Interpretation

1 (1) In these Rules,
(a)

“agent” means an industry member who is expressly or implicitly authorized to act for or represent another person;

(b)

“appraiser associations” means the Alberta Association of the Appraisal Institute of Canada, Alberta Assessors’ Association, and Canadian National Association of Real Estate Appraisers;

(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 an industry member in accordance with these rules, whether or not that service agreement is in writing;

(g.1)

"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;

 
Resolution 2007-3
(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.”

   
Resolution 2015-1
(h)

“conflict of interest” means a real or apparent incompatibility between an industry member’s interests and the interests of the client or potential client;

(i)

“customer” means a person who has contacted, but not engaged or employed, an industry member to provide services;

(i.1)

"designated agency" means a relationship in which one or more industry members, licenced 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 industry member who is designated in writing by a brokerage to serve as 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 industry members registered with the brokerage are designated as the sole agent of the seller or of the buyer, respectively;

 
Resolution 2007-3
(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 an industry member 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
 
Resolution 2007-3, Resolution 2010-1
(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 or mortgage transaction and is intended to either assist, persuade or cause that person to enter into a particular real estate or mortgage transaction;
(r) "industry member" means any person who holds a licence issued under these Rules;
(s) “lease” includes a residential tenancy agreement under the Residential Tenancies Act;
(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 industry member 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 industry member, 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 an industry member include money that:
(i) is paid to the industry member by a party to a trade or dealing, 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;
(iii) holding money received in connection with a lease or rental of real estate; and
(iv) advertising, negotiating, or any other act, directly or indirectly for the purpose of furthering an activity described in sub-clauses (i) to (iii).
(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.”

   
Resolution 2015-1
(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
   
Resolution 2015-1
(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 an industry member acts as the agent of only one party in a trade or deal;
(ff) “supporting documentation” means any document the brokerage or real estate appraiser created, caused to be created or was received by the brokerage or real estate appraiser in relation to a trade in real estate, mortgage dealing or appraisal 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 industry member 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 an industry member who has been engaged under a transaction brokerage agreement to provide facilitation services to the buyer and the seller in the same trade;
 
Resolution 2007-3
(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.

 

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