Ask a Regulatory Compliance Advisor (RCA) Image

Ask a Regulatory Compliance Advisor (RCA)


As RECA’s RCAs, we get a lot of questions. Here are some of the most common questions we received this quarter, answered.  
Q: What activities are licensees obligated to inform their brokers of? 
A: The Real Estate Act Rules (the Rules) s.40 requires an associate to report several things to the Registrar. Associates should also be reporting these items to their brokerage. There are various responsibilities under s.53 of the Rules that an associate broker or associate must abide by. 
There is also a general requirement that associates must keep their broker informed of all trading activity that has taken place, and more importantly, if any issues arise with a transaction. 
Q: What is the difference between a commission and a referral? 
A: A commission is a fee paid to a brokerage for the services being provided relative to a trade in real estate. A referral fee is money paid to another brokerage or an unlicensed person for providing a lead (name and contact information of a potential buyer, seller or company) for a trade in real estate that results in a successful transaction. 
Q: How does bankruptcy affect a licensee? 
A: Bankruptcy proceedings must be reported to the Registrar at RECA. Typically, bankruptcy proceedings do not affect the licensing status of associates; however, someone in bankruptcy proceeding cannot hold a broker licence. 
Q: What is a bankruptcy proceeding? 

A: A bankruptcy proceeding is an action included in the Bankruptcy Act – Consumer proposal (personal), Division 1 proposal (corporation), and Bankruptcy (personal and corporate).  
Q: How do I report a bankruptcy to RECA? 
A: You can notify the Registrar through your myRECA account when you are subject to bankruptcy proceedings. You must also notify the Registrar through your myRECA account when a company you own or are a partner, director, or officer of is subject to bankruptcy proceedings. 
Do you have questions for RECA’s Regulatory Compliance Advisors?  
Get in Touch.  
Real estate & condominium management advice for brokers and delegates:  
Doug Dixon 403-685-7920 
Mortgage brokerage advice for brokers and delegates:  
Gary Siegle  403-685-7925