Practice Tip: When You Must Notify the Executive Director
| February 05, 2020
Please note: When this article was originally published, licensees were required to notify, in writing the Executive Director. As of December 1, 2020, licensees are required to immediately notify, in writing, the Registrar. These references have been updated.
Did you know that when certain events occur, licensees are required to immediately notify the Registrar?
Failure by industry members to immediately notify the executive director of certain events results in dozens of Letters of Reprimand and Administrative Penalties each year.
Why do you have to notify the Registrar?
RECA’s mandate is to:
- protect consumers
- protect against, investigate, detect, and suppress fraud as it relates to the business of licensees
- set and enforce standards of conduct for licensees and the business of licensees to promote the integrity of, and confidence in, the industry
- provide, or support the provision of, services that promote regulatory compliance by licensees
In order to accomplish this, RECA reviews certain events that have the potential to harm the integrity of the industry and affect the ongoing protection of the public.
What events require notification?
You must immediately give notice to the Registrar in writing when:
- you are disciplined by a professional, occupational, or regulatory body, or a trade association or board
- the courts issue a judgment against you in relation to consumer services or the sale of goods
- the courts issue a judgment against any business you own or have participated in within the past 3 years
- you declare bankruptcy or are the subject of any bankruptcy proceedings
- you own or participated in any business within the past three years that is the subject of any bankruptcy or receivership proceedings
- you are charged criminally
- you are convicted of a criminal offence
- you have a conviction under any law of any country, province, or state (excluding highway traffic offences resulting in fines or demerit points)
What does immediately notify mean?
Immediately is defined as “without delay,” and in the absence of extraordinary circumstances, written notification to the executive director should occur no more than five business days after the event in question.
How do you notify RECA in writing?
Licensees can provide written notification through their myRECA account, using the Notify the Registrar button from the My Account tab. Simply fill in the required fields, complete the declaration page, and submit the form.
After submitting your notification, follow the instructions to submit accompanying information through your myRECA account.
Note: your broker will receive a copy of your notification.
Once your notification is received, the executive director will review the circumstances that relate to your event to determine an outcome, considering all relevant facts. In some cases, the Registrar may request additional information.
If you are unsure if you need to notify the Registrar, contact RECA or provide notification anyway; there is no cost to do so and it’s better to be safe than sorry.
If you do not immediately notify the Registrar, it is a breach of the Real Estate Act Rules.
Brokers: You Also Need to Notify the Registrar
Brokers have the additional responsibility to notify RECA when certain brokerage information changes or is amended.
Brokers must notify RECA through their myRECA account when:
- opening, closing, or changing a trust account(s)
- there is a change in the brokerage’s contact information
- changing the brokerage business address
- there is a corporate structure change (additional supporting documents are required)
Brokers must notify RECA in writing directly at firstname.lastname@example.org when:
- there is a change of broker
- the brokerage name has changed
- there is a Partnership Amendment
- the Corporate Access Number has changed
All brokerage amendments must be reported to RECA immediately. Written notification to the Registrar should occur no more than five days after the event in question.