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Broker Guidelines
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The Mission
The Mission of ZAX and of Steven is that the first and exclusive mandate is to promote and defend the interests of the buyer and investor with whom we have a Brokerage contract- Purchase
The business model was designed taking into consideration the explicit premise that no current or future ZAX broker will be authorized to sign Brokerage contracts - Sale or to conduct prospecting in this regard, including residential and commercial properties.
This mission is aligned with the prohibition of dual representation which aims to ensure the protection of the public considering that it is impossible for a real estate broker to favour the interests of the seller who wants to sell in particular under the best conditions and at a maximum price and, at the same time, protect the interests of the buyer who seeks to pay the lowest possible price.
Conflict of interest
The ZAX broker has an obligation to avoid placing himself in a real or apparent situation of conflict of interest, as indicated under the Real Estate Brokerage Act and its' Regulations respecting the conditions for carrying out a brokerage transaction, brokers ethics and advertising.
From the moment the license holder is bound to his client by a brokerage contract, he represents this person. As such, he must protect and promote his interests first and foremost. In other words, he must put his client's interests before his own.
Moreover, he may not make any representation that goes against the person he represents. He may not disclose confidential or strategic information concerning this party or the proposed transaction, unless he has written authorization from the person he represents.
Brokerage contract – Purchase
Like all other OACIQ forms that brokers must use, this one was designed to ensure maximum protection for you, while clearly establishing the basis on which the broker will act. It provides, among other things:
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The essential characteristics of the property sought;
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The price and conditions of purchase sought;
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The respective obligations of the buyer and the broker, including the buyer broker's fee (paid directly by the buyer, or added to the purchase price offered for the property and forming part of the mortgage financing).
ATTENTION: If you have not signed a Brokerage contract – Purchase with the broker, the latter cannot represent you and promote your interests for the acquisition of the residential property. Brokers are prohibited from representing clients if they have not signed a written brokerage agreement with them.
Ban on
"double representation"
The ZAX broker's primary obligation is to promote and protect the interests of its buyer/investor client and to act loyally towards them when it has obtained a Brokerage contract - Purchase.
A ZAX broker is not authorized to sign a Brokerage contract - Sale. The agency's business model is to promote and defend the interests of buyers/investors with whom it has a duly executed Brokerage contract - Purchase or with unrepresented buyers, with whom it provides fair treatment.
The real estate broker cannot fulfill his ethical obligations to promote and protect the interests of a seller and a buyer as well as to act loyally towards them, because their interests are opposed. This is the reason why dual representation has been prohibited since June 10, 2022.
GOOD TO KNOW
By signing a Brokerage contract - Purchase, you ensure that the broker's obligations are described and that he must respect them. This contract also allows you to stipulate what type of follow-up will be carried out by your broker.
In addition, if the seller of the property you are interested in is not represented by a broker, your broker will carry out all the usual checks, due to the lack of checks that the seller's broker would have carried out. The contract also allows the broker to canvass and solicit people for properties that are not on the market.
When you are represented, the broker will defend your interests as a buyer, advise you according to your needs and criteria, negotiate the terms of a promise to purchase and present it to the seller or his broker on your behalf.
What does the ban on dual representation mean?
When the real estate broker has a Brokerage contract with each of the two parties (buyer and seller or lessor and lessee), he is in an exceptional, unforeseen or unforeseeable situation of dual representation. The real estate broker cannot fulfill his ethical obligations to promote and protect the interests of his two clients as well as to act loyally towards them, because their interests are opposed. This is why dual representation is prohibited.
Only residential transactions are subject to the ban on dual representation. However, as far as the ZAX broker is concerned, in any circumstance, the latter is not authorized to represent a seller client in the commercial field and this with a buyer regardless of whether he is bound by a Brokerage contract p Purchase or even if he works with an unrepresented buyer to whom he provides fair treatment. This contravenes the agency's business model.
We promote and defend the interests of the buyer/investor and not the seller.
Providing fair treatment
Whether or not the broker has a brokerage contract, he has an obligation to provide fair treatment to all parties to the transaction, whether represented or not.
Providing fair treatment means providing objective information on all facts relevant to the transaction and the rights and obligations of all parties to the transaction, while ensuring that confidential or strategic information is not disclosed.
If the party is not represented, granting fair treatment may take the following form: showing the party the property; providing and completing for the party a blank promise to purchase form and its annexes; recommending that the party use standard financing and inspection clauses when drafting the promise to purchase; disclosing to the party the relevant factors relating to the transaction.
What does it mean to represent a client?
To be able to represent a client and thus protect and promote their interests, you must have signed a written brokerage contract with them. Representing a client allows you, among other things, to: defend their interests; advise them according to their needs and criteria; negotiate the terms of a promise to purchase; protect their personal information and other strategic information; and market the property.
It is not possible to represent a buyer without having previously signed a Brokerage contract - Purchase with him. The broker without a brokerage contract is considered a "collaborating broker without a contract". He works de facto for the seller. He cannot offer the buyer more than fair treatment.
Demonstrating a spirit of collaboration
Collaboration between licensees is the cornerstone of the real estate brokerage practice. Collaboration must be demonstrated at all stages of the brokerage practice: from the solicitation of the Brokerage contract - Purchase, to the monitoring of the transaction after the acceptance of a promise to purchase. Collaboration is so important in real estate brokerage because the quality of this collaboration helps avoid conflicts of interest, reduces discredit towards the profession, limits the potential for harm to the public and ensures the fairness of the process for both the seller and buyers interested in submitting offers. Generally speaking, and at all times, the license holder must demonstrate courtesy and a spirit of collaboration with other license holders.