As a real estate broker, you accompany clients on a daily basis in real estate transactions or rental assignments. As a syndic, you manage co-owned buildings. Not easy jobs: you have to keep many balls in the air at once, and on top of that you work with people who are looking for a roof over their heads or want to get rid of their property quickly. Those situations often cause stress and frustration, so you have to throw all the professional knowledge you acquired during your training into the fray every day.
The Professional Institute of Estate Agents (IPI) provides a solid training as well as a deontological code (the Regulations on the Doctrine of Duties, or in short, the Doctrine of Duties) that clearly sets out the lines.
Usually the mediation or management goes smoothly. But sometimes things go wrong: a prospective tenant who feels that he has been passed over by the real estate agent because the latter gave priority to another candidate, or a co-owner who reproaches the property management agency for not having acted accurately when settling a claim. Such cases can give rise to liability claims, but complaints can also be filed with the IPI, and this can ultimately lead to disciplinary proceedings. In such situations, it is best for a real estate broker or trustee to seek the assistance of a specialized lawyer.
Breaches of the Duties Doctrine: an overview
At Lawtree, we have since developed extensive expertise in the legal representation of real estate brokers and syndicators in disciplinary proceedings.
But what are common problems? Which articles of the Doctrine of Duties are sometimes sinned against? Here are a few concrete examples:
- ‘The real estate broker may not engage in a regulated activity of real estate brokerage in cooperation with a person who unlawfully engages in such activity.’ So it is written in black and white in Article 22. Since the illegal exercise of the profession is a criminal offense, it goes without saying that a real estate broker who collaborates with a person who illegally exercises the profession is liable to disciplinary sanctions. “Everyone knows that, right?” you might think. Not really: the IPI still handles countless files every year in which it was able to establish that the organization of the real estate broker or trustee in question is not in order. Of course, this can have far-reaching consequences, up to even a strike action brought before the civil court.
- Real estate agents’ advertisements must provide accurate information about the properties they offer for sale. Real estate agents may of course emphasize the commercial advantages, but they must not blindly rely on the information they receive from the client, as this can lead to misinformation – with dire consequences. For example, there was once a real estate broker who rightly had to answer to the IPI for falsely listing a single-family house for sale as a multi-family house. Can’t be done, in other words.
- Real estate agents must practice their profession with dignity and integrity. For example, they must not discriminate in the rental market. Anyone who applies to view a property must be given a real opportunity to do so. If a real estate agent refuses a potential tenant or buyer because of an exotic name or the color of one’s skin, for example, the latter can – rightly – file a complaint with the IPI. It is then up to the real estate agent in question to prove that he is straight.
Why legal assistance?
Of course, these are not the only obstacles you may encounter: after all, the Doctrine of Duties counts 89 articles. Once disciplinary proceedings are initiated, you had better watch out, because the risks are not negligible: you can receive a warning or reprimand, but equally a suspension. In the worst case, you are even looking at being struck off the register. Proper legal support is therefore no luxury. It is useful to know that you can often appeal to your legal expenses insurance, which will cover the lawyer’s fees.
Are you a real estate broker or trustee and have disciplinary proceedings been initiated against you? Would you like to discuss an unpleasant situation that has arisen in the context of real estate mediation or management? Feel free to contact us, we will be happy to help you.
