Resolution 1996-23 of the Real Estate Council of Alberta - APPENDIX B Schedule 1

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

 

 

ACCOUNTING FUNCTIONS

 

 

1.

ACCEPTING MONEY OUTSIDE OF THE BUSINESS OF THE INDUSTRY MEMBER
[Act, subsection 18(1)]

$1,000.00

$5,000.00

2.

ACCEPTING MONEY WITHOUT A BROKERAGE AGREEMENT OR TERMS OF TRUST
[Act, subsection 18(2)]

$500.00

$2,500.00

3.

FAILURE TO MAINTAIN A PROPER TRUST ACCOUNT
[Act, subsection 25(1)(a)]
Not an interest bearing trust account
"Trust" not on bank statement
"Trust" not on cheques
Service charges being deducted from the trust account
The trust moneys are not located in Alberta
[Act, subsection 25(2)]
Failing to maintain a trust account
Cheques or bank statement does not contain proper company name

 

$200.00
$100.00
$100.00
$100.00
$1,000.00

$100.00
$100.00

 

$1,000.00
$500.00
$500.00
$500.00
$5,000.00

$500.00
$500.00

4.

FAILURE TO FOLLOW THE TERMS OF THE TRUST
[Act, subsection 25(1)(d) and (e)]
Disbursing the collapsed transaction deposits after 5 days of the moneys becoming payable
Transferring deposit in excess of the commissions out of the general account
Transferring of commissions out of the trust account without documented approval

 

$500.00

$300.00

$200.00

 

$2,500.00

$1,500.00

$1,000.00

5.

FAILURE TO KEEP A PROPER TRUST LEDGER
[Act, subsection 25(1)(b)]
Offer to purchase details do not agree with trust deposits
Transactions are not recorded
Ledger is incomplete

 

$200.00
$500.00
$100.00

 

$1,000.00
$2,500.00
$500.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

6.

FAILURE TO DEPOSIT MONEY RECEIVED IN TRUST
[Act, subsection 25(1)(c)]
Trust moneys were deposited after 2 banking days but within 5 days
Trust moneys were deposited after 5 days
Trust moneys were not deposited or were deposited after 30 days

 

$100.00

$300.00
$1,000.00

 

$500.00

$1,500.00
$5,000.00

7.

FAILURE TO MAINTAIN TRUST MONEYS SEPARATE FROM AGENTS ACCOUNTS
[Act, subsection 25(1)(d)]
Commingling of funds in the trust account
GST money kept in the trust account
Failure to disburse deposits after all terms and conditions are met and a trust obligation no longer exists
Depositing commissions into the trust account

 

 

$500.00
$200.00
$300.00

$300.00

 

 

$2,500.00
$1,000.00
$1,500.00

$1,500.00

8.

FAILURE TO PLACE THE TERMS OF THE TRUST IN WRITING 
[Act, subsection 25(2)]
Unclear as to who is holding trust funds
Incomplete documentation regarding the terms of trust
No extension of trust terms
No written terms

 

 

$300.00
$300.00
$200.00
$300.00

 

 

$1,500.00
$1,500.00
$1,000.00
$1,500.00

9.

FAILURE TO FOLLOW THE TERMS OF THE TRUST GOVERNING THE TRUST FUNDS
[Act, subsection 25(1)(e)]

$500.00

$1,500.00

10.

FAILURE TO PAY TRUST MONEYS TO THE FOUNDATION AS REQUIRED
[Act, subsection 25(5)]

$300.00

An amount equal to the amount due to the Foundation
(max. $5,000)

11.

FAILURE TO KEEP RECORDS AS REQUIRED
[Act, subsection 25(9)]
Records were not kept for three years
Records were not kept as directed by the Executive Director
Trade records not kept or incomplete
(Rules, Section 33)
Failure to provide accounting reports as required
(Rules, Section 34)

 

$300.00
$1,000.00
$300.00

$200.00

 

$1,500.00
$5,000.00
$1,500.00

$1,000.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

12.

FAILURE OF TRUST CORPORATION TO PROVIDE FINANCIAL STATEMENTS AND REPORTS AS REQUIRED
[Act, subsection 25 (10)]

 

$100.00

$500.00

 

GUARANTEED SALES

 

 

13.

MAKING PROHIBITED REPRESENTATIONS
(Act, section 19)

$500.00

$2,500.00

14.

FAILURE TO ESTABLISH A SEPARATE TRUST ACCOUNT AS REQUIRED
[Act, subsection 20(2)]

$300.00

$1,500.00

15.

FAILURE TO KEEP TRUST MONEYS IN ALBERTA
[Act, subsection 20(5)]

$1,000.00

$5,000.00

16.

FAILURE TO DEPOSIT IN TRUST NOT LESS THAN 5% OF THE TOTAL AMOUNT PAYABLE
[Act, subsection 20(3)]
Deposited less than 5% but more than 3%
Deposited less than 3% but more than 1%

 

Deposited less than 1%

 

 

$300.00
$500.00

 

$1,000.00

 

 

$1,500.00
Amount necessary to bring the deposit to 5%
(max. of $5,000)
Three times the amount necessary to bring the deposit to 5%
(max. of $5,000)

17.

FAILURE TO PAY THE DEPOSIT AS REQUIRED
[Act, subsection 20(4)]
Failure to pay the deposit to the seller as part of the guaranteed sales agreement
Failure to forfeit the deposit if the seller is not paid according to the guaranteed sales agreement

 

$1,000.00

$1,000.00

 

$5,000.00

$5,000.00

18.

CHARGING A COMMISSION ON A GUARANTEED SALES AGREEMENT
[Act, subsection 20(8)]

 

The amount of the commission
(max. $5,000)

Three times the amount of the commission
(max. $5,000)

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

19.

ENTERING INTO A GUARANTEED SALES AGREEMENT OUTSIDE OF THE INDUSTRY MEMBERS EMPLOYMENT WITH THE AGENCY
(Rules, section 31)

$1,000.00

$5,000.00

 

COMMISSIONS

 

 

20.

BRINGING AN ACTION FOR COMMISSIONS WHERE PROHIBITED
(Act, sections 22 and 23)

 

The amount being sought in the action.
(max. $5,000)

Three times the amount being sought in the action.
(max. $5,000)

21.

ENTERING INTO ILLEGAL COMMISSION SCHEMES
(Act, section 24)

$1,000.00

$5,000.00

22.

FAILING TO DISCLOSE IN WRITING ANY COMPENSATION RELATING TO INDUCEMENTS FOR REFERRALS
(Rules, section 32)

 

Consideration received as a result of the referral
(max. $5,000)

Three times the consideration received as a result of the referral
(max. $5,000)

23.

ILLEGAL PAYMENT OF COMMISSIONS
Paying commission to a designated representative or salesperson of another agent
[Rules, subsection 23(1)(b)]
Paying commissions to a designated representative or a salesperson of the agent and their corporation
[Rules, subsection 23(3)(a)]
Paying a commission to a corporation of the agent's salesperson or designated representative if the salesperson or designated representative is not the majority shareholder
[Rules, subsection 23(3)(a)]
Paying a commission to more than one corporation majority owned by the agent's designated representative or salesperson
[Rules, subsection 23(3)(a)]
Paying a commission to someone who is not licensed under the rules or meets the conditions of Section 23(3)(c)
[Rules, subsection 23(3)(b)]
Paying or sharing of commissions by designated representatives and salespersons
[Rules, subsection 24(b)]

 

$500.00

 

$300.00

 

$300.00

 

$300.00

 

$1,000.00

 

$500.00

 

$1,500.00

 

$1,500.00

 

$100.00

 

$1,500.00

 

$1,000.00

 

$2,500.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

 

Salespersons or designated representatives accepting commissions from anyone but their agent
[Rules, subsection 24(c)]

 

$500.00

$2,500.00

 

DUTIES OF INDUSTRY MEMBERS WHEN 
ACQUIRING OR DISPOSING OF REAL ESTATE

24.

FAILURE TO PROVIDE ADEQUATE DISCLOSURE
Accepting money in connection with a trade in real estate without providing written disclosure of any direct or indirect interest by that industry member or an associate
[Act, subsection 18(3)]
Acquiring property without disclosing in writing any negotiations for its trade to another person
(Rules, section 27)
Trading in real estate on behalf of him/herself or another industry member without disclosing in writing to all parties that they are industry members
(Rules, section 29)

 

 

$500.00

 

$1,000.00

 

$500.00

 

$2,500.00

 

$5,000.00

 

$2,500.00

 

PROSPECTUSES

 

 

25.

FAILURE TO MEET PROSPECTUS REQUIREMENTS
Not filing a prospectus or having a certificate of compliance
[Act, subsection 26(1)]
Failing to deliver a prospectus or obtain an acknowledgement from the prospective buyer
[Act, subsection 29(1)]

 

$500.00

$100.00

 

$2,500.00

$500.00

26.

FAILURE TO KEEP ACKNOWLEDGMENTS AS REQUIRED
[Act, subsection 29(2)]

$100.00

$500.00

27.

MISREPRESENTING THE PROSPECTUS
[Act, subsection 26(4)]

$500.00

$2,500.00

28.

FAILURE TO NOTIFY THE EXECUTIVE DIRECTOR OF ANY CHANGES AS REQUIRED
(Act, section 35)

 

 

$500.00

$2,500.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

 

ADVERTISING

 

 

29.

FAILURE TO PROVIDE THE REQUIRED DISCLOSURE
[Rules, subsection 22(1)]

$100.00

$500.00

30.

FAILURE TO INDICATE A RELATIONSHIP WITH THE AGENT
[Rules, subsection 22(2)]

$100.00

$500.00

31.

FAILURE TO HAVE THE AUTHORIZATION ADVERTISED
[Rules, subsection 22(3)]

$200.00

$1,000.00

32.

TRADING USING A NAME DIFFERENT THAN THAT ON THE EMPLOYING AGENT'S LICENSE
(Rules, section 25)

 

$100.00

$500.00

 

EMPLOYMENT VIOLATIONS

 

 

33.

PROHIBITED EMPLOYMENT OF INDIVIDUALS
Employing designated representatives or salespersons of other agents
[Rules, subsection 23(1)(a)]
Employment of individuals not qualified or authorized
[Rules, subsection 23(2)]

 

$500.00

 

$1,000.00

 

$1,500.00

 

$5,000.00

34.

TRADING ON BEHALF OF ANYONE OTHER THAN THE EMPLOYING AGENT
[Rules, subsection 24(a)]

 

$500.00

$2,500.00

 

LISTING AGREEMENTS

 

 

35.

FAILURE TO DELIVER A LISTING AGREEMENT AS SOON AS PRACTICAL
[Rules, subsection 28(1)]

$200.00

$1,000.00

36.

FAILURE TO DELIVER TRUE COPIES OF OFFERS OR ACCEPTANCES AS REQUIRED
[Rules, subsection 28(3)]

$200.00

$1,000.00

37.

MAKING PROHIBITED REPRESENTATIONS
[Rules, subsection 30(1)]

$300.00

$1,500.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

 

PROPERTY MANAGEMENT REQUIREMENTS

38.

FAILURE  TO HAVE A POOLED TRUST ACCOUNT
[Rules, subsection 37(b)(i)]

$300.00

$1,500.00

39.

USING CHEQUES THAT DO NOT CONTAIN THE TERM “TRUST ACCOUNT”
[Rules, subsection 37(b)(ii)]

$100.00

$500.00

40.

FAILURE TO PROVIDE AN ACCOUNTING OF ALL CHEQUES
[Rules, subsection 37(b)(iv)]

$100.00

$500.00

41.

FAILURE TO MAKE DISBURSEMENTS AS REQUIRED
[Rules, subsection 37(c)]

$300.00

$1,500.00

42.

MAKING ILLEGAL DISBURSEMENTS FROM POOLED TRUST ACCOUNTS
Issuing cheques that would result in a negative balance for the pooled trust account
[Rules, subsection 37(d)]
Making payments out of a pooled trust account if the payment creates a negative balance for the client
[Rules, subsection 37(e)]
Making illegal disbursements from a pooled trust account
(Rules, section 43)
Taking of lent moneys if a negative balance is created on the client's ledger
[Rules, subsection 44(2)]
Using a pooled trust account to cover the agent's personal or office expenses
[Rules, subsection 46(1)]
Withdrawing management fees in advance unless allowed by the management agreement
[Rules, subsection 47(1)]
Withdrawing management fees when sufficient funds are not available
[Rules, subsection 47(1)]

 

$300.00

 

$200.00

 

$200.00

$100.00

 

$200.00

 

$300.00

 

$500.00

 

$1,500.00

 

$1,000.00

 

$1,000.00

$500.00

 

$1,000.00

 

$1,500.00

 

$2,500.00

43.

FAILURE TO KEEP WRITTEN COPIES OF REAL ESTATE MANAGEMENT AGREEMENTS
[Rules, subsection 38(1)]

$200.00

$1,000.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

44.

FAILURE TO KEEP RECORDS AS REQUIRED
Rentals of real estate arranged by the agent are not in writing
[Rules, subsection 39(1)]
Written leases do not contain all the required information
[Rules, subsection 39(2)]
Failure to prepare and maintain a trust ledger for each real estate management agreement
[Rules, subsection 40(a)]

 

$200.00

$100.00

$200.00

 

$1,000.00

$500.00

$1,000.00

 

Failure to use a sequential code system for management agreements and the corresponding trust ledgers
[Rules, subsection 40(b)]
Failure to issue a written  receipt if money is received in the form of cash
[Rules, subsection 40(c)]
Failing to maintain a trust ledger as required
[Rules, subsection 40(d)]
Failure to prepare a ledger on behalf of each tenant as required
(Rules, section 41)
Failure to prepare as required an accounting for each client
(Rules, section 42)
Failure to make accounting of management fees as required
[Rules, subsection 47(2)]

$100.00

 

$200.00

 

$300.00

$200.00

 

$200.00

$200.00

$500.00

 

$1,000.00

 

$1,500.00

$1,000.00

 

$1,000.00

$1,000.00

45.

ILLEGAL PROCESSING OF LOAN PAYMENTS THROUGH POOLED TRUST ACCOUNTS
[Rules, subsection 44(3)]

$300.00

$1,500.00

46.

FAILURE TO DO BANK RECONCILIATIONS AS REQUIRED
(Rules, section 45)

$300.00

$1,500.00

47.

FAILURE TO CORRECT SHORTAGES IN THE TRUST ACCOUNT
[Rules, subsection 46(2)]

$500.00

$2,500.00

48.

FAILURE TO COOPERATE WITH AN AUDITOR
(Rules, section 48)

 

$500.00

$2,500.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

 

 

MORTGAGE BROKERS

 

 

 

49.

FAILURE TO KEEP OR HAVE AVAILABLE THE REQUIRED DOCUMENTS
Failure to keep or have readily available the repayment terms for each mortgage
[Rules, subsection 65(1)(a)]
Failure to keep or have  readily available accountings as required for each mortgage
[Rules, subsection 65(1)(b)]

 

$300.00

 

$300.00

 

$1,500.00

 

$1,500.00

 

 

Failure to keep or have readily available accountings of expenses and fees in respect to each mortgage transaction
[Rules, subsection 65(1)(c)]
Failure to keep or have readily available the particulars of any related agreement
[Rules, subsection 65(1)(d)]
Failure to keep proof that the required lender/investor disclosure was provided
[Rules, subsection 65(4)]

$100.00

 

$200.00

 

$100.00

$500.00

 

$1,000.00

 

$500.00

 

50.

FAILURE TO PROVIDE DISCLOSURE AS REQUIRED
Failure to provide Lender/Investor disclosure
[Rules, subsection 65(2)]
Failure to meet the disclosure requirements on the completion of a mortgage transaction
(Rules, section 66)

 

 

$100.00

$100.00

 

$500.00

$500.00

 

 

NOTICE OF CHANGES

 

 

 

51.

FAILURE TO NOTIFY OF CHANGE IN ADDRESS
[Rules, subsections 20(1)(a) and (b)]

$100.00

$500.00

 

52.

FAILURE TO NOTIFY A CHANGE OF FINANCIAL INSTITUTION
[Rules, subsection 20(1)(c)]

$100.00

$500.00

 

53.

FAILURE TO NOTIFY OF A CHANGE IN PARTNERS
[Rules, subsection 20(1)(d)]

 

$100.00

$500.00

COLUMN 1

COLUMN 2

 

Item

 

Designated Provision and Contravention

 

First
Contravention

 

Additional Contravention Within 3 Years

 

54.

FAILURE TO NOTIFY OF A CHANGE OF OFFICERS OR DIRECTORS
[Rules, subsection 20(1)(e)]

$100.00

$500.00

 

55.

FAILURE TO NOTIFY OF A CHANGE IN DESIGNATED REPRESENTATIVE
[Rules, subsection 20(1)(f)]

$100.00

$500.00

 

56.

FAILURE TO NOTIFY OF AN AMALGAMATION
[Rules, subsection 20(1)(g)]

$100.00

$500.00

 

57.

FAILURE TO NOTIFY OF THE TERMINATION OF BUSINESS
[Rules, subsection 20(2)(a)]

$100.00

$500.00

 

58.

FAILURE TO COMPLY WITH ANY REQUEST FOR INFORMATION MADE BY THE EXECUTIVE DIRECTOR
(Act, sections 38 and 73)

$500.00

$2,500.00

 

59.

FAILURE TO COMPLY IN A CONSTRUCTIVE MANNER TO CORRESPONDENCE FROM THE EXECUTIVE DIRECTOR
(Act, sections 38 and 73)

$200.00

$1,000.00

 

 

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