When you choose to be represented by a broker for the purchase of a property, the OACIQ mandatory form Exclusive Brokerage Contract – Purchase must be used for the purchase of:
A residential immovable containing less than 5 dwellings
A divided co-ownership property
An undivided co-ownership property
Like all other forms of the OACIQ and which brokers are required to use, this one was designed to offer you maximum protection while clearly establishing the terms under which the broker will act. It specifies, among other things:
- The essential features of the desired property;
- The desired price and terms of purchase;
- The respective obligations of the buyer and the broker, including as regards the remuneration of the buyer’s broker (which can be paid directly by the buyer or added to the purchase price offered for the property and included in the mortgage loan).
ATTENTION: If you have not signed a Brokerage contract – Purchase with the broker, the latter cannot represent you and promote your interests in the purchase of a residential property. Brokers are prohibited from representing clients if they have not signed a written brokerage contract with them.
GOOD TO KNOW
By signing an Exclusive brokerage contract – Purchase, you make sure that your broker’s obligations are defined and that he will fulfil them. The contract can also stipulate what type of follow-up will be done by your broker. In addition, if the seller of the property you are considering is not represented by a broker, your broker will make all the necessary verifications that would otherwise be the responsibility of the seller’s broker. This contract also allows the broker to canvass and solicit for properties that are not on the market.
When you are represented, the broker will defend your interests as a buyer, advise you based on your needs and criteria, negotiate the terms of a promise to purchase and present it on your behalf to the seller and his broker.
If you choose not to sign a Brokerage contract – Purchase, the seller's broker or the latter's collaborating broker will not be able to defend your interests, since he is working for the seller who has his own interests in the transaction. Thus, without a contract, the broker is required to treat you fairly by objectively informing you of the facts relevant to the transaction and the rights and obligations of all parties.