The Real Estate Act Rules contain most of the requirements affecting licensee business activities. The Industry Councils can create and amend the Rules, but do so with due care through industry consultation and stakeholder discussion. This rule making authority allows the Industry Councils to adapt and address issues in the marketplace relating to industries governed by RECA in a timely manner.
Download a pdf of the full Real Estate Act Rules current as of July 2023.
Looking for a historical amendment to the Rules? Prior to December 1, 2020, Council Resolutions were formal decisions made by RECA’s governing Council to amend the Real Estate Act Rules or Bylaws.
Division 1 – Classes of Licences (Rule 2-4.2)
Classes of real estate brokers
Classes of mortgage brokers
Classes of property managers
Classes of condominium managers
Division 2 – License Required (Rules 5-12)
Real estate brokerage licence
Real estate broker, associate broker and associate licence
Mortgage brokerage licence
Mortgage broker and associate licence
Property management brokerage licence
Property manager broker and associate licence
Condominium manager brokerage licence
Condominium manager broker, associate broker and associate licence
Termination of licence
Withdrawal from the industry
Lifetime licensing prohibition
Division 3 – Licence Eligibility (Rules 13-15)
Registered business office
Ineligibility for licence
Bankruptcy
Division 4 – Licence Requirements for Individuals (Rules 16-23)
Education, examination and other requirements
Education code of conduct
Real estate and mortgage broker examination requirements
Suitability review
Licence application
Notice of changes to information in support of licence application
Licence terms, conditions and restrictions
Re-Licensing education program requirements
Division 5 – Licence (Rules 24-29)
Licence
Expiry
Cancellation
Licence application
Application from previous licensee
Registration restrictions
Division 6 – Licence Requirements for Brokerages (Rules 30-33)
Brokerage application
Registered broker
Notice requirements
Change of fiscal year end
Division 7 – Refusal, Suspension & Cancellation of a Licence (Rules 34-38.1)
Refusal of Licence
Suspension or cancellation of brokerage licence
Temporary continuation of brokerage licence
Brokerage ceasing to carry on business
Suspension or cancellation of licence
Division 8 – Review of Registrar’s Decision (Rule 39)
Review of refusal, suspension or cancellation
Division 9 – Information to Be Provided by Licensees (Rule 40)
Division 1 – Standards of Conduct for Licensees (Rules 41-46)
Licensee responsibilities
Licensee prohibitions
Written service agreements
Protection of client information
Referral disclosure
Support personnel and assistants
Division 2 – Real Estate Brokerage Standards (Rules 47-63)
Definition
Agency Relationship
Real estate brokerage responsibilities
Real Estate Brokerage Prohibitions
Real estate broker responsibilities
Delegation by broker
Real estate associate broker and associate responsibilities
Real estate broker, associate broker and associate prohibitions
Disclosure requirements
Sole Agency With a Seller
Sole Agency With a Buyer
Designated Agency
Transaction Brokerage for Common Law
Transaction Brokerage for Designated Agency
Customer Status
Forms
Delivery of documents
Personal real estate trades
Guaranteed sale
Division 3 – Mortgage Brokerage Standards (Rules 64-75)
Definition
Mortgage brokerage responsibilities
Mortgage brokerage prohibitions
Mortgage broker responsibilities
Delegation by broker
Mortgage associate responsibilities
Mortgage broker and associate prohibitions
Collection of fees
Verification of information disclosure
Obligations to lender clients
Delivery of documents
Personal mortgage deals
Division 4 – Real Estate Appraisal Standards (Rules 76-80)
Repealed (November 2020) Resolution 2020-11
Division 4.1 – Property Management Brokerage Standards (Rules 80.1-80.8)
Definition
Property management brokerage responsibilities
Property management brokerage prohibitions
Property manager broker responsibilities
Delegation by broker
Property manager associate broker and associate responsibilities
Property manager broker, associate broker and associate prohibitions
Disclosure requirements
Division 4.2 – Condominium Management Brokerage Standards (Rules 80.81-80.89)
Definition
Condominium manager brokerage responsibilities
Condominium manager brokerage prohibitions
Condominium manager broker responsibilities
Delegation by broker
Condominium manager associate broker and associate responsibilities
Condominium manager broker, associate broker and associate prohibitions
Basic obligations
Disclosure requirements
Division 1 – General Requirements(Rules 82-92)
Electronic records
Electronic copies of trust fund cheques
Depositing funds electronically
Electronic transfer of trust funds
Bank reconciliation
Negative trust balance prohibited
Trust shortage must be funded
Notification of trust shortage
Year-end report
Brokerage accounting
Absence of trust transactions
Division 2 – Requirements for Real Estate Brokers (Rules 93-103)
Definition
Real estate trade records
Brokerage must maintain trust account
Unauthorized payment from trust
Payment of commission from trust
Financial statements
Pooled disbursement account
Positive balance in trust or pooled trust accounts
Division 3 – Requirements for Mortgage Brokers (Rules 104-109)
Definition
Mortgage deal records
Brokerage must maintain trust account
Unauthorized payment from trust
Pooled disbursement account
Brokerage management fees
Division 4 – Real Estate Appraisers (Rule 110)
Repealed (November 2020) Resolution 2020-11
Division 4.1 – Requirements for Property Manager Brokerages (Rules 110.01-110.11)
Definition
Property management records
Brokerage must maintain trust account
Unauthorized payment from trust
Payment of commission from trust
Written leases
Ledgers
Financial statements
Pooled disbursement account
Positive balance in trust or pooled trust accounts
Brokerage management fees
Division 4.2 – Requirements for Condominium Manager Brokerages (Rules 110.21-110.32)
Definition
Condominium management records
Condominium management financial reports
Condominium management service agreements
Brokerage must maintain trust account
Condominium corporation accounts
Direct electronic deposit
Condominium corporation investments
Termination of condominium management service agreement
Trust money connected with other business
Unauthorized payment from trust
Brokerage management fees
Division 1 – Requirements for Real Estate Brokers and Property Manager Licensees (other than Condominium Manager Licensees)
(Rules 111-112)
Definition
Duty to carry insurance
Establishment of plans
Insurance or indemnity plan
Repealed (July 2023)
Repealed (July 2023)
Division 2 – Requirements for Mortgage Brokers (Rules 117-118)
Definitions
Duty to carry insurance
Division 3.1 – Requirements for Condominium Managers(Rules 118.1-118.3)
Definitions
Duty to carry insurance
Condominium corporation insurance
Division 3 – Requirements for Real Estate Appraisers (Rules 119-120)
Repealed (November 2020) Resolution 2020-11
Repealed (by Minister, Service Alberta on August 19, 2022)
Designation of Administrative Penalties
Schedule 1 Forms and Consumer Relationships Guide
Schedule 2 Repealed (by Minister, Service Alberta on August 19, 2022)
Schedule 3 Education Code of Conduct for Learners
Schedule 4 Compliance Process and Remedies
Schedule 5 – Administrative Penalties
1(1) | In these Rules, | |||
---|---|---|---|---|
(a) | “agent” means a licensee who is expressly or implicitly authorized to act for or represent another person; | |||
(b) | repealed (November 2020) Resolution 2020-11 | |||
(c) | “automated banking machine,” “automated teller,” “ABM” or similar references refers to automated machines used by banks and other financial institutions to facilitate banking activities by their customers; | |||
(d) | “bank account” means money maintained in a bank, loan corporation, credit union or treasury branch; | |||
(e) | “bank reconciliation” means a schedule drawn as of a specific date to identify the differences, if any, between a brokerage’s records and the bank, trust corporation, loan corporation, credit union or treasury branch statements; | |||
(f) | "buyer" means a person acquiring or attempting to acquire an interest in real estate by purchase; | |||
(g) | “client” means a person who has entered into a service agreement with a licensee in accordance with these rules, whether or not that service agreement is in writing; | |||
(g.01) | “commercial real estate” means real estate used or intended to be used to generate income and includes real estate used for retail, office, industrial, investment, institutional purposes and residential real estate comprising of more than four residential premises.” | |||
(g.02) | “confidential information” includes any information concerning the client including the client’s financial or personal situation, the client’s real estate and the transaction involving the client; | |||
(h) | “conflict of interest” means a real or apparent incompatibility between an licensee’s interests and the interests of the client or potential client; | |||
(i) | “customer” means a person who has contacted, but not engaged or employed, a licensee to provide services; | |||
(i.1) | “designated agency” means a relationship in which one or more licensees, licensed with the same brokerage, are designated in writing by the brokerage to act as sole agents for a buyer or a seller; | |||
(i.2) | “designated agent” means an individual licensee who is designated in writing by a brokerage to serve as a sole agent for a buyer or a seller in a trade in real estate; | |||
(i.3) | “designated brokerage agreement” means a written service agreement between a brokerage and a buyer or a seller which sets out the terms and conditions under which one or more different individual licensees registered with the brokerage are designated as the sole agent of the seller or of the buyer, respectively; | |||
(j) | "discipline" includes a warning, reprimand, penalty, fine, educational requirement, suspension or cancellation, resignation, withdrawal, agreement, order, or an award of costs, arising from a disciplinary matter; | |||
(k) | “dual agency” means a situation in which a licensee or brokerage represents both seller and buyer in a transaction; | |||
(l) | “electronic” includes created, recorded, transmitted or stored in digital form or in any other tangible form by electronic, magnetic or optical means or by any other means that have similar capabilities for creation, recording, transmission or storage; | |||
(m) | “exclusive buyer brokerage agreement” means a written service agreement between a brokerage and a buyer under which the buyer grants the brokerage exclusive authority to act as agent for the buyer and the exclusive right to locate for the buyer an interest in real estate and by which the buyer may agree to compensate the brokerage on any purchase effected by the brokerage, another brokerage or the buyer; | |||
(n) | “exclusive seller brokerage agreement” means a written service agreement between a brokerage and a seller under which the seller grants the brokerage exclusive authority to act as agent for the seller and the exclusive right to offer for sale the seller’s interest in real estate and by which the seller agrees to compensate the brokerage on any sale effected by the brokerage, another brokerage or the seller; | |||
(n.1) | “facilitation services” means services by which the interests of the buyer and seller are met in an even handed, objective and impartial manner without providing confidential advice, advocating on behalf of either the buyer or seller, or using discretion or judgment that benefits the buyer or seller to the prejudice of the other, and will include: | |||
(i) | assist the buyer and the seller in negotiating a mutually acceptable agreement; | |||
(ii) | providing real estate statistics and information on property including comparable property information available through listing services or other local databases; | |||
(iii) | providing standard form agreements of purchase and sale, lease and other relevant documents; | |||
(iv) | preparing all necessary documents in accordance with the instructions of the client(s); | |||
(v) | providing the names of real estate appraisers, mortgage brokers, surveyors, building inspectors, lenders, insurance agents, architects, engineers and the like, but will not recommend any particular professional to the client(s); | |||
(vi) | presenting in a timely manner, all offers and counter-offers to and from the client(s) regardless of whether the property is already the subject of a contract; | |||
(vii) | conveying to the client(s) in a timely manner all information that either wishes to have communicated to the other; | |||
(viii) | keeping the client(s) informed regarding the progress of the transaction; and | |||
(ix) | complying with the provisions of the Real Estate Act and its regulations and the rules and bylaws of the Real Estate Council of Alberta | |||
(o) | "incentive" means anything that is advertised, communicated or offered by a brokerage to the public or a person for the purpose of attracting business to the brokerage and includes a promise, good, service, game of chance, contest, or anything else of value; | |||
(p) | "individual" means a natural person; | |||
(q) | "inducement" means anything that is offered or provided by a brokerage to a person who is, or could be, a party to a real estate, mortgage, or property management, or condominium management service transaction and is intended to either assist, persuade or cause that person to enter into a particular real estate, mortgage or property management, or condominium management service transaction; | |||
(r) | repealed (November 2020) Resolution 2020-11 | |||
(s) | “lease” includes a residential tenancy agreement under the Residential Tenancies Act; | |||
(s.1) | "licensee" means any person who holds a licence issued under these Rules; | |||
(t) | “material latent defect” means a defect that cannot be discerned through a reasonable inspection of the property and: | |||
(i) | includes a defect that renders the real estate: | |||
(A) | dangerous or potentially dangerous to the occupants, | |||
(B) | unfit for habitation, or | |||
(C) | unfit for the purpose for which a party is acquiring it if the licensee has become or been made aware of this purpose; and | |||
(ii) | may include: | |||
(A) | a defect that would involve great expense to remedy; | |||
(B) | a circumstance that affects the real estate in respect of which a local government or other local authority has given a notice to the client or the licensee, indicating that the circumstance must or should be remedied; or | |||
(C) | a lack of appropriate municipal building and other permits respecting the real estate | |||
(u) | "money received in trust," "money held in trust" and other similar references to trust money received or held by a licensee include money that: | |||
(i) | is paid to the licensee by a party to a trade, dealing, property management service or condominium management service, and | |||
(ii) | is paid on the express or implied agreement or condition that it will be used for a specific purpose or returned to the party in accordance with the agreement or condition. | |||
(v) | "party" means a person who is a legal party to a transaction; | |||
(w) | “property management” includes: | |||
(i) | leasing, negotiating, approving or offering to lease, negotiate or approve a lease or rental of real estate; | |||
(ii) | collecting or offering or attempting to collect money payable for the use of real estate or contributions for the control, management or administration of real estate; | |||
(iii) | holding money received in connection with a lease or rental of real estate; | |||
(iv) | advertising, negotiating, or any other act, directly or indirectly for the purpose of furthering an activity described in sub-clauses (i) to (iii); and | |||
(v) | providing a condominium management service. | |||
(x) | “pooled disbursement trust account” means a bank account maintained by a brokerage to facilitate payment of disbursements on behalf of more than one client; | |||
(y) | “pooled trust account” means a bank account maintained by a brokerage to deposit, hold and disburse money received on behalf of more than one client or several accounts for the same client; | |||
(z) | “purchase” includes an exchange, option, lease or other acquisition of an interest in real estate; | |||
(aa) | "records" includes: | |||
(i) | accounts, books, returns, statements, reports, financial documents or other memoranda of financial or non-financial information, whether in writing or in electronic form or represented or reproduced by other means; and | |||
(ii) | the results of the recording of details of electronic data processing systems and programs to illustrate what the systems and programs do and how they operate. | |||
(bb) | “referral” means the act of recommending or directing a person for service, assistance, or business to another person or business; | |||
(bb.1) | “residential real estate” means real estate used for residential purposes, or intended to be used for residential purposes, comprising of or to be comprised of not more than four residential premises.” | |||
(bb.2) | “rural real estate" means real estate that has as its primary purpose farming, but does not include; | |||
(i) | minerals in, on or under the real estate; or | |||
(ii) | real estate used primarily for extracting, processing, storing or transporting minerals. | |||
(cc) | “sale” includes an exchange, option, lease, or other disposition of an interest in real estate; | |||
(dd) | “seller” means a person disposing or attempting to dispose of an interest in real estate by sale; | |||
(ee) | “sole agency” means a relationship in which a licensee acts as the agent of only one party in a trade, deal, property management service, or condominium management service; | |||
(ff) | “supporting documentation” means any document the brokerage created, caused to be created or was received by the brokerage in relation to a trade in real estate, mortgage dealing, property management service, or condominium management service; | |||
(gg) | “terminate” means to come to an end through an application process or a deeming provision in these Rules; and | |||
(gg.1) | “transaction brokerage” means a relationship in which a brokerage or licensee provides facilitation services to the buyer and the seller in the same trade; | |||
(gg.2) | “transaction brokerage agreement” means a written service agreement between a brokerage and the buyer and the seller in a trade which sets out the terms and conditions under which the brokerage will provide facilitation services to the seller and the buyer in the same trade; | |||
(gg.3) | “transaction facilitator” is a licensee who has been engaged under a transaction brokerage agreement to provide facilitation services to the buyer and the seller in the same trade; | |||
(hh) | “trust ledger” means a record of the money held in trust for a client. | |||
(2) | Terms defined in the Act have the same meaning when they are used in these Rules, unless otherwise set out in these Rules. | |||
(3) | In these Rules, words importing male persons include female persons. |
Division 1 - Classes of Licenses | |||
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Classes of Real Estate Brokers | |||
2 (1) | For the purposes of the Act, Bylaws and Rules there shall be the following classes of real estate brokers: | ||
(a) | brokerage; | ||
(b) | broker; and | ||
(c) | associate broker; and | ||
(d) | associate. | ||
2 (2) | A real estate brokerage is a person who: | ||
(a) | is licensed by the relevant Industry Council(s) as a brokerage; and | ||
(b) | employs or has associated with it a licensed and registered real estate broker. | ||
2 (3) | A real estate broker is an individual who: | ||
(a) | holds the qualifications of a real estate broker; | ||
(b) | is licensed as a real estate broker by the relevant Industry Council(s); | ||
(c) | is employed by or associated with a licensed real estate brokerage in Alberta; and | ||
(d) | is registered with and approved to operate a real estate brokerage and trade in real estate on behalf of that brokerage. | ||
2 (4) | A real estate associate broker is an individual who: | ||
(a) | holds the qualifications of a real estate broker; | ||
(b) | is licensed as a real estate associate broker by the relevant Industry Council(s); | ||
(c) | is employed by or associated with a licensed real estate brokerage in Alberta; and | ||
(d) | is registered with and approved to trade in real estate on behalf of that brokerage. | ||
2 (5) | A real estate associate is an individual who: | ||
(a) | holds the qualifications of a real estate associate; | ||
(b) | is licensed as a real estate associate by the relevant Industry Council(s); | ||
(c) | is employed by or associated with a licensed real estate brokerage in Alberta; and | ||
(d) | is registered with and approved to trade in real estate on behalf of that brokerage. | ||
Temporary Condominium Manager Authorization | |||
2.1 | Repealed (November 2020) Resolution 2020-11 | ||
Classes of Mortgage Brokers | |||
3 (1) | For the purposes of the Act, Bylaws and Rules there shall be the following classes of mortgage brokers: | ||
(a) | brokerage; | ||
(b) | broker; and | ||
(c) | associate. | ||
3 (2) | A mortgage brokerage is a person who: | ||
(a) | is licensed by the Mortgage Broker Industry Council as a mortgage brokerage; and | ||
(b) | employs or has associated with it a licensed and registered mortgage broker. | ||
3 (3) | A mortgage broker is an individual who: | ||
(a) | holds the qualifications of a mortgage broker; | ||
(b) | is licensed as a mortgage broker by the Mortgage Broker Industry Council; | ||
(c) | is employed by or associated with a licensed mortgage brokerage in Alberta; and | ||
(d) | is registered with and authorized to operate a mortgage brokerage, and deal in mortgages on behalf of that brokerage. | ||
3 (4) | A mortgage associate is an individual who: | ||
(a) | holds the qualifications of a mortgage associate; | ||
(b) | is licensed as a mortgage associate by the Mortgage Broker Industry Council; | ||
(c) | is employed by or associated with a licensed mortgage brokerage in Alberta; and | ||
(d) | is registered with and approved to deal in mortgages on behalf of that brokerage. | ||
Classes of Real Estate Appraisers | |||
4 | Repealed (November 2020) Resolution 2020-11 | ||
Classes of Property Managers | |||
4.1(1) | For the purposes of the Act, Bylaws and Rules there shall be the following classes of property managers: | ||
(a) | brokerage; | ||
(b) | broker; | ||
(c) | associate broker; and | ||
(d) | associate. | ||
4.1(2) | A property management brokerage is a person who: | ||
(a) | is licensed by the relevant Industry Council(s) as a brokerage; and | ||
(b) | employs or has associated with it a licensed and registered property manager broker. | ||
4.1(3) | A property manager broker is an individual who: | ||
(a) | holds the qualifications of a property manager broker; | ||
(b) | is licensed as a property manager broker by the relevant Industry Council(s); | ||
(c) | is employed by or associated with a licensed property management brokerage in Alberta; and | ||
(d) | is registered with and approved to operate a property management brokerage and engage in property management on behalf of that brokerage. | ||
4.1(4) | A property manager associate broker is an individual who: | ||
(a) | holds the qualifications of a property manager broker; | ||
(b) | is licensed as a property manager broker by the relevant Industry Council(s); | ||
(c) | is employed by or associated with a licensed property management brokerage in Alberta; and | ||
(d) | is registered with and approved to engage in property management on behalf of that brokerage. | ||
4.1(5) | A property manager associate is an individual who: | ||
(a) | holds the qualifications of a property manager associate; | ||
(b) | is licensed as a property manager associate by the relevant Industry Council(s); | ||
(c) | is employed by or associated with a licensed property management brokerage in Alberta; and | ||
(d) | is registered with and approved to engage in property management on behalf of that brokerage. | ||
Classes of Condominium Managers | |||
4.2(1) | For the purposes of the Act, Bylaws and Rules there shall be the following classes of condominium managers: | ||
(a) | brokerage; | ||
(b) | broker; | ||
(c) | associate broker; and | ||
(d) | associate. | ||
4.2(2) | A condominium manager brokerage is a person who: | ||
(a) | is licensed by the relevant Industry Council as a condominium manager brokerage; and | ||
(b) | employs or has associated with it a licensed and registered condominium manager broker. | ||
4.2(3) | A condominium manager broker is an individual who: | ||
(a) | holds the qualifications of a condominium manager broker; | ||
(b) | is licensed as a condominium manager broker by the relevant Industry Council; | ||
(c) | is employed by or associated with a licensed condominium manager brokerage in Alberta; and | ||
(d) | is registered with and approved to operate a condominium manager brokerage and provides condominium management services on behalf of that brokerage. | ||
4.2(4) | A condominium manager associate broker is an individual who: | ||
(a) | holds the qualifications of a condominium manager broker; | ||
(b) | is licensed as a condominium manager associate broker by the relevant Industry Council; | ||
(c) | is employed by or associated with a licensed condominium manager brokerage in Alberta; and | ||
(d) | is registered with and approved to provide condominium management services on behalf of that brokerage. | ||
4.2(5) | A condominium manager associate is an individual who: | ||
(a) | holds the qualifications of a condominium manager associate; | ||
(b) | is licensed as a condominium manager associate by the relevant Industry Council; | ||
(c) | is employed by or associated with a licensed condominium manager brokerage in Alberta; and | ||
(d) | is registered with and approved to provide condominium management services on behalf of that brokerage. |
Division 2 - License Required | |||
---|---|---|---|
Real Estate Brokerage Licence | |||
5 | A real estate brokerage licence issued by the relevant Industry Council under these Rules: | ||
(a) | is the licence required under the Act in order for a real estate brokerage to trade in real estate or hold itself out as a real estate brokerage; | ||
(b) | expires on September 30 following its issuance unless it is terminated, suspended or cancelled prior to that date; and | ||
(c) | may be renewed by the brokerage by submitting a completed renewal application to the registrar in a form prescribed by the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
Real Estate Broker, Associate Broker and Associate Licence | |||
6(1) | A real estate broker licence issued by the relevant Industry Council under these Rules when registered with a brokerage constitutes the licence required under the Act for a real estate broker to operate a real estate brokerage and trade in real estate on behalf of a brokerage. | ||
6(2) | A real estate associate broker or associate licence issued by the relevant Industry Council under these Rules when registered to a brokerage constitutes the licence required under the Act for a real estate associate broker or associate to trade in real estate on behalf of a brokerage. | ||
6(3) | A real estate broker, associate broker or associate may renew his licence by submitting a completed application to the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
6(4) | An individual must not trade in real estate or in any way hold himself out as a real estate broker, associate broker or associate until such time as the individual has been issued a licence by the relevant Industry Council and they are registered to a brokerage. | ||
Mortgage Brokerage Licence | |||
7 | A mortgage brokerage licence issued by the Mortgage Broker Industry Council under these Rules: | ||
(a) | is the licence required under the Act in order for a mortgage brokerage to deal in mortgages or hold itself out as a mortgage brokerage; | ||
(b) | expires on September 30 following its issuance unless it is terminated, suspended or cancelled prior to that date; and | ||
(c) | may be renewed by the brokerage by submitting a completed renewal application to the registrar in a form prescribed by the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
Mortgage Broker and Associate Licence | |||
8(1) | A mortgage broker licence issued by the Mortgage Broker Industry Council under these Rules constitute the licence required under the Act for a mortgage broker to operate a mortgage brokerage and deal in mortgages on behalf of a brokerage. | ||
8(2) | A mortgage associate licence issued by the Mortgage Broker Industry Council under these Rules constitute the licence required under the Act for a mortgage associate to deal in mortgages on behalf of a brokerage. | ||
8(3) | A mortgage broker or associate may renew his licence by submitting a completed application to the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
8(4) | An individual must not deal in mortgages or in any way hold himself out as a mortgage broker or associate until such time as the individual has been issued a licence by the Mortgage Broker Industry Council. | ||
Appraiser and Candidate Authorization | |||
9 | Repealed (November 2020) Resolution 2020-11 | ||
Property Management Brokerage Licence | |||
9.1 | A property management brokerage licence issued by the relevant Industry Council under these Rules: | ||
(a) | is the licence required under the Act in order for a property management brokerage to engage in property management or hold itself out as a property management brokerage; | ||
(b) | expires on September 30 following its issuance unless it is terminated, suspended or cancelled prior to that date; and | ||
(c) | may be renewed by the brokerage by submitting a completed renewal application to the registrar in a form prescribed by the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
Property Manager Broker and Associate Licence | |||
9.2(1) | A property manager broker licence issued by the relevant Industry Council under these Rules is the licence required under the Act in order for an individual to operate a property management brokerage and engage in property management on behalf of the brokerage. | ||
9.2(2) | A property manager associate broker or associate licence issued by the relevant Industry Council under these Rules constitutes the licence required under the Act for a property manager associate to engage in property management on behalf of the brokerage. | ||
9.2(3) | A property manager broker, associate broker, or associate licence issued by the relevant Industry Council expires on September 30 following its issuance unless it is renewed by submitting a completed renewal application to the registrar in a form prescribed by the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
9.2(4) | An individual must not engage in property management or in any way hold himself out as a property manager until such time as the individual has been issued a licence by the relevant Industry Council. | ||
Condominium Manager Brokerage Licence | |||
9.3 | A condominium manager brokerage licence issued by the relevant Industry Council under these Rules: | ||
(a) | is the licence required under the Act in order for a condominium manager brokerage to provide condominium management services or hold itself out as a condominium manager brokerage; | ||
(b) | expires on September 30 following its issuance unless it is terminated, suspended or cancelled prior to that date; and | ||
(c) | may be renewed by the brokerage by submitting a completed renewal application to the registrar in a form prescribed by the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current s year. | ||
Condominium manager broker, associate broker and associate licence | |||
9.4(1) | A condominium manager broker licence issued by the relevant Industry Council under these Rules constitutes the licence required under the Act for a condominium manager broker to operate a condominium manager brokerage and provide condominium management services on behalf of a brokerage. | ||
9.4(2) | A condominium manager associate broker or associate licence issued by the relevant Industry Council under these Rules constitutes the licence required under the Act for a condominium manager associate broker or associate to provide condominium management services on behalf of a brokerage. | ||
9.4(3) | A condominium manager broker, associate broker, or associate may renew his licence by submitting a completed application to the registrar, together with any fees, premiums or levies established by the Board, by September 30 of the current licensing year. | ||
9.4(4) | An individual must not provide condominium management services or in any way hold himself out as a condominium manager broker, associate broker or associate until such time as the individual has been issued a licence by the relevant Industry Council. | ||
Termination of licence | |||
10(1) | The licence of any licensee is deemed to be terminated when the person is: | ||
(a) | no longer eligible to be licensed; or | ||
(b) | fails to renew his licence before October 1 of each year. | ||
10(2) | The licence of a real estate broker, associate broker or associate is deemed to be terminated if he fails to maintain registration with a brokerage. | ||
10(3) | The licence of a mortgage broker or associate is deemed to be terminated if he fails to maintain registration with a brokerage. | ||
10(4) | The license of a property manager broker or associate is deemed to be terminated if he fails to maintain registration with a brokerage. | ||
10(5) | The licence of a condominium manager broker, associate broker, or associate is deemed to be terminated if he fails to maintain registration with a brokerage. | ||
Withdrawal from the industry | |||
11 | A person withdraws from the industry when: | ||
(a) | a licence is deemed to be terminated in accordance with these Rules; | ||
(b) | a licence is voluntarily terminated by the person, in a manner and form prescribed by the registrar; or | ||
(c) | an application for withdrawal pursuant to section 54 of the Act is approved by the relevant Industry Council. | ||
Lifetime licensing prohibition | |||
12 | An application by an licensee to withdraw from the industry pursuant to section 54 of the Act approved by the relevant Industry Council is a lifetime licensing prohibition for that licensee. |
Division 3 - License Eligibility | |||
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Registered business office | |||
13(1) | A person is not eligible to be licensed as a real estate brokerage, mortgage brokerage, property management brokerage, or condominium manager brokerage, unless the person maintains a registered business office in Alberta or the City of Lloydminster acceptable to the registrar and in accordance with these Rules and the current address of the business office is provided to the registrar. | ||
13(2) | The requirement to maintain a registered business office means all of the following conditions have been met: | ||
(a) | the office is a location from which the person conducts business; | ||
(b) | the person has access to and control over the use of the office premises; | ||
(c) | the office is the location where the records required to be maintained by the person in accordance with the Act and these Rules are kept or made available for the purposes of a review; and | ||
(d) | the office location complies with the requirements of the municipality where it is located. | ||
13(3) | The registered business office shall be the address of service for the real estate brokerage, mortgage brokerage, property management brokerage, or condominium manager brokerage, and all licensees registered with the brokerage for the purposes of the Act and these Rules. | ||
13(4) | A real estate brokerage, mortgage brokerage, property management brokerage and condominium manager brokerage may maintain more than one office in Alberta if: | ||
(a) | the brokerage designates one office as the registered business office; | ||
(b) | the broker manages the registered business office; and | ||
(c) | each additional office is managed by the broker or his authorized delegate. | ||
Ineligibility for Licence | |||
14(1) | A person is not eligible to be licensed in any class of licence if the person: | ||
(a) | has not met the requirements of the Act, these Rules or the Bylaws; | ||
(b) | has not met the educational requirements or other requirements, if any, prescribed, adopted or approved by the relevant Industry Council for that category of licence; | ||
(c) | has not passed the examination prescribed, adopted or approved by the relevant Industry Council for that class of licence, or been exempted from the examination by the registrar; | ||
(d) | has not submitted a completed application to the registrar in the prescribed form together with the required documentation; | ||
(e) | has not submitted the required application fees, levies or premiums; | ||
(f) | has not provided any additional information required by the registrar for licensing purposes within the time prescribed; | ||
(g) | is someone in respect of whom a payment out of the Real Estate Assurance Fund has been made under the Act and the amount has not been repaid; | ||
(h) | has failed to pay, or make satisfactory arrangements to pay with the registrar, any outstanding penalties, fines, or costs imposed pursuant to the Act, Rules or Bylaws; | ||
(i) | contravened or has failed to comply with any terms or conditions imposed by a hearing panel, appeal panel or the court; | ||
(j) | contravened or has failed to comply with any licence terms, conditions or restrictions previously imposed by the registrar; | ||
(k) | has made an application to withdraw from the industry pursuant to the Act and the application was approved; | ||
(l) | is not at least 18 years of age; | ||
(m) | is licensed as a broker and is subject to bankruptcy; or | ||
(n) | has failed to obtain appropriate insurance as required by the Act, Regulations, Rules or Bylaws. | ||
14(2) | A person whose licence has been suspended or cancelled in one class is not eligible to be licensed in any other class until the suspension or cancellation period has expired. | ||
14(3) | When a person’s licence has been cancelled under the Act and that person applies for a new licence, that person is not eligible to be issued a new licence until 36 months have elapsed from the date of the cancellation, or such lesser or greater time as may be determined by a hearing or appeal panel or the court. | ||
14(4) | Repealed (November 2020) Resolution 2020-11 | ||
Bankruptcy | |||
15 | The bankruptcy of a person does not relieve the person from the requirements of section 14. |
Division 1 Standards of Conduct for Licensees | ||||
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Licensee responsibilities | ||||
41 | Licensees must: | |||
(a) | act honestly; | |||
(b) | provide competent service; | |||
(c) | disclose to their clients, at the earliest practical opportunity, how they will be paid for their services; | |||
(d) | fulfill their fiduciary obligations to their clients; | |||
(e) | ensure the role of the licensee is clearly understood by their clients and third parties; | |||
(f) | disclose to their clients, at the earliest practical opportunity, any conflict of interest they may have in the course of providing services to, or in their dealings with, a client; | |||
(g) | practice in strict accordance with the Act, Regulations, Rules, Bylaws and any other laws that govern trading in real estate, mortgage transactions or property management, or condominium management services in Alberta; | |||
(h) | cooperate fully with, and provide any information requested to, any representative of the Council carrying out their duties and responsibilities under the Act; | |||
(i) | comply with: | |||
(i) | an order issued pursuant to the Act by the Council, the registrar, a hearing panel, appeal panel or court; and | |||
(ii) | any terms, conditions or restrictions of licensing; | |||
(j) | refuse to provide further services to or on behalf of a client who instructs him to withhold a disclosure required by the Act, Regulations, Rules, Bylaws, or any other laws; and | |||
(k) | comply with the Education Code of Conduct for Learners. | |||
Licensee prohibitions | ||||
42 | Licensees must not: | |||
(a) | make representations or carry on conduct that is reckless or intentional and that misleads or deceives any person or is likely to do so; | |||
(b) | participate in fraudulent or unlawful activities in connection with the provision of services or in any dealings; | |||
(c) | use confidential information obtained from any person for personal gain nor should that information be used for any purpose other than that for which it was obtained; | |||
(d) | discourage a client, customer or a party to a trade in real estate, deal in mortgages, property management service, or condominium management service from seeking legal counsel or expert advice; | |||
(e) | deny professional services to, or be a party to any plan or agreement to discriminate against, any client, customer or party to a trade in real estate, deal in mortgages, property management service, or condominium management service, for reasons of race, creed, colour, gender, sexual orientation, family status, marital status, age, national origin, or physical disability; | |||
(f) | physically, sexually, emotionally or verbally abuse a client, customer, licensee or party to a trade in real estate, deal in mortgages, property management service, or condominium management service; or | |||
(g) | engage in conduct that undermines public confidence in the industry, harms the integrity of the industry, or brings the industry into disrepute. | |||
Written service agreements | ||||
43(1) | Subject to these rules, a licensee who establishes a client relationship when trading in residential real estate, engaging in property management, when dealing in mortgages, or providing condominium management services, must enter into a written service agreement with that prospective client. | |||
43 (1.1) | Subject to these rules, a licensee who establishes a client relationship when trading in commercial real estate should enter into a written service agreement with that prospective client. | |||
Council Resolution 2013-2 | ||||
43(2) | Every written service agreement shall: | |||
(a) | be signed by the relevant parties; | |||
(b) | clearly show all terms and conditions of the agreement and shall include: | |||
(i) | the names of the parties to the agreement; | |||
(ii) | if applicable, the address or legal description of the property affected by the agreement; | |||
(iii) | if applicable, the date on which the agreement will become effective; | |||
(iv) | the duration of the agreement; | |||
(v) | the services to be provided by the brokerage; | |||
(vi) | the responsibilities of each party to the agreement; | |||
(vii) | the use and distribution of personal or confidential information; | |||
(viii) | the amount or method of calculating the remuneration or alternate compensation to be paid and the circumstances on which it will be payable; | |||
(ix) | provisions for the termination of the agreement; and | |||
(c) | provide that any amendment or addition to the terms of the agreement shall be in writing and signed by the relevant parties. | |||
43(3) | A licensee must deliver to the client a true copy of a service agreement and of any amendment or addition, immediately upon its signature. | |||
Protection of client information | ||||
44(1) | In addition to the requirements of relevant legislation on the protection of personal information, a licensee must not disclose information regarding a client, property or transaction to another person unless: | |||
(a) | authorized by the client, or | |||
(b) | required by law. | |||
44(2) | Each real estate brokerage, mortgage brokerage, property management brokerage, or condominium manager brokerage will: | |||
(a) | establish adequate policies and procedures for the maintenance and protection of personal and confidential information; and | |||
(b) | ensure all licensees registered with the brokerage and any staff members are aware of the policies and procedures referred to in (a) above and routinely carry them out in the course of their work. | |||
Referral disclosure | ||||
45(1) | When, in the course of providing services, a licensee refers any person to any licensee or any service provider and the licensee knows he may be entitled to receive a referral fee, remuneration or benefit from that service provider for making that referral, the licensee must disclose in writing: | |||
(a) | the licensee has forwarded the person’s name and contact information to that service provider; and | |||
(b) | the licensee may be entitled to receive a referral fee, remuneration or benefit from the service provider for making the referral. | |||
45(2) | A licensee must retain a copy of the disclosure referred to in sub-section (1) above. | |||
45(3) | If a licensee makes a referral to another person the licensee believes to be a licensee, the licensee must take reasonable steps to ensure the person is in fact authorized to carry out the activities for which the referral is made. | |||
Support personnel and assistants | ||||
46(1) | A licensee must only assign to support personnel or assistants tasks they are competent to perform and must ensure they are properly trained and supervised. | |||
46(2) | A licensee must not delegate, assign, request, direct or in any way allow an unlicensed or unregistered assistant to perform tasks that must only be performed by an licensee. | |||
46(3) | In the case of an unlicensed or unregistered assistant, the licensee must ensure clients, customers and the public have full knowledge that the assistant is unlicensed or unregistered. | |||
46(4) | A licensee must ensure in any communication, advertising or marketing material there is no suggestion, implication or statement that may suggest or lead the public to believe an unlicensed or unregistered assistant is qualified to trade in real estate, deal in mortgages, engage in property management, or provide condominium management services, as the case may be. |
Division 4 – Requirements for Real Estate Appraisers | ||
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Appraisal records | ||
110 | Repealed (November 2020) Resolution 2020-11 |
PART 5 FEES | ||
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Fees | ||
121 | Repealed by Minister, Service Alberta on August 19, 2022 |
SCHEDULE 2 FEES |
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Repealed by Minister, Service Alberta on August 19, 2022 |