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Thursday, June 21, 2012

Commercial immovable or enterprise: mandatory statements in any brokerage contract or transaction proposal | OACIQ

Commercial immovable or enterprise: mandatory statements in any brokerage contract or transaction proposal | OACIQ


Commercial immovable or enterprise: mandatory statements in any brokerage contract or transaction proposal

Article Number: 121346
June 20, 2012 - 12:16
The OACIQ did not publish any mandatory forms for brokerage contracts and transaction proposals concerning an immovable containing five dwellings or more, a commercial or industrial immovable, an enterprise or a vacant land. However, brokers should include in the contract or transaction proposal the mandatory statements set out in the regulation. If they wish, brokers may also use the OACIQ recommended forms which are designed to address certain situations and which include the mandatory statements listed below. In all cases, broker’s obligation to provide the parties concerned with a completed and signed copy of any contract or transaction proposal applies.
The mandatory statements for any brokerage contract regarding the sale or lease of an immovable containing five dwellings or more, a commercial or industrial immovable, an enterprise or a vacant land are the followings:
1) The identification and contact information of the parties;
2) The subject and term of contract;
3) The identification of the immovable or features of the immovable sought;
4) The price and terms of sale, purchase, exchange of the immovable or enterprise or lease of the immovable;
5) The broker or agency remuneration method and payment conditions of this remuneration;
6) The possibility for parties to resort, in case of a dispute, to the services of conciliation, mediation, and arbitration of accounts offered by the OACIQ in accordance with the Real Estate Brokerage Act;
7) Any other right or obligation of parties;
8) Any other statement complying with the provisions of the Real Estate Brokerage Act.
The statements which must also be contained in such a contract, where appropriate, are the exclusivity of the contract, the fact that in some cases the contract cannot be terminated and the description of the enterprise to be sold, if applicable.
In the same way, the new regulation imposes a mandatory minimum content for anytransaction proposal regarding the purchase or lease of an immovable containing five dwellings or more, a commercial or industrial immovable, an enterprise or a vacant land. Here are the statements that should be contained therein:
1) The identification and contact information of parties;
2) The subject of transaction proposal;
3) The identification of the immovable and description of the enterprise, if applicable;
4) The price and terms of purchase, sale, exchange of the immovable or enterprise or, as the case may be, lease of the immovable and the amount of the down payment deposited in the broker’s or agency’s trust account in accordance with the terms provided for the trust, if applicable;
5) The payment method of purchase, sale or exchange price, including, as the case may be, the payment terms of additional funds, new mortgage loan, assumption of obligations related to existing mortgage loans and selling price balance;
6) The terms and conditions regarding the signing of the deed of sale, lease or exchange contract by the parties;
7) The fact that any declaration by the seller or lessor on the immovable or enterprise made prior to the transaction proposal constitute an integral part thereof;
8) The acceptance conditions of transaction proposal, particularly the date and time of its expiry;
9) Any other right or obligation of parties;
10) Any other statement complying with the provisions of the Real Estate Brokerage Act.
Finally, it should be noted that although the Declarations by the seller of the immovable form of the OACIQ does not constitute a mandatory annex in cases of brokerage contracts regarding the sale of an immovable containing five dwellings or more, a commercial or industrial immovable, an enterprise or a vacant land, the broker’s obligation to recommend to the owner of the immovable to provide his declarations about the immovable remains.

Wednesday, June 20, 2012

Sources: FirstLine to wind down - Mortgage Broker News

Sources: FirstLine to wind down - Mortgage Broker News

Sources: FirstLine to wind downBy Vernon Clement Jones | 20/06/2012 3:00:00 AM | 0 comments
Two of FirstLine’s top broker partners are now confirming Firstline will, in fact, wind down operations at the end of the month, with news about how exactly CIBC will handle rate buydown and other point programs to come with a final announcement.
The news comes courtesy of the broker lender’s BDMs, in on a conference call with CIBC execs Wednesday. The big bank has reportedly failed to come to a sale agreement with one of the broker channel’s biggest companies that would have seen FirstLine kept a going concern, say sources.
“It’s regrettable,” said broker veteran Ron Butler, reacting to the news. “The loss of a Big Five bank is a loss.”
A formal announcement from CIBC is expected as early as the end of the week, with FirstLine’s broker partners anxiously awaiting confirmation on how exactly the bank will deal with their outstanding points.
Collectively, brokers had millions points accumulated in Firstline’s rate buydown program that have yet to be used up, according to sources within the CIBC family.
They’ve watched as the once leading lender has quietly pulled back on its offerings and rate competitiveness over the last year.
It’s been a “death by a thousand cuts,” said one Ontario broker Wednesday. “They should have cut their losses and sold up a year ago when there was still value in the brand.”
Earlier this month, Pacific Mortgage Group founder Alex Haditaghi denied rumours that the company would purchase the broker lender.
“No truth to that rumour,” said he said, following the Mortgage Summit. “Pacific Mortgage Group is not buying FirstLine and MCC.”
Since speculation of an eventual sale surfaced early this year, FirstLine has suffered a precipitous drop in broker market share, but it nonetheless remained in the top four lenders by funded volume in the last quarter. That was despite news CIBC was preparing to sell and was actively fighting to convert clients.
Just how well FirstLine did in the four months ending April 30 has surprised some mortgage professionals given the lender attracted 7.8 per cent of overall broker market share by volume, according to a D+H quarterly report.
A sizable chunk of that business came after news in February CIBC was scouting for a buyer.
The performance, while nearly 10 percentage points off of FirstLine’s 2011 showing, was still enough to place it fourth in the rankings and just below Street Capital.