Bill 79 — Third Session, 17Th Legislature, 23 Elizabeth Ii the Legislative Assembly of Alberta Bill 79 the 'Real Estate Agents' Licensing Amendment Act, 1974 (Legislature 17, Session 3)

L17 S3 5345

Alberta — Bills

1974 Bill 79 Third Session, 17th Legislature, 23 Elizabeth II THE LEGISLATIVE ASSEMBLY OF ALBERTA BILL 79 THE 'REAL ESTATE AGENTS' LICENSING AMENDMENT ACT, 1974 THE MINISTER OF CONSUMER AFFAmS First Reading .............................. . Second Reading ............................ . Third Reading ....... . .............. . Printed by Queen's Printer for the Province of Alberta, EDMONTON

Bill 79 BILL 79 1974 THE 'REAL ESTATE AGENTS' UCENSING AMENDMENT ACT, 1974 (Assented to , 1974) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Alberta, enacts as follows: 1. The Real Estate Agent.~' Licensing A ct i.~ hereby amended.

Section 2 i.~ amended (

a) by adding after clause (

b) the following clauses: (bl) "Court" means the Supreme Court of Alberta; (b2) "inspector" means an inspector appointed in accordance with this Act; (

b) by adding after clause (

c) the following clause: (lcl) "licensed person" means a person to whom the Superintendent has issued a licence under this Act and includes a representative designated under

section 7; (

c) by striking out clause (

j) and by substituting there for the following: (j) "Superintendent" means (

i) the Superintendent of Real Estate, or (ii) the Deputy Superintendent of Real Estate;

Section 3, clause (

b) i~ amended by .~triking out the word "loan,".

Section 4, subsection (1) is amended (

a) by striking out clause (

b) and by substituting there for the following: (

b) act as an official of or on behalf of an agent that is a partnership or corporation in connec tion with a trade in real estate by that agent, unless he is licensed as a salesman of that agent or that agent :has designated him 'as its rep,re sentative under

section 7. (

b) by striking out clause (c).

Explanatory Notes I. This Bill will amend

chapter 311 of the Revised Statutes of Alberta 1'9'70. 2. Defines "Court", "insrpector" and "licensed person".

Section 2, cla use (

j) presently reads: (j) "Superintendent" means (

i) the Superintendent of Insurance, or (ii) the Deputy Superintendent of Insurance, apPointed under the provisions of The Alberta Insmance Act;

Section 3, clause (

b) presently reads: 3. This Act, except sections 41 to 52, does not apply to (

b) any bank or any loan, trust or insurance company trading in real estate owned or administered by the company, or 4.

Section 4 (1) presently reads: 4.

(1) No person shall (

a) trade in real estate unless he is licensed as an agent or as a salesman of a licensed agent, or (

b) act as an official of or on behalf of a partnership or corporation in connection with a trade in real estate by the partnership or corporation, unless he or the partnership or corporation is licensed as an agent, or (

c) act as a salesman of or on behalf of a partnership or corporation in connection with a trade in real estate by the partnership or corporation unless (

i) he is licensed as a salesman of the partnership or corporation, and (ii) the partnership or corporation is licensed as an agent.

Section 6 i.~ .~truck out and the following is substituted therefor: - '6. An agent shall not be licensed unless he maintains in Alberta a business address at which he keeps proper records that are available for inspection.

Section 7 is amended (

a) as to subsection (1), by striking out the word "firm,", (

b) by striking out subsection (2) and substituting there for the following:

(2) An individual shall not be designated as the representative of an agent that lis a partnership or corporation unless he meets the qualifications re quired of an agent under this Act. (

c) as to subsection (3) , by st,riking out the word "firm,". 7. Sections 8 and 9 are struck out and the folloming is substituted therefor: 8.

(1) Where a person wishes to be licensed under this Act he shall make application to the Superintendent for a licence.

(2) Upon (

a) an application being made under subsection (1), and (

b) being satisfied that the applicant is suitable to be licensed, having regard to that applicant's training, competency and personal integrity, the Superintendent may issue a licence to the applicant.

(3) A licence shall not be issued (

a) to an individual unless he has been a resident of Canada for not less than three months immediately prior to the date of his application for a licence, or (

b) to a partnership or corporation unless at the time of application for a Hcence it maintains in Alberta a business address.

(4) The Superintendent may cancel or suspend a licence (

a) where the licensed person (

i) contravenes or fails to comply with any pro vision of this AClt or the regulations, or (ii) is convicted of an indictable offence punishable by imprisonment for two or more years, or (

b) where the funds in the trust account of the licensed person are less than the amount that he is account able for, or 2

Section 6 presently Teads: 6.

(1) No agent shall be licensed unless he maintains an office within the Province satisfactory to the Superintendent from which he conducts his real estate business or a portion thereof.

(2) No person shall be licensed as an agent unless the Superintendent is satisfied after investigation that the person is qualified to be licensed as an agent at the time of his application.

Section 7 prelsently reads: 7.

(1) A firm, partnership or corporation (

a) may apply for and obtain a licence in the name of the firm, partner ship or corporation, and (

b) shall designate one individual who shall act as its or their repre sentative.

(2) If a licence is granted, when it is issued it shall (

a) be in the name of the firm, partnership or corporation, and (

b) state thereon the name of the individual who is authorized to act as an agent on behalf of the firm, partnership or corporation.

(3) Any associate, partner or employee of an agent, and any officer, member or employee of a firm, partnership or corporation licensed as an agent may apply for and obtain a licence authorizing the holder thereof to act as a salesman. 7. SecHons 8 and '9 presently read: 8.

(1) When an application for a' licence or renewal of a licence is received and the prescribed fee is paid, the Superintendent, if he is satisfied that the", applicant is suitable to be licensed, and is not for any reason objectionable, may issue to the applicant a licence authorizing the holder during the term thereof to carTY on the business of an agent or act as a salesman within the Province.

(2) If the Superintendent after due investigation made by him or his repre sentative is for any reason of the opinion that the applicant should not be granted a licence, he may refuse a licence to the applicant.

(3) No licence shall be issued under this Act (

a) to a person, other than a corporation, who has not had his usual place of abode in the Province for at least three months before the date of his application for a licence, or (

b) to a corporation that does not at the time of the application for a licence maintain a permanent office in the Province.

(4) The Superintendent may suspend or cancel a licence where in his opinion such action is in the public interest.

(5) A licence (

a) expires on the 30th day of September of each year, and (

b) may be renewed on application to the Superintendent and payment of the prescribed fee, unless the licence has been previously cancelled or suspended by the Super intendent.

(6) No person whose licence has been cancelled is entitled to a new licence for one year after the date of cancellation.

(7) A person dissatisfied with the decision of the Superintendent under this

section may appeal therefrom to the Minister whose decision is final. 9.

(1) In deciding an appeal under

section 8, subsection (7) the Minister may in any case where he considers it proper appoint an advisory board before which a hearing shall be held.

(2) An advisory board shall consist of (

a) a chairman who shall not be the Superintendent or his representative or a person licensed under this Act, and (

b) not less than two and not more than four other persons who shall be persons licensed under this Act.

(3) When the Minister receives a report from an advisory board appointed pursuant to subsection (2) he shall (

a) decide, taking the report into consideration, whether or not the licence should be granted, renewed, suspended, cancelled or reinstated, as the case may be, and (

b) direct the Superintendent to act accordingly.

(4) The Minister may pay to members of the advisory board such fees as may be approved by regulation together with such reasonable travelling and other expenses as he considers proper. 2

(

c) where, in the opInIOn of the Superintendent, the licensed person is incompetent or dishonest, or (

d) where the licensed person induces or attempts to induce a party to a contract concerning a trade in real estate to breach or terminate that contract.

(5) A licence expires on the 30th day of September fol lowing the date on which it is issued unless the licence has been previously cancelled or terminated. ( 6 ) Where a licensed person (

a) makes application for a licence for the succeeding year before his existing licence expires, and (

b) the application is accompanied by the prescribed documents and fees, the existing licence remains in force, notwithstanding sub section (5), until the new licence is issued or until the Superintendent notifies the licensed person that he will not be issued a new licence.

(7) Where a person's licence has been cancelled and that person makes application to be issued a new licence, that per son shall not be issued a new licence until 12 months have elapsed from the date of the cancellation.

(8) A person who is dissatisfied with a decision of the Superintendent under this

section may appeal therefrom to the Court by way of originating notice. 8. Sections 10, .11 and .12 are struck out and the follow ing sections are substituted therefor: 10.

(1) Where a person makes application for a licence under

section 8, he shall submit to the Superintendent (

a) a completed application in the form prescribed by the regulations, (

b) a bond in the prescribed form and in the prescribed amount, unless there has been previously filed with the Superintendent a bond which is in full force and effect, (

c) the prescribed fee, and (

d) the address of the office in Alberta out of which he will conduct his business of trading in real estate. (2) 'The Superintendent may from time to time require (

a) that further information be submitted by an ap plicant or· a licensed person within a specified time lim,it, and (

b) verification by affidavit or otherwise of any infor mation then or previously submitted. 3

8. Sections 10, 11 and 12 read: 10.

(1) An application for a licence or a renewal of a licence shall be made in writing on the prescribed form provided by the Superintendent, and shall be accompanied by the prescribed fee.

(2) An application for a licence or a renewal of a licence shall be accom panied by a bond in the prescribed amount and in the prescribed form unless there has been previously filed with the Superintendent a bond which is in full force and effect. 11.

(1) An applicant for a licence or a renewal of a licence shall state in the application an address for service in Alberta.

(2) The address for service in Alberta shall be at an office operated in the Province by the applicant.

(3) Notices under this Act or the regulations are sufficiently served for all purposes if delivered or sent by prepaid mail to the latest address for service stated as required by subsection (1). 12. The Superintendent at any time may require (

a) that further information or material be submitted by an applicant or a licensed person within a specified time limit, and (

b) if he so desires, verification by affidavit or otherwise of any informa tion or material then or previously submitted. 3

~1. A document or other notice under this Act may be served on a licensed person by leaving it at or by sending it by registered post to the address provided by the licensed person pursuant to

section 10 or

section 13.

Section 13, subsection (1) is amended (

a) as to clause (a), by striking out the words "for service" and by substituting therefor the words "of his business", (

b) by adding after clause (

c) the following: (

d) a change in the chartered bank, trust company or treasury branch in which a trust account is maintained, (

e) a change in the 'Officers or directors of a cor poration that is licensed as an agent, (

f) a change of the designated representative.

Section 14, subsection (2) is amended by striking out the word "brought" and by substituting therefor the word "commenced" .

Section 15 is amended (

a) as to subsection (1), clause (b), by adding after the words "a finding of fraud" the words "or breach of trust", and (

b) as to subsection (2), by striking out the word "two years" and by substituting therefor the word "one year".

Section 16 is amended by striking out the word "two years" and by substituting therefor the word "one year". 13. The following

section is added after

section 16: 1'6.1

(1) Upon a bond given by a licensed person being terminated or forfeited, the licence of that person there upon terminates.

(2) Where a licence terminates under subsection (1), the Superintendent shall notify the person whose licence was terminated and where that person was a salesman, the Superintendent shall notify the agent that employed that salesman. 14. The following sections are added after

section 18: 18.1 Where (

a) the licence of an agent exp,ires, or has been cancelled or suspended and the Superintendent considers it in the public interest to do so, or 4

Section 13, subsection (1) pTesently reads: 13.

(1) A licensed agent shall immediately notify the Superintendent in writing of (

a) a change in the address for service, (

b) a change in the partners in the case of a partnership, and (

c) the commencement and termination of employment of each salesman.

Section 14 (,2) presently reads:

(2) Proceedings in respect of a bond may be brought within, but not after, two years from the date of the termination of the bond. I I.

Section 15 presently reads: 15.

(1) The Lieutenant Governor in Council may direct the Minister to pay any moneys received or recovered under a bond forfeited under the provisions of

section 14 (

a) to such person or persons as the order in council may designate, or (

b) into court in trust for such persons who before the time limited in subsection (2) obtained judgment against the person bonded, based on a finding of fraud in the trading of real estate.

(2) Any moneys remaining in the court two years after the date the bond was forfeited shall be repaid to the Minister.

Section 16 pres,ently reads: 16. Where a bond has been forfeited under the prOVISIOns of

section 14 by reason of a conviction or judgment under subsection (1), clause (

a) or (

b) thereof and the Superintendent has not within two years (

a) of the conviction or judgment having become final, or (

b) of the agent or salesman in respect of whom the bond was furnished ceasing to carryon business, received notice in writing of a claim against the proceeds of the bond or of such portion thereof as remains in the possession of the Minister, the Lieutenant Governor in Council may direct the Minister to pay the proceeds or portion thereof to any person who on forfeiture of the bond made any payments there under, after first deducting the amount of expenses that have been incurred in connection with any investigation relating to the agent or salesman, or have been incurred in relation to the agent or salesman in any other way. 13.

Termination of bond. 14. Investigation of persons holding licences. 4

(

b) an agent is being investigated under

section 17 and the Superintendent is of the opinion that the agent may have misappropriated money which he holds in trust, the Superintendent may (

c) order that the licence of that licensed person be sus pended, and (

d) order the chartered bank, trust company or treasury branch (

i) with which the person being investigated main tains a trust account, or (ii) with which ,is deposited any funds or securities considered by the Superintendent or the per son making the investigation to have been de posited in connection with any trade in real estate in respect of which the invesNgation is being made, to hold the funds or securities, as the case may be, until the Superintendent in writing either revokes the direction or consents to release any particular fund or security or portion of a fund or security from the direction. 18.2

(1) Any person aggrieved by an order of the Super intendent made pursuant to

section 18.1 may, within 30 days thereof, appeal to the Court by way of originating notice. (2 ) The Court may confirm or revoke the order of the Superintendent or make such other order as it deems proper. 18.3 Where (

a) pursuant to

section 17, an investigation is about to commence, is taking place or has been completed, or (

b) the Superintendent has made an order under

section 18.1, or (

c) criminal proceedings or proceedings in respect of a contravention of this Act have been instituted against a licensed person that, in the opinion of the Superintendent, are related to trust funds or the use of trust funds, the Superintendent may apply to the Court for the appoint ment of a receiver, or a receiver and manager or a trustee to hold or manage, as the case may be, all or part of the property of the licensed person. 5

Section 20 is amended (

a) by striking out subsection (2) and by substituting therefor the following:

(2) Every agent shall (

a) keep a trust ledger in which he shall maintain a separate record for each person on whose behalf he is acting of all (1) money that he receives in trust, (ii) money that he holds in trust, and (iii) disbursements he makes from money he receives or holds in trust, in respect of a trade in real estate for that . person, (

b) forthwith deposit all money he receives in trust in respect of a trade in real estate ,into an account (

i) maintained in a chartered bank, trust com pany or treasury branch, and (ii) which is kept in the name of the agent and designated as a trust account, (

c) keep money he receives or holds in trust in re spect to a trade in real estate separate from money which belongs to the agent, and (

d) only disburse money he receives or holds in trust in respect to a trade in real estate in accord ance with the terms 'of the trust governing the use of that money. (

b) by adding after subsection (2) the following sub section:

(2.1) Subsection (2.) does not apply to a security deposit as defined ,in The La.ndlord and Tenant Act. (

c) as to subsection (3), clause (

c) by striking out the words "loan or", (

d) by adding after subsection (3) the following sub section:

(3.1) An agent shall preserve his books and ac counts of his trades in real estate and his account ing records (

a) for a period of three years after the books, ac counts or records came into existence, or (

b) for such longer period as the Superintendent directs. 6

Section 20 presently reads: 20.

(1) An agent shall keep proper books and accounts of his trades in real estate, and enter in his books and accounts in respect of each trade (

a) the nature of the trade, (

b) a description of the real estate involved sufficient to identify it, (

c) the true consideration for the trade, (

d) the names of the parties to the trade, (

e) the amount of deposit received and a record of the disbursement thereof, and (

f) the amount of his commission or other remuneration and the name of the party paying it.

(2) Every agent shall (

a) maintain a trust account for each person from whom trust moneys are received in which he shall enter details of the trust moneys received and the disbursements therefrom, and (

b) maintain an account in a chartered bank, loan or trust company or Province of Alberta treasury branch, in which he shall deposit moneys that come into his hands in trust for other persons in connection with his business, and keep the trust moneys separate and apart from moneys belonging to himself or to the partnership in the case of a partnership.

(3) An agent shall submit to the Superintendent before the 30th day of September in each year a report by the agent's auditors in a form prescribed by the regulations (

a) stating that the agent has kept proper books and accounts of his trades in real estate, (

b) stating that the auditor has examined the balances due to clients in trust as at the 30th day of June in that year, and found them in agree ment with the accounting records of the agent, (

c) stating that the moneys on deposit held in trust for clients has been verified by personal inspection or by certificates obtained from the bank, treasury branch or loan or trust company with which the deposit account is maintained, (

d) stating the amount due to clients in trust as reflected by the records of the agent, as at the 30th day of June in that year, (

e) stating that the auditor has done a sufficient review of the trust account transactions of the agent tor the ::t.2-month period immediately preceding the 30th day of June in that year, to satisfy himself that the trust moneys held for clients are kept separate and apart from moneys belonging to the agent, and (

f) stating that after due consideration the auditor has formed an in dependent opinion as to the position of the trust moneys held for clients, and to the best of his information the trust moneys held for clients are maintained in a separate trust account and are not less than the amount of trust moneys received in respect of which there is an un discharged trust obligation. (4) Subsections (1) to (3) do not apply to a trust company registered under The Trust Companies Act.

(5) A trust company licensed under this Act and registered under The Trust Companies Act shall furnish to the Superintendent a certified copy of each financial statement of the company prepared for distribution to its shareholders and the auditor's report thereon, within five days after they are first mailed or delivered to its shareholders. 6

Section 23 is struck out and the following sections are substituted therefor: 23. A licensed person shall not, (

a) subject to

section 23.1, make a representation to a vendor that he or another person on his behalf will pay to the vendor of real estate within a fixed or determinable period of time, a fixed or determinable amount of money, or (

b) subject to

section 23.2, make a representation to a person that he or another person will (

i) obtain a mortgage, lease or loan in favour of that person, (ii) have the term of a mortgage or lease altered for that person, or (iii) assume or assign a mortgage or an agreement for sale. 23.1

(1) In this section, "guaranteed sale agreement" means an agreement in writing whereby an agent or person acting, directly or indirectly, ·on behalf of that agent under takes to pay to the vendor of real estate within a fixed or determinable period of time a fixed or determinable amount of money in respect of that vendor's real estate.

(2) Every agent (

a) who is a party to a guaranteed sale agreement, or (

b) on whose behalf a guaranteed sale agreement is entered into, shall maintain a separate account in a chartered bank, trust company or treasury branch in which money payable under this

section shall be deposited.

(3) Where (

a) an agent enters into a guaranteed sale agreement, or (

b) a person on behalf of an agent enters into a guar- anteed sale agreement, that agent or a person on behalf of that agent shall deposit into the account maintained under subsection (2) not less than 5 per cent of the largest amount that may be payable to the vendor under the guaranteed sale agreement.

(4) A deposit made under subsection (3) shall be held by the agent in trust for the vendor and shall be (

a) paid to the vendor as part of the total amount pay able under the guaranteed sale agreement, or (

b) forfeited to the vendor where he is not paid in accordance with the guaranteed sale agreement, or (

c) returned to the agent where, pursuant to the terms of the guaranteed sale agreement, there ,is no longer any money payable to the vendor under that guar anteed sale agreement. 7

Section 2~3 pres'ently re1ads: 23.

(1) Subject to subsection (2), no agent or salesman shall make a repre sentation that he or another person (

a) will re-sell or in any way guarantee or promise to re-sell real estate offered for sale by him, or (

b) will sell any of the purchaser's real estate, or (

c) will procure a mortgage, extension of a mortgage, lease or extension of a lease. (2) Subsection (1) does not apply in the case of a representation made under clause (

b) or (

c) of that subsection if at the time of making the representation the person making it delivers to the person to whom the representation is made a letter or photostatic copy thereof setting out the representation in clear language. 1

(5) Where a deposit is forfeited under subsection (4), clause (b), (

a) the forfeiture shall not prejudice any action that the vendor may have against the agent or other parties to the guaranteed sale agreement, and (

b) the moneys forfeited may be applied towards any sums which that vendor may be entitled to receive as damages arising out of the non-performance of the guaranteed sale agreement.

(6) Where a person who entered into a guaranteed sale agreement with a vendor purchases the vendor's real estate pursuant to that guaranteed sale agreement, no commission shall be payable to that person or to any agent by that vendor in respect of that trade. 23.2 An agent may undertake, on behalf of a person, to (

a) obtain a mortgage, lease or loan in favour of that person, (

b) have a term of a mortgage or lease altered for that person, or (

c) assume or assign a mortgage or an agreement for sale, if the undertaking is set forth in writing and a copy of that undertaking is delivered to the person to whom the under taking is made. 17. Sections 24 and 25 are struck out.

Section 26, subsection (1) is amended (

a) by striking out the words "an agent or salesman" and by substituting therefor the words "a licensed person", and (

b) as to clause (

b) by striking out the words "real estate agent or salesman" and by substituting there for the words "licensed person". 19. The following

section is added after

section 26: 26.1 A licensed person shall not trade in real estate (

a) as an agent or salesman in any other name than that which appears on his licence, or (

b) on behalf of another person without disclosing to the parties that he is dealing with that he is a licensed person under this Act. 8

17. Sections 214 and 25 presently read: 24. No agent or salesman shall trade in real estate until notified in writing by the Superintendent that he is licensed. 25. Unless otherwise directed by the Superintendent, a partnership and a corporation licensed as an agent shall publish the names of each person having an interest either directly or indirectly to the extent of not less than 10 per cent in the capital of the partnership or corporation, on letterheads and cir culars in which the n9.me of the partnership or corporation appears. 18. Replaces the reference to agent or salesman, or real eSltate agent or salesman with the term "licensed person". 19. Self-'explanatory. 8

Section 28 i.~ struck out and the following

section is substituted therefor: 28. A licensed person shall not pay a commission or other fee for services rendered in connection with a trade in real estate except to an agent who is licensed pursuant to this Act or the comparable legislation in another jurisdiction in Canada or elsewhere.

Section 31 i.~ struck out. 22. The following sections are added after

section 32: 32.1

(1) An agent shall not knowingly act as the agent in a trade in real estate for parties to that trade who have 'Opposing interests in that trade.

(2) Where an agent becomes aware that he is acting for parties to a trade in real estate who have opposing interests in that trade, the agent shall advise all the parties to that trade of the fact and he shall cease to act for any party to that trade and any listing agreement to which that agent is a party in respect of that trade shall be deemed to be ter minated.

(3) Notwithstanding subsection (2), where an agent be comes aware that he is acting for parties to a trade in real estate wh'O have 'Opposing interests in that trade, he may continue to act f'Or a party to that trade if all the other parties to that trade c'Onsent to that agent acting for that party.

(4) Where an agent, pursuant to subsection (2), ceases to act f'Or a party to a trade in real estate he shall, in re spect to that trade, be entitled to receive from that party reasonable c'Ompensati'On for services rendered to that party prior to the time he ceased to act for that party if that trade is completed, notwithstanding that the agent was not acting for that party at the Nme 'Of the completion 'Of that trade. 32.2

(1) An agreement to list real estate with an agent for the purpose of a trade shall be in writing and a true copy of that agreement shall be delivered as soon as prac ticable to the owner of that real estate or to the person enter ing into that agreement on behalf of that owner.

(2) An agreement under subsection (1) is void if it (

a) pr'Ovides f'Or more than one date upon which it ex pires, or (

b) does not specify a date on which it expires, or (

c) does not provide for the am'Ount of 'Or the rate of commissi'On payable in respect 'Of the trade, or (

d) does not pr'ovide for the terms or conditions upon which the commission is payable in respect to the trade. 9

Section 28 presently reads: 28. No licensed agent or salesman shall pay a commISSIon or other fee to an unlicensed person in consideration for furthering a trade in real estate.

Section 31 presently reads: 31. No agent or salesman shall induce a party to a contract for purchase and sale, or rental of real estate, to break the contract for the purpose of entering into a contract with another principal. A similar provision is now contained in

section 8.

Section 3'2.1 provides fO!r conflicts of iIllterest.

Section 32.2 provides fo~ listing agreements. 9

Section 33 is struck out and the following is substi tuted therefor: 33. Where a licensed person receives an offer or an ac ceptance of an offer in writing from a party to a trade in real estate, he shall, as soon as practicable, (

a) provide that party with a true copy of that offer or acceptance, and (

b) deliver a true copy of that offer or acceptance to the other parties to that trade.

Section 34 is amended by renumbering the

section as subsection (1) and by adding the following subsection:

(2) Where a person is convicted (

a) of trading in real estate without being licensed con trary to

section 4, subsection (1), or (

b) of employing a salesman who is not licensed contrary to

section 27, he shall, notwithstanding that a fine has been imposed upon him, return to any person on whose behalf he acted in re spect to a trade while not being licensed or while employing a salesman who was not licensed any commission or other remuneration he or that salesman received from that person in respect of that trade.

Section 39 is struck out and the following

section is substituted therefor: 39. In accordance with The Public Service Act there may be appointed a Superintendent of Real Estate, a Deputy Superintendent of Real Estate, inspectors and such other employees as may be required for the purposes of this Act.

Section 40, clause (b), subclause (

i) is amended by striking out the words "and renewals of licences".

Section 41 is struck out.

Section 42 is struck out and the following sections are substituted therefor: 42.

(1) A person shall not, directly or indirectly, trade in real estate where that real estate is located outside of Alberta unless (

a) that person is licensed under this Act, and (

b) that person has (

i) received written authorizations from the Super intendent to trade in that real estate, or 10

Section 33 presently reads: 33.

(1) An agent or salesman immediately after the execution of an agreement to list with him real estate for sale, exchange, lease or rent shall deliver to the person who has signed the agreement a true copy thereof.

(2) N~ exclusive agreement to list real estate for sale, exchange, lease or rental wIth an agent or salesman is valid unless it is provided therein. that the agreement expires on a date specified therein.

(3) Where an agent or salesman has secured from the owner of real estate a signed acceptance of an offer to sell, purchase, exchange, lease or rent such real estate, the agent or sales~an shall deliver immediately a true copy of the acceptance to each of the parties to the contract or their legal representatives.

Section 3'4 presently reads: 34. A person who (

a) contravenes a provision of this Act or of a regulation. or (

b) omits, refuses or neglects to fulfil, perform, observe or carry out a duty or obligation created or imposed by this Act or a regulation, is guilty of an offence and liable on

summary conviction for each offence to a fine of not less than $20, and not more than $500.

Section 3'9 presently reads: 39. The Lieutenant Governor in Council may appoint inspectors and such other officers as are deemed necessary for the administration of this Act.

Section 40, clause (

b) pTesently reads: 40. For the purpose of carrying out the provisions of this Act according to their true intent and of supplying any deficiency therein, the Lieutenant Governor in Council may make regulations (

b) prescribing (

i) the fees payable on applications for licences and renewals of licences, and (ll) any other fees in connection with the administration of this Act and the regulations,

Section 41 presently reads: 41.

(1) In this

section and sections 42 to 52 "SUbdivision" means improved or unimproved land divided or proposed to be divided into five or more lots or other units for the purpose of sale or lease.

(2) Sections 42 to 52 do not apply in respect of an isolated trade in one or more lots or units in a subdivision by or on behalf of the owner and for the owner's account where the trade is not made in the course of continued and successive transactions of a like nature. 28.

Section 42 (2) presently reads:

(2) No person shall make any representation, written or oral, that the Super intendent has passed upon the financial standing, fitness or c:onduct of any person in connection with the filed prospectus or upon the merIts of the pro spectus.

Section ~2.1 provides for written authorization. 10

(ii) filed a prospectus with the Superintendent and been issued a certificate of acceptance under

section 47 in respect of that prospectus. (2) Subsection (1) does not apply in respect of an isolated trade in real estate where that trade is not part of continued successive transactions of a like nature.

(3) Notwithstanding subsection (1), clause (a), where a person is trading real estate that is located outside of Alberta and has, in respect to those trades, filed a prospectus with the Superintendent and been issued a certificate of accept ance under

section 47 in respect of that prospectus at the time this

section comes into force, he shall not be required to be licensed under this Act until January 1, 1976.

(4) A person shall not make any representation, written or oral, that the Superintendent has passed upon (

a) the financial standing, fitness or conduct of any person in connection with the filed prospectus, or (

b) the merits of the prospectus. 42.1.

(1) Where a person wishes to be given written authorization under

section 41, subsection (1), clause (b), subclause (i), to trade in real estate without fHing a pro spectus, he shall (

a) make application to the Superintendent, and (

b) provide such information as the Superintendent re quires.

(2) Where the Superintendent is satisfied that a trade may take place without the necessity of a prospectus being filed, he may give written authorization for that trade to take place.

(3) The Superintendent may at any time cancel a written authorization and require that a prospectus be filed in re spect to a trade.

(4) Upon the Superintendent giving written authorization under this section, sections 43, 44, 45, 47, 48, 50 and 51 do not apply in respect of the trade during the period that the written authorization is in force.

Section 43 is amended (

a) by striking out subsection (1) and by substituting therefor the following: 43.

(1) A person shan not, either :as la vendor 01' as an agent or salesman, enter into or negotiat~ au.y Icontract in respect of a trade in real estate WhICh 18 located outside of Alberta unless 11

Section 43 presently reads: 43.

(1) No person shall, either as a vendor or as an agent or salesman, enter into or negotiate any contract for the sale or lease of a lot or a unit of land in a subdivision located outside Alberta unless (

a) a copy of the prospectus referred to in

section 42 has been delivered to the prospective purchaser or tenant, as the case may be, and (

b) the prospective purchaser or tenant has in writing acknowledged receipt of a copy of the prospectus and that he has been afforded the opportunity to read it.

(2) Every acknowledgment referred to in subsection (1) shall be retained by the vendor or agent and be available for inspection by the Superintendent for a period of not less than three years.

(3) A purchaser or tenant who has entered into a contract to which subsection (1) applies is entitled to rescission of the contract if (a) sUbsection (1) has not been complied with, and (

b) written notice of exercising the right of rescission is served on the vendor or agent within 90 days of the signing of the contract.

(4) In an action for rescission under subsection (3), the onus of proving compliance with subsection (1) rests upon the vendor.

(5) The right of rescission provided in this

section is in addition to any other rights that the purchaser or tenant may have in respect of the contract. 11

(

a) a Co.Py o.f the pro.spectus referred to. in sectio.n 42 has been delivered to. the pro.spective pur chaser o.r tenant, as the case may be, and (

b) the pro.spective purchaser o.r tenant has in writ ing ackno.wledged receipt o.f a Co.Py 'Of the pro spectus and that he has been affo.rded the o.PPo.rtunity to. 'read it. (

b) by striking out subsection (3) and by substituting therefor the following:

(3) Where a pur~haser o.r tenant ha.s entered into a co.ntract to which subSection (1) applies, he may resdnd ;bhe ,contract (

a) within 30 days 'Of entering into the con tract, or (

b) if subsecti'On (1) has not been oom.plied with.

(3.1) Where subsection (1) has not been complied with, the contraJct is unenforceable by the vendor or his agent and 'any mo.ney paid under the contract shall be ,returned to the purcha,ser or tenant at the option 'Of the purchaser O'r tenant. (

c) as to subsection (4) by adding after the words "subsectiO'n (3)" the words ", clause (b)". 30. The following

section is added after

section 44: 44.~

(1) Each prospectus delivered to a prospective purchaser 'OT tenant shall contain (

a) audited financial statements of the owner for the last fiscal year and reported up'On by the 'Owner IS auditor, and (

b) current unaudited financial statements dated not more than 90 days prior to the date of the aocept ance of the prospectus by the Superintendent.

(2) The financial stateTnents shall he in a form accept ahle to. the Superintendent and slhaH contain such informa tion as the Superintendent may require.

Section 46 is amended (a) (

b) as to subsection (1) (

i) by adding after the word "befo.re" the words "giving written authorizatio.n O'r", and (ii) by striking out the word "subdivisio.n" wher ever it appears and by substituting therefor the words "real esta,te", and as to subsection (2), by adding after the word.s"by the person') the words "who wislhes the written autho.rizatio.n o.r". 12

30. Financial statements.

Section 46 presently reads: 46.

(1) The Superintendent may, before issuing a certificate of acceptance, make such inquiries as he considers necessary, including (

a) an examination of the subdivision and any of the surrounding circum stances, and (

b) the obtaining of reports from public authorities or others in the juris diction in which the subdivision is located.

(2) The reasonable and proper costs of any such inquiry or report shall be borne by the person on whose behalf the prospectus was filed or submitted for filing. 12

Section 48 is amended by st.riking out the word '~sub division" and by substituting therefQ1N the words "real estate".

Section 49 is amended by striking out the words "to grant or" and by substitut.ing therefor the words "to give written authorization or to grant a certificate of 'acceptance or" 34. This Act comes into force on the da'y upon which it is assent.ed to. 13

Section 48 presently veads: 48. Where it appears to the Superintendent, subsequent to the filing of a prospectus and the granting of a certificate of acceptance therefor, that any of the conditIons referred to in

section 45 exist or where in his opinion such action is necessary in the public interest, the Superintendent may, after giving the person on whose behalf the prospectus was filed an opportunity to be heard, cancel the certificate of acceptance and order that all trading in the subdivision to which the prospectus refers shall cease forthwith.

Section 49 presently reads: 49. A decision of the Superintendent refusing to grant or cancelling a certificate of acceptance may be appealed to the Minister whose decision is final. 13 Title: 1974 (17th, 3rd) Bill 79, The Real Estate Agents' Licensing Amendment Act, 1974

Document details

Collection	Alberta — Bills
Citation	L17 S3 5345
Type	bill
Volume / chapter	L17 S3 5345
Language	en
Format	json
Source	PROVINCIAL
Identifier	0d398980f9725ac987449418849ddfabfaf78fb5

Source file is stored in the law ingest library (json).