliged to accept a promise to purchase, even if conforming, he cannot be at
fault and owe his broker compensation in
case of refusal. But basing itself on clause
7.2 of the mandatory form Exclusive Brokerage Contract – Sale of a Chiefly Residential Immovable, which stipulates that the
compensation must be paid to the broker
where a sale does not take place because
the “seller voluntarily blocks it or otherwise voluntarily prevents the free performance of the contract”, the Court of Appeal
overturned the decision of the Court of
Québec and agreed with the broker.
According to the Court of Appeal, the
broker perfectly fulfilled his obligations
under the brokerage contract by giving the
sellers a promise to purchase that perfectly
matched their requirements, without any
conditions. It is the woman’s refusal to accept the promise to purchase that deprived
the broker of his compensation, and therefore the responsibility is hers (that of her
spouse, who is not at fault in this affair,
was not called into question).
Is the seller obliged to sell his
property...?
The Court of Appeal used this opportunity to issue the opinion that when
a promise to purchase is presented that
perfectly matches the brokerage contract,
the buyer and the seller are bound and the
seller must sell. This opinion is a departure
from what was generally accepted until
now to the effect that a brokerage contract
and the ensuing marketing of a property
constitute a simple invitation to potential
buyers to present promises to purchase,
which the seller is free to accept or refuse.
This new point of view raises several
questions. Can a seller counter a conforming promise to purchase? This question is
especially relevant in a context of multiple
promises to purchase. Can the seller give
preference to a promise to purchase at a
price higher than the listing price if he
receives at the same time a promise to
purchase for the asking price that perfectly
matches the requirements of the brokerage
contract? For the time being, these questions remain unanswered.
However, it is important to understand that this opinion is secondary to
the matter that required a decision by the
Court of Appeal. It was issued without
any real analysis of the mechanisms and
requirements related to the sale of an immovable through a real estate broker. Still,
to discount it would be risky. Therefore it
is recommended to advise any seller who
wants to refuse a promise to purchase that
includes no conditions and meets all the
requirements of the brokerage contract, to
first seek the advice of a lawyer or a notary.
Cellphone?
Yes.
In an effort to maintain the seller’s
prerogative to refuse any promise to purchase, subject to compensating the broker
if a conforming promise to purchase is
received, it is recommended to add the
following sentence under clause 11.1 of the
mandatory brokerage contract:
“It is understood that this contract
does not constitute a promise or offer to
sell and is meant as a general invitation to
the public to submit promises to purchase.”
This clause will be supplemented with
the following disclaimer on the detailed
description sheet:
“This is not an offer to sell, but an
invitation to submit promises to purchase.”
The questions raised here deal solely
with the possibility for a seller to refuse a
conforming promise to purchase. It in no
way jeopardizes a broker’s right to compensation in such cases.
Walkie-talkie?
Affirmative.
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11
Watch for the proliferation
of pot grow-ops!
The ACAIQ Syndic has investigated the actions of real estate agents in transactions involving properties used for marijuana
grow operations. These inquiries, conducted simultaneously with police investigations, have recently led to the filing of complaints before the Discipline Committee. The Office of the Syndic has confirmed that several cases exist.
A
ccording to police authorities,
hundreds of homes, in various
municipalities, are already identified as being used or having been used to
grow marijuana. Given the extent of the
damage that excess humidity can cause to
buildings, real estate brokers and agents
must take special steps when selling, buying or leasing immovables that have been
used or could be used for this purpose.
The fact that a house has been used
to grow pot is an unfavourable factor that
must be disclosed when known. A real
estate agent must recommend to the seller
to indicate this in the Declarations by the
Seller form and to add any helpful details.
Failing this and in case of doubt, the agent
must make sure that the prospective buyer
is informed before making a promise to
purchase. He should also recommend to
the buyer to have an inspection and further testing done. The immovable could
have suffered extensive damage, and as a
result insurance companies may want to
limit or even refuse coverage.
It is not always public knowledge that
a house has been used to grow pot. In this
case, what clues should a real estate broker
look for in order to act with diligence and
avoid inconvenience and major financial
losses for his clients? There are two types
of clues, i.e. those related to the immovable, which a visual inspection can reveal,
and those related to aspects of the transaction itself.
Clues related to the immovable
According to police, several of these
houses are sometimes found in the same
neighbourhood or on the same street,
especially in new developments. A visual
inspection of the immovable, done by a
qualified inspector, could lend a number
of clues indicating that the immovable
may have been used to grow marijuana.
However, since houses are never used for
this purpose for very long, the damage is
not always apparent and work may have
been done to repair or conceal it. A few
clues, including the presence of mould,
will suffice to suggest that a closer inspection or further testing are required. The
most common clues are:
• the home is put back on the market very
quickly;
• the home has very little furniture;
• electricity bills are high or show a significant variation;
• electric meter has been tampered with,
e.g. roof mast has been sectioned before
the meter;
•
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•
•
•
•
•
•
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new roof mast;
signs of high humidity, including in
attic space (waterlogged insulation,
blackened deck);
ice forms outside vents or chimneys;
presence of dehumidifiers in unusual
and inappropriate locations;
traces of humidity in fireplace;
signs of corrosion on electrical outlets or
switches, metal post bases, etc.;
spongy floors;
perfume to mask the smell of rot;
lifted wallpaper or peeling paint;
newly painted ceilings and window
frames;
need to measure ambient humidity rate
(with bulb hygrometer) or in walls (with
hygrometer);
very strong, unusual smell;
mould spores forming on north wall or
in unventilated spaces (mould is caused
by the presence of humidity, heat and
cellulose [wood, cardboard, skin]);
mould stains on walls;
repaired holes about a foot in diameter
in closet floors and ceilings, basement
dividing walls or near roof mast;
drywall bulging, recessed nails in
ceiling.
Clues related to the transaction
The clues related to the immovable help
identify homes that have been used to
grow marijuana. Clues related to the
transaction can serve to identify an immovable intended for a grow-op. Since the
broker and agent play a central role in any
real estate transaction, they are in the best
position to observe these clues and advise
their selling clients to act with prudence.
The most common clues are:
• date of signing of the act of sale on
the PP is far into the future with preoccupancy. When the time comes to
sign the act of sale, the buyer has disappeared and the tenant has vacated the
premises. The seller finds himself with
a contaminated immovable;
• the purchase or lease is done by a third
party or under an assumed name;
• single-level house with attached garage
purchased as an investment property;
• buyer lives out of the country or
province;
• cash deposit may be high;
• a deposit is done in cash or through a
collaborating agent;
• unusual financing sources;
• mortgage approval subject to signing of
leases;
Ensures...
We compensate victims of fraud, dishonest transaction or misappropriation of funds or other property which, under the Real Estate
Brokerage Act, must be deposited in a trust account.
We cover acts committed in the course of transactions carried out
through a real estate broker or agent who is a member of the ACAIQ.
The maximum compensation is $15,000 per brokerage transaction
eligible for a claim. Please note that the claimant must file his application in the year following the date at which he was apprised of the
facts giving rise thereto
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12
•
•
•
•
buyer does not negotiate;
buyer does not have the building
inspected by a building inspector or
does not seem to care about the size of
the rooms or other features, but does
care about the electricity, the size of the
garage and basement;
buyer has recently been involved in
several transactions;
transaction is notarized separately, i.e.
the parties do not meet.
General information
Real estate transactions on immovables
that are intended or have been used as
grow-ops are conducted by very well
organized networks. Several similar
transactions can take place on the same
territory over a rather short period of
time. Marijuana grow operations in
homes is a national problem. Already
in 2002, the Royal Canadian Mounted
Police estimated at 50,000 the number
of properties being used for this purpose. According to recent articles in the
newspapers, this number has increased
dramatically.
Life Insurance
or Mortgage Insurance?
Source: Dale-Parizeau L.M.
A
lender may require you to take out a
life insurance policy with his institution as a condition for granting you a
mortgage loan, but is not obliged to do so.
The lender can simply give you the option
of taking the policy with his institution or
with any provider of your choice.
Choosing an insurance provider
Many choose not to insure their mortgage,
but most property buyers want to reduce
the financial strain on their family by
taking out a life insurance policy on their
mortgage. Buying a home is a major financial decision, and it is very wise to make
sure this investment is adequately protected with an insurance policy that will either
make the payments or pay the balance
on the loan in the event of the owner(s)’
death before the mortgage is completely
paid up. The purpose is to avoid leaving
the surviving spouse and children with a
major liability and to allow them to stay in
the home, with all the advantages that this
entails, rather than being forced to sell.
Alternatives at the bank
A buyer who wants to insure the mortgage
on his property has two alternatives. Most
people know that their lending institution
offers mortgage life insurance coverage
and avail themselves of this option without
asking about other alternatives on the
market. This option is handy since you get
it at the same place as the loan, usually at
low rates, but you can also get individual
insurance. It is a good idea to compare the
costs and benefits of each mortgage insurance option in order to get the flexibility
you want.
Benefits and drawbacks
Here are some of the features, benefits and
drawbacks of taking out an individual life
insurance policy with your life insurance
provider rather than mortgage insurance
through a lending institution.
• The type of protection available varies
depending on whether you are transacting with your lending institution or
through your financial advisor, who has
access to a wide range of products to
meet your needs.
• Individual insurance premiums are
guaranteed for the term of the policy
you choose. With lending institutions,
rates may change, although this rarely
happens.
• The beneficiary on your insurance
policy can be anyone you choose, rather
than automatically being the lending
institution.
• As part of your overall financial plan, for
instance, all your needs may be covered
with one insurance policy, whereas with
a lending institution, only your mortgage is covered.
• The insured is the only person who can
terminate an individual policy, whereas
a lending institution may cancel your
policy.
Coverage renewal is usually guaranteed
on individual policies. This benefit is
extremely important because if your
health deteriorates and you are no longer
insurable, you will be able to hold on to
your individual life insurance or convert
it even if your mortgage is paid in full.
• If you re-mortgage your home or change
lenders, you can transfer an individual
policy and your coverage will remain in
force.
• The premium payment schedule varies
depending on the type of individual
policy. With a lender, the premium
is usually payable for the term of the
mortgage.
• Your financial advisor can give you personalized advice to help you determine
the type and amount of coverage that
best meets your needs.
Did you know that... unlike group
contracts offered by institutions, there
is no sales tax on individual contract
premiums? For more information, contact
Dale-Parizeau L.M. at 1 (877) 807-3756
www.dplm.com/acaiq
•
13
PROFESSIONAL PRACTICES SERIES
(file: 33-04-0772)
NOTICE is hereby given that Mr. Raymond
Pelletier, chartered real estate agent (C7393),
employed by or authorized to act on behalf of La
Capitale Centre, Coop chartered real estate broker
(C3705), whose establishment is located at 1600
Le Corbusier Blvd., Suite 201 in Laval, has been
found guilty by the Discipline Committee of the
Québec of the offences summarized below:
1st count: In Laval, between or around March 8
and around March 10, 2002, participating in an
act or practice in real estate matters which may be
illegal or which may cause prejudice to the public or to the profession, and failing to provide fair
treatment to promising-buyers, represented by another real estate agent and parties to a transaction
referred to in section 1 of the Act, concerning an
immovable, namely by:
a) indicating under clause 11.1 of a brokerage contract that “in case of sale by the listing agents, the
compensation will be 2%”, without indicating that
this clause would become inapplicable in case of
simultaneous presentation of several promises to
purchase; and
Departure of the agent representing the broker
When the seller wants to
terminate the brokerage contract
I
t is quite common for a seller to want
to terminate a brokerage contract when
his real estate agent leaves his broker for
another. This situation occurs when the
seller does not wish to work with the new
agent assigned to replace the one who left.
If the brokerage contract is revocable,
the seller simply has to send a notice to
the broker. The contract will be cancelled
as of the receipt of this notice. Under the
provisions of the Civil Code, the broker
could demand payment for the costs and
expenses incurred. To avoid any such dispute, it is preferable for the seller and the
broker to agree at the time of signing of
the brokerage contract on what costs and
expenses will have to be paid to the broker
should the situation arise.
If the brokerage contract is irrevocable, neither the seller nor the broker can
terminate the contract before its expiry
date other than by mutual consent, unless
the three-day period in which the seller
may exercise his right of withdrawal has
not yet expired. After this period, if the
seller stills sends a notice to terminate the
contract, this notice in theory will have
no legal effect. However, the mandatory
brokerage contract contains a clause to the
effect that the broker must notify the seller
in writing whether or not he agrees to cancel the contract. In case of refusal on the
part of the broker, the contract will remain
in effect until the expiry date agreed to
between the parties at the time
of signing.
b) letting the seller analyze the promises to purchase that had been submitted respectively by
the promising-buyer, and by other promisingbuyers, with the belief that the reduction in compensation would be applicable, in accordance with
clause 11.1 of a brokerage contract, if the transaction was concluded with the promising-buyer represented by the respondent;
contrary to sections 13 and 24 of the Rules of Professional Ethics of the ACAIQ.
2nd count: In Laval, between or around March
8 and around March 10, 2002, abusing another member’s good faith and using unfair practices against him, as part of a real estate transaction
concerning an immovable, namely by:
a) indicating under clause 11.1 of a brokerage contract that “in case of sale by the listing agents, the
compensation will be 2%”, without indicating that
this clause would become inapplicable in case of
simultaneous presentation of several promises to
purchase; and
b) letting the seller analyze the promises to purchase that had been submitted respectively by
the promising-buyer, and by other promisingbuyers, with the belief that the reduction in compensation would be applicable, in accordance with
clause 11.1 of a brokerage contract, if the transaction was concluded with the promising buyer represented by the respondent;
contrary to section 43 of the Rules of Professional
Ethics of the ACAIQ.
3rd count: In Laval, subsequently to March 10,
2002, participating in an act or practice in real estate matters which may be illegal or which may
cause prejudice to the public or to the profession,
namely by drafting and having a seller sign a document falsely dated March 9, 2002, whose purpose
was to amend the compensation reduction clause
included in a brokerage contract concerning an immovable, contrary to section 13 of Rules of Professional Ethics of the ACAIQ.
On April 29, 2005, the Discipline Committee ordered the suspension of Mr. Raymond Pelletier’s certificate for a period of 30 days on each of
counts 1b), 2b), and 3, to be served concurrently.
binding as of May 9, 2005, the suspension of Mr.
Raymond Pelletier’s chartered real estate agent
certificate is effective from that date for a period
of 30 days.
Synbad technologies
Assisted Purchasing
Leverage your purchasing power
Finally, an assisted electronic
office equipments purchasing
service taylored for real estate
brokers and agents.
www.synbad.com
Chantal Peltier
1-866-SYNBAD6
14
•
[email protected]
Recognizing
Money Laundering
Source: FINTRAC
K
nowing the market is an important
skill for every real estate professional.
Clients depend on their brokers and agents
to make sense of the deal and to bring
their expertise to the transaction.
As part of their professional knowledge, real estate agents should understand
certain types of criminal behaviour that
might be part of real estate transactions.
Awareness of different types of fraud may
help a broker advise his clients. Knowledge
of potential money laundering schemes
may also help the broker meet his legal
obligations.
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act, legislation that was passed in July 2000, made
it a legal requirement for all real estate
agents and brokers to report transactions
that they suspect were linked to money
laundering when the broker or agent is acting as an intermediary on the deal. When
the broker or agent is acting in this role,
there can be additional requirements such
as record keeping and ascertaining the
identity of the client.
The warning signs
There are number of things that may give
rise to suspicions of money laundering in a
real estate transaction.
• The client arrives at a real estate closing
with a significant amount of cash.
•
•
•
•
•
•
•
•
•
The client purchases property in the
name of a nominee such as an associate
or a relative (other than a spouse).
The client does not want to put his or
her name on any document that would
connect him or her with the property, or
uses different names on Promises to Purchase, closing documents and deposit
receipts.
The client inadequately explains the last
minute substitution of the purchasing
party’s name.
The client negotiates a purchase for
market value or above asking price, but
records a lower value on documents,
paying the difference under the table.
The client sells property below market
value with an additional under the table
payment.
The client pays initial deposit with a
cheque from a third party, other than a
spouse or a parent.
The client makes a substantial down
payment in cash and the balance is financed by an unusual source or offshore
bank.
The client purchases personal use property under corporate veil when this type
of transaction is inconsistent with the
ordinary business practice of the client.
The client pays rent or the amount of a
lease in advance using a large amount
of cash.
When considering what might be a
suspicious transaction, it is important to
take into many factors. If more than one
of these indicators is part of the transaction, there may be grounds for suspicion
and a report to Financial Transactions and
Reports Analysis Centre of Canada (FINTRAC) should be filed.
Filing a Suspicious Transaction
Report
What are the steps to report a suspicious
transaction? In circumstances in which
you have reason to suspect a transaction
may be related to money laundering or
terrorism, reporting entities must file
a Suspicious Transactions Report with
FINTRAC within 30 days. In some cases,
suspicion might not be detected right
away. In such instances, the 30−day time
limit begins once these facts have been
detected.
There is a form available at the FINTRAC website, together with instructions
as to what information should be included
in a report. The report can also be readily
filed via the Internet.
Once a transaction has been reported
to FINTRAC, what should a reporting entity do about their client? That’s
up to the business. There is no require-
ment under the Proceeds of Crime (Money
Laundering) and Terrorist Financing Act to
cancel or refuse a transaction when it has
been reported or is in the process of being
reported. However, for many businesses,
the next steps to take are determined by
their own internal policies, standards and
procedures about dealing with inappropriate or questionable transactions or clients.
FINTRAC has prepared a series of
guidelines to help individuals and businesses identify suspicious transactions. It
also explains the required steps to submit
suspicious transactions reports. It explains
reporting timelines, how reports have to
be sent, and what information has to be
included in these reports.
These guidelines are available on the website
(www.fintrac.gc.ca) of the Financial Transactions
and Reports Analysis Centre of Canada. Additional
printed materials can be obtained by calling the
Centre toll free at 1-866-346-8722.
15
45884_ann ACAIQ9.83X15.83
17/06/05
17:03
Page 1
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building inspections must be regulated

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