Exploring the Structure of Self-Regulation
| March 14, 2011
This is the Second Part of a series on Self-Regulation by Executive Director Bob Myroniuk.
In terms of structure, the Real Estate Act (REA) created a “Council” which is the governing body for the real estate industry. This Council is made up of 12 individuals or “council members”. Two are members of the public, one appointed by the Government of Alberta and one appointed by the Council itself. The remaining 10 are industry members. Six of the 10 industry members are REALTORS® appointed by the Alberta Real Estate Association (AREA) from various sectors within real estate and across the province. One council member is a mortgage broker appointed by the Alberta Mortgage Brokers Association (AMBA). The remaining three council members are: a real estate appraiser, property manager and an industry member at large and who is not a member of AREA. These three individuals are appointed by the Council through a process of advertising, nominations and selection processes (including interviews).
While RECA is the governing body, it’s the Council that is the ultimate decision-maker. Council sets the direction, standards and policies with which RECA licences and regulates the real estate industry. As indicated, 10 of the 12 council members are industry members. Our two public members are enormously important to this process, as they bring a consumer perspective to all the issues Council faces in carrying out its mandate.
In addition to setting the standards, the enforcement of those standards takes place through disciplinary processes that are administered by RECA pursuant to the REA.
Hearing panels consist of a combination of council members and industry members appointed to sit on these panels. For more information on RECA’s hearing plans, please review our blog Demystifying Hearing Panels.
As intended, real estate industry members who are the subject of RECA disciplinary hearings are judged by their peers. This is a good example of self-regulation, as it ‘s the industry members who carry out this responsibility, not a government official, separate government tribunal or an administrative law judge as occurs in other jurisdictions.
This is a high level summary of the structure or system of self-regulation existing in Alberta for the real estate industry.
For more information on RECA’s responsibilities and the various services it provides, please visit our website at www.reca.ca.
The next blog in this series discusses the idea that true self-regulation is about the culture of the industry and, in particular, the day to day business practices and conduct of individuals and firms.
How would you define true self-regulation?