RECA encourages licensees to stay up-to-date on provincial public health guidelines. The sections below contain information and resources on COVID-19 that RECA has put together for your reference. None of this information should be used in place of information provided by medical professionals and the Government of Alberta.
While, licensees are not expected to be experts on COVID-19, all licensees should be discussing COVID-19 with their clients. Take steps to understand the risk associated with property viewings, and if you are concerned about exposing yourself to COVID-19 by meeting with clients, communicate this to your broker and your clients in order to find a solution. As part of providing competent service, licensees are expected to work cooperatively with clients to find a solution for relieving the concerns of everyone involved.
Disclaimer: This information does not constitute legal advice. Industry professionals should seek legal advice based on their specific facts and circumstances.
Real estate licensees should reach out to seller clients to talk through concerns and any alternatives available to them, for example whether your client prefers a risk mitigation strategy or risk avoidance strategy. Encourage sellers to assess their own risk based on their personal circumstances, if they are immuno-compromised or have a pre-existing respiratory condition, and seek advice from healthcare professionals as necessary.
Refer clients to the COVID-19 page on the Government of Alberta website, for the most current information applicable to Albertans.
Sellers need to be aware that COVID-19 and the strategies to mitigate risks may impact the sale of their property. Self-isolation strategies could give potential buyers more time to focus on their property purchase, but they could also impact potential buyers’ desire to view properties or complete a purchase.
Discuss the potential impacts of COVID-19 on the sale of their property with your seller clients and review the options that are available to them, like:
*Some real estate boards require properties to be available for viewing and prohibit the placing of viewing conditions by the seller. They may require properties be withdrawn from the listing service when the seller is uncomfortable with risks of showing the property, which may trigger the option to temporarily pull properties of the market. All Alberta real estate boards are cognizant that the placing of viewing restrictions may be appropriate during the COVID-19 crisis and are relaxing their requirements. Speak to your board to determine their listing requirements.
The seller may also have the option to temporary pull their property off the market. Where applicable, check with your real estate board to determine whether they have relaxed their listing rules to allow viewings to be suspended. Update the seller representation agreement, accordingly.
The property may also be pulled off the market by terminating the listing entirely and entering into, and signing, a new agreement to relist the property at a future date.
Discuss the pros and cons of each options with your clients, including how property inventory or prices may be affected during the current pandemic before pulling the property off the market.
Additionally, if the seller or someone in the seller’s household has tested positive for COVID-19 and is self-isolating, licensees should discuss their concerns with their broker. The broker may not want to list the property while a health risk exists or may do so only if the risk is disclosed to potential buyers before viewing.
Download a checklist for discussions with seller clients for easy reference.
Real estate licensees should reach out to buyer clients to talk through concerns and any alternatives available to them. Refer them to the COVID-19 page on the Government of Alberta website. This page will have the most current information applicable to Albertans. Encourage buyers to assess their own risk based on their personal circumstances, if they are immunocompromised or have a pre-existing respiratory condition, and seek advice from healthcare professionals as necessary.
Buyers need to be aware that COVID-19 and strategies to mitigate it may impact their property searches for the time being. Self-isolation strategies could impact how properties are being marketed, if in-person viewings are available, or whether the sellers keep the property on the market.
Discuss the potential impacts of COVID-19 on processes around viewing properties and present options for mitigating risk to the health of all parties. These options could include:
Buyers could also choose to postpone the purchase process until a later date. Discuss the pros and cons of this decision and ensure you update the buyer representation agreement, with any amended dates and conditions.
You should discuss the pros and cons of these options with your buyer clients and, where appropriate, document the decisions in writing.
Download a checklist for discussions with buyer clients for easy reference.
Property managers should reach out to their landlord clients to talk through concerns. Refer them to the COVID-19 page on the Government of Alberta website. This page will have the most current information applicable to Albertans.
Landlords need to be aware that COVID-19 and strategies to mitigate it may impact tenants, property rentals, and property management requirements. Landlords need to be aware that COVID-19 and strategies to mitigate it may impact tenants, property rentals, and property management requirements. Your discussions should include the following topic below:
Discuss the potential impacts of COVID-19 on processes around viewing properties and present options for mitigating risk to the health of all parties, including the departing tenant.
While the landlord has the right to show premises with proper notice, efforts need to be made to alleviate tenant concerns and communication and consultation with tenants is essential. Options for mitigating tenant concerns include:
Contact Service Alberta for advice if a tenant refuses to allow the property to be viewed by prospective tenants.
Discuss with landlords that the demand for rental premises may be impacted by the COVID-19 pandemic. Landlords need to be aware this can be a long-term situation and they need to be careful with the types of decision they make respecting rent and tenancy terms.
Keep current with government initiatives intended to alleviate the impacts of the COVID-19 pandemic. RECA will make best efforts to communicate these types of government initiatives with property managers. Landlords need to also take into consideration that access may be limited to the Residential Tenancy Dispute Resolution Service and the courts.
Informed and regular communications with your staff, building contractors, and tenants are integral in stopping the spread of COVID-19. Encourage tenants to inform you should they test positive for COVID-19, so you can communicate to the landlord and take the appropriate steps to assist in quarantining the property.
If you manage multi-family residential complexes, this Case Study from BOMA Canada may provide information on what to do in the event one of your buildings has a positive test for COVID-19.
If you are managing a large multifamily residential complex, discuss with the landlord your pandemic plans and business continuity processes. See the Commercial Property Management Response Planning section on this web page.
Communicate with your brokerage staff and facility staff and contractors. Give them information about COVID-19 and tools and training to help tenants comply with guidelines designed to prevent the spread of COVID-19.
Discuss with landlords the likelihood of rent defaults. Look for possible solutions. These solutions can include partial rent payments (better than no payment at all), use of the deposit to cover deficiencies with future rent, etc. Check the Government of Alberta’s website to see if there are any supports available to tenants or landlords.
Landlords may consider proactive communication. The communication may include providing tenants with information about government assistance programs, the kind of rent reduction or deferral programs they will offer tenants, and the kind of evidence tenants will need to provide to qualify for these alternative arrangements.
Tenants who may not be able to pay rent due to COVID-19 should take advantage of government assistance, and the possibility their insurance policies may help cover losses. Some policies may cover government-ordered closures. Landlords should also review their own insurance policies to determine whether they are covered for loss of rent.
Ask tenants to keep open lines of communication, and inform landlords if they are continuing to have difficulty paying rents. Landlords are being advised to be proactive and identify tenants who may have trouble with rent at this time.
Consider, with your client:
Things landlords should consider when discussing rent deferment agreements:
Rent deferment agreements should include:
Download a checklist for discussions with landlord and tenant property management clients for easy reference.
NOTE: The Mustard Seed is providing virtual training for property managers on how to engage with vulnerable persons who may frequent their properties.
Property managers should reach out to their tenant clients to get an understanding of their concerns, referring them to the COVID-19 page on the Government of Alberta website. This page will have the most current information applicable to Albertans. Encourage tenants to assess their own risk based on their personal circumstances, if they are immunocompromised or have a pre-existing respiratory condition, and seek advice from healthcare professionals as necessary.
Inform your tenant clients that their landlord may set viewing conditions, such as:
Your tenant client may ask you to inquire about the decisions made by the landlord to help mitigate the spread of COVID-19, including processes for cleaning and viewing properties.
Contact Service Alberta for advice if a tenant refuses to allow the property to be viewed by prospective tenants.
Review the Pandemic Guide prepared by BOMA Canada for further information.
Download a checklist for discussions with landlord and tenant property management clients for easy reference.
Important information about how AHS investigates COVID-19 outbreaks
When a specific location has a reported case of COVID-19, AHS has a team of Contract Tracers to investigate any commonalities between the cases. Contract Tracers will trace back to all locations an infected person has visited since being diagnosed for COVID-19. An official outbreak is considered when the Contract Tracers have found 5 or more cases linked to a specific facility.
In a high-rise complex, if a particular commercial tenant is found to be a commonality between 5 or more cases of COVID-19, they will be advised that they have an outbreak. AHS will leave it to the commercial tenant to advise the building owner or manager that there is an outbreak in their space.
If the commonality is found to be from a common area such as a food court, this area is considered to be an outbreak location. Building owners or managers will be notified of this situation. Cases in outbreak locations are turned over to the Health Inspector and will be investigated further.
New Information: the Government of Canada announced the Canada Emergency Commercial Rent Assistance (CECRA) program on April 24, 2020. Details:
Government of Alberta News Release about CECRA. Talk with your landlord and tenant clients about the program.
Property managers should develop a COVID-19 plan for clients’ properties. While the plan should be specific to the particulars of each property, the plans may be quite similar. For most property managers the COVID-19 plan would be an adaptation of their business continuity and pandemic plans.
Your plan should include:
BOMA Canada’s Pandemic Guide is a great resource if your brokerage hasn’t developed a plan. They have also recently hosted a webinar on Coronavirus and Commercial Real Estate. Watch the video (case study starts just after the 20 minute mark) or read the case study on responding to a confirmed case of COVID-19 in a commercial building on RECA News.
Your COVID-19 prevention plan is likely to be a work in progress, and will be changed as circumstances change. Stay engaged and follow provincial and federal government direction.
Both tenants and landlords need to adapt to new government orders on short notice. When conflicts arise between government orders and an obligation specified in a lease, compliance with applicable laws trumps all other clauses. This is usually spelled out in an applicable laws provision in the lease.
For example, tenants are accustomed to quiet enjoyment clauses, where the landlord cannot interfere in their possession of a premises as long as they fulfill their lease obligations. Under the pandemic, emergency orders from governments to close buildings will likely not breach these clauses. It is out of the landlord’s hands at this point.
RECA encourages property managers including landlords in their COVID-19 response planning.
Discuss any implemented or planned measures for preventing the transmission of COVID-19 in their building, and review the communications you have planned for staff, building contractors, and tenants. Seek your client’s feedback and, where applicable, budgetary approval for implementing the COVID-19 plan. Get every decision in writing to demonstrate to clients that landlords have taken action during this time.
Report all special circumstances regarding tenants.
Informed and regular communications with your staff, building contractors, and tenants are integral in stopping the spread of COVID-19 as well as mitigating panic.
You may also wish to share the security information posters developed by Calgary Police Service:
You should also discuss rent reduction or deferrals, including options and implications such as criteria that will be employed to judge the need for a reduction or deferral. The likelihood of renting out the space to a new tenant in this marketplace is small. Making concessions on rent can help keep tenants in business and in the buildings.
Tenants who may not be able to pay rent due to COVID-19 should take advantage of government assistance, and the possibility their insurance policies may help cover losses. Some policies may cover government-ordered closures. Landlords should also review their own insurance policies to determine whether they are covered for loss of rent.
Ask tenants to keep open lines of communication, and inform landlords if they are continuing to have difficulty paying rents. Landlords are being advised to be proactive and identify tenants who may have trouble with rent at this time.
Consider, with your client:
Things landlords should consider when discussing rent deferment agreements:
Rent deferment agreements should include:
Business Continuity
Property managers are encouraged to consult with clients and to consider options as any decisions made now will determine asset value and health at the end of this crisis. To do this property managers may want to prepare a tenant base report that includes:
Reforecast budgets and make new strategic revenue assumptions for the properties based on various COVID-19 recovery scenarios.
Property managers need to discuss the need to maintain access to essential businesses and critical business areas (such as a network servers) while securing areas no longer in use.
Property managers need to discuss with their clients the property’s operating costs, how to reduce these costs as a result of reduced occupancy and the possible allocations for these costs. This can then form part of the discussions with tenants.
Property managers also need to have discussions with their clients regarding re-opening plans. This will include how to market the premises after tenant closures. Future leases may be challenging as tenants could be increasingly hesitant. The current work from home environment may have proven successful for some businesses and may result in tenants requiring reduced office space.
Long-term impacts on tenant space can result in increased emphasis on social distancing, touchless technology. Retail tenants may be impacted (positively or negatively) by a greater consumer focus on online shopping.
NOTE: The Mustard Seed is providing virtual training for property managers on how to engage with vulnerable persons who may frequent their properties.
BOMA Calgary, BOMA Edmonton and RECA agreed to collaborate to develop materials targeted to Commercial Property Managers
RECA understands this is going to be a difficult time, both for your brokerage’s clients who may be concerned about proceeding forward with a transaction in light of the concerns associated with COVID-19 as well as the mortgage licensees in your brokerage.
Your clients’ financials could be impacted by the pandemic (lay offs, closures, the need to self-isolate). Make sure your associates discuss with their clients any COVID-19 implications on their mortgage transactions.
As you know, many lenders are modifying their practices to accommodate borrowers who may have lost their income or employment. Talk to your lenders to see what payment deferral programs they may have. And for your clients who lose their employment or income between obtaining an approved mortgage and the actual funding of the mortgage, lenders have indicated that each situation will be evaluated on a case by case basis. Some lenders are accepting the various government assistance programs as income. If your client’s return to work is assured, they may be able to delay the first payment date. If they don’t know if they are going back to work, moving ahead with the mortgage may not be in their best interest. Have a discussion and advise them accordingly.
Use of Modified Appraisals
Many lenders rely on automated valuation methods to validate the value of the mortgaged property, but there are situations when an appraisal is required. In those cases, lenders may accept a desk review or drive by valuation; however, certain situations require a full appraisal. This type of appraisal involves a physical inspection of the neighbourhood, and the interior and exterior of the home. Many appraisers and lenders have adjusted to the pandemic, and are now using video technology in concert with the occupants of the home in order to carry out the interior inspection. Many are also doing external inspections only. Most lenders will accept this form of modified full appraisal during the Covid-19 measures.
Digital Signatures
While some lenders have been accepting digital signatures for some time, now most lenders will accept verifiable e-signatures using a recognized digital signature process. This should apply to mortgage commitments and associated documents as well as creditor insurance agreements. Several lenders noted they still need a “wet ink” signature on Pre-Authorized Debit (PAD) forms to allow automatic withdrawal of payments. This will likely happen through the mail. Lawyers are arranging for virtual closing processes as well, so the entire process can happen without face-to-face contact.
In light of the pandemic, mortgage licensees may need to address two key factors in their dealings with clients:
Lender Modifications
As you know, many lenders are modifying their practices to accommodate borrowers who may have lost their income or employment. Talk to your lenders to see what payment deferral programs they may have. And for your clients who lose their employment or income between obtaining an approved mortgage and the actual funding of the mortgage, lenders have indicated that each situation will be evaluated on a case by case basis. Some lenders are accepting the various government assistance programs as income. If your client’s return to work is assured, they may be able to delay the first payment date. If they don’t know if they are going back to work, moving ahead with the mortgage may not be in their best interest. Have a discussion and advise them accordingly.
Mortgage professionals may also receive calls from borrowers experiencing difficulties in making payments due to income interruption or reduction. Many lenders and the mortgage insurers have programs to alleviate the payment burden.
Use of Modified Appraisals
Many lenders rely on automated valuation methods to validate the value of the mortgaged property, but there are situations when an appraisal is required. In those cases, lenders may accept a desk review or drive by valuation; however, certain situations require a full appraisal. This type of appraisal involves a physical inspection of the neighbourhood, and the interior and exterior of the home. Many appraisers and lenders have adjusted to the pandemic, and are now using video technology in concert with the occupants of the home in order to carry out the interior inspection. Many are also doing external inspections only. Most lenders will accept this form of modified full appraisal during the pandemic.
Digital Signatures
While some lenders have been accepting digital signatures for some time, now most lenders will accept verifiable e-signatures using a recognized digital signature process. This should apply to mortgage commitments and associated documents as well as creditor insurance agreements. Several lenders noted they still need a “wet ink” signature on Pre-Authorized Debit (PAD) forms to allow automatic withdrawal of payments. This will likely happen through the mail. Lawyers are arranging for virtual closing processes as well, so the entire process can happen without face-to-face contact.
RECA has become aware of COVID-19 of contract clauses for use in purchase contracts and liability waivers circulating among residential real estate professionals. These COVID-19 clauses and liability waivers may not be in the seller’s or buyer’s best interests and can have significant impacts on buyers and sellers.
Prior to inserting any clause(s) into purchase contracts or presenting your clients with liability waivers, industry professionals should advise their clients that the clauses and documents might no be in their best interest, and to seek advice from their lawyer to ensure the clause(s) serve the client’s best interests.
Any clause included in a contract to address circumstances surrounding COVID-19 should be drafted and reviewed by legal counsel to ensure enforceability and to ensure the clause addresses the specific scenarios adequately.
If a client chooses not to have COVID-19 contract clauses or liability waivers reviewed with their lawyer, real estate professionals should document their refusal in writing.
The COVID-19 situation evolves quickly. See the sections above for information and recommendations for your area(s) of practice.
Q A | I’ve just returned from a vacation outside the country. Can I still work with my clients from home? The government has issued very clear and unequivocal instructions to self-quarantine for 14 days once you return. Brokers should ensure all associates and employees follow this order, and ensure that when necessary, their duties are taken over by another associate or employee. |
Q A | I'm an industry professional and I’m in one of the most-at-risk groups for complications from COVID-19. Can I work? There is no ban on working, as real estate agent services have been designated an essential service. However, the government recommended that it is better for people aged 70 and over, or with pre-existing conditions, to stay at home and avoid contact. As far as the situation allows, give priority to teleworking using the technological means available, such as conference calls and electronic signatures. If you are unable to work and must withdraw temporarily, you must inform your broker and your clients. |
Q A | I have clients in the most-at-risk groups for complications from COVID-19. Should I work with them right now? The government recommended that it is better for people aged 70 and over, or with pre-existing conditions, to stay at home and avoid contact with other people. In this context, you should contact your client and discuss with them the options available, based on his situation (e.g. video showings, electronic contracts). Make sure any change to your service agreement is in writing and agreed to by your brokerage. You should also discuss terminating your service agreement during the pandemic and entering a new agreement once things return to normal. |
Q A | Do I have the right to ask buyers or sellers questions about COVID-19 and their health condition prior to visits? Yes. However, they are not required to answer. |
Q A | Should I plan for longer condition periods when drafting a offer to purchase? This depends on the availability of the professionals involved (home inspectors, mortgage |
Q A | Can the various deadlines in an Offer to Purchase be extended? Yes. If all parties agree, in writing, they can extend deadlines. This must occur BEFORE the deadlines occur. You cannot amend a contract that has expired, as by definition, it is null and void, and no longer an enforceable contract. If the parties wish to continue to make a deal but the original offer has expired, the parties must draft and accept a new Offer to Purchase. |
Q A | I have a fully accepted offer and my client no longer wants to sell because of COVID-19: do they have the right to? Most likely they do not have the right, as it would break a legally binding contract. The parties are bound by the terms of the contract. If your client no longer wishes to sell after signing their offer and acceptance, they could potentially be exposed to legal action by the buyer. They may also be required to pay commissions. Tell your client to speak to their lawyer so that a lawyer can explain the possible repercussions for their actions. Their lawyer may also be able to negotiate a termination to the purchase and sale contract with the buyer. |
Q A | What if my client doesn't want someone in their property to measure using the RMS during the COVID-19 Pandemic? RECA does not require professionals to advertise the size of a property. Industry professionals who are not members of a local real estate board can choose not to advertise a property size. As such if your client is uncomfortable with someone coming to measure their property, they can choose not to make a size representation. |
Q
| My buyer learned they are infected with COVID-19 after their’s conditional offer to purchase was accepted by a seller; how can I assist them to fulfill the conditions? First, obtain the buyer's consent to inform the seller of the buyer's situation and state of health. The parties may agree amongst themselves, in writing, to extend the deadlines for the fulfilment of the conditions. Use electronic signatures for signing documents. Another alternative is for your client to speak to their lawyer about granting a power of attorney to a trustworthy person for the fulfilment of conditions and for the subsequent steps of the transaction in order to minimize delays. |
Q
| My seller client has an accepted offer for the sale of his property. The buyer lost their job due to the COVID-19 crisis and his lender is now refusing to grant financing: what can I do? Most lender commitments remain conditional on the borrower's (buyer’s) financial position remaining unchanged. In the case of a layoff, even a temporary one, there have been instances in the past where the lending institution has refused to finance the mortgage. |
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| My buyer client has an accepted offer for the sale of his property. They lost their job due to the COVID-19 crisis and his lender is now refusing to grant financing: what can I do? Most lender commitments remain conditional on the borrower's (buyer’s) financial position remaining unchanged. In the case of a layoff, even a temporary one, there have been instances in the past where the lending institution has refused to finance the mortgage. |
Q
| A buyer is interested in viewing my property. The buyer and/or their representative is refusing to provide health information, or the health information they are providing is of concern to me. Do I have let the buyer and their representative view the property?
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These government programs may help your brokerage, your business, or your personal finances if you may be struggling financially during the global health crisis.
These programs are intended to aide those who are not able to meet their basic needs through their current income. Having your brokerage defer commission payments so you can continue to receive relief money from the government is a form of fraud. You and your broker could face sanctions and criminal charges.
Avoid the math by using the CRA’s Canada Emergency Wage Subsidy Calculator
For more information watch the CRA’s What you need to know about the 75% wage subsidy video on YouTube
Visit the Government of Alberta’s website for COVID-19 support of employers and employees.
Canadian Federation for Independent Business has additional resources for Alberta’s COVID-19 relief measures for businesses
Just because we’re in a global health crisis, doesn’t mean fraudsters have stopped preying on the public. In fact, the crisis has created new opportunities for criminal activity. Watch out for the scams below, and remember to remain vigilant with your online activity. We will update this section as more scams are shared with us.
The RECA offices are open to in-person visitors daily from 8:00–4:30. For best service, please contact the department you wish to meet with to discuss making an appointment. As always, RECA staff will be available by phone and email for any questions or concerns with regards to your licence, education, or practice. Time constraints, such as licence expiry deadlines, will be taken into consideration.
The self-regulation of the Alberta real estate industry will be maintained, with practice reviews and investigations continuing, with some adjustment:
There are simple steps you can take to stop the spread of all viruses, including the novel coronavirus:
If you start to exhibit symptoms of COVID-19, self-isolate and call Health Link (811) for additional precautions.
If you need to self-isolate, immediately notify your broker and follow the recommended instructions for self-isolation: