Brokerage Amendments: The Need to Notify
| November 14, 2013
Over the past couple of years, the Real Estate Council of Alberta (RECA) has made a concerted effort to spread the word about the requirement to notify the executive director, in writing, when, among other things, they change their name, are convicted of a criminal offence or become the subject of bankruptcy proceedings. This effort has been successful; the number of administrative penalties associated with notification concerns has fallen thanks to the diligence shown by industry professionals across the province. For more information, see Information Bulletin: Notice to Executive Director.
While, the message about these notifications has been heard, there is still room for more awareness when it comes to notifications regarding brokerage amendments (section 32 of the Real Estate Act Rules).
Section 32 requires that a broker must immediately notify the executive director, in writing, of any amendments to the brokerage. This includes, but isn’t limited to, a change in the brokerage business address, a change of broker, the opening and closing of a trust account, or a change in directors, officers, or shareholders of a corporation.
Often times, brokerage amendments are not being reported to the Executive Director until it is time for renewal. As a result, this sometimes delays the renewal process because the amendments have to be processed by RECA staff before the broker can renew the brokerage. Additionally, not immediately notifying the Executive Director of a change to the brokerage, can result in an Administrative Penalty of $1,500.
For more information about the process of reporting brokerage amendments, visit the Brokerage Amendments Guide.
RECA is confident that with increased awareness and understanding of the requirements around brokerage amendment reporting, brokerages and brokers will work towards increased compliance.