Real Estate Act Ministerial Regulation

Part 2 - Real Estate Assurance Fund

Application of the Fund provisions
8.1 (1)  The classes of industry members prescribed for the purposes of sections 57(3) and (5) and 60(1) of the Act are all the classes referred to in section 1(2).
(2) The classes of applicants to become industry members prescribed for the purposes of section 57(5) of the Act are all applicants to become industry members of all the classes referred to in section 1(2).

AR 225/2002 s5;212/2005


Payments from Fund
9 For the purposes of Part 4 of the Act, money may be paid from the Fund where the judgment or claim referred to in section 57(3) of the Act is in respect of any industry member of any class referred to in section 1(2).

AR 113/96 s9;164/98;225/2002;124/2008


Assessments
10All industry members of all classes referred to in section 1(2) and all applicants to become industry members of all such classes are liable for assessments for the purposes of section 57(5) of the Act.
AR 113/96 s10;164/98;251/2001;225/2002

11 Repealed AR 58/2005 s2.

Compensation from Fund
12(1) In this section, “compensation event” means, as determined by the Council, the transaction or series of transactions, including all related transactions, for which payment may be made from the fund under section 60 or 60.3 of the Act in respect of one or more industry members for fraud or breach of trust.
(2)2 The maximum amount of compensation payable from the Fund under section 60 or 60.3 of the Act payable to an applicant with respect to a compensation event is
(a)
with respect to industry members referred to in section 1(2)(a), $35 000, and
(b)
with respect to industry members referred to in section 1(2)(b), $25 000.
(3) 3 The maximum amount of compensation payable from the Fund under section 60 or 60.3 of the Act payable to all applicants for a compensation event is
(a) with respect to industry members identified in section 1(2)(a), $350 000, and
(b) with respect to industry members identified in section 1(2)(b), $100 000.
(4) If subsection (3) operates to limit the amount that would otherwise be paid to an applicant under subsection (2), each applicant shall receive a proportionate share of the amount that would be paid but for the operation of subsection (3).
(5) The Council shall determine that payments from the Fund arise from a single compensation event if payments arise from
(a)

the same real estate trade, project or development, or

(b) the same mortgage deal, project or development.

AR 113/96 s12;56/97;164/98;77/2001;251/2001;225/2002; 124/2008

13 Repealed AR 124/2008 s5.

Pro rata payment
13 If all claims under section 60 of the Act against an industry member exceed the maximum amount that may be paid under section 12, applicants shall be paid on a pro rata basis.
AR 113/96 s13; 56/97; 251/2001

Prescribed winding-up amount
14(1)   For the purpose of section 62(1) of the Act, the amount of the Fund is hereby prescribed as $2 000 000.
(2)   In calculating the amount of the Fund for the purposes of subsection (1), the following shall be considered:
  (a) the money received from the levy of assessments under section 57(5) of the Act;
  (b) the income from the investment of the money in the Fund excluding the income used to pay administration costs in accordance with section 57(9) of the Act;
  (c) the amount of insurance obtained by the Council to protect the Fund from claims or loss.

AR 113/96 s14;251/2001;237/2003


Additional Fund purposes
15(1)   The prescribed amount for the purposes of section 57(4) of the Act is $2 000 000.
(2)   The Council may, with the prior written approval of the Minister, use money in the Fund that is in excess of the prescribed amount referred to in subsection (1) for the following purposes:
  (a)

any purpose incidental to and conducive to the reduction of claims against the Fund under section 60 of the Act or the reduction of claims due to professional errors and omissions of industry members referred to in section 9 of this Regulation;

  (b)

promotion of higher professional standards of practice among such industry members.

AR 113/96 s15;251/2001;237/2003


Continue with Ministerial Regulation Part 3 - Nomination of Real Estate Appraiser and Property Manager Council Members

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