For most people, the purchase of a house, condo or any other type of property will be the biggest expense in their life. This is by no means a simple process. It involves research, property visits, offers, negotiations, counter-offers, inspections, financing and other legal, financial and business considerations.
A real estate broker can make it easier by taking care of every step of the transaction. Thanks to their training, they can offer you personalized advice based on your needs and negotiate on your behalf and in your sole interest. Their robust network of professionals that includes financial advisors, building inspectors and notaries will also give you access to useful information related to your transaction.
By working with a real estate broker, you also benefit from the protections under the Real Estate Brokerage Act and its Regulations, which seek to regulate the profession and protect the public. In this regard, amendments to the Real Estate Brokerage Act and its Regulations that better protect buyers in real estate transactions took effect on June 10, 2022.
End of verbal contracts
Prior to June 10, 2022, a buyer could hire a broker by simply entering into a verbal agreement with them. Since June 10, 2022, the buyer has to sign a written brokerage contract to purchase to gain representation from a real estate broker.
Without such contract, a real estate broker is not allowed to represent and defend the interests of the buyer, which means that they are prohibited from:
The broker will only be allowed to provide support. In real estate lingo, you’ll hear the phrase “granting fair treatment to the buyer.”
What is fair treatment?
A broker who must grant fair treatment to a buyer, has to provide them with unbiased information. They must prove that the information is accurate and disclose any flaws or defects of the property being considered to the unrepresented buyer. However, the broker cannot represent or defend the interests of the buyer.
End of double agency
What happens if you’ve signed a brokerage contract to purchase with your broker but want to make a promise to purchase for a property they are in charge of selling? To protect your interests as a buyer, your real estate broker will have to terminate your brokerage contract to purchase at no cost to you. They also have to recommend that you get representation from another real estate broker in this transaction. If you choose to represent yourself, they must grant you fair treatment, as described above.
Benefits of a brokerage contract to purchase
With around 4,763 real estate brokers in 148 offices, RE/MAX brings you the largest real-estate network in Québec to help you find the right home for you. RE/MAX brokers account for over 25% of all real estate brokers in Québec and close to 50% in market shares in the province—an even higher proportion in some regions.