Real Estate Services Act

May 13, 2004

286269762/04042/tlc04042_f

E4tlc04042

Introductory Provisions

Definitions

In this Act:

associate broker means a person licensed as an associate broker;

Authority means the BC Financial Services Authority established under

section 2 of the Financial Services Authority Act ;

brokerage means a person licensed as a brokerage;

brokerage trust account means, in relation to a brokerage, an account maintained by the brokerage under

section 26 [obligation to maintain trust account] ;

compensable loss means loss that is compensable loss within the meaning of

section 60 [compensable loss] ;

compensation fund corporation means the Real Estate Compensation Fund Corporation established under

section 109 [compensation fund corporation established] ;

conduct unbecoming a licensee , in relation to a licensee or former licensee, means conduct unbecoming a licensee within the meaning of

section 35 (2) [misconduct by licensee] ;

deceptive dealing , in relation to a person providing real estate services as a licensee, means any of the following:

an intentional misrepresentation, by word or conduct, or in any other manner, of a material fact in relation to real estate services, or in relation to a trade in real estate to which the real estate services relate, or an intentional omission to disclose such a material fact;

a course of conduct or business that is intended to deceive a principal about the nature of the real estate services, or about the nature of a trade in real estate to which the real estate services relate;

an artifice, agreement, device or scheme to obtain money, profit or property by illegal means;

a promise or representation about the future that is beyond reasonable expectation and not made in good faith;

engaged , in relation to a brokerage, means a person who is

a licensee employed by the brokerage to provide real estate services on its behalf, or

a licensee who is acting in an independent contractor relationship with the brokerage to provide real estate services on its behalf;

false or misleading statement includes an omission in relation to information that is required or authorized to be provided under this Act;

financial services tribunal means the Financial Services Tribunal under the Financial Institutions Act ;

foundation means the Real Estate Foundation of British Columbia continued under

section 90 [foundation continued] ;

foundation fund means the fund of the foundation under

section 94 [foundation fund] ;

insurance corporation means the Real Estate Errors and Omissions Insurance Corporation continued under

section 99 [insurance corporation continued] ;

insurance fund means the Real Estate Errors and Omissions Insurance Fund under

section 103 (1) [insurance fund] ;

issue , in relation to a licence, includes renew;

licence means a licence issued under

Part 2 [Licensing] ;

managing broker means a person licensed as a managing broker;

money includes currency, government or bank notes, cheques, drafts, money orders and amounts credited or received by electronic means;

owner , in relation to rental real estate, includes a person entitled to possession of the real estate who exercises a right to sub-rent or sub-lease the real estate to another;

party ,

in relation to a trade in real estate, does not include a licensee acting solely as a licensee, and

in relation to a prospective trade in real estate, includes a potential party;

prescribed means prescribed by regulation of the Lieutenant Governor in Council;

principal , in relation to real estate services, means, as applicable,

in the case of trading services, a party to a trade in real estate,

in the case of rental property management services, other than trading services in relation to the rental of the real estate, the owner of the rental real estate to or on behalf of whom the services are provided, or

in the case of strata management services, the strata corporation to whom or on behalf of whom the services are provided;

professional misconduct , in relation to a licensee or former licensee, means professional misconduct within the meaning of

section 35 (1) [misconduct by licensee] ;

providing , in relation to real estate services, includes

offering to provide such services,

holding oneself out as a person who provides such services, or

soliciting for the purposes of the provision of such services;

real estate means

real property,

regardless of whether it is or is not an interest in real property, a cooperative interest, shared interest in land or time share interest, as these are defined in the Real Estate Development Marketing Act , and

a right in relation to real property that is defined by regulation to be real estate,

but does not include a right in relation to real property that is excluded by regulation;

real estate services means

rental property management services,

strata management services, or

trading services;

related means,

in relation to a brokerage, a managing broker, associate broker or representative who is licensed in relation to the brokerage, and

in relation to a managing broker, associate broker or representative, the brokerage in relation to which the person is licensed;

remuneration includes any form of remuneration, including any commission, fee, gain or reward, whether the remuneration is received, or is to be received, directly or indirectly;

rental property management services means any of the following services provided to or on behalf of an owner of rental real estate:

trading services in relation to the rental of the real estate;

collecting rents or security deposits for the use of the real estate;

managing the real estate on behalf of the owner by

making payments to third parties,

negotiating or entering into contracts,

iii

supervising employees or contractors hired or engaged by the owner, or

managing landlord and tenant matters

but does not include an activity excluded by regulation;

rental real estate means real estate that is or is intended to be rented or leased;

representative means a person licensed as a representative;

rules means rules made by the Authority under

section 89.2;

special compensation fund means the Real Estate Special Compensation Fund established under

section 112 [special compensation fund] ;

stakeholder means a brokerage holding money as a stakeholder under

section 28 [money held as stakeholder] ;

strata corporation means a strata corporation within the meaning of the Strata Property Act and includes a

section within the meaning of that Act;

strata management services means any of the following services provided to or on behalf of a strata corporation:

collecting or holding strata fees, contributions, levies or other amounts levied by, or due to, the strata corporation under the Strata Property Act ;

exercising delegated powers and duties of a strata corporation or strata council, including

making payments to third parties on behalf of the strata corporation,

negotiating or entering into contracts on behalf of the strata corporation,

iii

supervising employees or contractors hired or engaged by the strata corporation, or

enforcing bylaws or rules of the strata corporation,

but does not include an activity excluded by regulation;

superintendent means the Superintendent of Real Estate appointed under

section 2.1 (1);

Superintendent of Financial Institutions means the Superintendent of Financial Institutions appointed under the Financial Institutions Act ;

temporary licence means a licence, of any level or category, described in

section 14 [temporary licences] ;

trade in real estate means

a transaction for the purchase or sale of real estate, for the leasing of real estate or for any other form of acquisition or disposition of real estate,

an assignment of a contract for purchase, sale or lease of real estate, or a transaction in relation to such an assignment, or

a prospective trade in real estate within the meaning of paragraph (

a) or (b);

trading services means any of the following services provided to or on behalf of a party to a trade in real estate:

advising on the appropriate price for the real estate;

making representations about the real estate;

finding the real estate for a party to acquire;

finding a party to acquire the real estate;

showing the real estate;

negotiating the price of the real estate or the terms of the trade in real estate;

presenting offers to dispose of or acquire the real estate;

receiving deposit money paid in respect of the real estate

but does not include an activity excluded by regulation;

wrongful taking , in relation to a person providing real estate services as a licensee, means any of the following:

a misappropriation or wrongful conversion of money or other property received by the person in relation to the real estate services;

an intentional failure to account for or pay over, within a reasonable time, any money or other property that

was received by the person, and

belongs to one or more principals in relation to the real estate services.

Application of Act

This Act applies to every person who provides real estate services to or on behalf of another for or in expectation of remuneration.

In addition but subject to the rules, this Act applies to every licensee who provides real estate services, even if the licensee

provides real estate services on the licensee's own behalf,

provides real estate services to or on behalf of another but not for or in expectation of remuneration, or

would otherwise be exempted by this Act or the regulations from the requirement to be licensed in relation to the provision of those real estate services.

Superintendent of Real Estate

2.1

The Authority's board of directors must appoint a Superintendent of Real Estate in accordance with

section 10 [statutory decision makers] of the Financial Services Authority Act .

The superintendent may exercise the powers and must perform the duties vested in or imposed on the superintendent under this Act, the Real Estate Development Marketing Act and the Strata Property Act .

The superintendent may, in writing, delegate any of the superintendent's powers or duties under this Act.

The superintendent may impose conditions or restrictions on any delegation made under subsection (3).

Licensing

Licence Requirements

Requirement for licence to provide real estate services

A person must not provide real estate services to or on behalf of another, for or in expectation of remuneration, unless the person is

licensed under this Part to provide those real estate services, or

exempted by subsection (3) or the regulations from the requirement to be licensed under this

Part in relation to the provision of those real estate services.

A licence required by this

Part is additional to any licence, registration, certificate, enrolment or qualification required under any other Act.

In addition to any exemption provided by regulation, the following are exempt from the requirement to be licensed under this Part:

a person acting under the authority of a court;

a trustee in bankruptcy, custodian, receiver, receiver manager or liquidator who is appointed under a provincial or federal enactment, in respect of real estate services undertaken by the person in that capacity;

an executor or administrator of an estate, in respect of real estate services provided in relation to real estate owned or held by the estate;

a trustee, in respect of real estate services provided under the terms of a will, marriage settlement or deed of trust;

a financial institution that has a trust business authorization under the Financial Institutions Act , in respect of real estate services provided in relation to real estate that it owns, holds or administers;

a practising lawyer as defined in

section 1 of the Legal Profession Act , in respect of real estate services provided in the course of the person's practice.

No recovery of remuneration by unlicensed person

No action may be brought or continued for remuneration in relation to real estate services unless, at the time the real estate services were provided, the person claiming the remuneration was

licensed under this Part to provide those real estate services, or

exempted by this Act or the regulations from the requirement to be licensed under this

Part in relation to the provision of those real estate services.

Subsection (1) does not apply to an action brought against a brokerage in relation to real estate services if the action is brought by a person who is licensed, or otherwise authorized, under the laws of a jurisdiction other than British Columbia to

provide those real estate services, and

act in a capacity equivalent to that of a brokerage under this Act.

Licence Levels, Categories and Relationships

Licence levels and categories

The following levels of licences are established for the purposes of this Act:

a brokerage licence, which authorizes a brokerage to provide real estate services through a managing broker, associate broker or representative;

a managing brokerage licence, which authorizes a managing broker to act for a brokerage for all purposes under this Act and to carry out the responsibilities referred to in

section 6 (2) [brokerage must have a managing broker] ;

an associate broker licence, which authorizes an associate broker to provide real estate services under the supervision of a managing broker;

a representative licence, which authorizes a representative to provide real estate services under the supervision of a managing broker.

An individual may be licensed at any licence level.

2.1

A person may not be licensed as an associate broker unless the person meets the educational and experience requirements to be licensed as a managing broker.

Unless permitted by the regulations, a partnership or corporation may be licensed only as a brokerage.

Subject to the rules, a brokerage must have a brokerage licence for each branch office from which it operates.

Within the licence levels under subsection (1), a person may be licensed within a category that is established by the rules on the basis of the real estate services permitted to be provided under the licence.

Brokerage must have a managing broker

Subject to the rules, a brokerage

must have one or more managing brokers licensed in relation to the brokerage, and

may only provide real estate services that are permitted by the licence of a managing broker who is licensed in relation to the brokerage.

A managing broker licensed in relation to a brokerage acts for the brokerage for all purposes under this Act, and is responsible for

the exercise of the rights conferred on the brokerage by its licence,

the performance of the duties imposed on the brokerage by its licence, and

the control and conduct of the brokerage's real estate business, including supervision of the associate brokers and representatives who are licensed in relation to the brokerage.

Relationships between brokerages and other licensees

Subject to subsection (2), a managing broker, associate broker or representative must be

licensed in relation to a single brokerage, and

engaged by that brokerage.

If permitted by the rules, a managing broker may be licensed in relation to more than one brokerage if the brokerages are affiliated within the meaning of the rules.

A managing broker, associate broker or representative

must not provide real estate services other than on behalf of the brokerage in relation to which they are licensed, and

is not entitled to and must not accept remuneration in relation to real estate services from any person other than the brokerage in relation to which they are licensed.

A related licensee of a brokerage is, when acting for the brokerage, subject to any restrictions and conditions applicable to the brokerage licence in relation to which they are acting.

A brokerage

must not provide real estate services unless the services are provided on behalf of the brokerage by a managing broker, associate broker or representative who is licensed in relation to and engaged by the brokerage, and

must not engage or allow a licensee who is licensed in relation to another brokerage to provide real estate services on behalf of the first brokerage unless the licensee is a managing broker licensed under subsection (2) in relation to both brokerages and engaged by both brokerages.

Brokerage responsibility respecting training and supervision

7.1

A brokerage must ensure that the following individuals do not train or supervise managing brokers, associate brokers and representatives who are licensed in relation to the brokerage, unless the individual is licensed in relation to that brokerage:

a partner, or a director, officer or shareholder of a corporation that is a partner, in the case of a brokerage that is a partnership;

a director, officer or shareholder of the corporation, in the case of a brokerage that is a corporation;

a sole proprietor, in the case of a sole proprietorship.

For the purposes of this section, train or supervise means to train or supervise in respect of real estate services or the provision of real estate services.

Licensing Authority

Applications in relation to licences

In this Part, unless otherwise provided, an application for a licence includes

an application for a new licence, and

an application for renewal, amendment or reinstatement of an existing licence.

How to make an application

A person may apply for a new licence, or for the renewal, amendment or reinstatement of a licence, by submitting to the superintendent an application

in the form and manner required by the superintendent, and

containing the information required by the superintendent.

The application must be accompanied by the following, as applicable:

any other information or records required by the superintendent;

any prescribed fee in relation to the application;

any prescribed fee in relation to a licence;

any prescribed assessment in relation to the expenses of the Authority;

any assessment levied under

section 104 (1) [insurance fund assessments and deductibles] by the insurance corporation and required to be paid before a licence is issued, amended or reinstated;

any assessment levied under

section 113 (1) [compensation fund assessments] by the compensation fund corporation and required to be paid before a licence is issued, amended or reinstated.

A fee referred to in subsection (2) (

c) and an assessment referred to in subsection (2) (d), (

e) or (

f) are refundable if the licence in respect of which the application is made is not issued, amended or reinstated, as the case may be.

In addition to any other information required by the superintendent,

an application for a brokerage licence must identify the persons proposed to act as managing brokers in relation to the brokerage, and

an application for a managing broker, associate broker or representative licence must identify the brokerage in relation to which the applicant proposes to be licensed.

An individual who is licensed as a brokerage and qualified to be licensed as a managing broker is deemed to be licensed as a managing broker in relation to the brokerage unless an application under subsection (1) in relation to the brokerage licence indicates that the individual will not be acting in that capacity.

The superintendent may refuse to accept an application until any amount owed by the applicant to the Authority, insurance corporation or compensation fund corporation is paid.

If a person submits an application for the renewal of the person's licence on or after the earlier of the dates referred to in

section 12 (

a) and (b), the superintendent may accept the application for renewal instead of requiring the person to submit an application for a new licence.

If a person's licence is inoperative or suspended, the superintendent may authorize the person to apply for the renewal of the licence instead of applying for the reinstatement of the licence or for a new licence.

Qualifications for obtaining licence

An applicant for a new licence or a licence renewal must satisfy the superintendent that they meet the following applicable requirements:

the applicant is of good reputation and suitable to be licensed at the level and in the category for which the applicant is applying;

in the case of an applicant who is an individual, the applicant

is at least 19 years of age, and

meets the educational and experience requirements established by the rules;

b.1

in the case of an applicant for a licence renewal who is an individual, the applicant meets the educational requirements specified by the superintendent;

in the case of an applicant that is a partnership or corporation,

the applicant's partners or directors and officers, as the case may be, are of good reputation, and

if a partner of the applicant is a corporation, the corporation's directors and officers are of good reputation;

in all cases, the applicant has not

been refused a licence under real estate, insurance, mortgage broker or securities legislation in British Columbia or another jurisdiction,

held a licence that was suspended or cancelled under real estate, insurance, mortgage broker, or securities legislation in British Columbia or another jurisdiction,

iii

been disciplined by a professional body, or

been convicted of an offence

for a reason that reveals the applicant as unfit to be a licensee;

in all cases, the applicant meets any other qualification requirements established by the rules.

Superintendent's powers respecting evaluation of applications

The superintendent may

conduct an investigation, or

require the applicant to provide the superintendent with additional information, documents or verification,

to the extent the superintendent considers necessary for the evaluation of an application under

section 9 [how to make an application] .

Continuance of licence during renewal application process

If a licensee has applied for renewal of a licence in accordance with

section 9 [how to make an application] before the earlier of

the end of the licence term, and

if applicable, a date established under the rules,

the licence continues in effect beyond the end of its term until the superintendent notifies the licensee of the superintendent's decision with respect to the application.

Refusal to issue or renew licence

If an applicant does not satisfy the superintendent respecting the qualification requirements under

section 10 [qualifications for obtaining licence] , the superintendent may refuse to issue the licence.

In addition, in the case of an applicant for a new brokerage licence, the superintendent may refuse to issue the licence if the superintendent considers that the applicant has a legal name or trade name that is likely to confuse or mislead the public.

Before refusing to issue a licence, the superintendent must give notice to the applicant and provide the applicant with an opportunity to be heard respecting the matter.

If the superintendent refuses to issue a licence, the superintendent must

provide the applicant with written notice of the refusal and the reasons for it, and

advise the applicant of the right to appeal under Division 4 [Appeals to Financial Services Tribunal] of

Part 4.

The superintendent may, by order, require the applicant to pay the expenses, or part of the expenses, incurred by the Authority in relation to the applicant's opportunity to be heard under subsection (3).

Amounts ordered as referred to in subsection

(5) must not exceed the applicable limit that is prescribed in relation to the type of expenses to which they relate, and

may include the remuneration expenses incurred in relation to employees, officers or agents of the Authority engaged in providing the opportunity to be heard.

Temporary licences

The superintendent may issue a temporary licence that

requires the licensee to meet one or more specified conditions within a specified period of time or by a specified date, and

is cancelled, effective at the end of that specified period or on that specified date, if the conditions are not met by that time.

Conditions and restrictions in relation to a specific licence

Subject to this section, the superintendent may, as the superintendent considers necessary or desirable in relation to a specific licence,

impose conditions and restrictions on the licence,

vary a condition or restriction applicable to the licence, or

remove a condition or restriction applicable to the licence.

The powers under subsection (1) (

a) or (

b) to impose or vary a condition or restriction are exercisable only

on or before the date on which the licence is issued, with effect on and after that date, or

on the written application or with the written consent of the licensee.

Before imposing or varying a condition or restriction as referred to in subsection (2) (a), the superintendent must give notice to the applicant and provide the applicant with an opportunity to be heard respecting the matter.

If the superintendent imposes or varies a condition or restriction as referred to in subsection (2) (a), the superintendent must

provide the applicant with written notice of the condition or restriction and the reasons for it, and

advise the applicant of the right to appeal under Division 4 [Appeals to Financial Services Tribunal] of

Part 4.

The power under subsection (1) (

c) to remove a condition or restriction is exercisable at any time on the superintendent's own initiative or on the written application of the licensee.

Amendments to reflect conditions and restrictions on related licences

new licence conditions or restrictions apply to a brokerage licence, or

existing conditions or restrictions on a brokerage licence are varied or removed,

the superintendent may amend the licences of the related licensees of the brokerage to reflect the conditions and restrictions applicable to the brokerage licence.

new licence conditions or restrictions apply to a managing broker licence, or

existing conditions or restrictions on a managing broker licence are varied or removed,

the superintendent may amend the licence of the related brokerage to reflect the conditions and restrictions applicable to the managing broker licence.

Conditions and restrictions are part of licence

A condition or restriction that applies to a licence under this Act is part of the licence in respect of which it applies, whether included in the licence, attached to it or contained in a separate document.

Licence amendments

The superintendent may amend a licence in any of the following circumstances:

on the written application or with the written consent of the licensee;

as provided in

section 15 [conditions and restrictions in relation to a specific licence] ;

as provided in

section 16 [conditions and restrictions on related licences] ;

to give effect to an order under Division 2 [Discipline Proceedings Relating to Licensees] or Division 3 [Investigations and Proceedings Relating to Unlicensed Activity] of

Part 4;

to give effect to a rule under

section 89.2 (2) (b) [rules respecting general restrictions and conditions] .

Inoperative, Suspended and Cancelled Licences

When licences may become inoperative, suspended or cancelled

A licence is subject to automatically becoming inoperative in accordance with

section 22 (1) [licensee ceases to be engaged by brokerage] , or

section 23 (1) or (3) [effect on related licensees if licence becomes inoperative] .

A licence is subject to suspension or cancellation in accordance with any of the following:

automatically in accordance with

section 14 (b) [cancellation of temporary licences] ,

section 104 (3) [failure to pay insurance assessment] ,

iii

section 113 (3) [failure to pay compensation assessment] , or

section 116 (4) [failure to provide required security] ;

by order of the superintendent under

section 24 [cancellation or suspension of licence if qualification not met] , or

Division 2 [Discipline Proceedings Relating to Licensees] of

Part 4.

c) and (d

[Repealed 2021-2-54.]

Restriction on licensee if licence inoperative or suspended

A licensee must not provide real estate services at any time that the licensee's licence is inoperative or suspended.

Surrender of licence and impounding of records

A person whose licence becomes inoperative or is suspended or cancelled must immediately

cease to hold themselves out as a licensee, and

surrender the licence to the superintendent.

If the licence of a person whose licence becomes inoperative or is suspended or cancelled is in the possession of the related brokerage, that brokerage must immediately surrender the licence to the superintendent.

The superintendent may

impound the records of a brokerage whose licence has become inoperative or has been suspended or cancelled, and

retain those records for a period of 2 years or until the licence is reinstated, whichever is earlier.

Licence inoperative if licensee ceases to be engaged by brokerage

If a managing broker, associate broker or representative ceases to be engaged by the brokerage in relation to which the person is licensed,

that person's licence becomes inoperative, and

the person ceases to be licensed in relation to the brokerage,

effective as of the time that the person ceases to be engaged by the brokerage.

On application of a person whose licence has become inoperative under subsection (1), the superintendent may, if satisfied that the person continues to be otherwise qualified for the licence,

reinstate the licence in its previous form if the person is re-engaged by the same brokerage, subject to any applicable amendments under

section 16 [conditions and restrictions on related licences] , or

reinstate the licence with necessary amendment if the person is engaged by another brokerage.

Effect on related licensees if licence becomes inoperative

If a brokerage licence becomes inoperative or is suspended or cancelled, the licence of any related licensee becomes inoperative, effective as of the time at which the brokerage licence becomes inoperative or is suspended or cancelled.

In relation to a licence that becomes inoperative under subsection (1), if

the related brokerage licence is reinstated, and

the related licensee is licensed in relation to, and engaged by, the brokerage at the time of that reinstatement,

the licence of the related licensee is automatically reinstated.

Subject to the rules, if the licence of the only managing broker for a brokerage becomes inoperative or is suspended or cancelled, the licences of the brokerage and its related licensees become inoperative, effective as of the time at which the managing broker licence becomes inoperative or is suspended or cancelled.

In relation to a licence that becomes inoperative under subsection (3), if the managing broker licence referred to in that subsection is reinstated in relation to the same brokerage, the licences of

that brokerage, and

the related licensees who are licensed in relation to that brokerage and engaged by the brokerage at the time of that reinstatement,

are automatically reinstated.

For certainty, a licence that is reinstated under this

section is subject to

section 7 (4) [licensee is subject to restrictions and conditions applicable to brokerage licence] .

Cancellation or suspension of licence if qualification not met

If an applicant for a licence made a false or misleading statement in or in relation to their application, respecting a matter referred to in

section 10 [qualifications for obtaining licence] , the superintendent may, by order,

cancel the licence, or

suspend the licence until satisfied that the licensee is qualified to hold the licence.

Before cancelling or suspending a licence under this section, the superintendent must give notice to the licensee and provide the licensee with an opportunity to be heard respecting the matter.

If the superintendent makes an order under this section, the superintendent must

provide the licensee with written notice of the cancellation or suspension and the reasons for it, and

advise the licensee of the right to appeal under Division 4 [Appeals to Financial Services Tribunal] of

Part 4.

Trust Accounts and Other Financial Matters

Brokerage records

A brokerage must maintain proper books, accounts and other records in accordance with the rules, and must keep these records in British Columbia.

Form and content of brokerage reports

25.1

If, under the rules, a brokerage is required to file with or submit to the superintendent a report, or another record in place of a report, the report or record must

be filed or submitted in the form and manner required by the superintendent,

include the information required by the superintendent, and

be accompanied by any information or records required by the superintendent.

Obligation to maintain trust account

A brokerage must maintain, in accordance with the rules, one or more interest bearing trust accounts with one or more savings institutions in British Columbia.

An account required under subsection (1) must be designated as a trust account both in the brokerage's records and in the records of the savings institution holding the account.

Payment into trust account

A licensee engaged by a brokerage must promptly pay or deliver to the brokerage

all money held or received from, for or on behalf of a principal in relation to real estate services,

all money held or received on account of remuneration for real estate services, including a share of remuneration received from another brokerage and whether or not the remuneration has already been earned, and

all money held or received on account of remuneration paid as a result of the licensee recommending the products or services of any of the following persons:

a home inspector, mortgage broker, notary public, lawyer or savings institution;

any other person in a business, profession or occupation relating to real estate.

A brokerage must promptly pay into a brokerage trust account

all money held or received from, for or on behalf of a principal in relation to real estate services,

all money held or received on account of remuneration for real estate services, including a share of remuneration received from another brokerage, and

all money held or received on account of remuneration paid as a result of the brokerage, or a related licensee of the brokerage, recommending the products or services of any of the following persons:

a home inspector, mortgage broker, notary public, lawyer or savings institution;

any other person in a business, profession or occupation relating to real estate.

For the purposes of this section, if money referred to in subsection (1) or (2) is held or received by a person who is

an officer, director, controlling shareholder or partner of a brokerage,

an employee of a brokerage or of a related licensee of a brokerage, or

a person acting in an independent contractor relationship with a brokerage or with a related licensee of a brokerage,

the money is deemed to be held or received by the brokerage or related licensee, as applicable.

Subsections (1) and (2) do not apply to money held or received by a licensee providing trading services in relation to a trade in real estate if,

by written agreement that is separate from any agreement giving effect to the trade in real estate, all principals in relation to the trading services agree that subsections (1) and (2) do not apply, and

any conditions established by the rules are met.

4.01

Subsection (1) does not apply to money held or received by a licensee providing trading services in relation to a trade in real estate if

the money is in the form of a cheque, draft or money order payable to a person other than the licensee or a related brokerage of the licensee,

the licensee takes no action in relation to the cheque, draft or money order other than delivering it to the person to whom it is payable, and

any conditions established by the rules are met.

4.02

Subsection (2) does not apply to money held or received by a brokerage if

the money is in the form of a cheque, draft or money order payable to a person other than the brokerage or a related licensee of the brokerage,

the brokerage takes no action in relation to the cheque, draft or money order other than delivering it to the person to whom it is payable, and

any conditions established by the rules are met.

4.1

Despite subsection (2) (

b) and (c), remuneration that has already been earned, as determined in accordance with the rules, by a brokerage may be paid,

if none of the remuneration is payable to another brokerage, into a commission trust account maintained by the brokerage, or

if none of the remuneration is payable to either another brokerage or a related licensee, into a brokerage account other than

a brokerage trust account, or

a commission trust account maintained by the brokerage.

4.2

[Repealed 2007-7-82.]

Subject to the rules, a brokerage must ensure that no money, other than money referred to in subsection (1) or (2), is paid into its brokerage trust accounts.

Circumstances in which brokerage holds money as stakeholder

Subject to subsection (3), this

section applies to money held or received in respect of a trade in real estate for which there is an agreement between the parties for the acquisition and disposition of the real estate.

If the brokerage holds the money in a brokerage trust account, then, despite any rule of law to the contrary, the brokerage holds that money as a stakeholder and not as agent for one of the parties to the trade in real estate,

unless or until the parties agree otherwise in writing, or

unless or until circumstances established by the regulations apply.

This

section does not apply to the following:

rents or payments under an option to purchase, if collected on a periodic and regular basis;

security deposits and pet damage deposits paid by tenants under the Residential Tenancy Act ;

prescribed payments.

Interest on trust account

A brokerage that is credited by a savings institution with interest on money held in a brokerage trust account

holds the interest in trust for the foundation, and

must cause the savings institution to pay the interest to the foundation in accordance with the regulations.

Subsection (1) does not apply if the brokerage holds the money under a duty under the Residential Tenancy Act to pay the interest to a tenant.

Subject to subsection (4), subsection (1) does not apply to money deposited in a separate trust account maintained by a brokerage for a principal, in which case the interest is to be paid to or in accordance with the instructions of the principal.

If money deposited in an account referred to in subsection (3) becomes held by the brokerage as a stakeholder, subsection (1) applies to that money unless the parties to the trade in real estate agree otherwise in writing, in which case the interest is to be paid in accordance with the agreement.

Withdrawals from trust account

Money in a brokerage trust account, other than money that the brokerage holds as stakeholder, may be withdrawn only if it is one or more of the following:

money paid into the trust account by mistake;

interest paid in accordance with

section 29 [interest on trust account] ;

money authorized to be withdrawn under

section 31 [payment of licensee remuneration] ;

unclaimed money transferred under

section 32 [unclaimed money held in trust] ;

money paid into court under

section 33 [payment of trust funds into court] ;

money paid in accordance with a court order;

money paid to or in accordance with the instructions of the principal to whose credit the money was deposited.

Money in a brokerage trust account that the brokerage holds as stakeholder may be withdrawn only

as provided in subsection (1) (

a) to (f),

in accordance with a written agreement of the parties to the trade in real estate, or

in accordance with the regulations under this Act or under

section 43 [regulations for residential real property right of rescission] of the Property Law Act .

This

section does not apply to a deposit received by a brokerage under

section 18 of the Real Estate Development Marketing Act and, instead, that deposit must be dealt with in accordance with that Act.

Payment of licensee remuneration

Money in a brokerage trust account that is intended as remuneration for a licensee may be withdrawn from the account when it has been earned as determined in accordance with the rules.

Money withdrawn from a brokerage trust account under subsection (1) must be paid by the brokerage as follows:

any share of the remuneration that is payable by the brokerage to another brokerage must be paid to the other brokerage directly out of the brokerage trust account;

any net share of the remuneration that is payable by the brokerage to a licensee engaged by the brokerage must be paid, at the brokerage's option,

to that licensee directly out of the brokerage trust account, or

into a commission trust account maintained by the brokerage in accordance with the rules and, from that account, to or on behalf of the licensee.

Unclaimed money held in trust

A brokerage may transfer money held in trust by a brokerage to the administrator appointed under the Unclaimed Property Act , if

the brokerage has made reasonable efforts to ascertain the identity of or to locate the person entitled to claim the money and to notify that person about the money, and

despite those efforts, the money has been unclaimed for longer than one year after the applicable time prescribed for the purposes of this section.

Money transferred under subsection (1) is deemed to be an unclaimed money deposit under the Unclaimed Property Act .

Payment of trust funds into court

If, in relation to money held in trust by a brokerage, it appears to the brokerage that

there are adverse claimants to the money,

the identity of one or more of the persons entitled to it is unknown, or

there is no person capable of giving, or authorized to give, a valid discharge for it,

the brokerage may apply to the Supreme Court for an order for payment of the money into court.

An application under this

section must be accompanied by an affidavit setting out the following as applicable and to the extent possible:

the nature of the real estate services in respect of which the money was held or received;

the names and addresses of the principals in relation to those real estate services;

the date and terms on which the brokerage received the money;

the names and addresses of all claimants to the money of whose claims the brokerage is aware;

particulars of any claim for remuneration by the brokerage, or a related licensee of that brokerage, arising out of the real estate services.

An application under this

section may be made without notice to any other person unless otherwise ordered by the court.

On an application under this section, the court may make an order for payment of the money into court, and payment into court under the order discharges the brokerage from liability for the amount paid.

Money paid into court under an order under this

section must not be paid out of court except by order of the court, which may do one or more of the following:

order payment of all or part of the money to the person or persons entitled to it on terms the court considers appropriate;

direct the trial of an issue;

make any other order that the court considers appropriate, including an order for the payment of costs to the brokerage that made the application.

Discipline Proceedings and Other Regulatory Enforcement

Conduct, Complaints and Investigations Relating to Licensees

Licensee includes former licensee

For the purpose of this Part, licensee includes a former licensee in relation to matters that occurred while the person was a licensee.

Misconduct by licensee

A licensee commits professional misconduct if the licensee does one or more of the following:

contravenes this Act, the regulations under this Act or under

section 43 [regulations for residential real property right of rescission] of the Property Law Act or the rules;

breaches a restriction or condition of the licence;

does anything that constitutes wrongful taking or deceptive dealing;

demonstrates incompetence in performing any activity for which a licence is required;

fails or refuses to cooperate with an investigation under

section 37 [investigations of licensees] ;

fails to comply with an order of the superintendent;

f.1

fails to comply with an undertaking that the licensee gave under

section 53.1;

makes or allows to be made any false or misleading statement in a document that is required or authorized to be produced or submitted under this Act.

A licensee commits conduct unbecoming a licensee if the licensee engages in conduct that, in the judgment of the superintendent,

is contrary to the best interests of the public,

undermines public confidence in the real estate industry, or

brings the real estate industry into disrepute.

A brokerage that is a partnership or corporation may be found to have committed professional misconduct or conduct unbecoming a licensee if a partner, officer, director or controlling shareholder of the brokerage does one or more of the things referred to in subsection (1) or (2).

Complaints against licensee

A person may make a complaint to the superintendent if the person believes that a licensee may have committed professional misconduct or conduct unbecoming a licensee.

A complaint must be in writing and must include particulars.

Unless a complaint is made anonymously, the superintendent must

acknowledge receipt of the complaint, and

on disposition of the matter, inform the complainant of the disposition.

Investigations of licensees

The superintendent may conduct an investigation to determine whether a licensee may have committed professional misconduct or conduct unbecoming a licensee.

[Repealed 2021-2-59.]

For the purposes of an investigation, the superintendent may do one or more of the following:

at any time during business hours, inspect and remove or copy records that are located on the business premises of

a licensee or former licensee, or

an officer, director, controlling shareholder or partner of a licensee or former licensee;

require a person referred to in paragraph (

a) to

answer, or meet with the superintendent to answer, inquiries relating to the investigation, and

produce information, records or other things in the person's possession or control for examination by the superintendent.

A person referred to in subsection (3) (

a) must not withhold, destroy, conceal or refuse to provide any information or thing reasonably required for the purposes of an investigation under this section.

Order by justice for search and seizure

The superintendent may apply to a justice for an order authorizing the seizure of records or other evidence, wherever located, belonging or relating to a licensee from the person named in the order, if there are reasonable grounds to believe that the licensee may have committed professional misconduct or conduct unbecoming a licensee.

An application under subsection (1) may be made without notice to any other person unless otherwise ordered by the justice.

An application under subsection (1) must be supported by an affidavit stating

the grounds for believing that the licensee may have committed professional misconduct or conduct unbecoming a licensee, and

the grounds for believing that the seizure will produce evidence relevant to that matter.

On an application under subsection (1), the justice may make an order

designating the person who will conduct the seizure and authorize that person to conduct it,

setting the time and place the seizure will take place, and

giving any other directions necessary to carry out the seizure.

This

section does not apply to records or other evidence subject to solicitor-client privilege.

Discipline Proceedings Relating to Licensees

Repealed

[Repealed 2021-2-62.]

Notice of discipline hearing

Following an investigation under

section 37 [investigations of licensees] or the cancellation of an administrative penalty under

section 57 (4) (a.1) [administrative penalties] , the superintendent may issue a notice to the affected licensee and conduct a discipline hearing.

The notice must

describe the nature of the complaint or other matter that is to be the subject of the discipline hearing,

specify the time and place set for commencement of the hearing, and

advise the licensee that the superintendent is entitled to proceed with the hearing in the absence of the licensee.

The notice must be given to the licensee, at least 21 days before the time set for the discipline hearing, as follows:

in the case of notice to a current licensee, by personal service or by delivery in accordance with the rules;

in the case of notice to a former licensee, by personal service;

as an alternative in any case, in accordance with an order under

section 125 [substituted service] .

Consent orders

At any time before the time set for the discipline hearing, the licensee who received a notice under

section 40 [notice of discipline hearing] may deliver to the superintendent a written proposal that includes the licensee's consent to the superintendent making a specified order under

section 43 [discipline orders] without conducting a hearing.

If a proposal under subsection (1) is received, the superintendent

may postpone the time set for commencing the hearing until the proposal has been dealt with in accordance with this section, and

if the hearing is to be conducted after the postponement, must give notice of the time and place of the hearing in accordance with

section 40 (3) [delivery of hearing notice] .

The superintendent may accept or reject the proposal.

If the superintendent accepts the proposal,

the superintendent may make the proposed order, and

no further proceedings may be taken under this Division or Division 5 [Administrative Penalties] with respect to the matter, other than to enforce the terms of the order as proposed or to deal with a contravention of the order.

Regardless of whether or not a proposal has been accepted or rejected, the proposal may not be used, without the consent of the licensee who made the proposal,

in any proceeding under this Act with respect to the matter, other than

as referred to in subsection (4) (b), or

[Repealed 2021-2-64.]

iii

for the purposes of considering a claim under

Part 5 [Payments from Special Compensation Fund] , or

in any civil proceeding with respect to the matter.

Discipline hearings

If notice of a discipline hearing has been given in accordance with

section 40 (3) [notice] , the superintendent may proceed with the discipline hearing, whether or not the licensee appears in person and whether or not the licensee is represented by legal counsel at the hearing.

For the purposes of a discipline hearing, sections 34 (3) and (4) [power to compel witnesses and order disclosure] , 48 [maintenance of order at hearings] and 49 [contempt proceeding for uncooperative witness or other person] of the Administrative Tribunals Act apply to the superintendent.

The superintendent may conduct a discipline hearing by way of written submissions or oral hearing, or a combination of both.

Discipline orders

After a discipline hearing, the superintendent must

act under this

section if the superintendent determines that the licensee has committed professional misconduct or conduct unbecoming a licensee, or

in any other case, dismiss the matter.

If subsection (1) (

a) applies, the superintendent must, by order, do one or more of the following:

reprimand the licensee;

suspend the licensee's licence for the period of time the superintendent considers appropriate or until specified conditions are fulfilled;

cancel the licensee's licence;

impose restrictions or conditions on the licensee's licence or vary any restrictions or conditions applicable to the licence;

require the licensee to cease or to carry out any specified activity related to the licensee's real estate business;

require the licensee to enrol in and complete a course of studies or training specified in the order;

prohibit the licensee from applying for a licence for a specified period of time or until specified conditions are fulfilled;

require the licensee to pay amounts in accordance with

section 44 (1) and (2) [recovery of enforcement expenses] ;

require the licensee to pay a discipline penalty in an amount of

not more than $500 000, in the case of a brokerage or former brokerage, or

not more than $250 000, in any other case;

require the licensee to pay an additional penalty up to the amount of the remuneration accepted by the licensee for the real estate services in respect of which the contravention occurred.

2.1

A discipline penalty imposed under subsection (2) (

i) may be imposed for each contravention.

2.2

Despite subsections (2) (

i) and (

j) and (2.1), if the discipline hearing was conducted following the cancellation of an administrative penalty under

section 57 (4) (a.1) [administrative penalties] , the sum of the discipline penalty and any additional penalty for a contravention must not be more than the highest amount of the administrative penalty indicated in the notice of administrative penalty for the contravention.

An order under subsection (2) may provide that,

if the licensee fails to comply with the order, or

if the licensee fails to comply with one or more specified restrictions or conditions of the licensee's licence,

the superintendent may suspend or cancel the licence under subsection (4).

If the licensee fails to comply as specified by a provision under subsection (3), the superintendent may, by order, suspend or cancel the licensee's licence, as applicable, without the need for giving the licensee further notice or the opportunity to be heard.

The superintendent may, by order, on the application of or with the consent of the licensee subject to the order, vary or rescind an order made under this section.

For the purposes of this section, contravention means

an act or omission that is the subject of a determination under subsection (1) (a).

Enforcement expenses and discipline penalties

The superintendent may, by an order under

section 43 (2) (h) [recovery of enforcement expenses] , require the licensee to pay the expenses, or part of the expenses, incurred by the Authority in relation to either or both of the investigation and the discipline hearing to which the order relates.

Amounts ordered as referred to in subsection

(1) must not exceed the applicable prescribed limit in relation to the type of expenses to which they relate, and

may include the remuneration expenses incurred in relation to employees, officers or agents of the Authority engaged in the investigation or discipline hearing.

Money received by the Authority on account of a discipline penalty under

section 43 (2) (

i) or, subject to the regulations, an additional penalty under

section 43 (2) (

j) may be expended by the Authority only for the purpose of educating the public, and licensees and other participants in the real estate industry in British Columbia, about

the operation and regulation of the industry, and

issues related to real estate and real estate services.

An amount ordered to be paid under

section 43 (2) (h), (

i) or (

j) is a debt owing to the Authority and may be recovered as such.

Orders in urgent circumstances relating to licensees

The superintendent may act under this

section if

the superintendent believes on reasonable grounds that there has been conduct in respect of which the superintendent could make an order under

section 43 [discipline orders] against a licensee, and

the superintendent considers that

the length of time that would be required to complete an investigation or hold a discipline hearing, or both, in order to make such an order would be detrimental to the public interest, and

it is in the public interest to make an order under this

section against the licensee.

If the circumstances referred to in subsection (1) apply, the superintendent may, by order, do one or more of the following:

suspend the licensee's licence;

impose restrictions or conditions on the licensee's licence or vary any restrictions or conditions applicable to the licence;

require the licensee to cease or to carry out any specified activity related to the licensee's real estate business.

Despite any other provision of this Division, the superintendent may make an order under subsection

(2) whether or not notice of a discipline hearing has been issued under

section 40 [notice of discipline hearing] ,

without giving notice to the licensee, and

without providing the licensee an opportunity to be heard.

The superintendent may, by order,

on the superintendent's own initiative, rescind an order under this section, or

on the application of or with the consent of the licensee subject to the order, vary or rescind an order made under this section.

Promptly after an order under subsection (2) is made, the superintendent must give to the licensee

a copy of the order and written reasons for it, and

written notice that a discipline hearing may be held respecting the matter.

Without affecting the authority of the superintendent to initiate a discipline hearing, a licensee who is the subject of an order under subsection (2) may require a discipline hearing to be held by delivering written notice to the superintendent.

Within a reasonable time after receiving a written notice under subsection (6), the superintendent must issue a notice under

section 40 [notice of discipline hearing] , subject to the difference that the time for issuing the notice is at least 14 days before the time set for the discipline hearing, rather than 21 days, unless the licensee agrees to a shorter period.

After a discipline hearing respecting a licensee who is subject to an order under this section, the superintendent must

rescind the order under this

section and make an order under

section 43 [discipline orders] , if the superintendent determines that the licensee has committed professional misconduct or conduct unbecoming a licensee, or

in any other case, rescind the order under this section.

Orders to freeze property

The superintendent may make an order under this

section if the superintendent believes on reasonable grounds that a licensee has contravened this Act, the regulations or the rules in a way that is contrary to the public interest.

If subsection (1) applies, the superintendent may, by order directed to the licensee, do either or both of the following:

prohibit the licensee from withdrawing any of the licensee's property, or any of it identified in the order, from the possession of another person named in the order who has the property on deposit, under control or for safekeeping;

require the licensee to hold all property, or any of it identified in the order, that is in the licensee's possession or control in trust for

a receiver or receiver manager who has been appointed, or whose appointment has been or is to be applied for, under

section 59 [court order for appointment of receiver] , or

a custodian, trustee, receiver manager, receiver or liquidator who has been appointed, or whose appointment has been applied for, under any other enactment.

If subsection (1) applies, the superintendent may, by order, require a person having in British Columbia, on deposit, under control or for safekeeping, any property of the licensee to hold all of that property, or any of it identified in the order.

An order under this

section may be made without advance notice to a person affected by the order but, promptly after making the order, the superintendent must give a copy of the order to the person to whom it is directed.

The superintendent may, by order, vary or rescind an order under this

section on the superintendent's own initiative or on the application of a person affected by the order.

Property affected by an order under this

section continues to be affected by the order and remains frozen as provided in the order until the property is released under subsection (5) or is dealt with in accordance with a court order.

If a savings institution is the holder of property described in subsection (3), the order applies only to the offices, branches or agencies of the savings institution that are specified in the order.

a person to whom an order under subsection (3) is directed is uncertain respecting the application of the order to any property, or

a claim is made to the property by a person not named in the order,

the person may, on giving notice to the superintendent, apply to the Supreme Court for an order under subsection (9).

On an application under subsection (8), the court may order the disposition of the property as it considers appropriate.

Publication of orders

As soon as practicable, the superintendent must, subject to the regulations, publish a copy of each order made under this Division.

The superintendent must provide a copy of an order required to be published under subsection (1) to any person requesting the copy, on payment of the prescribed fee.

Investigations and Proceedings Relating to Unlicensed Activity

Investigations, hearings and other authority relating to unlicensed persons

The superintendent may conduct an investigation to determine whether an unlicensed person has

engaged in any activity for which a licence under this Act is required, or

failed to comply with an undertaking that the unlicensed person gave under

section 53.1.

The superintendent may issue a notice of hearing and conduct a hearing following an investigation under subsection (1) or the cancellation of an administrative penalty under

section 57 (4) (a.1) [administrative penalties] .

[Repealed 2021-2-72.]

The following provisions of this Part apply to the superintendent acting under this Division in relation to an unlicensed person as if the superintendent were exercising authority under the applicable provision in relation to a licensee:

section 37 (3) and (4) [investigations of licensees] ;

subject to subsection (5) of this section,

section 38 [order by justice for search and seizure] ;

section 40 (2) and (3) [notice of discipline hearing] , in relation to notices of hearing issued by the superintendent under subsection (2) of this section;

section 41 [consent orders] , in relation to orders that the superintendent may make under

section 49 [orders respecting unlicensed activity] ;

section 42 [discipline hearings] , in relation to hearings conducted by the superintendent under subsection (2) of this section;

section 46 [orders to freeze property] .

For the purposes of subsection (4) (b),

section 38 applies if there are reasonable grounds to believe that an unlicensed person has engaged in any activity for which a licence under this Act is required.

Orders respecting unlicensed activity

This

section applies if, after a hearing under

section 48 (2) [superintendent hearings] , the superintendent determines that the person subject to the hearing

did not hold a licence under this Act at a time when the person was engaged in any activity for which such a licence was required, or

failed to comply with an undertaking that the person gave under

section 53.1.

The superintendent may, by order, do one or more of the following with respect to a person referred to in subsection (1):

require the person to cease the activity referred to in subsection (1) (a);

require the person to carry out specified actions that the superintendent considers necessary to remedy the situation;

subject to subsection (2.01), require the person to pay the expenses, or part of the expenses, incurred by the Authority in relation to either or both of the investigation and the hearing to which the order relates;

require the person to pay a penalty in an amount of

not more than $500 000, in the case of a corporation or partnership, or

not more than $250 000, in the case of an individual;

require the person to pay an additional penalty up to the amount of the remuneration accepted by the person for the real estate services in respect of which the contravention occurred.

2.01

Amounts required to be paid under subsection (2) (

c) must not exceed the applicable prescribed limit in relation to the type of expenses to which they relate, and

may include the remuneration expenses incurred in relation to employees, officers or agents of the Authority engaged in the investigation or hearing.

2.1

A penalty imposed under subsection (2) (

d) may be imposed for each contravention.

2.2

Despite subsections (2) (

d) and (

e) and (2.1), if the hearing was conducted following the cancellation of an administrative penalty under

section 57 (4) (a.1) [administrative penalties] , the sum of the penalty and any additional penalty for a contravention must not be more than the highest amount of the administrative penalty indicated in the notice of administrative penalty for the contravention.

2.3

Money received by the Authority on account of a penalty under subsection (2) (

d) or, subject to the regulations, an additional penalty under subsection (2) (

e) may be expended by the Authority only for the purpose referred to in

section 44 (3).

2.4

An amount ordered to be paid under subsection (2) (c), (

d) or (

e) is a debt owing to the Authority and may be recovered as such.

The superintendent may, by order, on the application of or with the consent of the person subject to the order, vary or rescind an order made under this section.

For the purposes of this section, contravention means

an act or omission that is the subject of a determination under subsection (1).

Repealed

[Repealed 2021-2-74.]

Orders in urgent circumstances relating to unlicensed persons

The superintendent may act under this

section if the superintendent considers that

there has been conduct in respect of which the superintendent could make an order under

section 49 [orders respecting unlicensed activity] , and

the length of time that would be required to complete an investigation or hold a hearing, or both, in order to make such an order would be detrimental to the public interest.

If the circumstances referred to in subsection (1) apply, the superintendent may make an order referred to in

section 49 (2) (

a) or (b) [orders respecting unlicensed activity] .

2.1

Despite any other provision of this Division, the superintendent may make an order referred to in subsection

(2) whether or not a notice of hearing has been issued under

section 48 [superintendent hearings] ,

without giving notice to the unlicensed person, and

without providing the unlicensed person an opportunity to be heard.

The following provisions apply to the superintendent acting under this

section in relation to an unlicensed person as if the superintendent were exercising authority under

section 45 [orders in urgent circumstances] in relation to a licensee:

section 45 (4), (5) and (8), in relation to orders made under subsection (2) of this section;

section 45 (6), in relation to hearings under

section 48 (2) [superintendent hearings] ;

section 45 (7), in relation to notices under

section 48 (2).

Court filing of superintendent's orders

If the superintendent considers that a person has failed to comply with an order of the superintendent under this Division, the superintendent may file a certified copy of the order with the Supreme Court.

An order filed under subsection (1) has the same force and effect, and all proceedings may be taken on it, as if it were an order of the Supreme Court.

Publication of regulatory action

As soon as practicable, the superintendent must, subject to the regulations, publish each order made by the superintendent under this Division.

The superintendent must provide a copy of an order required to be published under subsection (1) to any person requesting the copy, on payment of the prescribed fee.

3.1

Undertakings by Licensees and Unlicensed Persons

Undertakings

53.1

This

section applies to a licensee or an unlicensed person if the superintendent has reason to believe that

the licensee or the unlicensed person has contravened this Act, the regulations or the rules, or

the licensee has

breached a restriction or condition of the licence, or

done anything that constitutes wrongful taking or deceptive dealing.

In the circumstances referred to in subsection (1), the superintendent may, with or without an investigation or a hearing under this Part,

give notice to the licensee or the unlicensed person of the superintendent's reason for believing that this

section applies to the licensee or the unlicensed person, and

accept a written undertaking from the licensee or the unlicensed person to do one or more of the following:

comply with terms or conditions set by the superintendent, which may include a condition that the licensee or the unlicensed person pay the expenses, or part of the expenses, incurred by the Authority in relation to the undertaking;

do anything that the licensee or the unlicensed person is required to do under this Act;

iii

cease or refrain from doing anything that the licensee or the unlicensed person is prohibited from doing under this Act.

Expenses assessed under subsection (2) (b) (

i) must be for the matters, and must not exceed the amounts, set out in the regulations, and

may include remuneration expenses for employees, officers or agents of the Authority engaged in matters related to the undertaking.

An undertaking given by a licensee or an unlicensed person under this

section is binding on the licensee or unlicensed person.

Appeals to Financial Services Tribunal

Appeals

Appeals to the financial services tribunal may be made as follows:

the applicant may appeal a refusal to issue a licence;

the licensee affected may appeal the imposition of restrictions and conditions on a licence under

section 15 (2) (a) [conditions and restrictions in relation to a specific licence — issuance or renewal] ;

the licensee affected may appeal the cancellation or suspension of a licence under

section 24 [cancellation or suspension if qualifications not met] ;

[Repealed 2021-2-78.]

the person subject to the order may appeal an order of the superintendent under Division 2 [Discipline Proceedings Relating to Licensees] or Division 3 [Investigations and Proceedings Relating to Unlicensed Activity] of this Part.

2) and (3

[Repealed 2021-2-78.]

Sections 242.2 [practice and procedure] and 242.3 [judicial review] of the Financial Institutions Act apply in relation to an appeal under this section.

Repealed

[Repealed 2021-2-79.]

Administrative Penalties

Designated contraventions and penalty amounts

The Authority may, by rule,

designate contraventions of specified provisions of this Act, the regulations or the rules as being subject to administrative penalties under this Division, and

establish the amount, or range of amounts, of administrative penalty that may be imposed in respect of each contravention of a specified provision of this Act, the regulations or the rules, which may be

different for different levels or categories of licence,

different for first and subsequent contraventions, and

iii

different depending on whether the administrative penalty is paid

no more than 30 days after the date the notice of the administrative penalty is served or delivered under

section 57 (3),

more than 30 days after the date of service or delivery,

no more than 30 days after the date the opportunity to be heard is provided under

section 57 (4), or

more than 30 days after the date of the opportunity to be heard.

The maximum amount of administrative penalty that may be established under subsection (1) is $100 000.

Superintendent may impose administrative penalties

If the superintendent is satisfied that a person has contravened a provision of this Act, the regulations or the rules that has been designated under

section 56 (1) (a) [designated contraventions] , the superintendent may issue a notice imposing on the person an administrative penalty that consists of one or more of the following:

an amount permitted by the rules;

a requirement to complete a specified course of studies or training;

if the person is a licensee, restrictions or conditions on the licence.

The notice under subsection (1) must do the following:

indicate the provision of this Act, the regulations or the rules that has been contravened;

indicate the administrative penalty that is imposed;

advise the person of the person's right to be heard respecting the matter;

advise the person that, if the person does not, within 30 days or a longer period allowed by the superintendent, request such an opportunity to be heard,

the person is deemed to have acknowledged contravening the provision of this Act, the regulations or the rules, and

the administrative penalty becomes due and payable to the Authority.

Notice under subsection (1) must be given as follows:

in the case of notice to a current licensee, by personal service or by delivery in accordance with the rules;

in the case of notice to a former licensee or other person, by personal service;

as an alternative in any case, in accordance with an order under

section 125 [substituted service] .

The superintendent must provide the person with an opportunity to be heard if this is requested and, following the opportunity, may

cancel the administrative penalty,

a.1

cancel the administrative penalty and issue a notice to the person under

section 40 (1) [discipline hearing] or 48 (2) [hearing relating to unlicensed person] if the superintendent is satisfied that issuing the notice is more appropriate than imposing the administrative penalty, or

confirm the administrative penalty, in which case it becomes due and payable to the Authority.

The amount of an administrative penalty imposed under this

section is a debt owing to the Authority and may be recovered as such.

Money received by the Authority on account of administrative penalties under this

section may be expended by the Authority only for an educational purpose referred to in

section 44 (3) [use of discipline penalty money] .

If an administrative penalty has been imposed under this section,

no further proceedings may be taken under this

Part in respect of the matter, other than to enforce the terms of the penalty, and

without the consent of the person, the fact that the penalty has been imposed may not be used

in any proceeding under this Act with respect to the matter, other than as referred to in paragraph (a), or

in any civil proceeding with respect to the matter.

Publication

57.1

Subject to the regulations, the superintendent may publish a copy of

each notice of administrative penalty issued under

section 57 (1), and

each decision made under

section 57 (4) to confirm or cancel an administrative penalty.

The superintendent must provide a copy of a notice or a decision published under subsection (1) to any person requesting the copy, on payment of the prescribed fee.

Applications to Court

Application for injunction

The superintendent may apply to the Supreme Court for an injunction restraining a person from contravening, or requiring a person to comply with,

this Act, the regulations or the rules, or

an order of the superintendent under this Part.

The court may grant an injunction sought under subsection (1) if the court is satisfied that there is reason to believe there has been or will be a contravention of this Act, the regulations, the rules or an order referred to in that subsection.

The court may grant an interim injunction until the outcome of an application under subsection (1).

Court order for appointment of receiver

If the superintendent makes an order under

section 43 [discipline orders] or 45 [orders in urgent circumstances relating to licensees] cancelling or suspending a licence, the superintendent may apply to the Supreme Court for the appointment of a receiver or receiver manager of all or any part of the property of the licensee.

On an application under subsection (1), if the court is satisfied that the appointment of a receiver or receiver manager is in the best interests of

the creditors of the licensee,

persons from, for or on whose behalf the licensee has received money or other property in respect of real estate services, or

other persons, any of whose property is in the possession or under the control of the licensee,

the court may, by order, appoint a receiver or receiver manager of all or any part of the property of that licensee.

An application under subsection (1) may be made without notice to any other person, in which case the court may make a temporary order under subsection (2) appointing a receiver or receiver manager for a period not longer than 15 days.

A receiver or receiver manager appointed under this

section

is the receiver or receiver manager of all or any part of the property that is subject to the court order, and

if authorized by the court, may wind up or manage the business and affairs of the licensee and exercise powers necessary or incidental to the winding up or management.

Payments from Special Compensation Fund

Compensable Loss

Definitions

For the purposes of this Part:

claim means a claim under

section 61 [claim for compensation] ;

compensable loss means loss suffered by a person in relation to real estate services that is the amount of money that

was held or received by

a licensee,

an officer, director, controlling shareholder or partner of the responsible brokerage,

iii

an employee of the licensee, of the responsible brokerage or of another related licensee of that brokerage, or

a person acting in an independent contractor relationship with the licensee, with the responsible brokerage or with a related licensee of that brokerage,

from, for or on behalf of a principal in relation to real estate services, including any amount that is or is intended to be remuneration to a licensee, and

was, as applicable,

misappropriated or wrongfully converted by a person referred to in paragraph (a) (

i) to (iv),

intentionally not paid over or accounted for, by a person referred to in paragraph (a) (

i) to (iv), to the person entitled to the money, or

iii

obtained by the fraud of a person referred to in paragraph (a) (

i) to (iv),

but does not include loss that

is claimed by a licensee or former licensee as remuneration to the licensee or former licensee,

was caused by conduct that occurred before

section 61 (1) [claim for compensation] came into force,

was caused by conduct of a licensee acting under an exemption provided by

Part 9 of the rules, or

is prescribed;

final means,

in relation to a court decision, a court decision that has become final because of the lapse of time for being appealed or because it is a decision of the highest court to which the initial decision was appealed, and

in relation to an order or determination under

Part 4 [Discipline Proceedings and Other Regulatory Enforcement] , an order or determination that has become final because of the lapse of time for appeal or because it was made or confirmed on appeal under this Act;

licensee includes a former licensee in relation to matters that occurred while the person was a licensee;

responsible brokerage means, in relation to a compensable loss, the brokerage that

held or received, or

under

section 27 [payment into trust account] , should have held or received,

the money referred to in the definition of "compensable loss".

Claim for compensation

In order to make a claim for compensation from the special compensation fund, a person must apply in writing to the superintendent within the time limit established by subsection (2), including

particulars of the conduct on which the claim of compensable loss is based,

if the person is relying on a court decision, a copy of the decision, and

any other information required by the superintendent.

The time limit for making a claim is 2 years after the earliest of the following:

the date on which the person making the claim became aware that the compensable loss occurred;

if the licence of the responsible brokerage was cancelled or suspended by an order under

section 45 (2) (a) [orders in urgent circumstances relating to licensees] at any time after the conduct that caused the compensable loss, the date of that cancellation or suspension;

the date the superintendent publishes a notice, in accordance with the regulations, that compensable loss may have occurred.

Multiple claims against licensee

[Repealed 2021-2-87.]

If more than one claim has been made in relation to a licensee, the superintendent may consider the claims together.

Superintendent may conduct, postpone or decline hearing

If a claim is made, the superintendent must consider the claim and may, at this stage,

conduct a hearing to determine whether the person making the claim suffered a compensable loss and, if applicable, assess the amount of that loss,

decline to make such a determination or assessment, or both, on the basis that the superintendent considers the matter would more effectively be dealt with by a court proceeding, or

postpone conducting a hearing pending the conclusion of a discipline hearing or court proceeding.

For the purposes of a compensation hearing, sections 34 (3) and (4) [power to compel witnesses and order disclosure] , 48 [maintenance of order at hearings] and 49 [contempt proceeding for uncooperative witness or other person] of the Administrative Tribunals Act apply to the superintendent.

The superintendent may, at any point during a hearing under subsection (1) (a), decline to make the determination or assessment, or both, on the basis that the superintendent considers the matter would more effectively be dealt with by a court proceeding.

If the superintendent declines to make a determination or assessment under subsection (1) (

b) or (3) and a court subsequently makes the determination or assessment, or both, the claim must be reconsidered by the superintendent.

Certification of compensable loss

If the superintendent has

determined that the person making a claim suffered a compensable loss, and

assessed the amount of that compensable loss,

the superintendent must issue a certificate specifying the amount of the compensable loss.

Relationship with other proceedings

If a matter that is the subject of a claim has also been the subject of a court proceeding in British Columbia, a final decision of the court that

makes a finding on evidence that a person has suffered a compensable loss within the meaning of this Act,

assesses the amount of a compensable loss within the meaning of this Act, or

makes both such a finding and such an assessment,

is binding on the superintendent dealing with the matter.

For certainty, subsection (1) does not apply in relation to a default judgment or a judgment by consent.

If a matter that is the subject of a claim has also been the subject of a final order under

section 43 [discipline orders] , a decision by the superintendent that makes a finding on evidence that

the licensee committed wrongful taking, or

the licensee committed wrongful taking in relation to the person making the claim

is binding on the superintendent in relation to the superintendent's determination of whether there has been compensable loss.

For certainty, subsection (3) does not apply in relation to an order of the superintendent under

section 41 [consent orders] or 48 (4) (c) [application of

section 41 in relation to unlicensed activity] .

A determination by the superintendent that a licensee has caused compensable loss is not, for the purposes of

Part 4 [Discipline Proceedings and Other Regulatory Enforcement] , a determination that the licensee has committed wrongful taking.

Notice of court and discipline proceedings

A person who has made a claim must provide written notice to the superintendent of any court proceeding in relation to the conduct that is the subject of the claim

in which the person is a party, or

of which the person is aware.

A licensee who receives

notice of the commencement of any action or other court proceeding that could result in a decision referred to in

section 65 (1) [court proceedings] , or

a notice under

Part 4 [Discipline Proceedings and Other Regulatory Enforcement] that could result in a decision referred to in

section 65 (3) [discipline or superintendent proceedings] ,

must immediately provide written notice to the superintendent and the compensation fund corporation of the commencement or notice and of the particulars of the matter.

Corporation may participate in court and discipline proceedings

The compensation fund corporation is entitled to become a party to an action or other proceeding that may result in

a decision referred to in

section 65 (1) [court proceedings] , or

a decision referred to in

section 65 (3) [discipline or superintendent proceedings] .

Compensation Payments

Compensation to be paid based on certificate

Subject to this Division, if

the superintendent has issued a certificate under

section 64 [certificate of compensable loss] in respect of a claim by a person, and

the person delivers the certificate to the compensation fund corporation,

the compensation fund corporation must pay the person the amount of the compensable loss specified in the certificate, less any portion of that amount that has been previously recovered by the person entitled to it or for which that person has otherwise been previously compensated.

Maximum compensation to any one claimant

The maximum amount that may be paid to a single claimant

in relation to a claim that is made in respect of a single event of misappropriation, wrongful conversion, failure to pay over, failure to account for money or obtaining money by fraud, or

in relation to one or more claims that are made in respect of a single responsible brokerage, where the claims relate to conduct that is a course of dealing involving more than one such event,

is the prescribed amount.

Maximum compensation

This

section applies to compensable loss if

the superintendent publishes a notice under

section 61 (2) (c) [claim for compensation] in relation to a responsible brokerage;

the licence of a responsible brokerage is suspended by an order under

section 45 (2) (a) [orders in urgent circumstances relating to licensees] ;

the licence of a responsible brokerage is cancelled.

1.1

The maximum total amount that may be paid in respect of claims relating to the responsible brokerage, after the date one of the events referred to in subsection (1) (a), (

b) or (

c) occurs, is the prescribed amount.

Subsection (1.1) applies to all claims relating to the responsible brokerage for which compensation from the special compensation fund has not been paid on or before the date of the publication, suspension or cancellation, regardless of whether the claims were made under

section 61 [claim for compensation] before or after the publication, suspension or cancellation.

If the compensation fund corporation considers that the maximum under subsection (1) may apply to restrict payment of claims in relation to a responsible brokerage,

the corporation may

postpone payment in relation to one or more claims, or

pay only a portion of the amount of compensable loss in relation to one or more of the claims

until the application of the maximum is determined, and

if the maximum does apply, the corporation must prorate payments between the eligible claimants.

Rights of corporation in respect of claim

On making a payment under

section 68 [payments from fund] , regardless of whether it is a payment of all or only part of the loss suffered by the person claiming the compensable loss, the compensation fund corporation is subrogated for the amount paid to all rights of recovery of that person as against any other person.

The compensation fund corporation may commence or maintain an action in respect of the rights referred to in subsection (1) in its own name or in the name of the person claiming the compensable loss.

Claimant to repay fund if alternative compensation received

a payment is made to a person under

section 68 [compensation to be paid based on certificate] ,

the person receives compensation from some other source in relation to the compensable loss, and

the sum of the payment referred to in paragraph (

a) and all compensation to which paragraph (

b) applies is greater than the amount of the compensable loss, as assessed under

section 64 (b) [certification of compensable loss] ,

the person must pay to the compensation fund corporation the lesser of the following 2 amounts:

the sum of the payment referred to in paragraph (

a) and all compensation to which paragraph (

b) applies minus the amount of the compensable loss;

the amount of the payment referred to in paragraph (a).

If the person fails to pay the compensation fund corporation as required by subsection (1), the corporation has a cause of action against the person for the amount unpaid.

Payments to Complete Trades or Prevent Loss

Direction to pay to complete trade or prevent loss

72.1

This

section applies whether or not a claim has been made under

section 61.

The superintendent must not act under this

section unless the superintendent is satisfied that

a person has suffered a compensable loss,

money is required to

complete a trade in real estate in which the person is involved, or

prevent further significant compensable loss to the person,

it would be in the public interest to use money from the special compensation fund to complete the trade or prevent the loss, and

if the person makes a claim for compensation under Division 1,

section 70 [maximum compensation] is not likely to apply in respect of the claim.

If the superintendent is satisfied of the matters set out in subsection (2), the superintendent may

determine the amount of money required for the purposes of subsection (2) (b), and

subject to subsection (4), direct the compensation fund corporation to pay the amount referred to in paragraph (

a) to

a receiver or receiver manager appointed under

section 59 [court order for appointment of receiver] , or

if there is no appointment under

section 59, the Authority.

A direction under subsection (3) (

b) must not be made

without the consent of

the person referred to in subsection (2) (a), and

the chair of the compensation fund corporation, or a person acting in the place of the chair, and

until the superintendent has fulfilled any prescribed requirement.

Payment to complete trade or prevent loss

72.2

Subject to subsection (2), if the compensation fund corporation receives a direction under

section 72.1 [direction to pay to complete trade or prevent loss] to pay an amount, the compensation fund corporation must pay the amount to the person specified in the direction.

The maximum amount that may be paid under subsection (1) in respect of a single trade in real estate is the prescribed amount.

The person who receives money under this

section may use the money only for the benefit of the person referred to in

section 72.1 (2) (a), and only for a purpose described in

section 72.1 (2) (b).

Rights of corporation

72.3

On making a payment under

section 72.2 [payment to complete trade or prevent loss] , regardless of whether it is a payment of all or part of the loss suffered by the person referred to in

section 72.1 (2) (a), the compensation fund corporation is subrogated to all rights of recovery of that person as against any other person, for the amount paid less any amount re-paid, or that must be re-paid, under

section 72.4 (1).

The compensation fund corporation may commence or maintain an action in respect of the rights referred to in subsection (1) in its own name or in the name of the person referred to in

section 72.1 (2) (a).

Repayment to fund

72.4

a receiver or receiver manager, or the Authority, receives money under

section 72.2 [payment to complete trade or prevent loss] , and

all or part of the money is not required for the purposes described in

section 72.1 (2) (b),

the receiver, receiver manager or Authority must pay the amount that is not required to the compensation fund corporation.

If a person referred to in

section 72.1 (2) (

a) benefits from money paid under

section 72.2 and afterwards receives compensation from some other source in relation to the compensable loss referred to in

section 72.1 (2) (a), the person must pay to the compensation fund corporation money equal to

the amount of the benefit, if the value of the compensation received from the other source is equal to or greater than that amount, or

the value of the compensation received from the other source, if it is less than the amount of the benefit.

If a person fails to pay the compensation fund corporation as required by subsection (1) or (2), the corporation has a cause of action against the person for the amount unpaid.

Repealed

73-74

[Repealed 2021-2-96.]

Repealed

74.1

[Repealed 2016-27-28.]

Repealed

[Repealed 2021-2-96.]

Repealed

76-77

[Repealed 2016-27-28.]

Repealed

78-85.1

[Repealed 2021-2-96.]

Repealed

[Repealed 2016-27-34.]

Repealed

87-89

[Repealed 2021-2-96.]

6.1

BC Financial Services Authority

Repealed

89.1

[Repealed 2021-2-98.]

Rules of the Authority

89.2

Subject to

section 89.4, the Authority may make rules that the Authority considers necessary or advisable

respecting licensing, or

regulating licensees in relation to the provision of real estate services.

Without limiting subsection (1) but subject to

section 89.4, the Authority may make rules as follows:

respecting licences and the issuing of licences, including rules

establishing, within a licence level, different categories of licence that are restricted to particular real estate services as identified by the rules,

respecting the term of licences,

iii

respecting the education, experience or other qualifications for a person to obtain or renew a licence, including rules conferring discretion to determine equivalent qualifications,

respecting licensing in relation to branch offices of a brokerage, and

providing for the granting of temporary licences to personal representatives of deceased licensees, including rules conferring discretion to establish conditions and restrictions applicable to a specific temporary licence;

providing that the Act does not apply to a licensee in specified circumstances;

establishing conditions and restrictions applicable to licences;

respecting the relationships between and among brokerages and their related licensees, including rules

respecting the supervision of associate brokers and representatives by managing brokers, and

providing for a related licensee of a brokerage to act as a managing broker for the brokerage in the temporary absence of a managing broker for the brokerage;

requiring licensees to undertake continuing professional education;

establishing or adopting standards of conduct and business practice standards for licensees, including rules

respecting the keeping and operation of trust accounts by licensees,

regulating the operation of offices by licensees,

iii

respecting the use of business names by licensees,

respecting the form and content of advertising carried out by licensees,

establishing or providing for the establishment of standard forms for use in providing real estate services, and requiring their use by licensees, and

respecting the making of disclosures by licensees in relation to the provision of real estate services;

requiring licensees to

provide reports, returns and other information to the superintendent, and

allow the inspection and auditing of their books of account and other records by the superintendent;

requiring licensees to acquire, maintain or provide a bond or other form of security and, in relation to this,

respecting the forfeiture of the security and the payment of claims against the security;

respecting any other matter for which rules are contemplated by this Act, including the designation of contraventions for the purposes of

section 56 [designated contraventions and penalty amounts] ;

respecting any other matters provided in the regulations.

Without limiting subsection (1) or (2) but subject to

section 89.4, the Authority may make rules as follows:

providing for the payment of expenses, by an applicant, of hearings conducted by the superintendent to determine whether the applicant is qualified to be licensed;

establishing conditions and restrictions applicable to brokerages respecting the involvement of the following individuals in the brokerage's operations:

a partner, or a director, officer or shareholder of a corporation that is a partner, in the case of a brokerage that is a partnership;

a director, officer or shareholder of the corporation, in the case of a brokerage that is a corporation;

iii

a sole proprietor, in the case of a sole proprietorship;

establishing a code of ethics for licensees;

establishing or providing for the establishment of standard terms to be included in proposed contracts or forms prepared by licensees for consideration by a party to whom or on whose behalf a licensee is providing real estate services;

respecting the provision of real estate services to more than one party, including conditions and restrictions applicable to the provision of trading services to or on behalf of different parties to a trade in real estate;

respecting agreements for the payment of remuneration to licensees, including information that must be included in agreements, and establishing conditions and restrictions for payment of the remuneration;

requiring the making of disclosures or the provision of other information by licensees to parties to trades in real estate who are not represented by a licensee;

implementing a registry of information respecting real estate sales data obtained from licensees;

establishing conditions and restrictions on a licensee acquiring an interest in real estate if the licensee, or a related licensee, is providing real estate services in respect of that real estate;

respecting the winding up of a brokerage or the transfer of the business of a brokerage, including requiring the appointment of a managing broker or other person to direct the winding up or transfer.

The Authority may make different rules under this

section in relation to

different levels of licences,

different categories of licences, and

different circumstances as described in the rules.

The Authority may make different rules under subsection (2) (

a) respecting the issuing of licences, the renewal of licences, the amendment of licences and the reinstatement of licences.

The Lieutenant Governor in Council may, by regulation,

make a rule or repeal or amend a rule made by the Authority under this section, and

specify powers of the Lieutenant Governor in Council to make regulations under this Act and authorize the Authority to make rules under those specified powers.

A regulation made under subsection (6) (

a) is deemed to be a rule made by the Authority.

[Repealed 2022-27-103.]

Repealed

89.3

[Repealed 2021-2-100.]

Procedures for rules

89.4

Before making, amending or repealing a rule, the Authority must do the following:

publish the proposed rule for public comment in accordance with the regulations unless the regulations provide otherwise;

obtain the consent of the minister in accordance with the regulations;

comply with any other prescribed procedures and requirements.

Regulation prevails over rule

89.5

If a rule made by the Authority conflicts with a regulation made by the Lieutenant Governor in Council, the regulation prevails.

Transition — Authority rules

89.6

The Authority may make a rule without complying with

section 89.4 (

a) if, in the Authority's opinion, the rule does not change in a material way

a rule made by the Authority under

section 89.2, or

a rule made by the superintendent under

section 89.2, as that

section read immediately before the coming into force of

section 99 of the Finance Statutes Amendment Act, 2021 .

This

section is repealed 3 years after the date it comes into force.

Foundation, Insurance and Compensation Corporations

Real Estate Foundation

Foundation continued

The Real Estate Foundation continued under the Real Estate Act , R.S.B.C. 1996, c. 397, is continued under this Act under the name "Real Estate Foundation of British Columbia".

The foundation is a corporation consisting of the members of its board of governors.

The foundation may acquire and dispose of real and personal property for its purposes.

Subject to subsection (5), the Business Corporations Act does not apply to the foundation.

The Lieutenant Governor in Council may, by order, direct that one or more provisions of the Business Corporations Act apply to the foundation.

Foundation board of governors

The board of governors of the foundation consists of the following individuals:

one member appointed by the Lieutenant Governor in Council;

one member appointed by the British Columbia Real Estate Association;

one member appointed by the Real Estate Institute of British Columbia;

one member, not licensed under this Act, appointed by the minister;

d.1

one or 2 members, appointed in accordance with the regulations, if any;

one member appointed by the British Columbia Non-Profit Housing Association.

Subject to this section, the term of office for an appointed member of the foundation board of governors is 3 years or until a successor is appointed.

The body or person who appointed a member under subsection (1) may revoke the appointment at any time during the member's term of office.

An appointed member may not serve for more than 6 consecutive years but may, after at least one year of not being a member, be reappointed for further terms subject to this same restriction.

If an appointed member

dies, resigns or is incapable of performing the member's duties under this Act, or

ceases to hold office under subsection (6),

the body or person who appointed the member may appoint another individual as member, to hold office for the balance of the term that applied to the member previously appointed to the office.

An appointed member ceases to hold office

if the member becomes bankrupt, or

the member contravenes a provision of this Act, the regulations or the rules, or a provision of another provincial or federal enactment, and

a majority of the other members consider that the matter is sufficiently serious to justify the member's removal.

Administration of foundation

The foundation board of governors is responsible for administering the foundation.

The members of the foundation board of governors must elect one of their number to be chair.

The continuing members of the foundation board of governors may act even if there is a vacancy on the board.

An act of the foundation or foundation board of governors is not invalid because of a defect that is afterwards discovered in the appointment of one or more members of the board.

Purposes of the foundation

The purposes of the foundation are

to undertake and carry out real estate public and professional education, real estate law reform, real estate research and other projects intended for the public or professional good in relation to real estate activities.

[Repealed 2023-5-2.]

[Repealed 2023-5-2.]

Foundation fund

The fund established by the foundation under the Real Estate Act , R.S.B.C. 1996, c. 397, is continued, to be maintained and used for the purposes of the foundation.

Unless invested under

section 96 [investment] ,

all money received by the foundation from or on behalf of brokerages under

section 29 [interest on trust accounts] ,

other money received by the foundation, and

any interest or other income received by the foundation from investment of the money referred to in paragraphs (

a) and (

b) must be deposited to the credit of the foundation fund in a savings institution in British Columbia.

For the purposes of this Division, the foundation is entitled to have access to information, kept by the Authority under this Act, about any of the following:

a brokerage starting operations at a head office or branch office;

a brokerage ending operations at a head office or branch office;

the location and contact information for each head office or branch office of each brokerage.

Amounts that may be paid from foundation fund

The foundation board of governors may authorize payment out of the foundation fund

for the purposes of the foundation, or

to administer the fund, including expenses incurred by the foundation board of governors in carrying out the purposes of the foundation and remuneration paid to members of the board.

Investment of foundation money

The foundation may invest any part of the foundation fund, not presently required for disposition, as permitted under the provisions of the Trustee Act respecting the investment of trust property by a trustee.

Audit of foundation accounts

The accounts of the foundation must be audited annually by a person appointed by the foundation board of governors who is authorized to be an auditor of a company under sections 205 and 206 of the Business Corporations Act .

Annual report

Not later than 3 months after the end of its fiscal year, the foundation must prepare a report for that previous fiscal year which includes

an audited financial statement summarizing the income and expenditures of the foundation, and

any other information that the foundation board of governors considers relevant or necessary or that the minister requires.

As soon as practicable after preparing the report, the foundation must

publish the report, and

provide a copy to the minister, the superintendent, the British Columbia Real Estate Association and the Real Estate Institute of British Columbia.

The foundation must provide a copy of the report to any person requesting the copy, on payment of any reasonable fee established by the foundation.

In addition to the report, the foundation must provide the minister with financial statements or other information concerning the foundation fund and the foundation when required to do so by the minister.

Real Estate Errors and Omissions Insurance Corporation

Insurance corporation continued

The Real Estate Errors and Omissions Insurance Corporation is continued as a corporation consisting of the members of its board of directors.

The insurance corporation may acquire and dispose of real and personal property for its purposes.

Subject to subsection (4), the Business Corporations Act does not apply to the insurance corporation.

The Lieutenant Governor in Council may, by order, direct that one or more provisions of the Business Corporations Act apply to the insurance corporation.

Board of directors

The board of directors of the insurance corporation consists of the following individuals:

one director appointed by the Lieutenant Governor in Council;

3 directors appointed by the British Columbia Real Estate Association;

3 directors appointed in accordance with the regulations, if any, by the directors appointed under paragraph (

a) or (b).

Subject to this section, the term of office for a director is 3 years or until a successor is appointed.

The body who appointed a director under subsection (1) may revoke the appointment at any time during the director's term of office.

A director may not serve for more than 6 consecutive years but may, after at least one year of not being a director, be reappointed for further terms subject to this same restriction.

If a director

dies, resigns or is incapable of performing the director's duties under this Act, or

ceases to hold office under subsection (6),

the body who appointed the director may appoint another individual as director, to hold office for the balance of the term that applied to the director previously appointed to the office.

A director ceases to hold office

if the director becomes bankrupt, or

the director contravenes a provision of this Act, the regulations or the rules, or a provision of another provincial or federal enactment, and

a majority of the other directors consider that the matter is sufficiently serious to justify the director's removal.

Administration of insurance corporation

The board of directors of the insurance corporation is responsible for administering the insurance corporation.

The directors of the insurance corporation must elect one of their number to be chair.

The continuing directors of the insurance corporation may act even if there is a vacancy on the board.

An act of the insurance corporation or board of directors of the insurance corporation is not invalid because of a defect that is afterwards discovered in the appointment of one or more directors.

Insurance arrangements and plans

For the purpose of enabling licensees to obtain indemnity against liability arising out of negligent errors or omissions in the provision of real estate services, the insurance corporation must do one or both of the following:

make arrangements for insurance for licensees against that liability;

establish, administer, maintain and operate indemnity plans to provide indemnity against that liability.

For the purposes of this Division, the insurance corporation is entitled to have access to licensing records kept by the Authority under this Act.

Insurance fund

The Real Estate Errors and Omissions Insurance Fund is continued, to be used for the purposes described in

section 102 (1) [insurance arrangements and indemnity plans] .

Unless invested under

section 106 (1) [investment] ,

the money collected under

section 104 [insurance fund assessments and deductibles] , and

any interest or other income received by the insurance corporation from the investment of that money

must be deposited to the credit of the insurance fund in a savings institution in British Columbia.

The insurance fund

is the property of the insurance corporation and is not subject to a trust in favour of a person who

claims to have suffered a compensable loss or a loss caused by a licensee or former licensee, or

has obtained judgment against a licensee or former licensee, and

may not be subject to any process of seizure or attachment by a creditor of the insurance corporation.

Insurance fund assessments and deductibles

0.1

In subsections (1) and (2), licensee includes an applicant for a licence.

The insurance corporation may

levy assessments on licensees for the purposes of the insurance fund,

levy different assessments against different classes of licensees as defined by the insurance corporation, and

Every licensee must pay to the insurance corporation, on or before the time set by the insurance corporation,

any assessment levied against the licensee under subsection (1), and

any deductible amount paid by the insurance corporation on behalf of the licensee in respect of insurance arranged under

section 102 (1) (

a) or an indemnity plan established under

section 102 (1) (b).

If a licensee has not paid an amount referred to in subsection (2) on or before the time set for payment, the licensee's licence is suspended as of the next day.

A licence that is suspended under subsection (3) is automatically reinstated as soon as the licensee pays to the insurance corporation the full amount due by the licensee, together with interest on that amount at a rate determined by the insurance corporation.

Amounts paid from fund

The insurance corporation may authorize payment out of the insurance fund for expenses incurred

for the purposes of

section 102 (1) [insurance arrangements and plans] ,

to administer the fund, including expenses incurred by the directors of the insurance corporation in carrying out the purposes of the insurance fund and remuneration paid to directors,

to investigate, adjust and settle claims,

for any other matter relating to the protection and maintenance of the fund, or

for any other prescribed matter.

The insurance corporation must, out of the insurance fund, pay fees, established by the Authority, to reimburse the Authority for expenses incurred by the superintendent to collect assessments levied under

section 104 (1) by the insurance corporation.

Investment and insurance

The insurance corporation may invest any part of the insurance fund, not presently required for disposition, as permitted under the provisions of the Trustee Act respecting the investment of trust property by a trustee.

The insurance corporation has an insurable interest in the insurance fund and in the protection of the insurance fund against loss.

Annual report

Not later than 3 months after the end of its fiscal year, the insurance corporation must prepare a report on the insurance fund and all dispositions made from it during that previous fiscal year.

As soon as practicable after preparing the report, the insurance corporation must

publish the report, and

provide a copy to the minister, the superintendent, the Superintendent of Financial Institutions and the British Columbia Real Estate Association.

The insurance corporation must provide a copy of the report to any person requesting the copy, on payment of any reasonable fee established by the insurance corporation.

In addition to the report, the insurance corporation must provide the minister or the Superintendent of Financial Institutions, as applicable, with audited financial statements or other information concerning the insurance fund and the insurance corporation when required to do so by the minister or Superintendent of Financial Institutions.

Role of the Superintendent of Financial Institutions

The Superintendent of Financial Institutions may investigate and inquire into any matter relating to the insurance fund, and sections 215 [investigation] to 216.6 [immunities on special examination or investigation] of the Financial Institutions Act apply to the investigation or inquiry.

If, after giving the insurance corporation an opportunity to be heard, the Superintendent of Financial Institutions considers that the ability of the insurance corporation to meet its present or future obligations is uncertain, the Superintendent of Financial Institutions may, by order,

impose conditions on the continued operation of the insurance corporation, or

direct that the directors of the insurance corporation cease to have control of the insurance corporation.

If an order is made under subsection (2) (b),

effective at the time the order is made,

the directors of the insurance corporation cease to hold office, and

the Superintendent of Financial Institutions becomes the sole director and member of the insurance corporation, and

while the order remains in effect, the Superintendent of Financial Institutions has the powers and duties otherwise vested in and imposed on the directors of the insurance corporation.

Real Estate Compensation Fund Corporation

Compensation fund corporation established

The Real Estate Compensation Fund Corporation is established as a corporation consisting of the members of its board of directors.

The compensation fund corporation may acquire and dispose of real and personal property for its purposes.

Subject to subsection (4), the Business Corporations Act does not apply to the compensation fund corporation.

The Lieutenant Governor in Council may, by order, direct that one or more provisions of the Business Corporations Act apply to the compensation fund corporation.

Board of directors

The board of directors of the compensation fund corporation consists of the following individuals:

3 directors appointed by the Authority;

2 directors appointed by the British Columbia Real Estate Association.

Subject to this section, the term of office for a director is 3 years or until a successor is appointed.

The body who appointed a director under subsection (1) may revoke the appointment at any time during the director's term of office.

A director may not serve for more than 6 consecutive years but may, after at least one year of not being a director, be reappointed for further terms subject to this same restriction.

If a director

dies, resigns or is incapable of performing the director's duties under this Act, or

ceases to hold office under subsection (6),

the body who appointed the director may appoint another individual as director, to hold office for the balance of the term that applied to the director previously appointed to the office.

A director ceases to hold office

if the director becomes bankrupt, or

the director contravenes a provision of this Act, the regulations or the rules, or a provision of another provincial or federal enactment, and

a majority of the other directors consider that the matter is sufficiently serious to justify the director's removal.

Administration of compensation fund corporation

The board of directors of the compensation fund corporation is responsible for administering the compensation fund corporation.

The directors of the compensation fund corporation must elect one of their number to be chair.

The continuing directors of the compensation fund corporation may act even if there is a vacancy on the board of directors.

An act of the compensation fund corporation or the board of directors of the compensation fund corporation is not invalid because of a defect that is afterwards discovered in the appointment of one or more directors.

Special compensation fund

The compensation fund corporation must establish a fund, to be known as the Real Estate Special Compensation Fund, for the purpose of providing compensation in accordance with

Part 5 [Payments from Special Compensation Fund] .

Unless invested under

section 115 (1) [investment] ,

the money collected under

section 113 [compensation fund assessments] , and

any interest or other income received by the compensation fund corporation from the investment of that money

must be deposited to the credit of the special compensation fund in a savings institution in British Columbia.

The special compensation fund

is the property of the compensation fund corporation and is not subject to a trust in favour of a person who

claims to have suffered a compensable loss or a loss caused by a licensee or former licensee, or

has obtained judgment against a licensee or former licensee, and

may not be subject to any process of seizure or attachment by a creditor of the compensation fund corporation.

Compensation fund assessments

0.1

In subsections (1) and (2), licensee includes an applicant for a licence.

The compensation fund corporation may

levy assessments on licensees for the purposes of the special compensation fund,

levy different assessments against different classes of licensees as defined by the compensation fund corporation, and

Every licensee must pay to the compensation fund corporation, on or before the time set by the compensation fund corporation, any assessment levied under subsection (1).

If a licensee has not paid an assessment under subsection (1) on or before the time set for payment, the licensee's licence is suspended as of the next day.

A licence that is suspended under subsection (3) is automatically reinstated as soon as the licensee pays to the compensation fund corporation the full amount due by the licensee, together with interest on that amount at a rate determined by the compensation fund corporation.

Amounts paid from