Definition
Under Quebec's Real Estate Brokerage Act and the OACIQ Code of Ethics, a mortgage broker is required to disclose any real, potential or apparent conflict of interest before or at the time of concluding a transaction.
**Types of conflicts to disclose**: - Differentiated compensation depending on the lender (volume bonuses, tier bonuses) - Personal interest in the transacted property (e.g., sale of a property owned by the broker or a close relative) - Business or family relationship with the seller, buyer or recommended lender - Equity stake in a partner lender or financing agency
**Form of disclosure**: - Written, dated, signed by both parties - Must be made in a timely manner (before signing any commitment) - Kept on the client file
**Sanctions**: - Failure to disclose = disciplinary violation - Can lead to suspension or revocation of OACIQ licence - Can engage the broker's civil liability (damages to the injured client)
**Courteo**: The Courteo platform displays the compensation structure for network partners in the T&Cs and mandate documents, in accordance with OACIQ transparency requirements.