ContentsPART 1 – GENERAL 1 Definitions PART 3 – GENERAL RESPONSIBILITIES OF LICENSEES PART 4 – BUSINESS PRACTICES PART 5 – RELATIONSHIPS WITH PRINCIPALS AND PARTIES PART 6 –
DEALING WITH OTHER LICENSEES AND UNLICENSED PERSONS PART
7 – BROKERAGE ACCOUNTS AND FINANCIAL REQUIREMENTS PART 8 – BROKERAGE RECORDS PART 9 – LICENSEE
EXEMPTIONS PART 1 – GENERAL1 DefinitionsIn these rules: “accountant” means
“Act” means the Real Estate Services Act; “annual financial reports” means the records required to be filed with the superintendent under section 75 [annual financial statements, accountant’s report and brokerage activity report]; “application for a licence” has the same meaning as in section 8 [applications in relation to licences] of the Act; “branch office” means the premises that are identified in a brokerage’s licence as the branch office from which the brokerage may provide real estate services under the licence; “client”, in relation to a licensee, means the principal who has engaged the licensee to provide real estate services to or on behalf of the principal; “cooperating brokerage” means a brokerage that provides trading services to or on behalf of a buyer in respect of a trade in real estate; “designated agent” means one or more licensees designated by the licensee’s or licensees’ related brokerage as the exclusive licensee or licensees, of all of the licensees related to that brokerage, to provide real estate services to a client of the brokerage in respect of a trade in real estate; “dual agency” means the representation, in respect of a trade in real estate, by a brokerage of any of the following:
“family partner” means a person who is living and cohabiting with a licensee in a marriage-like relationship, including a marriage-like relationship between persons of the same gender; “head office” means the premises that are identified in a brokerage licence as the office from which the brokerage may provide real estate services under the licence, unless those premises are identified as a branch office; “licensee name”, in relation to a licensee, means the licensee name within the meaning of section 38 [licensee names]; “listing brokerage” means a brokerage that provides trading services to or on behalf of a seller in respect of a trade in real estate; “pooled trust account” means a trust account in which money is held on behalf of more than one person; “public trust money” means all money held or received by a brokerage and to which section 27 (1), (2) or (3) [payment into trust account] of the Act applies, except remuneration that has already been earned, as determined in accordance with these rules, by the brokerage at the time it is held or received by the brokerage; “publish”, in relation to real estate advertising, includes
“real estate advertising” means any form of identification, promotion, solicitation or representation, including a sign or other notice, relating to
“related brokerage office”, in relation to a licensee, means the brokerage head office or branch office that is identified in the licensee’s licence; “service agreement” means an agreement between a brokerage and a client under which a licensee provides real estate services to or on behalf of the client; “strata lot owner” means an owner as defined in the Strata Property Act; “trust account”, in relation to a brokerage, means
“trust account record” means the record referred to in section 80 (a) [trust account and general account records] as it applies to a trust account; “trust ledger” means a trust ledger required under section 81 (a) [pooled trust account records]; “unrepresented party”, in respect of a trade in real estate, means a party to the trade in real estate who is not a client of a licensee for the trade in real estate. PART 2 – LICENSINGDivision 1 – Licence Categories2 Licence categoriesFor each of the levels set out in section 5 (1) [licence levels and categories] of the Act, the following categories of licences are established to permit the provision of the services referred to:
Division 2 – Brokerage Relationships and Offices3 Brokerage must have a managing broker – exception
4 Managing broker may be licensed in relation to a maximum of 4 affiliated brokerages
5 Related licensees of brokerages with branch offices
6 Residential brokerage offices
Division 3 – Qualification Requirements7 English language proficiency requirement
8 Educational requirements
9 Educational requirements for new licensees
10 Education re-qualification on reinstatement
11 Experience qualifications for managing brokers and associate brokers
12 Financial qualification for brokeragesIn order to be licensed, an applicant for a new licence as a brokerage must satisfy the superintendent that the applicant is in sound financial circumstances. Division 4 – Licences13 Licence Certificates
14 Term of licence
15 Partnership brokerage licence is specific to partnership
16 Temporary licences for executors, administrators and committees of estates
17 Voluntary surrender
Division 5 – Communications with Superintendent18 Mailing address for delivery
19 Effective delivery to licenseesAll notices required under the Act to be given to a licensee are effectively delivered to the licensee if mailed to the licensee at the licensee’s latest mailing address for delivery. 20 Email address for licenseesIf there is a change to the email address that a licensee provided to the superintendent, the licensee must promptly deliver a notice to the superintendent updating the licensee’s email address. 21 Licensee must reply promptly to superintendent
22 Brokerage must give immediate notice respecting insolvencyA brokerage must immediately notify the superintendent if it is not able to pay its debts as they become due. 23 Licensee must give notice of discipline, bankruptcy or criminal proceedings
24 Brokerage must give notice of business changes
25 Personal real estate corporation must give notice of business changesA personal real estate corporation must promptly notify the superintendent in writing if it does not continue to maintain the attributes described in section 10.3 [corporate qualifications] of the Real Estate Services Regulation. Division 6 – Discipline and Other Enforcement26 Administrative Penalties
27 Amount of administrative penalty
PART 3 – GENERAL RESPONSIBILITIES OF LICENSEES28 Managing broker responsibilities
29 Associate broker and representative responsibilities
30 Duties to clientsSubject to sections 31 [modification of duties] and 32 [designated agency], if a client engages a brokerage to provide real estate services to or on behalf of the client, the brokerage and its related licensees must do all of the following:
31 Modification of duties
32 Designated agency
33 Duty to act honestlyWhen providing real estate services, a licensee must act honestly. 34 Duty to act with reasonable care and skillWhen providing real estate services, a licensee must act with reasonable care and skill. PART 4 – BUSINESS PRACTICESDivision 1 – General35 Display and keeping of licencesA brokerage must
36 Business signs requiredA brokerage must
37 Restrictions relating to home and other personal offices
Division 2 – Licensee Names38 Licensee names
39 Licensee names must be indicated
Division 3 – Advertising40 Restrictions and requirements
41 False or misleading advertising prohibitedA licensee must not publish real estate advertising that the licensee knows, or reasonably ought to know, contains a false or misleading statement or misrepresentation concerning real estate, a trade in real estate or the provision of real estate services. 42 Advertising in relation to specific real estateA licensee must not publish real estate advertising indicating that specific real estate is being offered for sale or other disposition unless the owner of the real estate, or an authorized agent of the owner, has consented to the advertising. PART 5 – RELATIONSHIPS WITH PRINCIPALS AND PARTIESDivision 1 – Contractual Matters43 Written service agreements required in some cases
44 Delivery of written agreements to clientsIf a brokerage provides real estate services under a written agreement, whether or not the agreement is required by section 43, the brokerage must deliver a copy to the client immediately on execution of the agreement. 45 Signing agreements on behalf of clients
46 Presentation of offersUnless otherwise instructed by the licensee’s client, a licensee who receives a signed offer to acquire or dispose of real estate must promptly communicate the offer to the relevant party to the trade in real estate. 47 Acceptance of offerA licensee who has obtained a signed acceptance of an offer to acquire or dispose of real estate must promptly deliver a copy of the signed acceptance to
48 Inducing breach of contract prohibitedA licensee must not induce any party to an agreement for a trade in real estate to break the agreement for the purpose of entering into an agreement with another party. 49 Representations as to sale, resale, purchase, etc.
50 Representations as to service agreements
Division 2 – Disclosures51 DefinitionsIn this Division: “associate”, in relation to a licensee, means a person who is any of the following:
“principal”, in relation to the prospective provision of real estate services, includes a potential principal. 52 Disclosures under this Division
53 Disclosure of interest in trade
54 Disclosure of representation in trading services
55 Disclosure of risks to unrepresented partiesIf a licensee makes a disclosure under section 54 (1) to an unrepresented party in respect of a trade in real estate while representing a client to that trade in real estate, the licensee must also disclose, in a form approved by the superintendent,
56 Disclosure of remuneration
57 Disclosure to sellers of expected remuneration
58 Benefits in relation to rental property management services and strata management services
59 Disclosure of material latent defects
Division 3 – Commissions and Other Remuneration60 Remuneration restriction in relation to trades in real estate
61 When licensee remuneration may be paid out of trust account
62 Some remuneration not required to be paid into brokerage trust account
Division 4 – Dual Agency63 Restriction on dual agency in trading services
64 Dual agency in under-served remote location
65 Addressing conflicts of interest when acting for multiple clients
PART 6 – DEALING WITH OTHER LICENSEES AND UNLICENSED PERSONS66 Payment to unlicensed persons prohibited
67 Acting for unlicensed persons prohibitedA brokerage must not provide real estate services to or on behalf of any person who is not a principal in relation to the real estate services unless the person is
PART 7 – BROKERAGE ACCOUNTS AND FINANCIAL REQUIREMENTS68 Agreement to pay other than into brokerage trust accountSection 27 (1) and (2) [payment into trust account] of the Act does not apply to money held or received by a licensee if
69 Use of holding brokerage trust account
70 Commission trust accountsFor the purposes of section 31 (2) [payment of licensee remuneration] of the Act, a brokerage may maintain one or more commission trust accounts in accordance with the following rules:
71 Requirement to notify savings institution of pooled trust accounts[Repealed] 72 Other trust account requirements
73 Negative balances in trust accounts and trust records
74 Superintendent review of accounts and other records
75 Annual financial statements, accountant’s report and brokerage activity report
76 Requirement to ensure solvency and cover negative balances
77 Additional rules for strata management trust accounts and investments
78 Blended payments in strata corporations with sections
PART 8 – BROKERAGE RECORDSDivision 1 – Financial Records79 Financial records
80 Trust account and general account recordsFor each account maintained by a brokerage, the brokerage must
81 Pooled trust account recordsIn addition to the records referred to in section 80, for each pooled trust account maintained by a brokerage, the brokerage must prepare and retain the following records:
82 Preparation of records after terminationAfter the termination of a service agreement respecting the provision of real estate services, the brokerage must continue to prepare all financial records required under this Part that relate to the services that were provided by the brokerage to the client. Division 2 – Other Records83 General records
84 Trading records
85 Records related to referral fees received by a licensee
86 Records related to referral fees paid
87 Rental property management records
88 Strata management records
Division 3 – General Record-Keeping89 Specific obligations not limitingThe requirements established by this Part do not limit the requirements of section 25 [brokerage records] of the Act. 90 Records must be kept up to dateRecords required under Division 1 [Financial Records] or 2 [Other Records] must be kept up to date. 91 Electronic records
92 Retention of records
93 Brokerage obligations when winding up businessA brokerage that ceases to carry on the business of a brokerage must do all of the following:
PART 9 – LICENSEE EXEMPTIONS94 Management of rental real estate owned by licensee
95 Management of rental real estate owned by licensee’s family
96 Management of strata corporation by licensee who is an owner
97 Acquisition or disposition of real estate by licensee or a spouse or family partner of a licensee
Which one of the following tasks must a Missouri licensee perform for her buyer client?Which one of the following tasks must a licensee perform for her buyer client? Inform sellers of their responsibility to make all required property condition disclosures.
Which offer would be the most appealing to a seller?“A cash offer is usually more appealing than a finance offer as the seller doesn't need to worry about whether the bank will approve your loan,” says Sam Heskel, president of Nadlan Valuation, an appraisal management company in Brooklyn, New York.
How long does escrow take to close in California?The buyer and seller agree to an escrow timeline during contract negotiations, and each sale varies, but normally escrow takes around 30 to 60 days to close.
Which of the following is an advantage of scheduling an in person meeting with potential buyers?Which of the following is an advantage of scheduling an in-person meeting with potential buyers? Because they have invested time with you, they'll be less likely to want to start all over with another broker.
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