Calgary Home Pros
Administrative Penalties Case Summaries

Administrative Penalties (August 24 – September 21, 2021)

Real Estate Act Rules s.91(4)

A real estate brokerage must file their brokerage’s accounting within three
months of the end of their fiscal year.

1. John Doe

Real estate broker registered with Best Step Real Estate Services Ltd.

  • Best Step Real Estate Services Ltd.’s fiscal year end was on March 31, 2021.
  • RECA sent numerous email reminders to John to file the appropriate forms by June 30, 2021.
  • RECA received the appropriate forms on August 4, 2021.
  • $1,500

2. John Doe

Real estate broker registered with Coldwell Banker Cartier Realty.

  • Coldwell Banker Cartier Realty’s fiscal year end was on March 31, 2021.
  • RECA sent numerous email reminders to John, to file the appropriate forms by June 30, 2021.
  • John was granted an extension to July 7, 2021.
  • RECA received the appropriate forms on July 9, 2021.
  • $1,500

3. John Doe

Real estate broker registered with Brokers Edge Realty Inc.

  • Brokers Edge Realty Inc.’s fiscal year end was on December 31, 2020.
  • RECA sent numerous email reminders to John, to file the appropriate forms by March 31, 2021.
  • John has since ceased his brokerage operations.
  • RECA has not received the appropriate forms as of the publication of this Case Summaries.
  • $1,500

Learning Opportunity:

Brokerages provide accounting reports to RECA to ensure trust funds are being properly administered to protect the public and the integrity of the industry. A brokerage must file its accounting with RECA no later than three months after the end of the brokerage’s fiscal year. In these cases, the brokers failed to file the forms by the deadline despite RECA sending numerous reminders and in one case giving an extension. In one case, the broker ceased their brokerage. Ceasing the brokerage does not lift the requirement to provide the appropriate accounting forms so RECA can ensure trust funds were properly administered.

Real Estate Act Rules s.69(a)

A mortgage licensee must only trade in real estate in the name on their
licence, and registered brokerage.

1. John Doe

Mortgage associate registered with Verico iMortgage Solutions Flare Mortgage Group Inc. o/a Flare Mortgage.

  • John was using a Facebook page and a website which both failed to indicate their registered brokerage name.
  • $1,500

Learning Opportunity:

Licensees must clearly indicate their brokerage name in all advertising, and if they use their name in advertising, it must be the name that appears on their license. A brokerage name is “clearly indicated” when a reasonable consumer, under normal circumstances, can clearly distinguish the name of a brokerage based on the advertisement alone. In this case, the licensee failed to include the brokerage name they are registered with in their advertisements. It is important to note that email addresses or hashtags that contain the brokerage name do not meet the brokerage name requirements in advertisements. Brokerages must have policies and procedures in place for reviewing and approving its associates’ advertisements and websites. The brokerage policies and procedures should outline the steps through which licensees can ensure their advertising complies with the advertising guidelines.

Real Estate Act Rules s.53(a)

A mortgage licensee must only trade in real estate in the name on their
license, and registered brokerage.

1. John Doe

Real estate associate registered with Tempo Real Estate Ltd. o/a Royal LePage Benchmark.

  • John advertised their services on a bus bench.
  • The bench advertisement failed to include the name of the brokerage John was registered with.
  • John’s brokerage had an advertising policy that stated all advertising must be approved by management.
  • John did not follow their brokerage policy regarding advertising.
  • $1,500

Learning Opportunity:

Licensees must clearly indicate their brokerage name in all advertising, and if they use their name in advertising, it must be the name that appears on their license. A brokerage name is “clearly indicated” when a reasonable consumer, under normal circumstances, can clearly distinguish the name of a brokerage based on the advertisement alone. In this case, the licensee failed to include the brokerage name they are registered with in their advertisements. It is important to note that email addresses or hashtags that contain the brokerage name do not meet the brokerage name requirements in advertisements. Brokerages must have policies and procedures in place for reviewing and approving its associates’ advertisements and websites. The brokerage policies and procedures should outline the steps through which licensees can ensure their advertising complies with the advertising guidelines.

Real Estate Act Rules s.41(b)

A real estate licensee must provide competent service.

1. John Doe

Real estate associate registered with Vanovermeire Realty Inc. o/a Coldwell Banker Mountain Central.

  • On May 20, 2021, John had permission to show their buyer clients a property.
  • Posted requirements on the listing stated wearing masks is required when viewing the property.
  • John and their clients failed to wear masks while in the property.
  • $1,500

Learning Opportunity:

Licensees must exercise reasonable care and skill when a property is under their care and control. They must obey the instructions of the seller and their brokerage when showing a property. Property owners must have confidence their instructions will be followed, and brokerages expect licensees to follow their guidelines. This is especially important during the COVID-19 pandemic which presents additional risk when individuals enter a property. Licensees are encouraged to use the COVID-19 property access checklists and agree to the conditions for access, in writing.

Real Estate Act Rules s.54(1)(d)

A real estate licensee must not directly or indirectly advertise,
communicate or offer an incentive except on behalf of their brokerage.

1. John Doe

Real estate associate registered with Vision Realty Inc. o/a Century 21 Bravo Realty.

  • In April 2021, Lee advertised an incentive that stated “Refer a friend and get a $500 Visa gift card” on their Facebook page.
  • This incentive was not a brokerage incentive.
  • $1,500

Learning Opportunity:

Licensees must not directly or indirectly, advertise, communicate or offer to any person their own incentives whose sole purpose is to attract business to them personally. A brokerage incentive must be available to all clients or potential clients of a brokerage. In this case, the licensee advertised an incentive that was not being offered by the licensee’s brokerage.

Real Estate Act Rules s.40

Licensees must immediately notify the Registrar of certain prescribed
events, in writing.

1. John Doe

Real estate associate registered with Grand Realty & Management Ltd. o/a Grand Realty.

  • John failed to immediately notify the registrar of a prescribed event, in writing.
  • $1,000

Learning Opportunity:

Licensees must immediately notify the registrar—prior to Dec 1, 2020, the Executive Director— in writing, when certain events occur (name change, discipline, criminal proceedings, etc.). In this case, the licensee had a situation requiring notification occur before they notified RECA. Immediately is defined as “without delay,” and in the absence of extraordinary circumstances, written notification to the Registrar should occur not more than five (5) days after the event in question.

Real Estate Act Rules s.67(1)(e)

A mortgage broker must ensure that the business of the brokerage is
carried out competently and in accordance with the Act, Bylaws, and
Rules.

1. John Doe

Mortgage Broker registered with Ownest Financial Inc.

  • Between October 2018 and July 1, 2019, John’s brokerage operated without errors and omissions insurance.
  • During this period, John’s brokerage handled multiples mortgage files.
  • $1,500

Learning Opportunity:

All mortgage brokerages are required to carry errors and omissions insurance. A mortgage broker must also ensure the business of the brokerage is carried out in accordance with the legislation. In this case, the brokerage did not have errors and omissions insurance for several months, yet handled multiple mortgage files. The brokerage put their clients at risk as they were not protected by insurance.

Real Estate Act Rules s.53(c)(i)

A real estate licensee must provide in a timely manner all original
documents, and copies of all documents provided to their clients to their
broker.

1. John Doe

Real Estate Associate registered at the time of conduct with Urban Real Estate Services Ltd. o/a Urban-Realty.ca. Currently registered to Risi Group Holdings Ltd. o/a Stonemere Real Estate Solutions.

  • In October and November 2020, John listed two properties.
  • John owned both properties.
  • John’s brokerage has a policy that all listing documents are to be submitted to the brokerage within 48 hours.
  • John stated they were unaware that their brokerage had this requirement.
  • To date the documentation has not been provided to the brokerage.
  • $1,500

Learning Opportunity:

All licensees must comply with legislation, including all legislation that enables a broker to carry out the activities specific to the broker or the broker delegate, such as the administration of trust funds. This is the reason real estate licensees must respond promptly to their brokerage and deliver all documentation regarding trades and potential trades. In this case, the licensee failed to provide documentation related to two property listings.

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