RECA Consumer Alert: Prism Developments Inc. - Unlicensed Property Management Activity, Calgary
Calgary, Alberta - Prism Developments Inc. is operating as a real estate broker and property manager in Calgary without having the necessary licence. The Real Estate Council of Alberta (RECA) has issued a penalty of $25,000 to Prism Developments Inc. for trading in real estate without a licence.
Evidence provided to RECA indicates Prism Developments Inc. has been managing properties in Calgary since 2010. Prism Developments Inc. has brokered lease agreements and accepted security deposits and rents on behalf of property owners. These activities require a licence in Alberta.
Prism Developments Inc. is not licensed as a real estate brokerage or as a property manager in Alberta, nor has it ever been.
RECA is the licensing and governing body for property management, real estate brokerage, mortgage brokerage, and real estate appraisal professionals in Alberta. Consumers are encouraged to work only with licensed individuals.
Licensed individuals must meet and maintain rigorous licensing requirements, including:
- providing a Certified Criminal Record Check prior to licensing
- completing comprehensive pre-licensing education and ongoing re-licensing education, and,
- maintaining errors and omissions insurance.
In the event of a licensee’s fraud, breach of trust or failure to account or disburse money in accordance with the terms of trust, a consumer may be eligible for compensation from RECA’s consumer compensation fund. Consumers who work with unlicensed individuals are not eligible for compensation from RECA’s consumer compensation fund.
Consumers can find out if an individual is licensed through RECA’s website, www.reca.ca. Use the “Searching for an Industry Professional” tool.
If you have concerns as a result of property management dealings with Prism Developments Inc., please contact the Real Estate Council of Alberta toll-free at 1-888-425-2754.
NOTE: This consumer alert was originally issued in December 2016, and referred to an individual who was the director and sole shareholder of Prism Developments Inc. In September 2017, RECA removed the individual’s name from this alert in light of the fact RECA’s Administrative Penalty for unlicensed activity has been reissued to Prism Developments Inc. rather than to the individual previously named.
The Real Estate Council of Alberta (RECA) is an independent, non-government agency, responsible for governing real estate, mortgage broker, property management, and real estate appraisal industry professionals under Alberta’s Real Estate Act. RECA’s mandate is to protect consumers and to provide services that enhance and improve the industry and the business of industry professionals.