Part 2 - Industry Standards of Practice

Division 1 - Standards of Conduct for All Industry Members

Industry Member Responsibilities

41 Industry members must:
  (a) act honestly;
  (b) provide competent service;
  (c) disclose to their clients, at the earliest practical opportunity, how they will be paid for their services;
  (d) fulfill their fiduciary obligations to their clients;
  (e) ensure the role of the industry member is clearly understood by their clients and third parties;
  (f) disclose to their clients, at the earliest practical opportunity, any conflict of interest they may have in the course of providing services to, or in their dealings with, a client;
  (g) practice in strict accordance with the Act, Regulations, Rules, Bylaws and any other laws that govern trading in real estate, mortgage transactions or appraisals in Alberta;
  (h) cooperate fully with, and provide any information requested to, any representative of the Council carrying out their duties and responsibilities under the Act;
  (i) comply with:
    (i) an order issued pursuant to the Act by the Council, the executive director, a hearing panel, appeal panel or court; and
    (ii) any terms, conditions or restrictions of licensing; and
  (j) refuse to provide further services to or on behalf of a client who instructs him to withhold a disclosure required by the Act, Regulations, Rules, Bylaws, or any other laws.
  (k) comply with the Education Code of Conduct for Learners.
    Oct 1/06, July 3/12 2012-3

Industry Member Prohibitions
42 Industry members must not:
(a) make representations or carry on conduct that is reckless or intentional and that misleads or deceives any person or is likely to do so;
(b) participate in fraudulent or unlawful activities in connection with the provision of services or in any dealings;
(c) use confidential information obtained from any person for personal gain nor should that information be used for any purpose other than that for which it was obtained;
(d) discourage a client, customer or a party to a trade in real estate or deal in mortgages from seeking legal counsel or expert advice;
(e) deny professional services to, or be a party to any plan or agreement to discriminate against, any client, customer or party to a trade in real estate or deal in mortgages for reasons of race, creed, colour, gender, sexual orientation, family status, marital status, age, national origin, or physical disability;
(f) physically, sexually, emotionally or verbally abuse a client, customer, industry member or party to a trade in real estate, deal in mortgages, or appraisal services; or;

engage in conduct that undermines public confidence in the industry, harms the integrity of the industry, or brings the industry into disrepute.

  Oct 1/06

Written Service Agreements
43(1) Subject to these rules, an industry member who establishes a client relationship when trading in residential real estate, property management, or when dealing in mortgages must enter into a written service agreement with that prospective client.
43 (1.1) Subject to these rules, an industry member who establishes a client relationship when trading in commercial real estate or who acts as a real estate appraiser should enter into a written service agreement with that prospective client.
  Council Resolution 2013-2
43(2) Every written service agreement shall:
  (a) be signed by the relevant parties;
  (b) clearly show all terms and conditions of the agreement and shall include:
    (i) the names of the parties to the agreement;
    (ii) if applicable, the address or legal description of the property affected by the agreement;
    (iii) if applicable, the date on which the agreement will become effective;
    (iv) the duration of the agreement;
    (v) the services to be provided by the brokerage or real estate appraiser;
    (vi) responsibilities of each party to the agreement;
    (vii) the use and distribution of personal or confidential information;
    (viii) the amount or method of calculating the remuneration or alternate compensation to be paid and the circumstances on which it will be payable;
    (ix) provisions for the termination of the agreement; and
  (c) provide that any amendment or addition to the terms of the agreement shall be in writing and signed by the relevant parties.
43(3) An industry member must deliver to the client a true copy of a service agreement and of any amendment or addition, immediately upon its signature.
  Council Resolution 2006-4

Protection of Client Information
44(1) In addition to the requirements of relevant legislation on the protection of personal information, an industry member must not disclose information regarding a client, property or transaction to another person unless:
(a) authorized by the client, or;
(b) required by law.
44(2) Each real estate brokerage, mortgage brokerage, real estate appraiser and candidate will:
  (a) establish adequate policies and procedures for the maintenance and protection of personal and confidential information; and
  (b) ensure all industry members registered with the brokerage and any staff members are aware of the policies and procedures referred to in (a) above and routinely carry them out in the course of their work.
    Oct 1/06

Referral Disclosure
45(1) When, in the course of providing services, an industry member refers any person to any industry member or any service provider and the industry member knows he may be entitled to receive a referral fee, remuneration or benefit from that service provider for making that referral, the industry member must disclose in writing:
(a) the industry member has forwarded the person’s name and contact information to that service provider; and
(b) the industry member may be entitled to receive a referral fee, remuneration or benefit from the service provider for making the referral.
45(2) An industry member must retain a copy of the disclosure referred to in sub-section (1) above.
45(3) If an industry member makes a referral to another person the industry member believes to be an industry member, the industry member must take reasonable steps to ensure the person is in fact authorized to carry out the activities for which the referral is made.
  Oct 1/06

Support Personnel and Assistants
46(1) An industry member must only assign to support personnel or assistants tasks they are competent to perform and must ensure they are properly trained and supervised.
46(2) An industry member must not delegate, assign, request, direct or in any way allow an unlicensed or unregistered assistant to perform tasks that must only be performed by an industry member.
46(3) In the case of an unlicensed or unregistered assistant, the industry member must ensure clients, customers and the public have full knowledge that the assistant is unlicensed or unregistered.
46(4) An industry member must ensure in any communication, advertising or marketing material there is no suggestion, implication or statement that may suggest or lead the public to believe an unlicensed or unregistered assistant is qualified to trade in real estate, deal in mortgages, or perform real estate appraisals, as the case may be.
  Oct 1/06

Continue with Part 2 Division 2 - Real Estate Brokerage Standards

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