Do you want to sell, buy, or rent a property (commercial or residential) and are on the verge of hiring a real estate broker? Or do you dream of this profession, but hesitate between becoming a residential or commercial broker, or both? Read on to better understand each role!
The first thing to know is that residential real estate brokers deal with the sale, rental and purchase of mainly residential buildings of five units or less, divided or undivided condominiums and vacant lots whose zoning is residential.
Commercial real estate brokers, on the other hand, are responsible for real estate transactions concerning buildings with five or more units, commercial buildings, warehouses, and vacant land that are zoned industrial or commercial.
Similar Roles
That being said, the work of residential real estate brokers is very similar to that of commercial real estate brokers. Both analyze the market, determine the right price, negotiate the details of transactions, accompany the client at every step from the beginning to signing with the notary, etc. Also, both types of real estate brokers must follow the rules of the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ), hold a license to practice and comply with the Real Estate Brokerage Act as well as to the applicable regulations.
Differences
Here are some ways in which their work is different:
- Before buying a house and making a promise to purchase, you will definitely want to visit it. In the case of a commercial building, it is not uncommon for the visit to take place following the acceptance of a promise to purchase. Thus, the work of the commercial broker has certain nuances in the field.
- Residential real estate brokers must use the mandatory OACIQ forms issued by the organization following their approval by the Minister of Finance, while commercial real estate brokers are not obliged to use them. It is more freedom of contract that prevails.
- Commercial brokers must sometimes ensure to sign confidentiality agreements that may be necessary when sensitive information is disclosed. For example, so that the income of the previous merchant or owner who occupied the income property or business does not end up in the wrong hands, like that of a competitor.
In any case, real estate professionals are trained to answer your questions and help you achieve your goals when it comes to buying, renting or selling properties.
Now you know what differentiates commercial real estate brokers from residential real estate brokers! Before choosing the professional with whom you will do business, take the time to check if he holds a OACIQ license to practice and in what discipline he is authorized to act, as are all the brokers of the banner Via Capitale. All it takes is a few clicks on the following website of the organization (https://www.oaciq.com/en) under the section check a broker’s file.