Real Estate Services Regulation

Real Estate Services Regulation, M.R. 84/2021 The Real Estate Services Act , C.C.S.M. c. R21 Regulation 84/2021 Registered October 4, 2021 bilingual version (HTML) Table of Contents Section PART 1 DEFINITIONS AND GENERAL PROVISIONS 1.1 Definitions 1.2 Expanded meaning of "property management services" 1.3 Exempt property management services 1.4 Expanded meaning of "real estate services" 1.5 Execution of agreements 1.6 Service agreement requirements 1.7 Effective date of disciplinary action PART 2 REGISTRATION AND BONDING 2.1 Overview REGISTRATION CATEGORIES AND PERMITTED SERVICES 2.2 Brokerages 2.3 Individual registrants and personal real estate corporations 2.4 Refusal of registration EDUCATIONAL AND WORK EXPERIENCE REQUIREMENTS FOR INDIVIDUAL REGISTRANTS 2.5 Real estate salespersons, associate brokers and brokers 2.6 Property management representatives, supervisors and managers 2.7 Private sales salespersons, associate brokers and brokers 2.8 Restricted brokerage salespersons, associate brokers and brokers 2.9 Registrar may require additional course or examination 2.10 Exemption from educational requirements based on prior experience 2.11 Meaning of "successfully completed" 2.12 Registrar's discretion to exempt 2.13 Permission to make material change to course 2.14 Continuing education requirements ADMINISTRATIVE MATTERS 2.15 Application and fees 2.16 Business names 2.17 Address for service 2.18 Registrar may require additional information 2.19 Expiry of registration 2.20 Renewal of registration 2.21 Continuous disclosure 2.22 Public register BONDING 2.23 Amount of bond 2.24 Who can issue bond 2.25 Form of bond TRANSITIONAL 2.26 Registration categories under Real Estate Brokers Act PART 3 PERSONAL REAL ESTATE CORPORATIONS 3.1 Overview 3.2 Registration of personal real estate corporations 3.3 Automatic suspensions 3.4 Provision of services through personal real estate corporation 3.5 Services deemed to be provided by controlling individual 3.6 Application of discipline and enforcement provisions 3.7 Remuneration of controlling individual PART 4 TRADES IN REAL ESTATE 4.1 Overview OFFERS AND ACCEPTANCES 4.2 Form of offer for residential real estate 4.3 Required content for all offers 4.4 Required content for acceptance 4.5 Effect of non-compliance 4.6 Copy to brokerage 4.7 Inducement to be in writing REMUNERATION 4.8 Money to be turned over to brokerage 4.9 Prohibited forms of remuneration 4.10 Payment of remuneration to non-registrant 4.11 No remuneration to registrant purchasing or leasing real estate SELF-DEALING AND RELATED-PARTY TRANSACTIONS 4.12 Restriction on purchasing by registrant 4.13 Disclosure to brokerage 4.14 Disclosure to other parties 4.15 Registrant not to submit contravening offer 4.16 Meaning of "related" PART 5 TRUST ACCOUNTS 5.1 Overview KEEPING OF ACCOUNTS 5.2 Exemption for private sales brokerages 5.3 Application of Part to trust companies 5.4 Brokerage to advise where trust accounts are kept TRUST MONEY 5.5 Paying money into trust 5.6 Deposits 5.7 Commissions and other remuneration for trades in real estate 5.8 Property management receipts and expenses 5.9 Duties if alternate interest arrangements made 5.10 Prohibition on using trust account for non-trust expenses 5.11 Prohibition on deducting service charges from trust account 5.12 Adequate trust account balance RECEIPTS AND REPORTS 5.13 Trust receipts 5.14 Record of withdrawal from trust account 5.15 Annual report 5.16 Exemption 5.17 Report on ceasing business PART 6 RECORD-KEEPING REQUIREMENTS 6.1 General requirements 6.2 Trust records 6.3 Form, accessibility and retention of records PART 7 FORFEITURE OF BOND 7.1 Overview GROUNDS FOR FORFEITURE 7.2 Misconduct 7.3 Bankruptcy and winding up USE OF PROCEEDS 7.4 Payment on forfeiture 7.5 Commission's power re proceeds of bonds PART 8 REAL ESTATE REIMBURSEMENT FUND 8.1 Overview 8.2 Composition of fund 8.3 Management of fund 8.4 Association deemed trustee 8.5 Minimum balance 8.6 Use of surplus 8.7 No pledging 8.8 Surety bond requirement in lieu of fund 8.9 Insurable interest 8.10 Maximum claim limits 8.11 Notice of hearing 8.12 Register of association members 8.13 Suspension or cancellation of membership 8.14 Winding up the fund 8.15 Report to commission 8.16 Investigation by commission PART 9 TRADING IN SUBDIVISION LOTS OUTSIDE MANITOBA 9.1 Overview 9.2 Contents of prospectus 9.3 Coming into force Schedule A Surety Bond B Offer to Purchase (forms) C Annual Trust Account Report PART 1 DEFINITIONS AND GENERAL PROVISIONS Definitions 1.1(1) The following definitions apply in this regulation. "Act" means The Real Estate Services Act . («  Loi ») "association" means The Manitoba Real Estate Association Inc. (« association ») "bond" means a surety bond filed under section 12 of the Act. (« cautionnement ») "Broker Challenge" means the course by that name administered and delivered by the association and includes a successor to that course if it is substantially similar in scope. (« vérification des acquis des courtiers ») "Broker Education Program" means the course by that name administered and delivered by the association and includes a successor to that course if it is substantially similar in scope. (« vérification des acquis des courtiers ») "cash" includes a wire transfer, money order or an electronic funds transfer. (« espèces ») "common-law partner" of a person means (a) another person who, with the person, registered a common-law relationship under section 13.1 of The Vital Statistics Act ; or (b) another person who, not being married to the person, cohabited with them in a conjugal relationship (i) for a period of at least three years, or (ii) for a period of at least one year and they are together the parents of a child. (« conjoint de fait ») "controlling individual" , in respect of a personal real estate corporation, means the individual who is the sole voting shareholder of the corporation. (« actionnaire contrôlant ») "fraudulent act" , for the purposes this regulation and subsection 65(2) of the Act, includes deceptive dealing and wrongful taking, as defined in section 44 of the Act. (« acte frauduleux ») "fund" means the Real Estate Reimbursement Fund established or continued under section 65 of the Act. (« fonds ») "official" , in respect of a brokerage, means (a) in the case of an individual registered as a brokerage, that individual; (b) in the case of a brokerage that is a corporation, an individual who is an officer or director of that corporation; (c) in the case of a brokerage that is a partnership other than a limited partnership, (i) an individual who is a partner in the partnership, or (ii) a director or officer of a corporation that is a partner in the partnership; (d) in the case of a brokerage that is a limited partnership, (i) an individual who is the general partner of the limited partnership, or (iii) if the general partner is a corporation, a director or officer of that corporation; or (e) a person that, in the opinion of the registrar, fulfills a function similar to that of an official described clause (a), (b), (c) or (d). (« représentant ») "personal real estate corporation" means a corporation registered in accordance with Part 3. (« corporation immobilière personnelle ») "Principles of Property Management" means the course by that name administered and delivered by the association and includes a successor to that course if it is substantially similar in scope. (« cours sur les principes de la gestion immobilière ») "Real Estate as a Professional Career" means the course by that name administered and delivered by the association and includes a successor to that course if it is substantially similar in scope. (« cours sur la carrière dans l'immobilier ») "Real Estate Private Sales Exam" means the examination by that name administered and delivered by the registrar and includes a successor to that examination if it is substantially similar in scope. (« examen sur la vente directe de biens immobiliers ») "registrar" means the registrar appointed under section 2 of the Act. (« registraire ») "Salesperson Challenge" means the course by that name administered and delivered by the association and includes a successor to that course if it is substantially similar in scope. (« vérification des acquis des vendeurs ») "surety" means the bonding company or surety company named as surety in a bond. (« caution ») Expanded meaning of "property management services" 1.2 The following activities are prescribed, for the purposes of clause (f) of the definition "property management services" in section 1 of the Act, as constituting property management services: (a) negotiating, or offering to attempt to negotiate, a rental or lease agreement; (b) managing ongoing owner or tenant issues. Exempt property management services 1.3 Despite section 1.2, the following persons are exempted from the requirements of the Act and this regulation, unless they provide any other non-exempt real estate services: (a) a corporation providing property management services in respect of real estate owned by a subsidiary of that corporation; (b) a corporation providing property management services in respect of real estate owned by its parent corporation or any other subsidiary of its parent corporation; (c) a corporation providing property management services in respect of real estate owned by (i) an individual who has voting control of the corporation, or (ii) a group of individuals all of whom own voting shares in the corporation and collectively have voting control of it; (d) an individual who is a director, officer or servant of the owner of real estate providing property management services in respect of that real estate on behalf of the owner. Expanded meaning of "real estate services" 1.4(1) A purchase or sale of real estate by a person on their own behalf is prescribed as constituting real estate services for the purposes of clause (d) of the definition "real estate services" in section 1 of the Act, unless (a) it is an isolated trade not made in the course of continued or successive trades of a similar nature; and (b) no remuneration is paid or agreed to be paid in respect of the trade, other than to an auctioneer at an auction sale. 1.4(2) The leasing of real estate — or the showing of real estate for the purpose of leasing it — by the owner of that real estate or an officer or employee of the owner is prescribed as constituting real estate services for the purposes of clause (d) of the definition "real estate services" in section 1 of the Act, unless the owner pays no remuneration in connection with the leasing other than salary paid to the owner's officers or employees. Execution of agreements 1.5 An agreement prescribed by or required under this regulation may be executed by signing the agreement or executing it in accordance with Part 3 of The Electronic Commerce and Information Act . Service agreement requirements 1.6 A service agreement entered into in accordance with section 25 of the Act must include the following: (a) the identity of the parties to the agreement; (b) a description of the services to be provided; (c) the date the agreement is made and the date it expires; (d) any rights by either party to terminate the agreement before it expires; (e) a description of the terms of payment or compensation to be provided under the agreement. Effective date of disciplinary action 1.7 When the registrar takes any disciplinary action under section 55 of the Act, the registrar may specify the date that the disciplinary action takes effect. If the registrar does not specify a date, the disciplinary action takes effect immediately. PART 2 REGISTRATION AND BONDING Overview 2.1 This Part sets out the registration and bonding requirements for real estate brokerages and individuals providing real estate services. REGISTRATION CATEGORIES AND PERMITTED SERVICES Brokerages 2.2(1) For the purpose of sections 3 and 5 of the Act, the following brokerage registration categories are prescribed: (a) real estate brokerage; (b) property management brokerage; (c) private sales brokerage; (d) restricted brokerage. 2.2(2) A reference elsewhere in this regulation to a title corresponding to any of the category names set out in clauses (1)⁠(a) to (d) (for example, a reference to a "real estate brokerage") is to be read as a reference to an entity registered in the registration category prescribed by that name in subsection (1). 2.2(3) A person registered in a brokerage registration category set out in the first column of the following table may provide the real estate services set out in the second column the registration category but may not provide other real estate services unless the person is registered in a registration category that permits their provision: Registration Category Permitted Services Real estate brokerage All real estate services Property management brokerage Property management services Private sales brokerage Private sales services Restricted brokerage Any real estate service permitted by the restricted broker's registration Individual registrants and personal real estate corporations 2.3(1) For the purpose of sections 3 and 5 of the Act, the following registration categories are prescribed for individuals and personal real estate corporations only, and not for brokerages: (a) real estate salesperson; (b) real estate associate broker; (c) real estate broker; (d) property management representative; (e) property management supervisor; (f) property management manager; (g) private sales salesperson; (h) private sales associate broker; (i) private sales broker; (j) restricted brokerage salesperson; (k) restricted brokerage associate broker; (l) restricted brokerage broker. 2.3(2) A reference elsewhere in this regulation to a title corresponding to any of the category names set out in clauses (1)⁠(a) to (l) (for example, a reference to a "real estate salesperson") is to be read as a reference to a person who is registered in the registration category prescribed by that name in subsection (1). 2.3(3) An individual or personal real estate corporation registered in a registration category set out in the first column of the following table may provide the real estate services set out in the column opposite the registration category but may not provide other real estate services unless the individual or personal real estate corporation is registered in a registration category that permits their provision: Registration Category Permitted Services Real estate salesperson All real estate services, but only on behalf of the real estate brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services Real estate associate broker Supervision of the main office or a branch office of the real estate brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a real estate salesperson Real estate broker Acting as managing registrant in relation to the real estate brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a real estate associate broker Property management representative Property management services, but only on behalf of the property management brokerage or real estate brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services Property management supervisor Supervision of the main office or a branch office of the property management brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a property management representative Property management manager Acting as managing registrant in relation to the property management brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a property management supervisor Private sales salesperson Private sales services, but only on behalf of the private sales brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services Private sales associate broker Supervision of the main office or a branch office of the private sales brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a private sales salesperson Private sales broker Acting as managing registrant in relation to the private sales brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a private sales associate broker Restricted brokerage salesperson Such real estate services as are permitted under the registration of the restricted brokerage or real estate brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services, but only on behalf of that brokerage and only to the extent permitted by the salesperson's registration Restricted brokerage associate broker Supervision of the main office or a branch office of the restricted brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services All permitted services for a restricted brokerage salesperson Restricted brokerage broker Acting as managing registrant in relation to the restricted brokerage by which the registrant is engaged or on whose behalf the registrant is providing real estate services Refusal of registration 2.4(1) If a person fails to satisfy a requirement of this regulation, the registrar may (a) refuse to register an applicant for registration; or (b) refuse to renew an existing registration. 2.4(2) The commission may require the registrar to take any of the actions set out in clause 1(a) or (b). EDUCATIONAL AND WORK EXPERIENCE REQUIREMENTS FOR INDIVIDUAL REGISTRANTS Real estate salespersons, associate brokers and brokers 2.5(1) An individual is eligible to apply for registration and become registered as a real estate salesperson if they have successfully completed the Real Estate as a Professional Career course within the 12-month period before applying for registration. 2.5(2) An individual is eligible to apply for registration and become registered as a real estate associate broker if (a) they have successfully completed the Broker Education Program within the 36-month period before applying for registration; and (b) they have obtained 24 months of experience as a registered real estate salesperson within the 36-month period before applying for registration. 2.5(3) An individual is eligible to apply for registration and become registered as a real estate broker if (a) they have successfully completed the Broker Education Program within the 36-month period before applying for registration; (b) they have obtained 24 months of experience as a registered real estate salesperson within the 36-month period before applying for registration; and (c) they are an official for a real estate brokerage. Property management representatives, supervisors and managers 2.6(1) An individual is eligible to apply for registration and become registered as a property management representative if they have successfully completed the Principles of Property Management course within the 12-month period before applying for registration. 2.6(2) An individual is eligible to apply for registration and become registered as a property management supervisor if (a) they have successfully completed the Principles of Property Management course within the 36-month period before applying for registration; and (b) they have obtained 24 months of experience as a registered property management representative in the 36-month period before applying for registration. 2.6(3) An individual is eligible to apply for registration and be registered as a property management manager if (a) they have successfully completed the Principles of Property Management course within the 36-month period before applying for registration; (b) they have obtained 24 months of experience as a registered property management representative within the 36-month period before applying for registration; and (c) they are an official for a property management brokerage. Private sales salespersons, associate brokers and brokers 2.7(1) An individual is eligible to apply for registration and become registered as a private sales salesperson if they have successfully completed the Real Estate Private Sales Exam within the 12-month period before applying for registration. 2.7(2) An individual is eligible to apply for registration and become registered as a private sales associate broker if they have successfully completed the Real Estate Private Sales Exam within the 12-month period before applying for registration. 2.7(3) An individual is eligible to apply for registration and become registered as a private sales broker if (a) they have successfully completed the Real Estate Private Sales Exam within the 12-month period before applying for registration; and (b) they are an official for a private sales brokerage. Restricted brokerage salespersons, associate brokers and brokers 2.8(1) An individual is eligible to apply for registration and become registered as a restricted brokerage salesperson if they have successfully completed educational requirements acceptable to the registrar within the 12-month period before applying for registration. 2.8(2) An individual is eligible to apply for registration and become registered as a restricted brokerage associate broker if they have (a) successfully completed educational requirements acceptable to the registrar within the 12-month period before applying for registration; and (b) obtained experience satisfactory to the registrar. 2.8(3) An individual is eligible to apply for registration and become registered as a restricted brokerage broker if they (a) have successfully completed educational requirements acceptable to the registrar within the 12-month period before applying for registration; (b) have obtained experience satisfactory to the registrar; and (c) are an official for a restricted brokerage. Registrar may require additional course or examination 2.9(1) In addition to a course or examination required to be completed under any of sections 2.5 to 2.8, the registrar may, at any time, require a registrant or applicant for registration to successfully complete a course or examination on any subject the registrar considers appropriate. 2.9(2) The course or examination (a) may be different for different categories of registrants; and (b) may be delivered or administered by the registrar or by a person appointed by the registrar for that purpose. Exemption from educational requirements based on prior experience 2.10(1) An individual applying for registration under any of sections 2.5 to 2.8 is exempt from the requirement to complete a course or examination required under that section if, within the 12-month period before applying for registration, the person was registered (a) in the same registration category applied for; or (b) in a different registration category for which the successful completion of the same course or examination is a requirement for registration. 2.10(2) In addition to the exemption available under subsection (1), an individual applying for registration as a real estate salesperson is exempt from the requirement to complete the Real Estate as a Professional Career course if (a) within the 36-month period before applying for registration, they were, at any time, (i) registered as a real estate salesperson, or (ii) registered, under the laws of another province or territory of Canada, in a registration category the registrar considers to be equivalent to real estate salesperson; and (b) within the 12-month period before applying for registration, they successfully completed the Salesperson Challenge course. 2.10(3) In addition to the exemption available under subsection (1), an individual applying for registration as a real estate associate broker or real estate broker is exempt from the requirement to complete the Broker Education Program if (a) within the 36-month period before applying for registration, they were, at any time, (i) registered as a real estate associate broker or a real estate broker, or (ii) registered, under the laws of another province or territory of Canada, in a registration category the registrar considers to be equivalent to real estate associate broker or real estate broker; and (b) within the 12-month period before applying for registration, they successfully completed the Broker Challenge course. Meaning of "successfully completed" 2.11 For the purposes of sections 2.5 to 2.10, a person is considered to have successfully completed a course or examination if (a) they have fulfilled the criteria for successful completion established by the registrar; and (b) the administrator of the course or examination has provided the registrar with evidence satisfactory to the registrar that the criteria have been fulfilled. Registrar's discretion to exempt 2.12(1) Subject to a direction by the commission under section 2.4, the registrar may, in his or her absolute discretion, exempt a registrant or applicant for registration from a requirement to have (a) completed a course or examination required under this regulation; or (b) obtained experience in a registration category. 2.12(2) The exemption may be subject to terms and conditions the registrar considers appropriate. Permission to make material change to course 2.13 The association and any person appointed to deliver or administer a course under clause 2.9(2)⁠(b) must obtain the registrar's permission before making a material change to a course that is a precondition for registration under this Part or to the assessment methodology for such a course. Continuing education requirements 2.14 The registrar may establish mandatory continuing education requirements for individual registrants and refuse to renew the registration of an individual who has failed to complete the applicable continuing education requirements. ADMINISTRATIVE MATTERS Application and fees 2.15 An application for registration, including the transfer or renewal of a registration and the registration of a branch office, must be made in a form acceptable to the registrar and accompanied by the fee specified for the application in the Real Estate Services Fees Regulation . Business names 2.16(1) An applicant for registration intending to carry on business under a name that must be registered under The Business Names Registration Act must file with the registrar proof of registration under that Act. 2.16(2) A brokerage must not carry on business under any business name or trade name other than the name under which it is registered under the Act. 2.16(3) A brokerage must not carry on business under more than one business name or trade name. Address for service 2.17(1) An application under this Part (a) must contain an address for service in Manitoba; and (b) may contain an e-mail address for service. 2.17(2) A notice under the Act or this regulation is deemed to have been served on a registrant five days after if it is sent, by regular mail, to the address for service provided under clause (1)⁠(a). 2.17(3) If a registrant has provided an e-mail address for service under clause (1)⁠(b), a notice under the Act or this regulation is deemed to have been served on the registrant two days after if it is sent, by e-mail, to the e-mail address provided. Registrar may require additional information 2.18(1) The registrar or the commission may require a registrant or an applicant for registration to provide additional information or documentation within a specified amount of time, and may require such information or documentation to be provided by way of a sworn affidavit or statutory declaration. 2.18(2) A registrant must comply with a request under subsection (1). 2.18(3) An applicant for registration must comply with a request under subsection (1) unless the applicant withdraws their application. Expiry of registration 2.19(1) The following registrations expire one year after the date of registration or, in the case of a registration that has been renewed, one year after the renewal: (a) the registration of an individual as a salesperson or representative; (b) the registration of a brokerage. 2.19(2) The registration of an individual as an associate broker, broker, manager or supervisor expires when the registration of the brokerage by which the person is engaged, or on whose behalf the person is providing real estate services, expires. 2.19(3) The registration of a personal real estate corporation expires on the same date as the registration of its controlling individual. Renewal of registration 2.20 A registration may be renewed by filing an application for renewal with the registrar a minimum of 30 days before the registration expires. But the registrar may, in his or her discretion, accept an application for renewal filed at a later date. Continuous disclosure 2.21 A registrant must advise the registrar in writing as soon as practicable of (a) any change in the identity of the directors, officers or partners of the registrant; (b) any change in address of (i) an office of the registrant, or (ii) a director, officer or partner of the registrant; and (c) any material change to information that was disclosed to the registrar in the registrant's application for registration or renewal. Public register 2.22 The registrar must maintain a publicly accessible register that, for each registrant, includes the following information: (a) the name of the registrant; (b) if the registrant is an individual, (i) the name of the brokerage by which they are engaged or on whose behalf they provide real estate services, and (ii) if they provide real estate services through a personal real estate corporation, the name of that corporation; (c) if the registrant is a personal real estate corporation, (i) the name of its controlling individual, and (ii) the name of the brokerage by which the corporation is engaged; (d) the address for service of the registrant; (e) the registration category or categories in which the registrant is registered; (f) any terms and conditions, other than a standard term or condition of registration, imposed on the registrant by the registrar or the commission that restrict the registrant's provision of real estate services or imposes a requirement for the registrant to be supervised. BONDING Amount of bond 2.23(1) Subject to subsection (2), for the purpose of sections 12 and 14 of the Act, the bond amounts set out in the second column of the following table are prescribed for brokerages meeting the criteria set out in the first column of the table. Number of Individual Registrants or Personal Real Estate Corporations Engaged by Brokerage During Registration Period Bond Amount Broker or manager only $10,000 More than one but no more than 10 $20,000 More than 10 but no more than 20 $40,000 More than 20 but no more than 30 $60,000 More than 30 but no more than 40 $80,000 More than 40 $100,000 2.23(2) In addition to the amount determined under subsection (1), but subject to subsection (3), a brokerage providing property management services must post an additional amount equal to the sum, rounded up to the nearest $10,000, of (a) the total of all amounts each of which is, for a trust account kept by the brokerage, the average of the highest monthly trust balances in that account during the preceding year; and (b) the average of the total monthly amounts received by the brokerage in the preceding year in bank accounts of the brokerage's clients under an arrangement in accordance with clause 5.8(1)⁠(b). 2.23(3) A brokerage is not required to post a bond in excess of $200,000, even if the total determined under subsections (1) and (2) exceeds that amount. 2.23(4) A brokerage must not engage a greater number of individual registrants or personal real estate corporations at the same time than the maximum number for which the brokerage has filed a bond. 2.23(5) A bond provided in accordance with this section must stipulate that a violation of the Act or this regulation does not invalidate the bond. 2.23(6) Despite subsection (1), a private sales brokerage is exempted from the requirement to post and maintain a bond or other security under section 12 or 14 of the Act if it does not provide any real estate services other than private sales services. Who can issue bond 2.24 A bond filed with the registrar for the purpose of section 12 or 14 of the Act must be underwritten by an insurer licensed under The Insurance Act to provide surety insurance in Manitoba. Form of bond 2.25(1) A bond filed with the registrar for the purpose of section 12 or 14 of the Act must be in the form set out in Schedule A. 2.25(2) Despite subsection (1), a bond that was issued before the day this regulation comes into force, and that complies with the Real Estate Brokers Regulation , Manitoba Regulation 56/88 R, as it read immediately before its repeal, is deemed to meet the requirements of this regulation as to its form. But, for certainty, the required bond amount must be determined under this regulation. TRANSITIONAL Registration categories under Real Estate Brokers Act 2.26(1) A person who, immediately before the coming into force of the Act, is a registrant under The Real Estate Brokers Act in a registration category set out in the left column of the table below, is deemed to be registered in the registration category set out in the right column of the same row for the purposes of the Act and this regulation. Old Registration Category New Registration Category Broker Real estate brokerage Broker restricted to providing property management services Property management brokerage Broker restricted to providing private sales services Private sales brokerage Broker with a restricted registration Restricted brokerage Authorized official designated as Manitoba representative Real estate broker Authorized official appointed as manager of a branch office Real estate associate broker Authorized official Real estate salesperson Salesman Real estate salesperson Authorized official designated as Manitoba representative restricted to providing property management services Property management manager Authorized official appointed as manager of a branch office restricted to providing property management services Property management supervisor Authorized official restricted to providing property management services Property management representative Salesman restricted to providing property management services Property management representative Authorized official designated as Manitoba representative restricted to providing private sales agent services Private sales broker Authorized official appointed as manager of a branch office restricted to providing private sales agent services Private sales associate broker Authorized official restricted to providing private sales agent services Private sales salesperson Salesman restricted to providing private sales agent services Private sales salesperson Authorized official designated as Manitoba representative with a restricted registration Restricted brokerage broker Authorized official appointed as manager of a branch office with a restricted registration Restricted brokerage associate broker Authorized official with a restricted registration Restricted brokerage salesperson Salesman with a restricted registration Restricted brokerage salesperson 2.26(2) If a person's registration under The Real Estate Brokers Act is subject to any conditions or restrictions imposed under section 16 of that Act, the person's deemed registration under subsection (1) remains subject to those conditions and restrictions unless the registrar removes them or imposes different terms or conditions under subsection 16(2) of The Real Estate Services Act . PART 3 PERSONAL REAL ESTATE CORPORATIONS Overview 3.1 This Part sets out the circumstances under which a registrant may provide real estate services through a personal real estate corporation. Registration of personal real estate corporations 3.2(1) A corporation is eligible to apply for registration and be registered if (a) the corporation is incorporated, formed by amalgamation or continued under The Corporations Act and is in good standing under that Act; (b) the name of the corporation consists of the name of its controlling individual, or a recognizable short form of that name, followed by the words "personal real estate corporation"; (c) all voting shares are legally and beneficially owned by the corporation's controlling individual; (d) each other share in the capital stock of the corporation is legally and beneficially owned by (i) the corporation's controlling individual, (ii) a spouse, common-law partner or child of the controlling individual, within the meaning of the Income Tax Act (Canada), or (iii) a corporation, each share of the capital stock of which is legally and beneficially owned by a person referred to in subclause (i) or (ii); (e) the corporation's controlling individual is the president of the corporation and its only director; (f) the corporation's controlling individual is registered under the Act, or is being registered at the same time as the corporation; and (g) the brokerage by which the corporation's controlling individual is engaged, or on whose behalf they intend to provide real estate services, consents to the application. 3.2(2) When a personal real estate corporation is being registered in accordance with subsection (1), it must be registered in the same registration category or categories as its controlling individual. Automatic suspensions 3.3(1) The registration of a personal real estate corporation is automatically suspended if the registration of its controlling individual is suspended. 3.3(2) The registration of the controlling individual of a personal real estate corporation is automatically suspended if the registration of the corporation is suspended. Provision of services through personal real estate corporation 3.4(1) Despite subsections 8(1) and (2) and clause 23(1)⁠(b) of the Act, but subject to subsection (2), (a) a brokerage may engage a personal real estate corporation registered in accordance with section 3.2 to provide real estate services on its behalf; and (b) the personal real estate corporation may contract with its controlling individual to have that individual provide the services to the brokerage on the corporation's behalf. 3.4(2) A personal real estate corporation may provide real estate services under an arrangement described in subsection (1) only if all of the following conditions are met: (a) both the corporation and its controlling individual are registrants in good standing, in identical registration categories; (b) the services are limited to those that may be provided under the registration category or categories of the corporation and its controlling individual; (c) the real estate services provided by the corporation are (i) provided solely by the corporation's controlling individual, and (ii) provided solely on behalf of the brokerage by which the corporation is engaged; (d) the corporation's controlling individual provides no real estate services other than those described in clause (c); (e) any persons engaged by the corporation, other than its controlling individual, are not registrants; (f) the corporation conducts no business other than the provision of real estate services; (g) neither the corporation nor any of its shareholders are subject to (i) a unanimous shareholder agreement as defined in The Corporations Act , or (ii) any agreement or proxy that vests a voting right attached to the voting shares of the corporation in a person other than the corporation's controlling individual; (h) the corporation and its controlling individual otherwise comply with the requirements of this Part. Services deemed to be provided by controlling individual 3.5(1) For the purposes of the Act and this regulation — not including this Part — when a personal real estate corporation provides real estate services on behalf of a brokerage, (a) any real estate services provided by the corporation are deemed to have been provided by the corporation's controlling individual; (b) any offer or agreement received or transmitted by the corporation in respect of a trade in real estate is deemed to have been received or transmitted by the corporation's controlling individual; and (c) any money or cheque received, disbursed or transmitted by the corporation in respect of a trade in real estate is deemed to have been received, disbursed or transmitted by the corporation's controlling individual. 3.5(2) The fact that a controlling individual of a personal real estate corporation is engaged by that corporation to provide real estate services on behalf of a brokerage does not affect (a) the controlling individual's liability with respect to the provision of real estate services; (b) the controlling individual's obligations and responsibilities under the Act and this regulation; and (c) the application of any provision of the Act or this regulation to the controlling individual. Application of discipline and enforcement provisions 3.6(1) If a personal real estate corporation commits professional misconduct or conduct unbecoming a registrant, the controlling individual is subject to the same proceedings and enforcement under Part 4 of the Act as if the controlling individual had committed the conduct. 3.6(2) If the controlling individual of a personal real estate corporation commits professional misconduct or conduct unbecoming a registrant, the corporation is subject to the same proceedings and enforcement under Part 4 of the Act as if the corporation had committed the conduct. Remuneration of controlling individual 3.7 Despite any other provision of this regulation, a personal real estate corporation may provide remuneration to its controlling individual in any manner it sees fit. PART 4 TRADES IN REAL ESTATE Overview 4.1 Sections 27 to 29 of the Act allow the commission to prescribe specific forms or terms and conditions for offers of purchase and sale and acceptances of those offers. This Part sets out these requirements. OFFERS AND ACCEPTANCES Form of offer for residential real estate 4.2 For the purpose of subsections 27(4) and 29(1) of the Act, (a) an offer to purchase a completed single-family residential house, and the acceptance of the offer, must be in the form of Form 1 of Schedule B; and (b) an offer to purchase a completed single-family residential unit in a condominium, and the acceptance of the offer, must be in the form of Form 2 of Schedule B; (c) to (e) [repealed] M.R. 70/2024 . M.R. 70/2024 Required content for all offers 4.3 Every offer to trade in real estate must contain the following information: (a) the date on which the offer is made; (b) the names of the offeror and offeree and address of the offeror; (c) the street address or legal description of the real estate; (d) the price offered by the offeror and the terms and conditions of the purchase or lease; (e) the amount of the deposit, if any, made by the offeror at the time of the offer and, if there is a deposit, (i) whether or not it is to form part of the purchase price or one or more lease payments, and (ii) the method of payment and to whom it is to be paid; (f) any promise, undertaking or guarantee made or given by the brokerage, or made or given by a registrant engaged by the brokerage or providing real estate services on its behalf, that they will (i) arrange the resale or re-leasing of the property for the offeror, (ii) purchase or lease, or obtain a purchaser or lessor, for any real estate owned or leased by the offeror, (iii) procure or arrange a mortgage or lease or an extension or renewal of a mortgage or lease for the offeror, or (iv) purchase or obtain a purchaser for a mortgage or in any other way obtain a loan for the offeror; (g) a brief description and list of the chattels that are to be included in the sale price or lease; (h) the date of possession by the offeror and whether possession will be vacant or otherwise; (i) the date of adjustments; (j) the date by which the offer must be accepted by the offeree; (k) the name of the brokerage by which the offer was obtained and, and, if applicable, the registrant engaged by that brokerage or providing real estate services on its behalf. M.R. 70/2024 Required content for acceptance 4.4 An offer to trade in real estate that is submitted through a registrant and is accepted must show (a) the date of the acceptance; and (b) the total amount of remuneration payable, if any, stated as either a percentage of the value of the trade or a fixed amount agreed upon before the trade. Effect of non-compliance 4.5 If an offer to trade in real estate that is submitted through a registrant does not comply with section 4.2, 4.3 or 4.4, the registrant is not entitled to remuneration in respect of the trade. Copy to brokerage 4.6 A registrant other than a brokerage who, as part of a trade in real estate, receives or transmits an offer, agreement or acceptance in respect of that trade must provide a copy of the offer, agreement or acceptance to the brokerage by which they are engaged, or on whose behalf they are providing real estate services, as soon as practicable. Inducement to be in writing 4.7 A registrant must not make a promise or give an undertaking or guarantee to do any of the following as an inducement to procure a trade in real estate, unless the promise, undertaking or guarantee is in writing, signed by the registrant and delivered to the person to whom it is made: (a) arrange a resale of any real estate for a person who offers to purchase it; (b) purchase, or obtain a purchaser for, any real estate; (c) procure or arrange a mortgage, or an extension or renewal of a mortgage or lease; (d) purchase, or obtain a purchaser for, a mortgage, or in any other way obtain a loan for any person. REMUNERATION Money to be turned over to brokerage 4.8 A registrant, other than a brokerage, receiving any money in respect of a trade in real estate must immediately turn that money over to the brokerage by which they are engaged or on whose behalf they are providing real estate services. Prohibited forms of remuneration 4.9(1) Subject to subsection (2), a registrant must not receive remuneration for a trade in real estate unless the remuneration is agreed upon before the trade and is determined as (a) a percentage of the value of the trade; or (b) a fixed amount. 4.9(1.1) A percentage referred to in clause (1)⁠(a) includes a series of percentages of the value of a trade that are agreed upon before the trade and that decrease at specified amounts as the value of the trade increases. 4.9(2) Subsection (1) does not prohibit a brokerage from splitting any remuneration received by it with another brokerage on any terms agreed to between them. 4.9(3) A registrant must not request or receive remuneration based on the difference between the price at which real estate was listed for sale with the registrant and the actual sale price obtained. M.R. 70/2024 Payment of remuneration to non-registrant 4.10 The following are exempt from the prohibition in subsection 82(2) of the Act against the payment of remuneration to a non-registrant:

(a) the splitting of remuneration paid to a brokerage with a brokerage registered under a similar Act of another province or territory of Canada; (b) the splitting of remuneration paid to a brokerage with, or payment of a salary or fee to, a brokerage registered under a similar Act of a jurisdiction outside Canada if that person is not in violation of any applicable Manitoba law. No remuneration to registrant purchasing or leasing real estate 4.11(1) Despite the terms of any agreement, the owner of specific real estate is not liable to pay remuneration to a registrant in respect of a trade in real estate if the real estate, or an interest in it, is purchased or leased by the registrant or any of the following: (a) if the registrant is a partnership, any partner of the registrant; (b) if the registrant is a corporation, any director or officer of the corporation or any person with a material interest in the corporation; (c) if the registrant is a brokerage, any salesperson, broker, associate broker, representative, manager or supervisor of the registrant; (d) a spouse, common-law partner, child or nominee of the registrant or of any individual included in clauses (a) to (c); (e) any corporation, firm, partnership, association or syndicate, or any other unincorporated organization, in which a person included in clauses (a) to (d) has a material interest. 4.11(2) For the purposes of this section, a person is considered to have a material interest in (a) a corporation if the person holds 5% or more of the corporation's equity or voting securities; and (b) a firm, partnership, association, syndicate or other unincorporated organization if the person legally or beneficially holds 5% or more of its capital or is entitled to receive 5% or more of its profits. 4.11(3) In a case where a registrant would be entitled to a portion of the total remuneration payable in respect of a trade in real estate but for the application of subsection (1), the total remuneration payable by the vendor is reduced by the amount to which the registrant becomes disentitled under subsection (1). M.R. 136/2022 SELF-DEALING AND RELATED-PARTY TRANSACTIONS Restriction on purchasing by registrant 4.12 An individual registrant or personal real estate corporation must not purchase real estate on their own behalf or on behalf of a person related to the registrant for the primary purpose of reselling the real estate at a profit. Disclosure to brokerage 4.13 An individual registrant or personal real estate corporation engaging in a trade in real estate on their own behalf or on behalf of a person related to the registrant must (a) engage in the trade through a brokerage, unless it is an isolated trade not made in the course of successive trades in real estate of a similar nature; (b) notify the brokerage by which the registrant is engaged, or on whose behalf they are providing real estate services, before engaging in the trade; (c) have all of their advertisements in respect of the trade pre-approved by the brokerage by which the registrant is engaged, or on whose behalf they are providing real estate services; and (d) immediately after completing the trade, provide the brokerage by which the registrant is engaged, or on whose behalf they are providing real estate services, with the following information: (i) the nature and date of the trade, (ii) the names of the parties, (iii) the address of the real estate, (iv) confirmation that the registrant followed the disclosure requirements set out in section 4.14, and (v) any other information the brokerage may require. M.R. 136/2022 Disclosure to other parties 4.14(1) If applicable, a person engaging in a trade in real estate must disclose the following in writing to each person interested in the trade: (a) that the person is a registrant; (b) that the person is related to a registrant, and how the person is related; (c) that section 4.11 prevents a particular registrant from receiving remuneration in respect of the trade; (d) that the total amount of remuneration payable in respect of the trade is to be reduced in accordance with subsection 4.11(3); (e) that section 31 of the Act prevents the listing brokerage from receiving remuneration in respect of the trade. 4.14(2) A disclosure required under subsection (1) must be made as soon as practicable after the person required to make the disclosure becomes aware of their obligation to do so. 4.14(3) If the trade in real estate involves the presentation of a written offer, the disclosure must be included in the offer in writing, even if the disclosure has previously been made in a different manner. M.R. 136/2022 Registrant not to submit contravening offer 4.15 A registrant must not submit or transmit for submission an offer to trade in real estate if (a) the registrant has failed to make a disclosure in respect of the offer required under section 30 of the Act or section 4.14; or (b) the registrant knows that another registrant or a person related to that registrant has failed to make a disclosure in respect of the offer required under section 30 of the Act or section 4.14. M.R. 136/2022 Meaning of "related" 4.16(1) For the purpose of section 30 of the Act and for the purposes of this regulation — but not for the purpose of section 31 of the Act — "related" , in respect of a registrant, means any of the following: (a) if the registrant is a partnership, any partner of the registrant; (b) if the registrant is a corporation, any director or officer of the corporation or any person with a material interest in the corporation; (c) if the registrant is a brokerage, any salesperson, broker, associate broker, representative, manager or supervisor of the registrant; (d) the spouse or common-law partner, or any parent, step-parent, child, step-child, sibling or step-sibling of the registrant or of any individual included in clauses (a) to (c); (e) any corporation, firm, partnership, association or syndicate, or any other unincorporated organization, in which the registrant or a person included in clauses (a) to (d) has a material interest. 4.16(2) For the purposes of section 31 of the Act, "related" , in respect of a registrant, means any of the following: (a) if the registrant is a partnership, any partner of the registrant; (b) if the registrant is a corporation, any director or officer of the corporation or any person with a material interest in the corporation; (c) if the registrant is a brokerage, any salesperson, broker, associate broker, representative, manager or supervisor of the registrant; (d) a spouse, common-law partner, child or nominee of the registrant or of any individual included in clauses (a) to (c); (e) any corporation, firm, partnership, association or syndicate, or any other unincorporated organization, in which a person included in clauses (a) to (d) has a material interest. 4.16(3) For the purposes of this section, a person is considered to have a material interest in (a) a corporation if the person holds 5% or more of the corporation's equity or voting securities, determined based on market value; and (b) a firm, partnership, association, syndicate or other unincorporated organization if the person legally or beneficially holds 5% or more of its capital or is entitled to receive 5% or more of its profits. PART 5 TRUST ACCOUNTS Overview 5.1 Section 38 of the Act requires a brokerage that provides trading services or property management services, or any other category of real estate services prescribed by the regulations, to maintain trust accounts. This Part sets out the rules and requirements for such trust accounts. KEEPING OF ACCOUNTS Exemption for private sales brokerages 5.2 Private sales brokerages are exempt from any obligation under section 38 of the Act in respect of the real estate services they perform in accordance with their registration in the private sales brokerage registration category. Application of Part to trust companies 5.3(1) In the case of a trust company, this Part applies only to its trust accounts maintained in respect of real estate services. 5.3(2) Unless exempt under the terms and conditions of its registration under the Act, a trust company that is registered in a brokerage category must (a) keep one or more trust accounts for its trading services and property management services; and (b) shall not use these trust accounts for anything other than its trading services and property management services. Brokerage to advise where trust accounts are kept 5.4 A brokerage must advise the registrar in writing, within 14 days of opening, moving or closing a trust account maintained for trading services or property management services, of (a) the name, address, branch and telephone number of the financial institution at which the trust account is kept; (b) the account number of the trust account; and (c) the date on which the account was opened, moved or closed. TRUST MONEY Paying money into trust 5.5(1) Subject to subsection (2), a registrant receiving trust money required, under the Act or this regulation, to be paid into a trust account or a client's account must pay the money into the account by the end of the next business day after it is received. 5.5(2) If the money is received by cheque, then instead of depositing it, by the end of the next business day after the cheque is received, the registrant may present, or have a person present, the cheque at the financial institution on which it is drawn, in which case (a) if the financial institution certifies the cheque or issues a bank draft or money order instead of a cheque, the registrant must deposit the cheque, bank draft or money order by the end of the business day following the certification or issuance; or (b) if the financial institution refuses to certify the cheque or issue a bank draft or money order instead of a cheque, the registrant may treat the cheque as dishonoured. Deposits 5.6(1) A brokerage, or a registrant engaged by a brokerage or providing real estate services on its behalf, receiving a cash deposit in respect of an offer to trade in real estate must issue a receipt for the deposit and leave a copy of the receipt with each of the offeror and the offeree. 5.6(2) A brokerage, or a registrant engaged by a brokerage or providing real estate services on its behalf, receiving a deposit in respect of an offer to trade in real estate must, despite section 5.5, deposit or transfer the money in accordance with the following rules: 1. If the deposit is paid in cash, then, unless Rule 2 applies, the brokerage or registrant must deposit the money in the brokerage's trust account by the end of the next business day after it is received. 2. If the deposit is paid in cash to a buyer's brokerage that is not also the listing brokerage, then (a) the buyer's brokerage must deposit the money into its trust account by the end of the next business day after it is received; (b) by the end of the next business day after the offer is accepted, the buyer's brokerage must transfer the money into the listing brokerage's trust account or issue and send a trust cheque for the amount to the listing brokerage; and (c) the listing brokerage must deposit the trust cheque, if any, by the end of the next business day after its receipt. 3. If the deposit is paid by cheque, then the brokerage or registrant must forward the cheque to the listing brokerage within the time set out in the offer or, if the offer does not state a time for making the deposit, forward the cheque together with the offer. If the offer is accepted, then by the end of the next business day after the listing brokerage receives the cheque, the listing brokerage must (a) deposit the cheque in its trust account; or (b) present, or have a person present, the cheque at the financial institution on which the cheque is drawn, in which case (i) if the financial institution certifies the cheque or issues a bank draft or money order instead of a cheque, the brokerage or registrant must deposit the cheque, bank draft or money order in the brokerage's trust account by the end of the business day following the certification or issuance, or (ii) if the financial institution refuses to certify the cheque or issue a bank draft or money order instead of a cheque, the brokerage or registrant may treat the cheque as dishonoured. Commissions and other remuneration for trades in real estate 5.7(1) In this section, "commission" means an amount paid to a brokerage as remuneration for a trade in real estate. 5.7(2) A commission or other payment received by a brokerage as remuneration for a trade in real estate, other than a share of commission received from another brokerage, (a) constitutes trust money; (b) must be paid into the brokerage's trust account; and (c) must be recorded as being held in trust for the person liable to pay the commission or other remuneration. This subsection applies even if the commission or other remuneration has already been earned. 5.7(3) A commission or other payment received by a brokerage as remuneration for a trade in real estate that has been earned must be paid out of a trust account in accordance with the following rules: (a) any share of the commission or other remuneration payable to another brokerage must be paid directly out of the trust account; (b) once the amount payable under clause (a) has been paid, the remainder, if any, must be paid into a general account of the brokerage or an account maintained by the brokerage for the purpose of paying commissions or other remuneration to registrants engaged by the brokerage or providing real estate services on its behalf; (c) from the account referred to in clause (b), the brokerage must pay any commission or other remuneration owing to registrants engaged by the brokerage, or providing real estate services on its behalf, in respect of the trade. 5.7(4) For the purpose of clause (3)⁠(a), if the amount of commission or other remuneration received by the brokerage is less than the amount actually owing, the two brokerages may agree on how the money is to be divided between them. In the absence of an agreement, the brokerage that received the money must not transfer any of it into its general account until the other brokerage has been paid in full. Property management receipts and expenses 5.8(1) A brokerage, or a registrant engaged by a brokerage or providing real estate services on its behalf, must direct all financial transactions related to property management services provided by the brokerage or registrant, except fees received for services rendered and invoiced by the brokerage, through (a) the brokerage's trust account; or (b) the bank account of the brokerage's client in respect of the property management services provided. 5.8(2) A brokerage, or a registrant engaged by a brokerage or providing real estate services on its behalf, must ensure that any agreement by which the brokerage or registrant provides property management services (a) is in writing; (b) stipulates the account through which financial transactions related to the provision of the property management services are to be directed; and (c) if the financial transactions are to be provided through the client's bank account, includes a provision authorizing the commission to audit the account upon request. Duties if alternate interest arrangements made 5.9 A registrant who deposits money into an account other than the brokerage's trust account under section 41 of the Act (a) is deemed to hold the money, and any interest earned on it, in trust for the persons on whose behalf the money is held; and (b) must exercise the care, diligence and skill in respect of the money that a reasonable and prudent person would exercise in administering the property of others, despite any wording to the contrary in the instructions given under section 41 of the Act. Prohibition on using trust account for non-trust expenses 5.10 A brokerage must not use a trust account kept in respect of Manitoba real estate services to pay any personal expenses or general office expenses. Prohibition on deducting service charges from trust account 5.11 A brokerage must not allow a financial institution at which the brokerage keeps a trust account in respect of Manitoba real estate services to deduct service charges for the trust account from trust monies kept in the account. M.R. 70/2024 Adequate trust account balance 5.12(1) Every brokerage must, at all times, keep a positive balance in the brokerage's trust account or accounts that is adequate to meet all of the brokerage's obligations with respect to trust money related to Manitoba real estate services. 5.12(2) A brokerage must not allow a trust account kept by the brokerage in respect of Manitoba real estate services (a) to have a negative account balance; or (b) to have a negative balance in any individual trust ledger in the account. 5.12(3) In order to maintain an adequate positive balance in the individual account of an owner of property that is managed by a brokerage, the brokerage may from time to time lend their own money to that owner by paying the amount lent into the brokerage's trust account if (a) before entering into any such agreements, the brokerage gives to the registrar written notice of their intention to do so; (b) the loan is made under a written agreement between the brokerage and the owner that specifies the maximum amount that may be lent, the rate of interest, if any, payable by the owner and the terms on which the broker may demand repayment; and (c) the outstanding amount of the loan and of the accrued interest, if any, is shown on each periodic statement rendered by the brokerage to the owner, and such statements are rendered at least once a quarter. 5.12(4) Money paid into a brokerage's trust account under subsection (3) may not be withdrawn by the brokerage in repayment of the loan if the withdrawal would create a negative balance in the owner's individual account in the trust ledger. 5.12(5) If any loans made under subsection (3) are outstanding at the end of the brokerage's financial year, the total amount outstanding must be stated in the report required under section 5.15. 5.12(6) If the registrar is of the opinion that the making of such loans is imperilling, or may imperil, a brokerage's solvency, the registrar may prohibit the brokerage from making loans under subsection (3) or may restrict the total amount that the brokerage may lend under that provision. RECEIPTS AND REPORTS Trust receipts 5.13 Duplicate deposit receipts for trust money paid into a brokerage's trust account or into the account of a brokerage's client must be made out in sufficient detail to permit the identification of each receipt of trust money recorded in the brokerage's books. Record of withdrawal from trust account 5.14(1) Every withdrawal from a brokerage's trust account must be made (a) by cheque; or (b) by an electronic transfer of funds that provides a record of the amount withdrawn, the date of the withdrawal and information sufficient to identify the account or person to whom the money was paid. 5.14(2) Each (a) cheque referred to in clause (1)⁠(a), or the related cheque stub; or (b) record referred to in clause (1)⁠(b); must bear a reference to the transaction or transactions to which it relates, with sufficient detail to permit the cheque or record to be identified with the corresponding disbursement or disbursements recorded in the brokerage's trust records and books. Annual report 5.15 Every brokerage must furnish, within four months after the end of the brokerage's fiscal year, a report on the brokerage's trust account in the form of Schedule C. The report must be signed by a chartered professional accountant in good standing. Exemption 5.16 The registrar may exempt a brokerage from compliance with section 5.15 if (a) the brokerage applies for the exemption before the period for filing the report required under section 5.15 expires; (b) the application is supported by an affidavit setting out (i) that the brokerage — in compliance with the Act and its regulations — did not receive or hold any trust money during the reporting period, and (ii) the facts supporting paragraph (b)⁠(i); and (c) the registrar is satisfied, based on the brokerage's application and supporting affidavit, that an exemption is appropriate. Report on ceasing business 5.17(1) Every brokerage or person responsible for winding up the brokerage's business must file a terminal annual report meeting the requirements of section 5.15 within four months of (a) the brokerage's registration under the Act being cancelled or revoked; or (b) the brokerage permanently ceasing to provide real estate services. 5.17(2) The reporting period for the terminal annual report must include the period beginning on the end date of the last annual report filed by the registrant and ending on the date the brokerage permanently ceased to provide real estate services. PART 6 RECORD-KEEPING REQUIREMENTS General requirements 6.1(1) A registrant must maintain records to (a) accurately record the registrant's business activities, financial affairs and client transactions; and (b) adequately demonstrate the registrant's compliance with the Act and the regulations under the Act. 6.1(2) The records maintained under subsection (1) must include (a) any correspondence with the registrant's client; and (b) if the registrant is a brokerage, the following additional records: (i) records to demonstrate compliance with internal control procedures, (ii) records to demonstrate compliance with the brokerage's policies and procedures, (iii) records to document any compliance or supervision actions taken by the brokerage, (iv) a copy of any service agreement entered into with a client of the brokerage, (v) a copy of any offer, agreement or acceptance to trade in real estate received, transmitted or executed by the brokerage, and, in respect of any such offer, agreement or acceptance, a record showing (A) the date the offer or agreement was made, (B) the date of acceptance, if applicable, (C) the street address or legal description of the real estate, (D) the names and addresses of the parties, (E) the sale price or leasing rate if the offer was accepted or the agreement was concluded, and (F) the amount of remuneration received by the brokerage and manner in which it was determined. Trust records 6.2(1) A brokerage must maintain up-to-date trust records in connection with its real estate services that include (a) in chronological order, all trust monies received and disbursed by the brokerage and (i) the date of receipt and date of disbursement, (ii) the identity of the payor or recipient, and (iii) the trade in real estate in relation to which the money was received or disbursed; (b) the total balance in each trust account held by the brokerage; (c) for each person for whom money is kept in a trust account held by the brokerage, the balance held for that person; (d) a trust ledger or ledgers that show all transactions in respect of a trust account (i) related to an individual trade in real estate, and (ii) related to a specific person for whom the money was received, held, or disbursed; (e) a monthly trust ledger trial balance establishing that the total of the separate trust money balances is in agreement with the separate record of the total money held in trust at the time; (f) a monthly trust bank reconciliation or reconciliations showing reasons for any differences between bank statement figures and figures shown as deposited in trust according to the brokerage's books; (g) duplicate deposit slips, cancelled cheques and bank statements for all trust accounts; and (h) a copy of any trust instruction received. 6.2(2) Trust records kept in accordance with this section must be accessible from Manitoba. 6.2(3) A brokerage conducting business both in Manitoba and outside Manitoba must (a) keep the trust records with respect to business conducted in Manitoba separate from the trust records with respect to business conducted outside Manitoba; (b) keep all trust money received with respect to business conducted in Manitoba separate from trust money received with respect to business conducted outside Manitoba; and (c) ensure that the brokerage's accountant can prepare the trust report required under section 5.15 without having to examine any accounts or records with respect to business conducted outside Manitoba. 6.2(4) Subsections (1) to (3) apply, with necessary changes, to money received or disbursed by a property management brokerage in or from a client's account under an arrangement permitted by clause 5.8(1)⁠(b). Form, accessibility and retention of records 6.3 A registrant required to maintain or keep a record under this regulation must (a) keep the record for a minimum of five years from the date the record is created; (b) store the record in a safe location and in a durable form; and (c) store the record in a manner that allows it to be provided to the registrar or the commission within a reasonable period of time. PART 7 FORFEITURE OF BOND Overview 7.1 Section 12 of the Act requires registrants to be bonded. The amounts required are set out in Part 2 of this regulation. This Part sets out the circumstances under which the bond is forfeited and may be drawn upon. GROUNDS FOR FORFEITURE Misconduct 7.2 When, in connection with a trade in real estate, a brokerage, a director, partner, officer or employee of the brokerage, or a registrant engaged by the brokerage or providing real estate services on its behalf, (a) is found, after an investigation under Part 4 of the Act, to have committed a fraudulent act; (b) is a party to civil proceedings in a court resulting in final judgment, based upon a finding of fraud, being given against the brokerage, director, partner, officer, employee or registrant; or (c) is convicted of an offence under this Act or a regulation, or an offence under the Criminal Code (Canada) relating to real estate services; the commission may order all or part of the bond to be forfeited. Bankruptcy or winding-up 7.3 When a brokerage, a director, partner or officer of the brokerage, or a registrant engaged by the brokerage or providing real estate services on its behalf, (a) has, in the case of an individual, become a bankrupt as defined in the Bankruptcy and Insolvency Act (Canada) or made a proposal under that Act; or (b) has, in the case of a corporation, become a bankrupt as defined in the Bankruptcy and Insolvency Act (Canada), made a proposal under that Act or had a winding-up order made against it; the commission may order all or part of the bond to be forfeited. USE OF PROCEEDS Payment on forfeiture 7.4(1) When all or part of a bond is forfeited under section 7.2 or 7.3, the registrar must notify the surety of the forfeiture in writing. 7.4(2) When the surety receives a notice of forfeiture under subsection (1), the amount ordered to be forfeited (a) becomes a debt payable by the surety to the commission; and (b) must be paid as ordered by the commission under section 7.5. Commission's power re proceeds of bond 7.5(1) When a bond is forfeited under section 7.2 or 7.3, the commission may, by order, direct that all or part of the proceeds of the bond be paid (a) to the commission; (b) into trust in the Court of King's Bench; (c) to a trustee, custodian, receiver or liquidator; or (d) to any person that the commission considers to be entitled to payment or whose receipt of the proceeds the commission considers to be in the public interest. 7.5(2) When any bond proceeds are paid to the commission under clause (1)⁠(a), the commission must hold those proceeds in a special trust account in the name of the commission. 7.5(3) Unless the commission has made an order under subsection (4), the registrar may direct that any portion of the funds held in the special trust account be paid to a person that, in the registrar's opinion, is entitled to the payment. 7.5(4) If the special trust account established by the commission is not fully disbursed within two years after the date of the bond's forfeiture, the commission may, by order, direct that any proceeds remaining in the account be paid (a) to the surety named in the forfeited bond; (b) to another person whom the commission finds to be entitled to the payment; or (c) into the Consolidated Fund. PART 8 REAL ESTATE REIMBURSEMENT FUND Overview 8.1 Section 65 the Act authorizes The Manitoba Real Estate Association, Inc. to establish or continue a Real Estate Reimbursement Fund that may be utilized to indemnify parties in case of misconduct or bankruptcy by a brokerage or registrant. This Part sets out the operational requirements for the fund, including when payments may be made from it. Composition of fund 8.2 The fund consists of (a) money collected by the association from its members through imposed levies; (b) interest and other income earned on the money in the fund; (c) money recovered under subsection 65(6) of the Act; and (d) money received for the fund from any source by way of a gift, bequest, advance, loan or otherwise. Management of fund 8.3 The association must (a) manage the fund; (b) deposit all monies received by the fund in a trust account at a financial institution in Manitoba; (c) invest any money of the fund not immediately required for the purposes of the fund in (i) bonds, debentures, certificates or other evidences of indebtedness of the Government of Canada or the government of any province of Canada, (ii) investments guaranteed by the Government of Canada or the government of any province of Canada, or (iii) an interest-bearing account or guaranteed investment certificate of a financial institution; (d) pay out of the fund any reasonable expenses the association incurs in the management and administration of the fund, including the expense of maintaining the insurance coverage and obtaining the loans required under clause 8.5(c); (e) maintain accounting records with respect to the fund in accordance with generally accepted accounting principles; and (f) file with the commission a certified copy of any by-law made by the association affecting the administration of the fund. Association deemed trustee 8.4 The association is deemed to hold in trust for the fund any money it receives on behalf of the fund and must keep such money separate from other money received by the association. Minimum balance 8.5 The association must (a) maintain a minimum balance of $500,000 in the fund; (b) ensure that it imposes on its members levies that (i) are sufficient to maintain the minimum balance set out in clause (a), and (ii) reflect the differences in actuarial risk between the different types of real estate services provided by registrants; and (c) during any period when the balance in the fund is temporarily less than $500,000, (i) maintain, in the amount of the shortfall and for the same purpose as the fund, (A) insurance coverage, or (B) a loan from a financial institution, and (ii) file with the commission a certified copy of any insurance policy and written evidence of any loan arranged under paragraph (i). Use of surplus 8.6 Subject to section 8.7, the association may use any money in the fund in excess of the minimum balance required by clause 8.5(a) for any purpose the association deems appropriate. No pledging 8.7 The association must not pledge the fund as security for any loan, and it must be a condition of any loan taken out by the association that the lender does not have recourse to the fund in the event of a default of payment. Surety bond requirement in lieu of fund 8.8 The registrar may require every brokerage that is a member of the association to file a surety bond in an amount and within a time determined by the registrar — or suspend or cancel the brokerage's registration if no such surety bond is filed — if the association (a) fails to maintain the minimum balance in the fund required under clause 8.5(a); (b) fails to arrange or maintain the insurance or loan coverage required under clause 8.5(c); or (c) fails to observe or contravenes a provision of the Act or this regulation with respect to the operation of the fund. Insurable interest 8.9 The association has an insurable interest in the fund and in the protection of the fund against loss and must immediately notify the commission in writing upon the occurrence of any material event or circumstance that could adversely affect the operations of the fund. Maximum claim limits 8.10(1) In this section, "claim occurrence" means a single occurrence of any of the events described in subsections 65(2) and 65(3) of the Act. 8.10(2) The maximum payment that may be made from the fund to any one claimant in respect of one claim occurrence is $50,000. 8.10(3) Subject to subsection (4), the maximum payment that may be made from the fund with respect to all claims against a brokerage, including all claims against a registrant or other person engaged by the brokerage or providing real estate services on its behalf, in respect of one claim occurrence, is (a) $440,000 in respect of claims against a property management brokerage or a real estate brokerage providing property management services; or (b) $410,000 in respect of claims against a real estate brokerage that does not provide property management services, a private sales brokerage or a restricted brokerage. 8.10(4) Where the aggregate amount of all claims against a brokerage, including all claims against a registrant or other person engaged by the brokerage or providing real estate services on its behalf, in respect of one claim occurrence, exceeds the limit set out in subsection (3), the claims must be paid on a pro-rata basis. 8.10(5) Any payment made from the fund to a claimant in respect of a claim occurrence must not exceed the actual loss suffered by the claimant. 8.10(6) No payment to a claimant may be made from the fund unless the claim occurrence occurred while the affected brokerage was a member of the association. Notice of hearing 8.11 The commission must give notice of any hearing held to consider a claim against the fund to any brokerage, registrant or other person engaged by a brokerage or providing real estate services on its behalf that is the subject of the claim, but (a) the commission is not required to give notice of such a hearing to the association; (b) the association is not a party to such a hearing, nor does it have a right to intervene; and (c) the association is deemed not to be a person affected by a decision made by the commission with respect to any claim against the fund for the purpose of section 29 of The Securities Act . Register of association members 8.12 The association must (a) maintain a register showing the names of all brokerages who are members of the association and of all registrants engaged by those brokerages or providing real estate services on their behalf; and (b) upon request by the registrar, provide a copy of the register to the registrar forthwith. Suspension or cancellation of membership 8.13(1) If the association intends to suspend or cancel the membership of a brokerage, it must, at least 30 days prior to the suspension or cancellation, advise the registrar of (a) the name of the brokerage; (b) the reason for the intended suspension or cancellation; and (c) the proposed effective date of the intended suspension or cancellation. 8.13(2) If the membership of a brokerage in the association is suspended or cancelled, on the effective date of the suspension or cancellation (a) the registration of the brokerage under the Act is automatically suspended; and (b) coverage of the brokerage, and coverage of any registrant or other person engaged by the brokerage or providing real estate services on its behalf, ceases. 8.13(3) The association must immediately advise the registrar in writing of the suspension or cancellation of a brokerage's membership in the association. Winding up the fund 8.14(1) The association may wind up the fund upon giving the commission 180 days' written notice. 8.14(2) If the association winds up the fund, every brokerage that is a member of the association must provide the registrar with a surety bond in an amount determined by the registrar, and within the time specified by the registrar. 8.14(3) The registration under the Act of any brokerage that fails to provide the bond required under subsection (2) is suspended automatically. 8.14(4) If the association winds up the fund, the money then in the fund, less any reserves reasonably necessary for future claims, must be paid out in accordance with the following order of priority: (a) claims received under section 65 of the Act; (b) expenses of the association permitted under clause 8.3(d). Any balance remaining in the fund after the payments under clauses (a) and (b) have been made must be used by the association for the benefit of its members. 8.14(5) No claims may be made against the fund more than two years from the date the fund is wound up. Report to commission 8.15 No later than four months after the end of the fund's fiscal year or such other time as required by the commission, the association must file a report on the fund's operation during the previous fiscal year with the commission. The report must (a) be audited by a chartered professional accountant; (b) include audited financial statements; (c) contain a statement from the auditor confirming that the financial statements were prepared in accordance with generally accepted accounting principles; and (d) include a list of all receipts by and disbursements made from the fund in the applicable fiscal year. Investigation by commission 8.16(1) An investigator designated under section 21.1 of The Securities Act may investigate and inquire into any matter relating to the fund, in which case section 21.1 of that Act applies to the investigation. 8.16(2) The commission may investigate and inquire into any matter relating to the fund, in which case section 22 of The Securities Act applies to the investigation. PART 9 TRADING IN SUBDIVISION LOTS OUTSIDE MANITOBA Overview 9.1 Part 6 of the Act regulates the trading in subdivision lots located outside Manitoba. This Part sets out the regulatory requirements for such trades. Contents of prospectus 9.2 A prospectus required under subsection 67(1) of the Act must contain the following: (a) if the owner of the subdivision lots is an individual, (i) the full name of the individual, (ii) the residential address and business address of the individual, and (iii) the current principal occupation of the individual, and any principal occupations in the previous five years; (b) if the owner of the subdivision lots is a partnership, (i) the full name of each partner, (ii) for each partner that is an individual, (A) their business address, and (B) their current principal occupation and any principal occupations in the previous five years, and (iii) for each partner that is a corporation, the information required for a corporation under clause (c); (c) if the owner of the subdivision lots is a corporation, (i) the full name of the corporation and the address of the head office, (ii) if the corporation is a subsidiary of another corporation, the full name and head office address of the parent corporation in which the ultimate control of the subsidiary corporation is vested, (iii) the place and date of incorporation of the corporation and of the parent corporation, if any, (iv) any changes of name which the corporation or the parent corporation, if any, has undergone since its incorporation, (v) the officers and directors of the corporation and of the parent corporation, if any, and for each individual that is a director or officer, (A) the full name of the individual, (B) the residential address and business address of the individual, and (C) the current principal occupation of the individual, and any principal occupations in the previous five years, and (vi) the previous nature of the corporation's business if it was different from its current business; (d) where the owner is a corporation or a partnership, an audited financial statement of the corporation or partnership for the last financial year that ended prior to the filing of the prospectus; (e) particulars of any bonds or debentures outstanding or proposed to be issued; (f) a description, either written or by means of an illustrated map or maps, of the subdivision and the area surrounding it, including (i) the proximity of any airport and the corresponding glide paths, (ii) the proximity of industrial areas and the direction of any prevailing winds, (iii) the mean winter and summer temperature of the area within which the subdivision is situated, and (iv) particulars of all proposed or existing ancillary facilities, including churches, hospitals, schools, shopping centres and recreation centres; (g) the legal description of the subdivision and particulars as to the state of the title; (h) particulars of all encumbrances, both existing and proposed, and of the provisions made or to be made for their discharge; (i) particulars of the terms and conditions upon which it is intended to dispose of the subdivided lands; (j) particulars of the manner in which the plan of subdivision has been filed with the appropriate land registry office or similar recording office in the municipality or district in which the subdivision is located, giving the date of approval or other acceptance by the appropriate officials, the date and number of the registration of the plan, and the full name and address of the office; (k) a statement showing what consents of governmental agencies are required by any laws in force in the jurisdiction in which the lands are located to (i) the subdividing of the lands, (ii) the sale of the subdivision lots to purchasers located in that jurisdiction, and (iii) the sale of the subdivision lots to purchasers located outside that jurisdiction, giving the full name and address of each such agency and stating whether its consent has been obtained and, if so, the date on which the consent was obtained; (l) particulars of the manner in which title or other interest is to be conveyed to the prospective purchaser; (m) particulars of the arrangements to govern the handling of deposits and other money received or to be received from purchasers or prospective purchasers between the time of payment and the time when the title or other interest contracted for is conveyed and assured to the purchaser; (n) particulars of the manner in which the owner acquired title to the subdivided lands, tracing the title to each part back to the last arm's length purchase of that part stating, in respect to that purchase and any subsequent purchase, the names of the parties, the date of the deed, the price paid, the total area purchased and what part of that area is included in the subdivided lands; (o) particulars of existing public utility services for the subdivision, including water, sewerage, electricity, gas and telephone service and whether public utility services are available or proposed and particulars of access roads, sidewalks, street lighting, garbage collection, fire protection, school facilities and public transportation; (p) particulars of the plan for financing the subdivision, including (i) acquisition costs unpaid, costs of installation of proposed services and details of any other expenditures that are or might reasonably be anticipated, with dates for payment in each case, (ii) the amounts and nature of all performance bonds or similar securities that are, or are to be, posted or deposited, and (iii) the source of the funds with which all unpaid costs and anticipated expenditures are to be paid; (q) particulars of all building restrictions, zoning regulations and other restrictions governing the use or development of the subdivided lands; (r) particulars of any clearing, fill, improvement or other changes from the natural state; (s) particulars of any drainage overflow hazard with respect to the subdivided lands and whether arrangements for dyking or drainage have been made or are proposed; (t) particulars of the soil conditions of the subdivided lands and of the requirements and recommendations of the local building authorities for foundations of buildings on the subdivided lands; (u) particulars of arrangements, if any, that have been or are proposed to be made with contractors or builders for construction of houses or other buildings thereon contracted for, commenced or completed, including provision for lien protection, if any; (v) in the case of condominium units, such other particulars as the registrar may require. Coming into force 9.3 This regulation comes into force on the same day that The Real Estate Services Act , S.M. 2015, c. 45, comes into force. SCHEDULE A Surety Bond SCHEDULE B Offer to Purchase Form 1 Residential Offer to Purchase Contract Form 2 Condominium Unit Offer to Purchase Contract SCHEDULE C Annual Trust Account Report