Real Estate Talk:
When a broker drops the ball
What to do when your broker doesn’t do what should be done
By Joseph Marovitch
You sold your home without warranty, or so you thought. You inherited the house from your aunt who passed away. Your aunt lived in the house for sixty years and she was 92 when she passed. So, you inherit the house and decide to sell it. However, you don’t know what condition the house is in and you don’t believe your 92-year-old aunt kept it up to date. You rightfully decide to sell the house without warranty. The broker states in the listing that the house is being sold without legal warranty. You receive an offer you are willing to accept and do so. Signing takes place and the house is sold. A month later, the buyer calls you to say there is a crack in the fireplace lining which allows smoke to enter the house and they want you to repair the problem or compensate the buyer so they can repair the problem. You say, “Hold on a second. I sold the house without warranty. It is not my problem”.
Guess again! The deed of sale does not indicate the house is sold without warranty because the notary was not made aware to place such a clause. The notary was not aware because the broker did not insure the “Sold Without Legal Warranty” clause was indicated in the promise to purchase, counter offer or any of the amendments which he/she should have done so.
You’re selling your house and the broker tells a perspective buyer that his client already purchased another home and must move in soon. With this information, the buyer comes with a low-ball offer, knowing the seller is under pressure. The broker must keep all information received from his client confidential.
Most (brokers)… are ethical, lawful and knowledgeable… However, like everything else in the world, there is human error, fraud, negligence, criminal negligence, and the list goes on.
In the previous two cases the seller lost money through no fault of their own but rather due to the negligence of their broker.
There are hundreds of real estate agencies and there are thousands of real estate brokers. Most, we assume, are ethical, lawful and knowledgeable and will do everything in their power to serve and protect your interest. However, like everything else in the world, there is human error, fraud, negligence, criminal negligence, and the list goes on.
When you have a problem with a broker and you feel you were not treated properly or your best interest was not their best interest and therefore you lost money or a sale or purchase, there is an organization you can call that will help.
The OACIQ (Organisme d’autoréglementation du curtage immobilier du Quebec) is the organisation mandated by the Quebec Government to regulate and enforce the Real Estate Brokerage Act. In effect, the OACIQ oversees the actions of all real estate brokers to protect the public.
‘… the OACIQ oversees the actions of all real estate brokers to protect the public.’
There are six steps of the OACIQ that assist and assure your protection:
This is your first point of contact before, during or after an issue has take place. Info OACIQ will direct you to the appropriate department depending on the issue.
The office is open Monday, Tuesday, Thursday and Friday from 9 am to 4 pm.
On Wednesdays, the office is open from 10 am to 4 pm.
They may be reached at email@example.com or 450-462-9800 / 1-800-440-7170
Assistance Department (AD)
The assistance department allows you to report any problem involving a real estate broker. The AD may settle the dispute or call upon other resources depending on the severity of the issue.
The Syndic investigates violations of the real estate brokerage act by brokers or agencies. If there is evidence of an ethical violation, the Syndic will file a complaint with the discipline committee.
Upon investigation, the discipline committee has the authority to implement penalties such as fines, insist that the broker takes specific courses, or remove the broker’s licence.
Real Estate Indemnity Fund (FICI)
The FICI provides financial compensation to consumers who are victims of fraud, dishonest behaviour or misappropriation of funds.
The FARCIQ provides financial compensation to consumers who are victims of unintentional fault, error, negligence or omission
When considering a broker, it is a good idea to check the broker’s record to see if they have ever been disciplined by the OACIQ. Go to oaciq.com/en and click at the top of the page where it says “Check a Broker’s Record”.
Should you desire further information on the OACIQ, go to oaciq.com
‘When considering a broker, it is a good idea to check the broker’s record to see if they have ever been disciplined by the OACIQ.’
State of the market
I guess those developers who have been building condos in droves all over the city had it right. The price of single detached and semi-detached homes continues to rise as supply diminishes. The lack of homes for sale and the rising prices are pushing people towards the purchase of condos, causing the price of condos to rise as well. The Bank of Canada has decided to maintain interest rates at 1.25%. This should keep the markets steady until May 30 when the Bank will make their next interest rate announcement, which will depend upon real estate sales, price of gas and minimum wage hikes. The Bank has indicated that there will be an interest rate rise, but not more than up to 2%.
There may be an opportunity now to purchase condos as an investment. You can rent the condo and maintain expenses while the property grows in value. Then you can borrow against the equity from the condo to purchase another condo.
Should you have any real estate questions, feel free to contact me anytime.
Next topic: Income property
Have a great week.
Read also: Real Estate Talk: Why use a broker?
Joseph Marovitch has worked in the service industry for over 30 years. His first career was working with families from Westmount and surrounding areas, hosting children between the ages of 6 to 16 as the owner and director of Camp Maromac, a sports and arts sleep away summer camp established in 1968. Using the same strengths caring for the families, such as reliability, integrity, honesty and a deep sense of protecting the interests of those he is responsible to, Joseph applies this to his present real estate broker career.
Should you have questions please feel free to contact Joseph Marovitch at 514 825-8771, or firstname.lastname@example.org