The events mentioned in the decisions included in this issue occurred prior to December 1, 2020. The sanctions as noted, reflect the Real Estate Act as it was then applied. Learning opportunities reflect advice for licensees under the Real Estate Act, including the amendments that came into force on December 1, 2020.
Note: Names of individuals have been changed. Case studies, while factual accounts, are provided as learning opportunities only.
Letters of Reprimand
John Doe, Real estate associate registered EXP Realty of Canada o/a EXP Realty• the basic obligations of an industry member who is in a sole agency relationship with a seller are to provide, in a timely manner, all offers and counter-offers to and from the seller even when the property is already the subject of an agreement or purchase and sale [s.57(j) of the Real Estate Act Rules]• on July 2020, Mr. Doe listed a property• Mr. Doe entered into a service agreement with two clients to sell a property• on September 2020, there was an offer on the property which Mr. Doe sent to both clients• the offer was not accepted• during this time there was some discussion of termination and communication with both clients became difficult• on October 2020, Mr. Doe received another offer• Mr. Doe sent the offer to one of his clients but failed send this offer to the other client
Licensees must make reasonable efforts to meet their obligations with clients despite communication obstacles and challenges. If a client is not effectively communicating or responding, licensees have an obligation to make reasonable efforts to communicate important information regarding a transaction, including any offers or counter offers in a timely manner.
Jane Doe, Real estate associate registered with Grande Prairie Associates Realty Ltd. o/a Re/Max Grande Prairie•industry members must provide competent service [s.41(b) of the Real Estate Act Rules]•Ms. Rode represented a property as having an RMS size of 720 sq. ft.•Ms. Rode failed to measure the property using the Residential Measurement Standard (RMS)guidelines•Ms. Rode measured the property and did not add an above grade area in the master bedroom•the RMS size of the property was 917 sq. ft.2020.
Licensees are expected to be competent in their services, including ensuring they measure properties using RMS or engage third parties to measure properties using RMS. The RMS guidelines offer a consistent way to represent the above ground size of a property for interested parties to accurately compare properties. In this case, the licensee failed to competently measure a property according to the RMS and did not include all of the above ground area when representing the property.
John Doe, Real estate associate registered with Century 21 Foothills South Ltd. o/a Century 21 Foothills South Real Estate•a real estate licensee must trade in real estate only in the name that appears on their license [s.53(a) of the Real Estate Act Rules]•Mr. Doe did not clearly identify the name of his brokerage on his website•the website included Mr. Doe branding at the top of the landing page•Mr. Doe only included a portion of his brokerage name at the top of the webpage•when Mr. Doe was made aware of the error, he amended his advertisements to ensure the brokerage name was clearly identified
Licensees must trade in the name that appears on that individual’s license and in the name of the brokerage with which that individual is registered. The brokerage name must be clearly indicated. A reasonable consumer should be able to identify the licensee and brokerage based on the advertisement alone. In this case, the licensee failed to indicate their brokerage name in all of their advertisements.
John Doe, Real estate associate registered at the time of conduct with 989801 ALBERTA INC. o/a Avenue Commercial. Currently not registered.• a real estate licensee must only trade in real estate in the name that appears on that individual’s license [s.53(a) of the Real Estate Act Rules]• in December 2020, Mr. Doe solicited business from his clients under his company name, John Doe Management Services Ltd.• Mr. Doe included property manager services, which require a license• Mr. Doe was licensed in property management and registered at Avenue Commercial during that time• $1,500
Licensees must only deal, trade, and advertise in the brokerage’s full licensed name and the full name that appears on your personal license. In this case, the licensee advertised their business name and not the brokerage name that appears on their license.
Mountain Park Real Estate Ltd., Formerly a real estate brokerage. Currently unlicensed. • no person shall advertise, or in any way hold themselves as a mortgage broker, real estate broker, or real estate appraiser unless that person has proper authorization [s.17(d) of the Real Estate Act]• on May 20, 2020, Mountain Park Real Estate Ltd.’s licence was cancelled by order of the Executive Director • from May–November 2020, Mountain Park Real Estate Ltd. continued to advertise and trade in real estate as a real estate brokerage without a licence• $15,000
John Doe, Real estate broker formally registered with Mountain Park Real Estate Ltd. Currently unlicensed.• no person shall trade in real estate as a real estate broker unless that person holds the appropriate authorization [s.17(a) of the Real Estate Act]• in May 2020, the license of Mountain Park Real Estate was cancelled by order of the Executive Director• in June 2020, the license of John Doe was suspended by order of the Executive Director• from May 2020–November 2020, John Doe continued to operate Mountain Park Real Estate Ltd. without an authorization• $25,000
At the time of the activity in question, the Real Estate Act considers advertising property management services as trading in real estate as a real estate broker, and an authorization was required. In this case, Mr. Phipps and his brokerage Mountain Park Real Estate Ltd. did not hold an authorization. Unlicensed persons who provide services that require a license put consumers at serious risk. Unlicensed persons do not have the required education or errors and omissions insurance, and consumers working with unlicensed persons do not receive protection under the Real Estate Assurance Fund.
The Case Summaries is published by the Real Estate Council of Alberta. Please forward any questions regarding the content of the Case Summaries, or any questions to email@example.com
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