News Bytes: Real Estate Across the Country
| November 30, 2023
Did you know that throughout Canada, each province sets its own rules and guidelines when it comes to real estate regulation? This means all real estate and mortgage professionals are required to be licensed within the specific province where they conduct business.
Each provincial licensing requirement ensures the licensee possesses the localized knowledge and proficiency to do business in the specific jurisdiction. In Alberta, our licensees know, understand, and practice in strict accordance with the Real Estate Act of Alberta. Licensees of other provinces are educated, understand, and operate within the guidelines of their unique provincial legislation. An individual licensed to trade in real estate in Ontario cannot sell a home in Alberta or vice versa. The same goes for those licensed to deal in mortgages in British Columbia, or anywhere else. Their licence to do so in that province does not automatically grant them the right to practice in Alberta, or anywhere else across the county.
RECA will facilitate what is called “labour mobility” to real estate and mortgage brokers licensed in other jurisdictions and looking to conduct business in Alberta. This means, an individual who holds a real estate or mortgage licence from another Canadian province, who wishes to move to Alberta, or simply wishes to do real estate or mortgage business in Alberta, can apply to have their current alternative provincial licence applied towards being licensed in Alberta.
Depending on the original jurisdiction and the licence they hold, additional education may be required before their Alberta licence application is accepted. Any past disciplinary action in other jurisdictions would also be reviewed. Only licensees from certain jurisdictions are eligible for labour mobility with Alberta. Please check eligible labour mobility jurisdictions.
Those interested can request a review of their eligibility for labour mobility by completing an online application and paying the $350 application fee.
Learn more about RECA’s Labour Mobility Policy.
Short Term Rental Restrictions
New restrictions in British Columbia and additional restrictions across Canada through the Canada Revenue Agency have sparked questions regarding the regulation of Alberta’s short term rental market. A short-term rental is considered rental accommodation in a private residence that lasts for 30 consecutive days or less. An individual can rent a portion or all the property. Popular platforms that administer short-term rentals include Airbnb and VRBO.
In Alberta, the Residential Tenancies Act (RTA), provides a framework for long-term landlord and tenant relations in Alberta, setting minimum standards of conduct for both landlords and tenants. Currently, short term rentals in Alberta do not fall under the RTA. Short term rental hosts in the province of Alberta must follow the rules and regulations of the specific municipality where the short-term rental is located. Many municipalities stipulate that eligible short-term rental hosts must obtain a business licence from their local municipality (currently required in both Calgary and Edmonton).
While not within our jurisdiction, RECA plans to watch closely as the Alberta rules evolve for short-term rentals.