Real Estate Act

Part 2 - Regulation of Business of an Industry Member

Section 25 - Trust Accounts
25(1)

 An industry member who is required by the rules to keep and operate a trust account shall

  (a) keep complete and accurate financial records in which the industry member shall maintain a separate record for each person on whose behalf the industry member is acting of all
    (i) money received in trust,
    (ii)

money held in trust,

    (iii) interest earned on money held in trust, and
    (iv)

disbursements made from money received or held in trust,

    in respect of a dealing or trade for that person,
  (b) deposit money received in trust in respect of a dealing or trade in the business of the industry member within the time prescribed by the regulations, or within any period agreed to in writing by the parties to the dealing or trade, in an interest‑bearing account that is
    (i) maintained in a bank, loan corporation, trust corporation, credit union or treasury branch, and
    (ii) kept in the name of the industry member and designated as a trust account.
  (c) keep money received or held in trust in respect of a dealing or trade in the business of the industry member separate from money that belongs to the industry member or any industry members the industry member employs, and
  (d) disburse money received or held in trust in respect of a dealing or trade in the business of the industry member only in accordance with the rules and with the terms of the trust governing the use of that money.
(2)

Where an industry member receives money in trust in respect of a dealing or trade in the business of the industry member, the industry member shall ensure that the terms of the trust governing the use of the money are in writing and agreed to by the industry member and all other parties.

(3)  Subject to subsection (4), all money deposited under subsection (1)(c) shall be kept on deposit in Alberta.
(4) Where an industry member
  (a) maintains business premises in the City of Lloydminster,
  (b) maintains an account designated as a trust account in a bank, loan corporation, trust corporation, credit union or treasury branch located in the City of Lloydminster, and
  (c) otherwise complies with subsection (1),
 

subsection (3) does not apply to deposits to the extent that they are made and kept in the account referred to in clause (b).

(5) Where an industry member of a class specified in the regulations holds money in trust for more than 2 years after the date on which the person for whom it is held becomes entitled to receive payment of it and, using reasonable efforts, is unable to locate the person, the industry member shall
  (a) pay the money to the Foundation, and
  (b) provide the Foundation in writing with
    (i) the name of the person for whom the money was being held,
    (ii) the circumstances resulting in the money being unclaimed, and
    (iii) if the money represents more than one unclaimed amount, a breakdown of each amount.
(6)  If at any time a person establishes entitlement to any money paid to the Foundation pursuant to subsection (5), the Foundation shall pay the money to that person.
(7) An industry member is not liable to any person referred to in subsection (6) for money paid to the Foundation under subsection (5).
(8) Subsections (1), (3) and (4) do not apply to a trust corporation.
(9) An industry member shall, in accordance with the rules, keep in Alberta records and books of account of the industry member’s business and accounting records, and shall keep those records and books of account
  (a) for a period of 3 years after they came into existence, or
  (b) for any longer period that the executive director directs in a particular case for the purposes of an investigation or prosecution under this Act.
(10) Repealed 2007 c39 s11.
(11) Any waiver or release by a person on whose behalf the industry member is acting of the rights, benefits or protections provided to the person under this section is void.
 

RSA 2000 cR-5 s25;2003 c31 s13;2007 c39 s11

 

Continue with Part 3 - Conduct Proceedings

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