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Bill 38, Tax Fairness for Real Estate Professionals Act, 2018

Bailey, Robert

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Status

Debates

Acts affected

Original

Bill 38 Original (PDF)

EXPLANATORY

NOTE

The

Bill amends the Real Estate and Business Brokers Act, 2002

to permit a personal real estate corporation to be registered as a broker or

salesperson. A personal real estate corporation must be incorporated as a

professional corporation under the Business Corporations

Act and be authorized only to trade in real estate.

addition, the Bill amends the Real Estate and Business

Brokers Act, 2002 to permit a brokerage to pay commission or other

remuneration to a personal real estate corporation that it employs as a broker

or salesperson.

Bill 38 2018

Act to amend the Business Corporations Act and the Real Estate and Business

Brokers Act, 2002 with respect to personal real estate corporations

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

Business

Corporations Act

Clause 3.1 (2) (

b) of the Business Corporations Act

is amended by adding the following paragraph:

3.1 Real Estate and Business Brokers Act, 2002 .

Subsection 3.2 (2.1) of the Act is amended by adding “or “société personnelle

immobilière”” after “société professionnelle”.

Real

Estate and Business Brokers Act, 2002

(1) The definition of “broker” in subsection 1 (1) of the Real Estate and Business Brokers Act, 2002 is repealed

and the following substituted:

“broker”

means an individual or personal real estate corporation that has the prescribed

qualifications to be registered as a broker under this Act and that is employed

by a brokerage to trade in real estate; (“ courtier ”)

(2) Subsection

1 (1) of the Act is amended by adding the following definition:

“personal

real estate corporation” means a professional corporation as defined in

subsection 3.1 (1) of the Business Corporations Act

that satisfies the conditions set out in subsection (3) of this section; (“société

personnelle immobilière”)

(3) The

definition of “salesperson” in subsection 1 (1) of the Act is repealed and the

following substituted:

“salesperson”

means an individual or personal real estate corporation that has the prescribed

qualifications to be registered as a salesperson under this Act and that is

employed by a brokerage to trade in real estate; (“agent immobil ier ”)

(4) Section

1 of the Act is amended by adding the following subsections:

Personal

real estate corporation

(3) A

personal real estate corporation shall satisfy the following conditions:

1. An

individual owns all of the equity shares in the corporation.

2. All

of the non-equity shares, if any, in the corporation are owned by the

individual who owns the equity shares in the corporation, the members of the

immediate family of that individual or a corporation of which all of the equity

shares are owned by that individual or the members of the immediate family of

that individual.

3. The

name of the corporation includes the words “Personal Real Estate Corporation”

or “société personnelle immobilière” and complies with the rules respecting the

names of personal real estate corporations set out in the regulations.

4. The

corporation is not authorized to carry on a business other than the profession

of trading in real estate.

Non-application

of Business Corporations Act

(4) Paragraphs

1 and 3 of subsection 3.2 (2) of the Business Corporations

Act do not apply to a personal real estate corporation.

Name

change

(5) A

corporation that ceases to be a personal real estate corporation shall change

its name to remove from it the words “Personal Real Estate Corporation” or

“société personnelle immobilière”.

striking out “he or she” wherever that expression appears and substituting in

each case “the person”:

1. Clause

4 (1) (b).

2. Clause

4 (1) (c).

Section 31 of the Act is amended by adding the following subsection:

Personal

real estate corporation

(3) For

greater certainty, if a brokerage employs a personal real estate corporation as

a broker or salesperson, the corporation is entitled to receive commission or

other remuneration from the brokerage for trading in real estate.

Commencement

and

Short Title

Commencement

This Act comes into force on the day it receives Royal Assent.

Short

title

The

short title of this Act is the Tax Fairness for Real

Estate Professionals Act, 2018 .

Date Bill stage Event Outcome Committee

October 18, 2018

Second Reading

Ordered referred to Standing Committee

Standing Committee on General Government

October 18, 2018

Second Reading

Vote

Carried

October 18, 2018

Second Reading

Debated

October 3, 2018

First Reading

Vote

Carried

Debates and Progress

First Reading

October 3, 2018

Committee

Second Reading

October 18, 2018

Mr. Robert Bailey, Mr. Gilles Bisson, Mrs. Gila Martow, Ms. Teresa J. Armstrong, Mr. Stephen Lecce

October 18, 2018

Declared carried. Referred to the Standing Committee on General Government.

Committee

Standing Committee on General Government

Third Reading

Royal Assent

Acts affected - Bill 38

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Business Corporations Act

Real Estate and Business Brokers Act, 2002

Legislative Assembly of Ontario

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