Brokers - Active in Management

Purpose: This bulletin explains what actively managing a brokerage means.

This bulletin applies to the broker of a real estate brokerage and a mortgage brokerage or their delegates.

The Real Estate Act Rules (Rules) requires the broker to be actively involved in the management of the brokerage.

As a broker, you are responsible for the operation of the brokerage. This includes supervision of industry professionals registered to the brokerage, as well as all of the staff/employees in the brokerage. It is important you ensure industry professionals and staff follow specific standards and procedures.

What does “actively involved in management” mean?
This can have different meanings depending on the size of the brokerage and the number of industry professionals registered to the brokerage.

Even though brokers can delegate some management activities, you are the one who is ultimately responsible for all of the brokerage activities. You must verify all trades or deals done by industry professional of the brokerage comply with the legislation and in a competent manner.

How do you determine if the broker is “active in management”?

Questions to consider:

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