The declaration details the steps the broker must take to ensure all brokerage trustobligations and agreements in place are satisfied or that arrangements have been made for their satisfaction.
Ensure all of the following is contained in the Declaration of Undertaking:
Full legal name of the brokerage including trade name
Identification of all brokerage trust account(s) number(s) and location(s) and current balance(s)
Date on which the brokerage will cease operations
clearly indicate that one of the following arrangements has been made concerning money held in trust and agreements (listings or sales) pending completion (Brokerages’ agreements will require the broker to take steps to ensure all parties are protected and arrangements have been made to ensure all agreements can be satisfied.)
If agreements contain conditions that require satisfaction or unilateral waiving, these agreements require the active participation of a licensed industry member and MUST BE ASSIGNED to a licensed brokerage. Prior to termination, clients of the brokerage must be notified of the broker’s intent and be informed of their option to agree or NOT to the assignment of the contract.
If all conditions of agreements have been satisfied or waived, the broker may indicate that:
they will continue to manage all money held in trust in accordance with section 25 of the Real Estate Act and will manage all agreements until the date of completion
that the broker will continue to be registered with a licensed brokerage until all agreements contained herein are satisfied
that if an agreement requires further action (i.e. extension of date of possession), the broker will assign the agreement to a licensed brokerage
If there are no outstanding agreements or trust money, the broker may indicate that the brokerage trust account(s) are at a zero balance and the brokerage has no outstanding licence obligations.
Send the original Declaration of Undertaking to RECA
If the broker will continue to be an industry member: complete the appropriate application for registration along with the required licensing fees.
If the broker is retiring or leaving the industry: no information is required.
Step 3: Confirmation from RECA
Upon receipt of the completed Declaration of Undertaking, RECA will:
provide notification to the broker that the brokerage can cease operations
send written notification from RECA’s audit and investigations unit to the broker detailing audit requirements
require monthly reports to RECA audit and investigations if the broker has indicated they will continue to manage trust money