The Québec Federation of Real Estate Boards (QFREB) says it is shocked by a new provincial bill that would allow for-sale-by-owner companies to hire real estate coaches that are not licensed with a real estate brokerage.

“Unlike real estate brokers, real estate coaches are not regulated, do not adhere to a professional code of conduct and cannot be held liable for errors, professional misconduct or bad advice that occurs in the exercise of their functions,” says Patrick Juanéda, president of QFREB. “They act as real estate brokers, yet do not hold a licence, do not subscribe to professional insurance and do not contribute to an indemnity fund that protects consumers in the event of a problem.”



Greater Montreal Real Estate Board (GMREB) president Mathieu Cousineau says, “The government’s proposal, which does not clearly define a brokerage operation, will contribute to creating more confusion among the public. We believe the government should better define the activities included in a brokerage operation and reserve them for licence holders, thereby improving the protection of the public.”

The bill is designed to improve the regulation of the financial sector and the protection of money deposits, says the board. It includes an in-depth reform of the Real Estate Brokerage Act (REBA), which governs real estate brokers operating in Quebec.

“In refusing to recognize that consulting services are an integral part of the definition of a brokerage transaction, the minister is maintaining the double standards that exist between duly regulated real estate brokers and real estate coaches,” says Juanéda. “As a result, he is missing a tremendous opportunity to better protect the public.”

The GMREB says, “Although it is too early to comment on the entire bill, the GMREB will analyze the proposal in further detail, but urges the Minister of Finance to carefully assess the potential impact of the proposed changes. It goes without saying that the GMREB invites the Minister of Finance to consult with industry stakeholders on the issues raised by this proposal and its effects on consumer protection.”

1 COMMENT

  1. All that an unlicensed coach/consultant needs to do is to advise his/her clients (who pay for advice by the hour with no skin in the game—read commissions) thus:
    “If I were in your position, given the information and concerns that you have provided me with, I would do such and such, and here is why I would do such and such. You may not want to do such and such as would I, but that will be your decision. I am not here to try to tell you what to do, but, I am telling you what I would do under these, your circumstances, were I in your shoes. Now you have an objective information package upon which to make an educated decision. When you do decide to act upon what-would-be my self-serving advice given your current circumstances in either a positive or negative manner, I will be pleased to assist you going forward with your next moves, or lack thereof, should you feel the need. The ball is in your court; play it well. Best of good luck.”

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