Condominium Manager Regulation Consultation - Phase 1 Results
Results from Phase 1 consultation: Proposed Regulatory Model for Condominium Managers
The Real Estate Council of Alberta’s (RECA) Condominium Manager Implementation Advisory Committee (CMIAC) recently completed Phase 1 of the Condominium Manager Regulation Consultation. As a result of this consultation, CMIAC provided, and Council approved, recommendations in six areas:
- RECA will license and regulate all persons who provide “condominium management services” for compensation. The eligibility and licensing structure will be similar to the other industries RECA regulates (brokerage, broker, associate).
- Council will recommend the following licensing exemptions to the Alberta Government:
- accountants who provide financial reporting to condominium boards (budgets, monthly financials, etc.)
- self-managed condominiums
- court appointed administrators
- industry members who are unit owners in a condominium corporation in relation to their provision of condominium management services to or on behalf of no more than two condominium corporations (if certain conditions are met)
- other parties exempt according to the REA regulations
- Council approved a transitional and ongoing education model
- this education model will include conditional licensing, challenging exams with a passing grade of 70%, and a one-year experience to challenge exams to become an associate
Bonding or real estate assurance fund recommendation
- Bonding as the means of protecting the condominium corporation’s funds
- if a condominium manager brokerage holds funds in trust on behalf of a condominium corporation, the condominium manager brokerage must have its own bond.
- if a condominium corporation holds its funds in its own bank accounts, the bond should cover the condominium manager, though the condominium manager brokerage may also have a separate bond
Trust account audit & review program recommendations
- RECA’s Trust Assurance and Practice Review program will apply to condominium managers to improve trust accounting, record keeping, and administrative procedures
- will include a mandatory trust account audit at the time of licensing a condominium manager brokerage that holds trust funds, and ongoing audits for brokerages that hold trust funds
- only the broker, brokerage industry member, employee, or a lawyer or an accountant the brokerage has engaged, may sign on the brokerage trust accounts
Professional liability insurance recommendation
- Condominium management brokerages will be required to hold a minimum $1 million in errors and omissions (E&O) professional liability insurance
Unlicensed condominium manager activity and licensed condominium manager misconduct recommendation
- RECA will use the current complaint process for licensed condominium manager misconduct.