QUÉBEC FEDERATION OF REAL ESTATE BOARDS
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1 QUÉBEC FEDERATION OF REAL ESTATE BOARDS
2 BOARD OF DIRECTORS 2 Patrick Juanéda Montréal Errol Mongrain Outaouais Vice- Denis Laporte Co-opted member Treasurer Stéphane Arès Stéphane Bisson David Bourgon Robert B. Brière Steven Buck Hassan Chellah Daniel Dagenais Suzie Demers Christian Royer Camil Simard Francine Soucy Christiane St-Jean Saint Hyacinthe Outaouais Estrie Abitibi-Témiscamignue Haute-Yamaska Mauricie Montréal Lanaudière Centre-du-Québec Saguenay Lac-Saint-Jean Laurentides Québec
3 MESSAGE FROM THE PRESIDENT OF THE BOARD OF DIRECTORS 3 respondents. To help correct this situation, the three organizations set up a task force that will make recommendations for a possible reform of the regulations surrounding condominiums. PATRICK JUANÉDA As president of the Québec Federation of Real Estate Boards (QFREB), I am pleased to provide you with an overview of our organization s main achievements over the past year. Real Estate Brokerage Act The year 2015 was a significant one for the QFREB due to the revision of the Real Estate Brokerage Act. We presented our position on this vital issue by filing a brief with the province s Finance Department, which was responsible for overseeing this revision. The substantial document that we submitted clearly states the need to have all of the stakeholders in our industry comply with the provisions of the Real Estate Brokerage Act. Companies that partly infringe upon our professional designation must stop confusing the public as to the nature of their services. Within this framework, the QFREB proposed that the definition of a real estate brokerage transaction be articulated in the Act, and that it include the concept of advice in order to better reflect the reality. The QFREB also proposed that self-regulation be maintained for our profession. In addition to submitting a brief, we also made representations to the Finance Department and the Minister s office so that they are fully aware of the issues that concern us. Condominiums: A Complex Situation As part of the revision of the Condominium Act, the QFREB commissioned the company Léger to survey all real estate brokers in Québec. We wanted to identify the various factors that result in the failure of some condominium transactions. Nearly 3,000 brokers responded. In April, the QFREB wrote to the Justice Minister in order to comment on the proposed changes to this Act and submit various recommendations in order to improve its content. Furthermore, because condominium transactions are becoming increasingly complex, the QFREB has increased its condominium training for brokers. This training program lasts 28 hours and enables brokers to increase their understanding of this subject and gain a competitive advantage. In 2015, a total of 247 brokers attended this popular training session. The QFREB also developed a 14-hour training session that focuses exclusively on undivided co-ownership. Provincial Ad Campaign To better understand the complexity of a real estate transaction and the value of working with a broker, the Federation implemented advertising campaigns with the province s real estate boards and the Organisme d autoréglementation du courtage immobilier du Québec (OACIQ) in the spring, and then only with the real estate boards in the fall. These campaigns conveyed several messages explaining the risks of selling a property by yourself and the advantages of teaming up with a real estate broker. Critical Legal Dossiers At the QFREB s annual general meeting in April, the Board of Directors and delegates from the real estate boards unanimously approved the creation of a fund to defend real estate brokers interests. The establishment of this fund became necessary due to the importance and magnitude of the legal dossiers that the QFREB must now manage, including the collective action against DuProprio. The QFREB submitted a request for intervention in the motion for declaratory judgment that the OACIQ presented in order to subject DuProprio to the Real Estate Brokerage Act. DuProprio filed a motion to dismiss this appeal, which was rejected in early We will continue to monitor this issue closely. As for the dossier regarding the Commission de la santé et de la sécurité du travail (CSST) and their desire to subject the real estate industry to its coverage, the QFREB continued its efforts to protect the interests of its members. This dossier is now in the hands of real estate agencies and their legal advisers. In September, the QFREB, the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) and the Association des professionnels de la construction et de l habitation du Québec (APCHQ) joined forces to address the issue of condominium reserve funds in Québec. This collaboration led to the conducting of a study, which revealed that there was a funding deficiency among 41% of
4 4 Another Important Issue In terms of relations with The Canadian Real Estate Association (CREA), this national organization wanted to implement its Data Distribution Facility (DDF) across Canada, which would have allowed Québec brokers to post on their websites properties listed by brokers from other provinces. In the opinion of the QFREB and the province s real estate boards, this would put Québec brokers at risk, particularly regarding their responsibility to verify all information that is transmitted to the public. It would also expose them to the risk of prosecution as well as offenses related to our profession s code of ethics. CREA understood our concerns and they confirmed that the DDF will not be implemented in Québec. This decision clearly demonstrates the benefits of collaboration between organizations in defending the interests of brokers. New Leadership Towards the end of the year, the Federation welcomed a new Chief Executive Officer, Mtre. Pénéla Guy. A lawyer by training and a management coach, she has extensive experience in the private and public sectors. Thanks to her leadership and professional expertise, she is already fully contributing to the growth and influence of our organization. In 2016, she plans to implement the following priorities for the QFREB: Develop a strategic plan of 3 to 5 years; Promote the organization and the profession, particularly by developing an effective communications and public relations strategy; Enhance the conciliation and arbitration service; Finalize the overhaul of the organization s governance rules; Defend real estate brokers interests in various legal and legislative dossiers; Become THE reference in terms of information about the real estate market; Actively participate in the process of public consultations relating to the real estate sector, including the revision of the Real Estate Brokerage Act and the Condominium Act. In conclusion, I would like to note that the QFREB continued to benefit in 2015 from the exceptional contribution of brokers who generously gave their time to the various committees. I therefore extend my warmest thanks to all the volunteers and professionals at our service for their unwavering support in helping us achieve our mission. Patrick Juanéda
5 ACTIVITY REPORT 5 MARKET ANALYSIS At the end of 2015, the Market Analysis Department reported that the number of residential transactions in Québec increased by 5% compared to 2014, for the first increase in sales in five years. This rebound was accompanied by a modest 1% increase in the median price of single-family homes in a context where the real estate market remained a buyer s market in most urban centres. The annual Fenêtre sur le Marché conferences were a great success in 2015 as more than 1,000 brokers and real estate industry stakeholders participated in the various presentations. This was the fourth edition of the conference in the Montréal area and the third edition in the Québec City area. At the request of other real estate boards, conferences were also given in the Laurentians, the Outaouais and Estrie. The content presented gave brokers a detailed look at the state of the local real estate market in 2014, as well as forecasts for 2015 across the province. In addition, a component on the economic outlook and a summary of a survey on consumers buying and selling intentions were also presented. The Market Analysis team produces and publishes various economic newsletters and articles for the intention of QFREB members. Its main publications are the QFREB Barometers, the monthly Window on the Market newsletter, and Economic News. In 2015, the Department published two new studies on current topics through its Word From the Economist publication. These studies are entitled Walkability and Property Values, as well as Indebtedness, Insolvency and Mortgages in Arrears: The Situation in Québec. Approximately a dozen presentations were given to real estate boards and agencies in 2015, along with a dozen or so presentations of the Succeeding With Statistics training session, which guides brokers in their search for reliable and relevant statistics, and how to interpret them. The Department is known for responding quickly to media requests. As a go-to reference for information about the real estate market, the Market Analysis team contributed to significantly increasing the QFREB s visibility in the media. Finally, the Department worked on developing an information service that is exclusive to brokers, which was launched in January 2016 as a blog entitled Brokered!. GOVERNMENT RELATIONS As part of the revision of the Real Estate Brokerage Act, the QFREB filed a brief that outlined its key positions regarding the overhauling of the Act. This brief addressed the issues that affect members and our profession, and emphasized the importance of adding the notion of advice in the definition of a brokerage act in order to better reflect reality. The QFREB was also consulted after the filing of this brief in order to contribute to the Finance Department s reflection. An omnibus bill concerning the framework of the financial sector, including real estate brokerage, should be filed in the coming months. In conjunction with the Regroupement des gestionnaires et copropriétaires du Québec (RGCQ) and the Association des professionnels de la construction et de l habitation du Québec (APCHQ), the QFREB participated in a reflection on the legislative review of the Civil Code surrounding the issue of condominiums. This collective reflection resulted in the creation of a survey on the condition of condominium reserve funds in Québec. Proposals are currently being studied and will be filed with the province s Justice Department. The objective is to urgently amend the laws governing reserve funds. The QFREB also argued the position of the Québec real estate industry in response to the tightening of mortgage insurance rules by the Canada Mortgage and Housing Corporation (CMHC). Federal Finance Minister, Bill Morneau, announced new measures in December 2015 that are part of a lengthy tightening of mortgage conditions, including an increase in the minimum down payment to purchase a home of more than $500,000. Because this change will have very little impact on Québec home buyers, the QFREB supported these measures. ANOTHER IMPORTANT DOSSIER Pursuing our mission to defend members interests, we made representations to The Canadian Real Estate Association (CREA) as they wanted to implement their Data Distribution Facility (DDF) across Canada, which would have allowed Québec brokers to post on their websites properties listed by brokers from other provinces. The QFREB did not want CREA to deploy this service in Québec, as it would put Québec brokers at risk, particularly regarding their responsibility to verify all information that is transmitted to the public. CREA demonstrated openness in this dossier and confirmed that the DDF will not be implemented in Québec.
6 A FUND FOR DEFENDING MEMBERS INTERESTS In April 2015, a Members Interests Defence Fund was created in order to finance and manage, in an adequate and diligent manner, the costs associated with dossiers that defend members interests. The management of this Fund is subject to a strict policy governing the use of the money collected. To be eligible for the Fund, dossiers must enable the QFREB to clearly and directly accomplish its mission, in whole or in part, while benefiting the general interests of members. The Board of Directors approves the eligibility of dossiers and the funds allocated. By charging $25 per member on July 1, 2015, an amount of $320,330 was collected. As of December 31, 2015, expenditures on these dossiers totalled $174,685, including $43,411 that was reimbursed by CREA as part of its Legal Defence Fund. A positive balance of $189,026 was therefore accounted for in the Fund at the end of A second payment installment of $12.50 per member was collected on January 1, 2016, which allowed the QFREB to accumulate an additional amount of approximately $162,400. Here is a summary of some of the dossiers that were identified as being eligible for this Fund. The case opposing the OACIQ and DuProprio is still before the courts. The OACIQ filed a motion for declaratory judgment in order to subject DuProprio to the Real Estate Brokerage Act. In 2015, the QFREB requested intervenor status from the Superior Court of Québec in order to make representations in favour of QFREB members. This request has been suspended while the main parties finish presenting their various preliminary motions. In December 2014, the QFREB filed an application for authorization to institute a collective action on behalf of all Québec residential real estate brokers against DuProprio for misleading advertising and unfair competition. A hearing for the application for authorization took place in October, and in the spring of 2016 the Superior Court authorized the collective action requested by the QFREB. Developments in this matter are expected in As for the dossier regarding the Commission de la santé et de la sécurité du travail (CSST) and their desire to subject the real estate industry to its coverage, the QFREB continued its efforts to protect the interests of its members. This dossier is now in the hands of real estate agencies and their legal advisers. PROFESSIONAL PRACTICES In 2015, the Professional Practices Department opened 91 files representing claims for compensation totaling $910,180, a 17.5% increase compared to the amount claimed in Throughout the year, QFREB conciliators conducted 78 conciliation sessions. The Department held 20 arbitration sessions, six more than in COMMUNICATIONS AND PUBLIC RELATIONS The Communications and Public Relations Department took various actions in 2015 to support the QFREB in achieving its mission. It was responsible for media relations for the Federation, answering numerous requests for information and interviews. Interventions with the media also included proactive initiatives during the various stages of the consultation process on the revision of the Real Estate Brokerage Act. The Department also spoke to the media following the announcement of tighter mortgage rules by the federal Finance Minister in December. In addition, the Department reviewed the different visuals and content of the QFREB s communication tools that are designed for members and the general public. It also trained QFREB employees as spokespeople to enhance their effectiveness in interactions with the media, and participated in the development of the Market Analysis Department s new information service, entitled Brokered!. PROVINCIAL COLLABORATION Composed of 12 practicing real estate brokers, the Provincial Collaboration Committee promotes brokers professionalism and facilitates their collaboration. The members of this committee can recommend to the QFREB Board of Directors any modifications deemed appropriate to the organization s business rules. Among its achievements in 2015, the Committee submitted to the Board a proposed change to policy number 15 regarding the period required for keeping the Seller s Declaration form, as well as a recommendation to withdraw the field Appointment with the owner and other in our collaboration system. We also made it mandatory to have a profile photo in Matrix and SamWeb. Other dossiers are currently being considered for implementation in 2016 regarding the publication of listings in more than one category, the harmonization of quality control at the provincial level, the addition of new types of properties in the Centris system and the calculation of the average selling time. 6
7 QUÉBEC REAL ESTATE BOARDS 7 de l Abitibi-Témiscamingue Gilles Langlais 33 Horne Avenue, Suite 203 Rouyn-Noranda, (Québec) J9X 4S1 Tel.: Fax: info@ciat.qc.ca du Centre-du-Québec Jocelyne Lambert Executive Assistant 445 Brock Street Drummondville, (Québec) J2B 1E2 Tel.: Fax: chambre@cgocable.ca de l Estrie Johanne Beaudoin Executive Assistant 19 King Street West Sherbrooke, (Québec) J1H 1N4 Tel.: Fax: jbeaudoin@mon-toit.net de la Haute-Yamaska Lise Desrochers 45 Centre Street, Suite 3 Granby, (Québec) J2G 5B4 Tel.: Fax: administration.cihy@videotron.ca de Lanaudière Louise Renaud 765 Manseau Blvd. Joliette, (Québec) J6E 3E8 Tel.: Fax: cil@immobilierlanaudiere.com des Laurentides Jean Touchette 570 des Laurentides Blvd. Piedmont, (Québec) J0R 1K0 Tel.: Fax: lyne.froment@cilaurentides.ca de la Mauricie Lise Girardeau 1275 des Forges Trois-Rivières, (Québec) G8Z 1T7 Tel.: Fax: info@cimauricie.com Greater Montréal Real Estate Board Éric Charbonneau Chief Executive Officer 600 chemin du Golf Île-des-Soeurs, (Québec) H3E 1A8 Tel.: Fax: Toll-free: eric.charbonneau@cigm.qc.ca de l Outaouais Chantal Legault 106 Sacré-Cœur Blvd. Gatineau, (Québec) J8Y 1E1 Tel.: Fax: clegault@avecunagent.com de Québec Martine Bélanger 990 Holland Avenue Québec, (Québec) G1S 3T1 Tel.: Fax: rstpierre@ciq.qc.ca du Saguenay Lac-Saint-Jean Carlos Cordeiro 2655 du Royaume Blvd., Suite 140 Jonquière, (Québec) G7S 4S9 Tel.: Fax: cisl@immobiliersaguenay.com de Saint-Hyacinthe Martine Richard Executive Assistant P.O. Box 667 Saint-Hyacinthe, (Québec) J2S 7P5 Tel.: Fax: chimmob@cgocable.ca
8 PERMANENT COMMITTEES 8 MANAGEMENT TEAM Pénéla Guy Chief Executive Officer Paul Cardinal Manager, Market Analysis Catherine Levasseur Assistant Manager, Professional Practices Jacqueline Poirier Executive Assistant, General Management GOVERNMENT RELATIONS Carol Pedneault, Saguenay Lac-Saint-Jean Richard Beaumier, Montréal Vice- Jean-Luc Beaurivage, Centre-du-Québec Claude Bélanger, Québec David Bourgon, Estrie Robert Cliche, Abitibi-Témiscamingue Lise Comtois, Lanaudière Clément Depelteau, Montréal Liliane El Helou, Outaouais Lise Giradeau, Mauricie Claude Laliberté, Saint-Hyacinthe Denis Laporte, Lanaudière Michel Liboiron, Laurentides Mathieu Savard, Montréal AUDIT AND FINANCE Denis Laporte, Lanaudière Réjean Blanchette, External Advisor Steven A.J. Buck, Haute-Yamaska Christian Royer, Centre-du-Québec Francine Soucy, Laurentides PROVINCIAL COLLABORATION COMMITTEE Stéphane Arès, Saint-Hyacinthe Nathalie Bégin, Montréal Stéphane Bisson, Outaouais Francis Carignan, Centre-du-Québec Roger Champoux, Estrie Céline Charbonneau, Haute-Yamaska Hélène Charette, Abitibi-Témiscamingue Thierry Desbiens, Saguenay Lac-Saint-Jean Suzanne Houle, Québec Patrick Lapalme, Lanaudière Patrick Lynch, Mauricie Marc-André Pilon, Laurentides PROFESSIONAL PRACTICES Patrick Juanéda, Montréal Pierre Denault, Laurentides Gratien Dubé, Québec Isabelle Gingras, Lanaudière Daniel Guertin, Saint-Hyacinthe Luc Lemay, Abitibi-Témiscamingue Louis Levasseur, Mauricie Christian Royer, Centre-du-Québec Camil Simard, Saguenay Lac-Saint-Jean GOVERNANCE AND ETHICS COMMITTEE Steven A.J. Buck, Haute-Yamaska Sylvain Girard, Montréal Patrick Juanéda, Montréal Errol Mongrain, Outaouais Christiane St-Jean, Québec HUMAN RESOURCES COMMITTEE Patrick Juanéda, Montréal Luce Fecteau, Québec Denis Laporte, Lanaudière Errol Mongrain, Outaouais
9 FINANCIAL STATEMENTS QFREB STATEMENT OF FINANCIAL POSITION December 31, 2015, with comparative figures for Assets Current assets $2,000,363 $1,482,029 Capital assets 5,578 6,741 2,005,941 1,488,770 Liabilities Current liabilities 1,027, ,048 9 Net assets 978, ,722 $2,005,941 $1,488,770 OPERATIONS Year ended December 31, 2015, with comparative figures for Revenues Dues $1,973,457 $2,024,358 Dues - Real Estate Brokers Interests Defence Fund 174,685 Dues - Provincial ad campaign 1,070,100 1,902,608 Other 492, ,070 3,710,999 4,302,036 Expenses Provincial ad campaign 1,070,100 2,034,836 Salaries and fringe benefits 754, ,790 Transfers to boards and cost of services 330, ,696 Member services 306, ,808 Administrative fees 277, ,917 Legal fees 155, ,706 Real Estate Brokers Interests Defence Fund 174,685 Communications and public relations 125, ,263 Conventions / Meetings 123, ,913 Professional fees 91,950 35,493 Directors fees 79,335 80,839 Rent 63,712 62,309 Amortization 1,163 1,163 3,554,148 4,504,733 Excess (deficiency) of revenues over expenses $156,851 $(202,697) On behalf of the Board, Patrick Juanéda Denis Laporte Treasurer The complete version of the financial statements is available at in the members section.
10 QUÉBEC FEDERATION OF REAL ESTATE BOARDS 600 chemin du Golf Île-des-Sœurs, Québec, H3E 1A8 Telephone: Toll-free: Fax:
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