Why Are Judicial Officers Getting Into Real Estate Brokerage?

As of September 1, 2024, judicial officers may now act as real estate brokers. 

This new ancillary activity, formalized by a decree dated July 3, 2024, builds on the expertise of these local legal professionals in the real estate sector and their experience in rental property management. It is a response to the growing needs of the real estate market and will help enhance the legal certainty of transactions for individuals and businesses.
 

A New Role for Judicial Officers
Judicial officers are expanding their scope of practice with the introduction of a fourth ancillary activity: real estate brokerage. From now on, judicial officers can offer real estate mediation and negotiation services, bringing to the market the specific expertise they possess and the unique value of their role as a trusted legal third party.
 

The decree of July 3, 2024, thus allows any judicial officer to engage in real estate brokerage on a secondary basis, particularly for the sale of a property that the judicial officer already manages.
 

A Status That Provides Security
As public and ministerial officers, judicial officers are subject to requirements of impartiality and a strict code of ethics. This status, which provides security for individuals and businesses, allows them to entrust these real estate brokerage tasks to local legal professionals appointed by the Minister of Justice, who perform public service duties. In this capacity, judicial officers are responsible for serving summonses and notices, enforcing court decisions, conducting appraisals, assessing property values, and conducting judicial auctions.
 

A Logical Evolution for Rental Management Experts
Since 2011, judicial officers have been able to engage in property management on a secondary basis, a practice that is also subject to their ethical obligations. In 2015, this activity was extended to include properties owned by local governments, for which judicial officers may, pursuant to a mandate, assume responsibility for managing the properties and collecting the income derived from them. This also exempts the local government from having to establish a revenue management office.
 

In practical terms, as with any landlord, the judicial officer assesses whether the property complies with legal requirements, advertises the property for rent, selects tenants (based on the needs expressed by local authorities), verifies their creditworthiness, drafts the lease agreement, prepares the move-in and move-out inspections, and collects rent, service charges, and any outstanding payments, if applicable.
 

This new real estate brokerage activity is therefore a logical extension of the judicial officer’s expertise in rental property management. In both cases, the judicial officer has completed mandatory specialized training, which enables the profession to offer an unparalleled financial guarantee for all such transactions.
 

Diversification of Expertise
This additional capability is part of a strategy to diversify our expertise and meet the growing needs of the real estate market. It also enables us to meet clients’ increasing expectations regarding advisory services and ensuring the security of transactions.
 

According to Benoit Santoire, president of the National Chamber of Judicial Commissioners: “Real estate law is at the heart of our core activities and 

Services provided by judicial officers. Property inspections, rental compliance assessments, rental management services, and condominium management are all examples of the judicial officer’s areas of expertise in the real estate sector. Real estate brokerage complements these established areas of expertise, which will be put to use in a real estate market that demands a comprehensive perspective and safeguards for increasingly complex transactions.”
 

The judicial officer will be able to engage in this real estate brokerage activity as of September 1, 2024, and, as with other ancillary activities, must first notify his or her regional chamber and the attorney general at the court of appeals within the jurisdiction of his or her office.