Exclusive Mortgage Brokerage Contract

It is common practice for clients looking for a mortgage loan to sign an exclusive mortgage brokerage contract, otherwise known as an “exclusive mandate”, with a mortgage broker. The ACAIQ would like to remind you that the exclusive nature of these brokerage contracts must be respected by other brokers and agents, just like any other exclusive brokerage contract.

The exclusive nature of the mortgage brokerage contract must ALSO be respected!

In practice, this means that before suggesting that a client shop around for a mortgage loan, you must make sure that he has not already signed a contract with another broker, usually working in the field of mortgage brokerage.

Section 107 of the By-Law of the ACAIQ states the following:

“A member shall not solicit a brokerage contract from a person who has awarded an exclusive brokerage contract having the same object to another real estate broker…”

Failing this, in addition to exposing yourself to disciplinary measures, the client could be required to pay brokerage fees to compensate the broker with whom he had a contract.

source: ACAIQ