calgary housing market

Letters of Reprimand issued by RECA from June 13 to July 18, 2022

Real Estate Act Rules s.42(a) A licensee must not make representations or carry on conduct that is reckless or intentional to mislead or deceive a person.

Jane Doe:

Condominium management broker registered with Catalyst Condo Management Ltd.

  • On June 27, 2019, a Statement of Claim was filed against Catalyst Condo Management Ltd. for which Jane was the condominium manager
  • Jane was aware of the Statement of Claim
  • On January 28, 2022, Jane issued a disclosure statement which included “we are also not aware of any action commenced against the corporation served on the corporation”
  • At the time of this disclosure, the Statement of Claim was still an active court process

Learning Opportunity:

A licensee must not make representations or carry on conduct that is reckless or intentional to mislead or deceive a person. In this case, the licensee made a statement of disclosure that was misleading. The licensee should have ensured they were not disclosing inaccurate information to the public.

Real Estate Act Rules s.41(b) A real estate licensee must provide competent service.

John Doe:

Real estate associate registered with Twin Oakes Real Estate 1993 Inc. o/a Re/Max House of Real Estate

  • On December 7, 2021, John had permission for an inspector to complete an inspection for their buyer clients
  • John attended the property with the inspector
  • During the inspection, John left the property, leaving the inspector alone
  • John did not receive permission from the seller or their agent to leave the property, or if it was acceptable to leave the inspector unattended
  • John returned to the property before the inspection finished
Jane Doe:

Real estate associate registered at the time of conduct with Barr Realty Ltd. o/a Re/Max of Lloydminster. Currently registered with EXP Realty of Canada Inc. o/a EXP Realty.

  • Jane represented the sellers and buyers for a listing and sale of a property
  • On November 10, 2021, Jane had permission from the seller to have a property inspection completed
  • Jane also had permission from the seller to access the property at another time, after the inspection, to check the garage door
  • On November 14, 2021, Jane accessed the property with the buyers without the seller’s permission to get quotes on items that required fixing
  • The seller found out about this when Jane called them from inside the property

Learning Opportunity:

Licensees must ensure they exercise reasonable care and skill at all times when showing properties. Consumers must trust that licensees have taken the proper steps to gain access and permission to view properties. In these cases, the licensees failed to gain permission from the seller to enter the property, or to leave the property while a home inspection was being completed.

Real Estate Act Rules s.43(1) A licensee who establishes a client relationship when trading in real estate must enter into a written service agreement with that prospective client.

John Doe:

Real estate associate registered with Urban Real Estate Services Ltd o/a

  • John had a verbal agreement with a prospective client for the potential rental or sale of their property
  • John advertised the property on social media, collected keys from the owner, and was evaluating and advising on tenant applications
  • These acts represent a client relationship and required a written service agreement.

Learning Opportunity:

A written service agreement outlines the roles and responsibilities of the parties, clarifies the expectations of each party, and helps to ensure the client understands their relationship with the licensee. Clarity of roles, responsibilities, and expectations is essential to consumer trust and confidence. The service agreement must be discussed and presented to a prospective client prior to acting on their behalf in a real estate transaction. In this case, the licensee failed to have a signed written service agreement in place.