A real estate broker who holds a license issued in accordance with the Quebec legislation known as the Real Estate Brokerage Act (hereinafter the “REBA“) and who practices in Quebec is subject to various duties. These duties may arise, expressly or implicitly, from the application or interpretation of certain provisions of the Civil Code of Québec, the REBA, or the Regulation respecting brokerage requirements, professional conduct of brokers and advertising, adopted under the REBA.
Furthermore, should a real estate broker breach any of these duties, they could—depending on the specific circumstances of the situation—be held civilly liable toward any person who suffers damages as a result of such a breach.
For example, a real estate broker who has been duly informed by their client that the client wishes to sell a property following the suicide of a late spouse on the premises, but fails to disclose this material fact to a potential buyer in order to avoid jeopardizing the sale, would be failing in their obligations to act in good faith, with honesty, and with transparency toward that potential buyer. Consequently, the broker could be subject to a civil lawsuit by the buyer if the latter suffers damages resulting from this fault (see, by analogy, the judgment in Organisme d’autoréglementation du courtage immobilier du Québec v. Dussault, 2018 CanLII 100223 (QC OACIQ)).
Another example where the professional civil liability of a real estate broker could potentially be engaged is when a seller’s broker fails to verify the accuracy of significant information provided by the seller—such as the potential (though uncertain) total surface area of the land for sale (see, by analogy, the judgment in Veilleux v. Dubeau, 2013 QCCQ 3383).
Furthermore, regarding the broker’s duty to act with loyalty toward their client , a potential buyer: if a broker breaches this duty by failing to inform the client of a property on the market that meets the client’s criteria, solely so that the property may instead be purchased by the broker’s spouse, the broker could once again face a lawsuit for damages from the client (see, by analogy, the judgment in Soulos v. Korkontzilas, 1997 CanLII 346 (SCC)).
Finally, to learn more about the professional civil liability of real estate brokers, do not hesitate to contact your lawyer.
