Third

Session, 45th General Assembly

Elizabeth II, 2006

BILL 33

AN ACT TO AMEND THE REAL ESTATE TRADING ACT

Received and Read the First Time ...................................................................................................

Second Reading .................................................................................................................................

Committee ............................................................................................................................................

Third Reading .....................................................................................................................................

Royal Assent ......................................................................................................................................

HONOURABLE

DIANNE WHALEN

Minister

of Government Services

Ordered

to be printed by the Honourable House of Assembly

EXPLANATORY NOTES

Clause 1 of the Bill would amend

section 29 of the Real Estate Trading Act

by adding a new subsection providing that interest earned on money deposited in

a trust account would become the property of the agent.

Clause 2 of the Bill would repeal

Part II of the Act dealing with the establishment and operation of the Real

Estate Foundation.

Clauses 3 of the Bill would provide

transitional provisions respecting the dissolution of the foundation by April 30, 2007 , the payment of its debts and liabilities, the distribution of its

funds and property and the filing of a report on dissolution by July 31, 2007 .

Clause 4 of the Bill would prohibit

actions against the Crown in relation to the dissolution of the foundation.

A BILL

AN ACT TO AMEND THE REAL ESTATE TRADING ACT

Analysis

S.29 Amdt.

Trust

PART II Rep.

REAL ESTATE FOUNDATION

Definitions

53. Foundation continued

54. Composition of

Board

55. Vacating

office on

board

56. Objects of

foundation

57. Fund

58. Foundation may

receive gifts

59. Powers of board

60. Audit and

report

61. Trust money

62. Non-compliance of

agent

63. Agent not

liable to

client

64. Client's money not

affected

65. Dissolution of

Foundation

Transitional

Protection from liability

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

RSNL1990 cR-2

as amended

Section 29 of the Real Estate Trading Act is amended by adding immediately after

subsection (3) the following:

(4) Interest earned on money deposited in a trust account

referred to in subsection (1) shall be the property of the agent.

2. The Act is amended by repealing the heading

"Part II Real Estate Foundation" and sections 52 to 65.

Transitional

(1) Notwithstanding the repeal of sections

52 to 65 of the Act the board established under

section 54 of the Act shall be continued

for the sole purpose of effecting the dissolution of the Real Estate Foundation,

the payment of its debts and liabilities, the distribution of its funds and

property and the filing of a report in accordance with subsection (7).

(2) On the coming into force of this Act,

(

a) the foundation shall

cease its activities, except as otherwise provided in subsection (1);

(

b) a financial institution shall remit to the

foundation interest earned on money on deposit in a trust account referred to

section 29 of the Act from the date on which interest was last paid to the foundation

to the date on which this Act comes into force; and

(

c) all existing

contracts or agreements relating to the appointment or employment of persons to

carry out the objects of the foundation, except with respect to its dissolution,

are cancelled.

(3) The dissolution of the foundation shall be

completed by April

30, 2007 .

(4) Upon the dissolution of the foundation, an

appointment or designation of a person as a chairperson or member of the board

of governors established under

section 54 of the Act is revoked and all

contracts or agreements relating to allowances, fees, expenses, compensation or

remuneration to be paid to the chairperson or member of the board shall be

considered to be cancelled.

(5) Upon the dissolution of the foundation, and after

the payment of debts and liabilities of the foundation, its remaining funds and

property shall be distributed or disposed of to an organization in the province

the undertaking of which is charitable or beneficial to the community.

(6) The funds and property of the foundation shall

not be available to the chairperson, member of the board of the foundation or

to an agent upon dissolution of the foundation.

(7) The chairperson of the board shall submit a

report of the dissolution of the foundation, including a financial statement,

to the superintendent no later than July 31, 2007 .

Protection from

liability

4. An action, application or other proceeding does

not lie and shall not be instituted against the Crown as a result of the repeal

Part II of the Act.

Earl G. Tucker,

Queen's Printer