Brokers hold OACIQ accountable for hidden membership fees- 2013

Mr. Nicolas Marceau
Minister of Finance and Economy

Dear Mr. Marceau,

On September 1st, we as real estate brokers in Quebec were advised by the OACIQ that we were to follow a mandatory 2 hour online training on collaboration to be completed at the latest by November 30th at a cost of $150.00 for brokers and $300.00 for heads of agencies and chartered brokers. In addition the chartered brokers would also have to pay the $150.00. Failure to comply would lead to revocation of our licenses and the ability to earn a living as brokers.
This draconian communiqué left me with no choice but to sign a petition, join Actions-Courtiers and encourage fellow brokers to fight against these hidden fees and lack of transparency by the OACIQ . The petition was filed in your office by the Committee Action - Courtiers. We are over 5,000 brokers who have signed and wish to be heard.

I am appalled by the mismanagement of our contributions, that it would require an additional infusion of over $4,000,000.00 in capital, prior to the OACIQ’S fiscal year end, in order to balance their “budget”.
The explanation given by Mr. Robert Nadeau on a video issued by the OACIQ was vague at best and downright evasive stating that most of the amount will be applied towards the deficit created by advertising, the cost of the AGM ( Annual General Meeting) and other assorted expenses.

The OACIQ IS RUN LIKE A FIEFDOM AND WE ARE THE SERFS.

I humbly request the intervention of your office to shed light on the following objectionable excerpts from the OACIQ ANNUAL REPORT OF 2012.
(You have already received your own personal copy to peruse; the information is readily available on their website)

1) [Total revenues in the OACIQ General Operating Fund and the Indemnity Fund were up 10% to $23,883,144 in 2012, compared with $21,707,404 in 2011.]

10% increase in REVENUES over the previous year

[In 2012, expenses in the General Operating Fund and the Indemnity Fund totalled $24,803,836, compared with $19,947,837 in 2011, for a 24% increase.]

24% increase in SPENDING over the previous year-OBJECTIONABLE

2) [The expenses in the area of Discipline and Syndic increased from $2,975,800 in 2011 to $3,260,393 in 2012, mainly due to the salaries and benefits associated with these activities.]

A $284,593 increase in “salaries and benefits” for ONE branch of the OACIQ’s bloated bureaucracy-OBJECTIONABLE


3) [The Indemnity Fund alone netted a surplus of $534,068 in 2012, compared with $681,228 in 2011. For the year 2012, the General Operating Fund and the Indemnity Fund show a combined loss of $920,692, compared with a $1,759,567 surplus in 2011,]

From a $1,759,567 SURPLUS in 2011 to a $920,692 DEFICIT in 2012 even with the Indemnity Fund having had a SURPLUS of $534,068!–OBJECTIONABLE

4) [During the year, the OACIQ acquired a 50% interest for a cash amount of $3,516,925 in the limited partnership that owns the building in which the OACIQ operates. We incurred expenses of $485,443 in 2012 to acquire 50% of the limited partnership that owns the building on Lapinière Boulevard. These expenses are non-recurring and include, among other costs, the remuneration paid to the commercial broker who supported us in this major real estate transaction.]

Purchasing 50% of the limited partnership that owns the “chateau” for the head office of the OACIQ for $3,516,925 AND incurring $485,443 in expenses to acquire it- OBJECTIONABLE


5) [The OACIQ is committed under a lease that expires in July 2030 for the rental of head office space owned by the limited partnership, and under vehicle leases expiring between January 2012 and February 2016. Minimum future rent payments total $33,183,811 and include the following payments over the next five years:]

$

2013 1,727,792

2014 1,719,576

2015 1,749,452

2016 1,791,606

2017 1,779,163

Do we really need this VERY expensive “chateau” for a head office?-OBJECTIONABLE

6)

Basic training and examinations
Revenue
Revenue related to examinations 1,028,527

Direct expenses
Salaries and employee benefits 1,196,064

For basic training and examinations the SALARIES and EMPLOYEE BENEFITS surpass the
Revenue.-OBJECTIONABLE


7) [The OACIQ website also underwent significant value-added improvements.]

From the website:
Please note that the following article has not yet been updated since the coming into force of the new Real Estate Brokerage Act on May 1, 2010. “

Does it take more than two years, with the hundreds of minions working there and the millions that we fund to update a website page?-OBJECTIONABLE

8)
Expenses
Administration
Salaries and employee benefits 7,177,382
Professional fees 441,563
Board of Directors and committees 1,150,853
Meeting and travel 650,038
Office expenses 536,832

$8,328,235 in salaries and employee benefits? $441,563 in professional fees? $650,038 in travel? $ 536,832 in office expenses (and this does not include rent)? –OBJECTIONABLE

9) [Pas moins de 75 % des transactions immobilières se font en
collaboration. Ce n’est pas rien!]- from Serge Brousseau on the OACIQ website.

If more than 75% of transactions are done in collaboration, then why do we need to pay for a course at $150.00 for the 25% that do not. According to the OACIQ and from my own experiences, the majority of brokers collaborate.

Based on the information provided above, it is completely unacceptable that our annual contributions are not sufficient to manage the OACIQ . I request that there be an independent audit of the finances of the OACIQ.

On a final note, there are two other salient points that I wish to make:

1) The OACIQ IS A NON-PROFIT ORGANISATION, wholly funded by contributions from brokers. Its “raison d’être” is to “oversee real estate brokerage in Québec”. Does this mean that the activity carried on by DuProprio is “counterfeit brokerage” as opposed to “real” since the OACIQ has no authority over DuProprio?

2) The OACIQ’s mission and primary mandate is to protect the public by supervising the professional activities of all real estate brokers practicing in Québec, in accordance with the Real Estate Brokerage Act. How is the public protected when those without training or experience are allowed to practice the exact same activities? Would you allow an untrained surgeon to perform surgery?
The lack of effectiveness of the OACIQ to abide by their primary mandate leads me to believe it is time for the establishment of a professional order of brokers.

Please acknowledge receipt of this letter and I thank you in advance for taking my comments under consideration.
Sincerely,
Evelyne Pauld
Real Estate Broker I Courtier Immobilier
Groupe Sutton Centre-Ouest
c: 514 707-1957