Real Estate Council of Alberta issued Letters of Reprimand to Realtors
Real Estate Act Rules s.53(c)
A real estate licensee must provide to the broker in a timely manner all
original documentation and copies of original documents related to a
trade in real estate.
Real estate associate broker registered at the time of conduct with 2156664 Alberta Ltd. o/a Rhinorealty. Currently registered with EXP Realty of Canada Inc. O/A EXP Realty.
- On March 26, 2021, John completed service documents, and a Country Residential Purchase Contract for their buyer clients
- This was a backup offer
- John’s brokerage had a policy that purchase contracts must be uploaded to the brokerage within 24 hours
- The brokerage expectation included offers to purchase
- John failed to provide this offer to the brokerage.
- John stated they did not think this was required, as there was never a completed transaction
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 an offer to purchase.
Real Estate Act Rules s.43(2)(c)
Every written service agreement shall provide that any amendment or
addition to the terms of the agreement shall be in writing and signed by
the relevant parties.
Real estate associate registered with Kirin Realty & Management Inc.
- In January 2021, John entered into an Exclusive Seller Representation Agreement for a property
- The selling price was left blank
- When the Seller determined her selling price, John handwrote the price in the agreement
- John failed to get the agreement initialed by the seller agreeing to the price term
Learning Opportunity:
Written service agreements must have all relevant signatures on the agreement and have all amendments documented and signed. Licensees must prepare documents that are legally binding. To be legally binding, all parties to the transaction must agree to contract amendments in writing. In this case, the licensee failed to obtain the seller’s initials on the agreement regarding the property purchase price.
Real Estate Act Rules s.44(1)
A real estate licensee must not disclose information regarding a client,
property, or transaction unless authorized by the client or required by
law.
Real estate associate registered with YEGPRO Realty Ltd. o/a YEGPRO Realty
- John represented the seller for the sale of a property
- The buyers were receiving mail packages for the seller after they took possession
- The buyers wanted to forward the mail and packages to the seller
- John provided the buyers with the new address of the seller without their authorization
Learning Opportunity:
Licensees must ensure their clients’ personal information remains confidential and only use their information for its intended purpose. Confidential information is any information concerning the client, including the clients’ financial or personal situation, the clients’ real estate, and the transaction involving the client. The duty to keep client information confidential survives a completed transaction or the conclusion of providing services. In this case, the licensee disclosed confidential information about the client without the permission of the client.
Real Estate Act Rules s.45(1)&(2)
When providing services, a real estate licensee that refers any person
to a service provider must disclose any remuneration or benefit for that
referral to their clients, this disclosure must be retained.
Real estate associate registered with South Star Realty Inc. o/a Maxwell Capital Realty
- In February 2018, Jane’s clients purchased a property with the intent to renovate it
- In February 2018, Jane referred their girlfriend’s contracting company to the buyers to renovate their property
- Jane received a benefit from the referral of the contracting company
- The contracting company used funds received from the contract to transfer funds to Jane’s account and made payments on Jane’s behalf for their mortgage, credit cards, auto lease and utilities
Learning Opportunity:
A referral is “the act of recommending or directing a person for service, assistance, or business to another person or business.” Licensees must disclose in writing that they may receive a fee or compensation for the referral. In this case, the licensee failed to disclose in writing that they may be entitled to receive a benefit for the referral.
Real Estate Act Rules s.57(j)
A licensee in a sole agency relationship is obligated to provide, in a
timely manner, all offers to the seller.
Real estate associate registered with 2% REALTY PRO INC. o/a 2% REALTY PRO
- On June 5, 2021, Jane entered into an Exclusive Seller Representation Agreement with sellers for the sale of their property
- On June 13, 2021, and July 7, 2021, Jane received offers for the property
- Jane communicated some details of the offers to the sellers via email, but failed to send the completed offers to the sellers for review
- This was a failure to provide the sellers with offers in a timely manner
Learning Opportunity:
Licensees must make reasonable efforts to meet their obligations to clients. Licensees have an obligation to make reasonable efforts to communicate important information regarding a transaction, including any offers in a timely manner. In this case, the licensee only communicated details of an offer and did not provide the sellers the complete offer.
Real Estate Act Rules s.43(1)
A real estate licensee who establishes a client relationship must have a
written service agreement in place.
Real estate broker registered with Sutton Group Grande Prairie Professionals
- John had a written service agreement with their seller client for a property
- The agreement ended July 31, 2020
- in September 2020, John relisted the property
- John believed the client had signed a new service agreement
- At the time, the client had not signed a new 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 their 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 ensure there was a written service agreement in place with the client when they relisted the property.
A Reputation Built on Trust
