SNL 2019 CHAPTER R-2.1 - REAL ESTATE TRADING ACT, 2019

SNL 2019 CHAPTER R-2.1 REAL ESTATE TRADING ACT, 2019 Amended: 2022 c29; 2024 c32; 2023 cM-17.1 s37 CHAPTER R-2.1 AN ACT RESPECTING THE REGULATION OF REAL ESTATE TRADING IN THE PROVINCE (Assented to December 6, 2019) Analysis 1. Short title 2. Interpretation 3. Non-application of Act 4. Superintendent and deputy superintendent 5. Powers and duties of superintendent 6. Types of licences 7. Application for licence 8. Designated representative 9. Personal real estate corporation licence 10. Personal real estate corporation 11. Duties of licensees 12. Notice of changes 13. Certificate 14. Temporary broker licence 15. Variation, suspension or cancellation of licence 16. Licence required 17. Records 18. Agreements 19. Disclosure re: purchase of real estate for own purpose 20. Referral 21. Payment of commission 22. Action for commission 23. Trade of business 24. Bond 25. Fund 26. Trust account 27. Unclaimed trust money 28. Prohibition 29. Permitted salespersons 30. Trading for other brokers prohibited 31. Promises to resell prohibited 32. Breaking of contract prohibited 33. Advertising 34. Carrying on business as an individual 35. Administrative penalty 36. Order of superintendent 37. Inspectors 38. Powers of inspectors 39. Order of inspector 40. Contravention of Act suspected 41. Telewarrant 41.1 Report by inspector 42. Protection from liability 43. Appeal 44. Notice 45. Offences 46. Limitation period 47. Regulations 48. Fees and forms 49. Transitional 50. SNL2009 cC-31.1 Amdt. 51. CNLR 1006/96 Amdt. 52. Repeal 53. RSNL1990 cR-2 Rep. 54. Commencement Be it enacted by the Lieutenant-Governor and House of Assembly in Legislative Session convened, as follows: Short title 1. This Act may be cited as the Real Estate Trading Act, 2019. 2019 cR-2.1 s1 Back to Top Interpretation 2. (1) In this Act (a) "affiliated person" means (i) the spouse or cohabiting partner of a controlling individual, (ii) a child of a controlling individual, (iii) a corporation, all of the shares of which are beneficially owned by one or more of a controlling individual and the other individuals referred to in subparagraphs (i) and (ii), or (iv) a trust, all of the beneficiaries of which are one or more of a controlling individual and the other individuals referred to in subparagraphs (i) and (ii ); (a.1) "appellant" means a person who submits an appeal under section 43; (b) "broker" means a person who holds a licence issued under paragraph 6(1)(a ); (c) "broker licence" means a licence issued under paragraph 6(1)(a ); (d) "business" means an undertaking carried on for profit or gain or an interest in an undertaking; (e) "cohabiting partner" means either of 2 persons who are cohabiting and (i) have cohabited continuously in a conjugal relationship outside marriage for not less than one year, or (ii) have entered into a written agreement in respect of their cohabitation, in which they agree on their respective rights and obligations during cohabitation, upon ceasing to cohabit or upon the death of either of them; (f) "controlling individual" means the individual who is the sole voting shareholder of a personal real estate corporation; (f.1) "department" means the department presided over by the minister; (f.2) "deputy minister" means the deputy minister of the department; (g) "deputy superintendent" means a person appointed under subsection 4(2); (h) "designated representative" means a person designated in accordance with subsection 8(1); (i) "employ" in relation to a broker, includes a person who is contracted by the broker to trade on its behalf; (j) "family member" includes a spouse, cohabiting partner, parent, child, brother, sister, grandparent and grandchild; (k) "former Act" means the Real Estate Trading Act ; (l) "fund" means the Real Estate Recovery Fund established under section 25; (m) "licence" means a licence issued under section 6; (n) "licensee" means a person who holds a licence issued under section 6; (o) "lease" means an agreement by which one person conveys real estate to another person for a specified term and for a specified amount of money; (o.1) "minister" means the minister appointed under the Executive Council Act to administer this Act; (p) "person" includes a partnership, a corporation and the heirs, executors, administrators or other legal representatives of a person; (q) "personal real estate corporation" means a person who holds a licence issued under paragraph 6(1)(e ); (r) "personal real estate corporation licence" means a licence issued under paragraph 6(1)(e ); (s) "real estate" includes freehold and leasehold property and chattels real and a business, whether with or without the premises, fixtures, stock-in-trade, goods or chattels used in connection with the operation of the business; (t) "referral fee" means any form of compensation, direct or indirect, paid for the referral of a person to or from a licensee; (u) "restricted broker" means a person who holds a licence issued under paragraph 6(1)(c ); (v) "restricted broker licence" means a licence issued under paragraph 6(1)(c ); (w) "restricted salesperson" means a person who holds a licence issued under paragraph 6(1)(d ); (x) "restricted salesperson licence" means a licence issued under paragraph 6(1)(d ); (y) "salesperson" means a person who holds a licence issued under paragraph 6(1)(b ); (z) "salesperson licence" means a licence issued under paragraph 6(1)(b ); (aa) "spouse" means either of 2 persons who (i) are married to each other, (ii) are married to each other by a marriage that is voidable and has not been voided by a judgment of nullity, or (iii) have gone through a form of a marriage with each other, in good faith, that is void and are cohabiting or have cohabited with each other within the preceding year; (bb) "superintendent" means the Superintendent of Real Estate Brokers and Salespersons appointed under subsection 4(1); and (cc) "trade" or "trading" includes (i) a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for sale, exchange, option, lease or otherwise, (ii) an offer or attempt to list real estate for the purpose of a disposition, acquisition or transaction, and (iii) an act, advertisement, conduct or negotiation, directly or indirectly, in furtherance of a disposition, acquisition, transaction, offer or attempt. (2) A reference in this Act to a corporation does not include a personal real estate corporation. (3) Unless the context indicates otherwise, a reference in this Act to (a) a broker includes a restricted broker; (b) a broker licence includes a restricted broker licence; (c) a salesperson includes a restricted salesperson; and (d) a salesperson licence includes a restricted salesperson licence. 2019 cR-2.1 s2 ; 2024 c32 s36 Back to Top Non-application of Act 3. This Act does not apply to (a) an assignee, custodian, liquidator, receiver, trustee or other person trading under an Act of the province or of Canada ; (b) a person trading under an order of a court; (c) an administrator of an estate trading on behalf of the estate; (d) an executor of an estate trading under the terms of a will; (e) a trustee trading under the terms of a deed of trust; (f) a bank, credit union, loan, trust or insurance company trading in the ordinary course of its business; (g) a member of the Law Society of Newfoundland and Labrador trading in the course of the member’s practice; (h) a person who completes not more than 3 trades in a calendar year relating to real estate owned by the person or in which the person has a substantial interest; ( i ) a person who rents property owned by the person or in which the person has a substantial interest; (j) a person in the business of property management who arranges a lease agreement; or (k) a person or class of persons exempted from the application of this Act by the regulations. 2019 cR-2.1 s3 ; 2022 c29 s1 Back to Top Superintendent and deputy superintendent 4. (1) The minister shall appoint a Superintendent of Real Estate Brokers and Salespersons. (2) The minister may appoint a Deputy Superintendent of Real Estate Brokers and Salespersons who shall perform the duties and exercise the powers of the superintendent where (a) the superintendent is absent or unable to act; (b) the superintendent considers it necessary to delegate the superintendent’s authority; or (c) the office of the superintendent is vacant. 2019 cR-2.1 s4 ; 2022 c29 s2 Back to Top Powers and duties of superintendent 5. (1) The superintendent may (a) establish a code of conduct; (b) prescribe continuing education requirements; (c) direct disbursement of a deposit from a trust account in accordance with the regulations; and (d) perform the other duties and exercise the powers conferred by this Act. (2) For the purpose of carrying out the superintendent’s powers and duties under this Act, the superintendent has the powers, privileges and immunities that are or may be conferred on a commissioner under the Public Inquiries Act, 2006 . 2019 cR-2.1 s5 ; 2022 c29 s3 Back to Top Types of licences 6. (1) The superintendent may issue the following licences: (a) a broker licence which authorizes the holder of the licence to trade; (b) a salesperson licence which authorizes the holder of the licence to act as a salesperson of a broker and trade on behalf of that broker; (c) a restricted broker licence which authorizes the holder of the licence to trade on the holder’s behalf; (d) a restricted salesperson licence which authorizes the holder of the licence to act as a salesperson of a restricted broker and trade on behalf of that broker; and (e) a personal real estate corporation licence which authorizes the holder of the licence to act as a salesperson of a broker and trade on behalf of that broker. (2) The superintendent may issue a licence or refuse to issue a licence. (3) Where the superintendent refuses to issue a licence, the superintendent shall, upon the request of the applicant, provide written reasons for refusing to issue the licence. (4) A licence issued under paragraph (1)(b), (d) or (e) shall state the name of the broker with whom the salesperson is employed. (5) The termination of the employment of a salesperson with a broker shall be (a) a termination of the salesperson licence; and (b) where the salesperson is a controlling individual, a termination of the personal real estate corporation licence. (6) The superintendent may impose terms and conditions on a licence. (7) A licence is not transferrable or assignable. (8) A licence remains in effect until it is suspended or cancelled under this Act. 2019 cR-2.1 s6 ; 2022 c29 s4 Back to Top Application for licence 7. (1) A person applying for a licence under paragraphs 6(1)(a), (b), (c) or (d) shall submit to the superintendent (a) an application in the form set by the superintendent; (b) the fee set by the minister; (c) a certified criminal records check satisfactory to the superintendent from the Royal Newfoundland Constabulary, the Royal Canadian Mounted Police or another organization approved by the minister; (d) [Rep. by 2022 c29 s5] (e) payment to the fund in the amount set by the minister; (f) proof of errors and omissions liability insurance in the amount prescribed in the regulations; and (g) other information or documentation prescribed in the regulations. (2) Where the applicant is (a) a partnership, the applicant shall provide a certified criminal records check satisfactory to the superintendent from the Royal Newfoundland Constabulary, the Royal Canadian Mounted Police or another organization approved by the minister for each partner in the partnership; or (b) a corporation, the applicant shall provide a certified criminal records check satisfactory to the superintendent from the Royal Newfoundland Constabulary, the Royal Canadian Mounted Police or another organization approved by the minister for the designated representative. (3) In addition to the requirements in subsections (1) and (2), a person applying for a licence under paragraph 6(1)(a) or (b) shall provide proof, satisfactory to the superintendent, of the successful completion of the prescribed examinations. (4) In addition to the requirements in subsections (1) and (2), a person applying for a licence under paragraph 6(1)(b) or (d) shall provide a statement made by or on behalf of the broker for whom the applicant proposes to act as salesperson, (a) recommending the applicant as an appropriate person to receive a salesperson licence; and (b) declaring that, where the applicant is granted a licence, the applicant shall act as a salesperson employed by and representing the broker. (5) Where the superintendent requires further information in order to assess the application, the superintendent shall request further information from the applicant and the applicant shall provide that information in the time set by the superintendent. 2019 cR-2.1 s7 ; 2022 c29 s5 Back to Top Designated representative 8. (1) Where a corporation or partnership applies for a broker licence, it shall designate an individual to act on its behalf for the purposes of the licence. (2) The designated representative shall be an individual who (a) is a director of the corporation or a partner in the partnership; (b) is active in the day to day operations of the corporation or partnership and knowledgeable of the business of the corporation or partnership; (c) holds a valid salesperson licence; and (d) successfully completed the prescribed examinations for the corporation or partnership to obtain its broker licence. (3) A broker licence issued to a corporation or partnership shall be in the name of the corporation or partnership and shall state on the licence the name of the designated representative. (4) Notwithstanding subsections (1) to (3), a corporation or partnership may designate another individual who satisfies the requirements in paragraphs (2)(b), (c) and (d) who, in the absence or incapacity of the designated representative, shall act as the designated representative. (5) Where a corporation or partnership designates a person under subsection (4), it shall provide the name of that person to the superintendent. (6) Where a designated representative dies, becomes incapacitated or terminates employment with a broker and the broker does not have an alternate designated representative, the superintendent may (a) allow the broker to appoint a designated representative that does not meet the requirements in subsection (2) or (4) for a term of not more than 6 months; and (b) allow the broker to carry on business during that time. 2019 cR-2.1 s8 ; 2022 c29 s6 Back to Top Personal real estate corporation licence 9. (1) A person applying for a personal real estate corporation licence shall submit to the superintendent (a) an application in the form set by the superintendent; (b) the fee set by the minister; (c) proof satisfactory to the superintendent that (i) it is incorporated under the Corporations Act , (ii) all the voting shares of the corporation are legally and beneficially owned by a single individual, (iii) the sole director of the corporation is the controlling individual, (iv) all non-voting shares of the corporation are legally and beneficially owned by the controlling individual or an affiliated person of the controlling individual, and (v) the legal name of the personal real estate corporation includes the words "personal real estate corporation "; (d) an application for a salesperson licence for the controlling individual or where the controlling individual already holds a salesperson licence, a request to amend the controlling individual's salesperson licence to comply with subsection (4 ); (e) proof satisfactory to the superintendent that the controlling individual held a salesperson licence for at least 2 years during the 5 years preceding the application for the personal real estate corporation licence; (f) the written consent of the broker for which the controlling individual proposes to act as a salesperson; (g) [Rep. by 2022 c29 s7] (h) payment to the fund in the amount set by the minister; (i) proof of errors and omissions liability insurance in the amount prescribed in the regulations; and (j) other information or documentation prescribed in the regulations. (2) A personal real estate corporation licence shall (a) indicate the name of the controlling individual; and (b) be subject to any terms and conditions that apply to the salesperson licence of the controlling individual. (3) A personal real estate corporation may be licensed only in relation to the same broker as the controlling individual and shall be employed by that broker to trade on behalf of that broker. (4) The licence of a controlling individual shall indicate (a) the name of the personal real estate corporation by which the controlling individual is employed to trade on its behalf; and (b) the name of the broker of the personal real estate corporation. (5) Where the superintendent requires further information in order to assess an application, the superintendent shall request further information from the applicant and the applicant shall provide that information in the time period set by the superintendent. 2019 cR-2.1 s9 ; 2022 c29 s7 Back to Top Personal real estate corporation 10. (1) A controlling individual may be employed by a personal real estate corporation to trade on behalf of a broker, and may receive remuneration in relation to a trade from a personal real estate corporation, where (a) the controlling individual and the personal real estate corporation have each obtained a licence under this Act; (b) the trades provided by the personal real estate corporation are provided only by the controlling individual; (c) any other persons employed by the personal real estate corporation are not licensees; (d) the personal real estate corporation does not conduct any business other than the trading of real estate and ancillary services directly associated with the trading of real estate; and (e) the controlling individual and the personal real estate corporation comply with the requirements in this Act, the regulations and the code of conduct. (2) A controlling individual employed by a personal real estate corporation in accordance with paragraph (1)(b) is considered, for the purposes of this Act and the regulations, to be employed by the broker of the personal real estate corporation, but shall not be employed by that broker or any other broker to trade on behalf of that broker. (3) The fact that a controlling individual is employed by a personal real estate corporation to trade on behalf of a broker does not affect (a) the controlling individual's liability with respect to trades; (b) the controlling individual's obligations and responsibilities to a person who has employed the controlling individual to trade on the person’s behalf; or (c) the application of this Act, the regulations and the code of conduct to the controlling individual. (4) The superintendent may (a) amend the licence of a personal real estate corporation to reflect the terms and conditions applicable to the salesperson licence of the controlling individual; and (b) amend the licence of the controlling individual to reflect the terms and conditions applicable to the personal real estate corporation licence. (5) Where a personal real estate corporation ceases to meet the criteria set out in subparagraphs 9(1)(c)(i) to (v), its personal real estate corporation licence is terminated. (6) Where the salesperson licence of a controlling individual is suspended or cancelled, the controlling individual's personal real estate corporation licence is suspended or cancelled as of the time at which the controlling individual's licence is suspended or cancelled. (7) Where the licence of a personal real estate corporation is (a) suspended or cancelled, or (b) terminated under subsection (5) or 6(5) the salesperson licence of the controlling individual is suspended or cancelled or terminated as of the time at which the personal real estate corporation's licence is suspended, cancelled or terminated. 2019 cR-2.1 s10 ; 2022 c29 s8 Back to Top Duties of licensees 11. A licensee shall (a) pay the annual fee set by the minister; (b) file an annual report in the form set by the superintendent; (c) comply with this Act, the regulations, the code of conduct and the terms and conditions of the licence issued under this Act; (d) maintain errors and omissions liability insurance in the amount prescribed in the regulations; (e) pay the amount set by the minister to the fund when required by the superintendent; (f) complete the continuing education requirements set by the superintendent; and (g) provide information or documentation to the superintendent where requested. 2019 cR-2.1 s11 Back to Top Notice of changes 12. A licensee shall notify the superintendent in writing of the following changes within 10 days of the change: (a) a change in the address for service; (b) a change in email address; (c) a change in the partners where the licensee is a partnership or a change in the directors where the licensee is a corporation; (d) a change in the account number, branch or location of the licensee's trust account; (e) the commencement and termination of employment of a salesperson; (f) a change in any information submitted in the licensee's application for a licence; and (g) a change in any information in the most recent annual report submitted by the licensee. 2019 cR-2.1 s12 Back to Top Certificate 13. (1) Where required by the superintendent, a broker shall file a certificate stating the broker's financial position. (2) A certificate referred to in subsection (1) shall be signed by (a) the broker or where the broker is (i) a partnership, by the partners; or (ii) a corporation, by the designated representative; and (b) an accountant approved by the superintendent. 2019 cR-2.1 s13 Back to Top Temporary broker licence 14. (1) Notwithstanding section 6, where a broker who is an individual dies or becomes incapacitated, the superintendent may issue a temporary broker licence to the executor or administrator of the deceased broker's estate or the incapacitated broker's power of attorney. (2) A licence issued under subsection (1) shall be for a term of not more than 6 months and shall authorize the holder of the licence to carry on business of a broker only in relation to trading on behalf of the deceased or incapacitated broker. (3) Where a temporary broker licence is issued under subsection (1), salespersons of the deceased or incapacitated broker at the time of the death or incapacitation of the broker shall be considered to be licensed as salespersons of the person to whom the temporary licence was issued for the term of the temporary licence. 2019 cR-2.1 s14 Back to Top Variation, suspension or cancellation of licence 15. The superintendent may vary, suspend or cancel a licence where (a) the superintendent is satisfied that the licensee contravened (i) this Act or the regulations, (ii) a condition of the licence, (iii) an order issued under this Act, or (iv) the code of conduct; (b) the superintendent is satisfied that the licensee made one or more false or misleading statements in the application for a licence, the information provided in support of the application or an annual report; (c) the licensee failed to file an annual report; (d) the licensee failed to pay the annual fee; (e) the licensee did not satisfy the continuing education requirements; or (f) the superintendent is satisfied that it is in the public interest to vary, suspend or cancel the licence. 2019 cR-2.1 s15 Back to Top Licence required 16. A person shall not (a) trade or represent to be a broker, unless the person holds a valid licence issued under paragraph 6(1)(a) or (c); or (b) trade or represent to be a salesperson, unless the person holds a valid licence issued under paragraph 6(1)(b), (d) or (e). 2019 cR-2.1 s16 ; 2022 c29 s9 Back to Top Records 17. (1) A broker shall keep a record of the following information relating to a trade: (a) the nature of the trade; (b) a description of the real estate involved in the trade; (c) the consideration for the trade; (d) the names of the parties to the trade; (e) the amount of the deposit received and the information relating to the disbursement of the deposit; (f) the amount of the commission or other remuneration; (g) the name of the person paying the commission; and (h) other information prescribed in the regulations. (2) A broker shall maintain a trust account record in which the broker shall enter the full details of the receipt and disbursement of trust money. 2019 cR-2.1 s17 Back to Top Agreements 18. (1) Immediately after the execution of an agreement to list real estate for sale, exchange or lease with a broker, the broker or the salesperson shall deliver to the signatories of the agreement a copy of the agreement. (2) An agreement referred to in subsection (1) is not valid where (a) it does not state a specific date on which the agreement ends; (b) it states more than one date on which the agreement ends; or (c) a copy of the agreement is not delivered by the broker or the broker's salesperson to the person who signed the agreement immediately after its execution. (3) Where a broker or salesperson has secured an acceptance of an offer to sell, purchase, exchange or lease real estate, the broker or the broker's salesperson shall require each of the parties to sign copies of the agreement, and the broker or salesperson shall retain one signed copy and shall immediately deliver one signed copy to the signatories involved in the trade. 2019 cR-2.1 s18 Back to Top Disclosure re: purchase of real estate for own purpose 19. (1) Where a broker or salesperson intends to, either directly or indirectly, (a) purchase; (b) make an offer to purchase; or (c) acquire for the broker or salesperson or a family member an interest in real estate listed with the broker or salesperson for sale, the broker or salesperson shall clearly disclose in writing to the person selling the real estate that (d) the broker or salesperson is purchasing the real estate or acquiring an interest in the real estate for the broker or salesperson or a family member; (e) the broker or salesperson is about to negotiate, is negotiating or has negotiated for the resale or other disposition of the real estate and provide details regarding the negotiation; and (f) where the broker or salesperson intends to resell the real estate for the broker's or salesperson's own benefit or the benefit of a family member, that the broker or salesperson intends to resell the real estate for the broker's or salesperson's own benefit or the benefit of a family member. (2) Where a broker or salesperson does not provide disclosure to a seller in accordance with subsection (1), the seller is not liable to pay commission to the broker or salesperson. 2019 cR-2.1 s19 ; 2022 c29 s10 Back to Top Referral 20. (1) Where, in the course of providing services, a licensee refers a person to a service provider or another licensee and the licensee knows that the licensee may be entitled to receive a referral fee, remuneration or benefit from that service provider or other licensee for making the referral, the licensee shall disclose in writing to the person that the licensee referred that (a) the licensee forwarded the person’s name and contact information to the service provider or other licensee; (b) the licensee may be entitled to receive a referral fee, remuneration or benefit from the service provider or other licensee for making the referral; and (c) the details of the referral fee. (2) A licensee shall retain a copy of the disclosure referred to in subsection (1). 2019 cR-2.1 s20 ; 2022 c29 s11 Back to Top Payment of commission 21. (1) Commission or other remuneration payable to a broker in respect of a trade shall be the amount agreed upon by the parties or a percentage of the sale price or rental. (2) Where an agreement has not been entered into regarding the amount of commission, the rate of the commission or the amount of remuneration payable to a broker shall be that generally prevailing in the community where the real estate is located. (3) Notwithstanding subsections (1) and (2), the Lieutenant-Governor in Council may make regulations prescribing or limiting the amount of commission, the rate of commission or other remuneration charged or collected by brokers. (4) A broker or salesperson shall not request or enter into an agreement for the payment of commission or other remuneration based on the difference between the price at which the real estate is listed for sale and the actual sale price of the real estate. (5) Where the payment of commission or other remuneration is based on the difference at which real estate is listed for sale and the actual sale price of the real estate, the broker or salesperson is not entitled to the commission or remuneration. 2019 cR-2.1 s21 Back to Top Action for commission 22. An action shall not be brought for commission or remuneration for services relating to a trade unless (a) at the time the services were rendered the person bringing the action was licensed under this Act or exempted from licensing under this Act; (b) the broker or the broker's salesperson entered into a written agreement with (i) the person to be charged the commission, or (ii) a person authorized to sign the agreement on that person's behalf; (c) the broker or the broker's salesperson obtained a written offer that is accepted; or (d) the broker having been authorized in writing to list the property (i) shows the property to the purchaser, or (ii) introduces the purchaser to the seller for the purpose of discussing the proposed sale, purchase, exchange or lease. 2019 cR-2.1 s22 Back to Top Trade of business 23. (1) Where a trade of a business is negotiated by a broker or the broker's salesperson, the person negotiating the trade shall, before an agreement of purchase and sale is signed by the parties, deliver to the person acquiring the business, (a) a profit and loss statement or a statement showing the revenue and expenditures of the business, during the preceding 12 months or since the acquisition of the business by the person selling the business; (b) a statement of the assets and liabilities of the business; and (c) a statement containing a list of fixtures, goods, chattels, rights and other assets relating to or connected with the business that are not included in the trade. (2) A statement referred to in subsection (1) shall be signed by the person selling the business or a person authorized to act on that person's behalf. (3) A person acquiring a business may waive the requirements in paragraphs (1)(a) and (b) where (a) the broker or a salesperson of that broker delivers to the person acquiring the business an affidavit of the person selling the business (i) setting out the terms and conditions under which the person selling the business holds possession of the premises in which the business is being carried on, (ii) setting out the terms and conditions of a sublease, where the person selling the business has sublet a part of the premises in which the business is being carried on, (iii) setting out the liabilities of the business, and (iv) stating that (A) the person selling the business allowed the person acquiring the business to inspect the books of account of the business, or (B) there are no books of account of the business; and (b) the person acquiring the business (i) signs a statement that the person acquiring the business received and read the affidavit of the person selling the business, and (ii) delivers that statement to the broker or the broker's salesperson. (4) Where a statement referred to in paragraph (1)(c) is not delivered to the person acquiring the business, the fixtures, goods, chattels and rights and other assets relating to or connected with the business shall be considered to be included in the transaction. 2019 cR-2.1 s23 ; 2022 c29 s12 Back to Top Bond 24. (1) A bond given under the former Act continues in force for a period of 2 years after the licence to which it relates ends or is cancelled. (2) A bond given under the former Act shall be forfeited and the amount of the bond shall be recoverable from the person bound by it as a debt due the Crown, where (a) a conviction of an offence under this Act or of an offence involving fraud, theft, or conspiracy to commit an offence involving fraud or theft under the Criminal Code has been made by a court; (b) a civil judgment arising out of a trade in real estate has been made; or (c) a winding-up or receiving order has been made under the Bankruptcy Act (Canada) or the Winding Up Act (Canada), aga inst the person in respect of whose conduct the bond was conditioned and that conviction, judgment or order has become final. (3) The superintendent shall assign the proceeds of a bond forfeited under subsection (2) to the Supreme Court. (4) The proceeds shall be distributed out of the Supreme Court to a person who has (a) become a judgment creditor of the broker or salesperson in respect of a claim arising out of a trade; or (b) otherwise proved the person’s claim to the satisfaction of the court in respect of that claim. (5) Where the Crown becomes a creditor of a person under this Act, the debt may be recovered by action or other proceeding in a court as a debt due the Crown. (6) Where a bond has been forfeited under subsection (2), the balance of the proceeds remaining, less the expenses of the Supreme Court, shall be repaid out of the Supreme Court to the bonding company at the end of 2 years following the payment to the Crown of the proceeds of the bond. 2019 cR-2.1 s24 ; 2022 c29 s13 Back to Top Fund 25. (1) The minister shall establish an assurance fund to be known as the Real Estate Recovery Fund for the purpose of paying in whole or in part claims arising against a licensee relating to money held in trust by a licensee who (a) has committed fraud; (b) has committed a breach of trust; (c) fails to disburse or account for money held in a trust account; or (d) declares bankruptcy. (2) The fund shall consist of money paid into it by licensees in accordance with the regulations and interest, dividends and other returns earned upon the investment of money in the fund. (3) The minister shall direct the superintendent to be responsible for the financial management and administration of and disbursement of payments from the fund in accordance with the regulations. (4) The fund shall be held in trust for those persons, who, in accordance with the regulations, are entitled to receive payments out of the fund. (5) Money in the fund shall be invested in investments authorized by the Trustee Act . (6) The costs and expenses in administering the fund may, in accordance with the regulations, be paid out of the fund to the minister. (7) The fund shall, in accordance with the regulations, be audited annually and a report on that audit shall be submitted to the minister not more than 90 days after the end of the preceding fiscal year established for the fund. (8) Notwithstanding another Act, the money in the fund does not form part of the Consolidated Revenue Fund and the fund is not a division of the Consolidated Revenue Fund, but the money is the property of the Crown. 2019 cR-2.1 s25 Back to Top Trust account 26. (1) A broker shall maintain at least one interest-bearing trust account of a type approved by the superintendent in a financial institution that is authorized to receive money on deposit. (2) A deposit shall be paid directly to a broker and the broker shall (a) issue a receipt for the deposit; and (b) deposit the monies in a trust account in accordance with subsection (3). (3) A broker shall deposit in a trust account money received in trust for other persons in connection with trades and shall deposit the money within 2 banking days of receipt of the money. (4) A broker shall only disburse money from a trust account where (a) the offer of purchase has not been accepted by the seller; (b) the trade has been completed; (c) the terms of the agreement of purchase and sale relating to the disbursement of the money have been satisfied; (d) the broker receives written notice from the seller and purchaser authorizing either (i) the return of the money to the purchaser, or (ii) the release of the money to the seller; (e) the superintendent has directed the disbursement of the money; (f) a court has directed the disbursement of the money; or (g) the money was deposited into the trust account in error. (5) Interest earned on money deposited in a trust account referred to in subsection (1) shall be the property of the broker. (6) Where there is a dispute regarding a deposit held in a trust account, the broker shall make every reasonable effort to resolve the dispute. (7) Where the broker is not able to resolve a dispute regarding a deposit held in a trust account, either party to the dispute may apply to the superintendent to direct the disbursement of the deposit. 2019 cR-2.1 s26 Back to Top Unclaimed trust money 27. (1) Where a broker holds money in trust for more than 2 years, the broker may apply, in the manner acceptable to the superintendent, to have the money paid to the fund. (2) Notwithstanding subsection (1), a broker shall not pay the money to the fund where the broker has the express authorization from the person who is entitled to the money held in trust to continue to hold the money in trust. (3) Where at any time a person establishes to the satisfaction of the superintendent that the person is entitled to money paid to the fund under subsection (1), the superintendent shall pay the money to the person from the fund. (4) A dispute regarding entitlement to money under this section shall be determined by the superintendent. 2019 cR-2.1 s27 ; 2022 c29 s14 Back to Top Prohibition 28. A person who is licensed under this Act and licensed under the Mortgage Brokerages and Brokers Act shall not provide services under the authority of this Act and the Mortgage Brokerages and Brokers Act to a person in relation to a trade. 2019 cR-2.1 s28 ; 2023 cM-17.1 s37 Back to Top Permitted salespersons 29. A broker shall not (a) employ or permit the salesperson of another broker or a person who is not licensed as a salesperson under this Act to trade; or (b) pay commission or other remuneration to a person referred to in paragraph (a). 2019 cR-2.1 s29 Back to Top Trading for other brokers prohibited 30. (1) A salesperson shall not trade on behalf of a broker other than a broker (a) who is licensed as a broker under this Act; and (b) by whom the salesperson is employed. (2) A salesperson is not entitled to and shall not accept a commission or other remuneration for a trade from a person other than the broker with whom the salesperson is employed. 2019 cR-2.1 s30 Back to Top Promises to resell prohibited 31. (1) A broker or salesperson shall not make a representation or promise that the broker or salesperson or another person will (a) resell or in any way guarantee or promise to resell real estate offered for sale by the broker or salesperson; (b) purchase or sell the purchaser's real estate; (c) obtain a mortgage, extension of a mortgage, lease or extension of a lease; or (d) purchase or sell a mortgage or obtain a loan. (2) Notwithstanding subsection (1), a broker or salesperson may make a representation referred to in subsection (1) where the broker or salesperson delivers to the person to whom the representation or promise is made, when it is made, a statement signed by the broker or salesperson clearly setting out the details of the representation or promise. 2019 cR-2.1 s31 ; 2022 c29 s15 Back to Top Breaking of contract prohibited 32. (1) A broker or salesperson shall not induce a person to break a contract for the sale or lease of real estate for the purpose of entering into another contract for the sale or lease of that real estate. (2) Unless agreed to in writing by the seller, a broker is not entitled to claim commission from a seller respecting a trade where the broker is aware that another broker has an unexpired exclusive listing agreement in relation to the real estate. 2019 cR-2.1 s32 Back to Top Advertising 33. (1) A broker shall not advertise to purchase, sell, exchange or lease real estate unless the advertisement clearly indicates (a) the broker's name as the advertiser; and (b) that the broker is a broker. (2) Where a broker references the name of a salesperson in an advertisement, the advertisement shall clearly indicate that the salesperson is employed by the broker. (3) An advertisement shall not be (a) false; (b) inaccurate; (c) reasonably capable of misleading the recipient or intended recipient; (d) offensive or harmful to the best interests of the public; or (e) prohibited by law. 2019 cR-2.1 s33 Back to Top Carrying on business as an individual 34. (1) A broker who is an individual shall (a) carry on business in the individual’s name only; and (b) not make any representation that would indicate that the broker’s business is being carried on by more than one person. (2) Notwithstanding subsection (1), a surviving or remaining partner may carry on business in the name of the original partnership where all representations made by the surviving or remaining partner in connection with the business indicate that the surviving or remaining partner is the sole proprietor of the business. 2019 cR-2.1 s34 ; 2022 c29 s16 Back to Top Administrative penalty 35. (1) Where the superintendent is of the opinion that a person has committed, as specified by regulation, a contravention of this Act for which an administrative penalty applies, the superintendent or a person authorized by the superintendent may, in writing, notify that person that the person is to pay to the government of the province an administrative penalty in the amount set out in the notice for each day or part of a day the contravention occurs or continues to occur. (2) A person who pays an administrative penalty with respect to a contravention may not be charged with an offence under this Act with respect to that contravention. (3) Where a person fails to pay an administrative penalty in accordance with a notification under subsection (1), the government of the province may recover the amount owing in respect of the penalty as a debt due the Crown. (4) For the purpose of this section, an administrative penalty is a monetary penalty imposed in accordance with the regulations for a contravention of this Act or the regulations. 2019 cR-2.1 s35 ; 2022 c29 s17 Back to Top Order of superintendent 36. (1) Where after a hearing the superintendent determines that a licensee contravened this Act, the regulations, the code of conduct or an order of the superintendent, the superintendent may make one or more of the following orders: (a) an order suspending or cancelling the licensee's licence; (b) an order imposing conditions or restrictions on the licensee; (c) an order requiring the licensee to pay to the fund a fine not exceeding $10,000; or (d) another order prescribed in the regulations. (2) The superintendent may publish a summary of an order issued under this section in accordance with the regulations. 2019 cR-2.1 s36 Back to Top Inspectors 37. (1) The superintendent may designate persons or classes of persons to act as inspectors for the purpose of this Act and the regulations. (2) The superintendent and the deputy superintendent are inspectors for the purpose of this Act and the regulations. (3) A person shall not knowingly make a false or misleading statement, either orally or in writing, to an inspector while the inspector is exercising powers or carrying out duties or functions under this Act or the regulations. 2019 cR-2.1 s37 ; 2022 c29 s18 Back to Top Powers of inspectors 38. (1) An inspector may, at all reasonable times, for purposes related to the administration or enforcement of this Act or the regulations, inspect or examine the premises, processes, books and records of a person that the inspector may consider relevant for the purpose of determining compliance with this Act or the regulations, and the inspector may, without a warrant, (a) enter any premises where (i) any property, books or records are or may be kept, or (ii) anything is done or is suspected by the inspector of being done in connection with a requirement of this Act or the regulations; (b) make copies, extracts, photographs or videos the inspector considers necessary; (c) require the owner or person in charge of a premises to give the inspector all reasonable assistance, including the production of books and records as requested by the inspector, and to answer all proper questions relating to the administration or enforcement of this Act or the regulations and, for that purpose, require the owner or person in charge to attend at the premises with the inspector; and (d) require the owner or person in charge to make available the means to generate and manipulate books and records that are in machine readable or electronic form and any other means or information necessary for the inspector to assess the books and records. (2) Notwithstanding subsection (1), an inspector shall not enter a dwelling-house without the consent of the occupant except under the authority of a warrant issued under section 40 or 41. 2019 cR-2.1 s38 Back to Top Order of inspector 39. Where an inspector finds that a person is not in compliance with a provision of this Act or the regulations, the inspector may order that person to comply with the provision and may require the order to be carried out immediately or within the period of time that the inspector specifies. 2019 cR-2.1 s39 Back to Top Contravention of Act suspected 40. (1) Where during the course of an inspection under section 38 or otherwise an inspector believes on reasonable grounds that there has been a contravention of this Act or the regulations, the inspector may, with a warrant issued under subsection (2) or section 41, seize and take away any of the books or records that may be required as evidence of a contravention and may retain those documents until the time they are required in a court proceeding. (2) A Provincial Court judge who is satisfied upon oath or affirmation there are reasonable grounds for believing there is in or on a premises anything that may provide evidence with respect to a suspected offence under this Act or the regulations, may issue a warrant authorizing an inspector to enter the premises and to (a) search; (b) examine the contents of the premises and make those inquiries that the inspector considers necessary; and (c) copy, extract, photograph, video, seize and take away evidence, books and records, for the purpose of investigating the suspected offence. (3) The owner or person in charge of a premises referred to in this section or a person there shall not obstruct an inspector in the carrying out of the inspector’s duties under this section as authorized by the warrant. 2019 cR-2.1 s40 ; 2022 c29 s19 Back to Top Telewarrant 41. (1) Where, in the opinion of an inspector it would not be practical to appear before a Provincial Court judge to apply for a warrant, the inspector may make the application by telephone or other means of telecommunication. (2) Where an inspector acts under the authority of a warrant obtained under this section, the inspector shall provide a facsimile of the warrant to the owner or person in charge of a premises present at the time the warrant is carried out.

(3) In subsection (2), "facsimile" includes a record produced by electronic means or a written record of a telephone conversation made by both parties to the conversation while it is in progress and which the parties have confirmed as to its accuracy by reading their record of the conversation to one another at the end of the conversation. 2019 cR-2.1 s41 Back to Top Report by inspector 41.1 When directed by the superintendent, an inspector shall prepare a report and provide a copy to the superintendent. 2022 c29 s20 Back to Top Protection from liability 42. The superintendent, deputy superintendent, an inspector or a person acting on behalf of the superintendent or deputy superintendent, shall not be liable for anything done in good faith in the exercise or performance of a power, duty or function conferred or imposed on the superintendent, deputy superintendent, inspector or person under this Act. 2019 cR-2.1 s42 ; 2022 c29 s21 Back to Top Appeal 43. (1) A person may appeal a decision or order of the superintendent, the deputy superintendent or an inspector to the deputy minister within 30 days of the decision or order. (2) An appeal referred to in subsection (1) shall (a) be submitted to the deputy minister, in writing, in the form and manner set by the deputy minister; (b) state the reasons for the appeal; and (c) include (i) a copy of the decision or order being appealed, (ii) all information that the appellant considers necessary for the appeal, and (iii) any information requested by the deputy minister. (3) The deputy minister shall begin a review of the decision or order within 30 days after the appeal has been received under subsection (2). (4) The deputy minister may confirm, revoke or vary the decision or order that is the subject of the appeal. (5) A decision of the deputy minister shall (a) be in writing; (b) state the reasons for the decision; and (c) be provided to the appellant and the superintendent no later than 30 days after the deputy minister completes the review of the decision or order. 2019 cR-2.1 s43 ; 2024 c32 s37 Back to Top Notice 44. (1) A notice given under this Act or the regulations shall be considered sufficiently served where it is (a) delivered or sent by prepaid registered mail to the address for service provided by the person; or (b) sent electronically to the email address provided by the person. (2) For the purpose of this section, where a notice or document is sent by registered mail, it shall be considered to have been served on the fifth day after mailing, and the service may be proved by providing evidence that the notice or document was prepaid and properly addressed and sent. (3) For the purpose of this section, where a notice or document is sent electronically, it shall be considered to have been served on the day it is sent, if the document is sent by 4 p.m., or the next day that is not a Saturday or holiday, if the document is sent after 4 p.m. 2019 cR-2.1 s44 Back to Top Offences 45. (1) A person who contravenes this Act, the regulations or an order under this Act is guilty of an offence and is liable on summary conviction to a fine not exceeding $50,000, and in default of payment or in addition to that fine, to imprisonment for a term not exceeding 2 years. (2) Each contravention of this Act, the regulations or an order under this Act constitutes a new and separate offence. (3) Where an offence under this Act or the regulations is committed or continued on more than one day, the person who committed the offence is liable to be convicted for a separate offence for each day on which the offence is committed or continued. 2019 cR-2.1 s45 Back to Top Limitation period 46. A prosecution under this Act or the regulations shall be started within 2 years from the date on which the superintendent becomes aware of the alleged offence. 2019 cR-2.1 s46 Back to Top Regulations 47. The Lieutenant-Governor in Council may make regulations (a) exempting persons or classes of persons from the application of this Act; (b) prescribing the requirements, qualifications and conditions for issuing licences; (c) respecting information and documentation to be provided with an application for a licence; (d) prescribing the amount of errors and omissions liability insurance; (e) [Rep. by 2022 c29 s22] (f) providing for examination of applicants for licences; (g) exempting persons from the examination requirements for licensees; (h) respecting the method of payment for deposits; (i) respecting the process for the superintendent to resolve disputes regarding deposits held in trust and directing the disbursement of those deposits; (j) prescribing the annual reports to be made by licensees and the information to be contained in those reports; (k) prescribing the books, accounts and records to be kept and maintained by brokers; (l) respecting the administration and auditing of the fund, books and records required to be maintained under this Act and the fiscal year of the fund; (m) respecting the establishment and maintenance of the fund, requiring licensees to contribute to the fund and prescribing the amount and manner of making contributions to the fund; (n) respecting the administration and audit of trust accounts and the books and records to be maintained by brokers with respect to those trust accounts; (o) respecting advertising; (p) prescribing or limiting the commission or rates of commission that may be charged and collected by brokers; (q) respecting the contravention of sections of this Act and the regulations for which an administrative penalty may be imposed and the time, amount and manner in which those penalties may be imposed and collected; (r) respecting orders of the superintendent; (s) respecting hearings; (t) respecting the publication of orders of the superintendent; (u) defining a word or phrase used but not defined in this Act; and (v) generally, to give effect to this Act. 2019 cR-2.1 s47 ; 2022 c29 s22 Back to Top Fees and forms 48. The minister may set fees and establish forms for the purpose and administration of this Act and the regulations. 2019 cR-2.1 s48 Back to Top Transitional 49. (1) A person who is the superintendent immediately before the coming into force of this Act shall continue to be the superintendent. (2) A person who is the deputy superintendent immediately before the coming into force on this Act shall continue to be the deputy superintendent. (3) Where an applicant submitted an application under the former Act and that application has not been issued or refused on the coming into force of this Act, it shall be considered to be an application under this Act. (4) On the coming into force of this Act, a valid licence issued under the former Act shall continue to be valid as though it were a licence issued under this Act until one year after the coming into force of this Act. (5) Where a complaint proceeding was started under the former Act but not concluded before the coming into force of this Act, the proceeding shall be concluded under the former Act as if the former Act were still in force. (6) A decision under the former Act shall continue to be in force and shall be considered to be a decision under this Act. 2019 cR-2.1 s49 Back to Top SNL2009 cC-31.1 Amdt. 50. Paragraph 95(f) of the Consumer Protection and Business Practices Act is repealed and the following substituted: (f) a person in respect of business for the carrying on of which he or she is required to be licensed under the Securities Act, the Insurance Adjusters, Agents and Brokers Act , the Insurance Companies Act or the Real Estate Trading Act, 2019; or 2019 cR-2.1 s50 Back to Top CNLR 1006/96 Amdt. 51. Paragraph 6(b) of the Mortgage Brokers Regulations published under the Mortgage Brokers Act is repealed and the following substituted: (b) a real estate broker, licensed under the Real Estate Trading Act, 2019 , acting in the ordinary course of his or her business; 2019 cR-2.1 s51 Back to Top Repeal 52. Paragraphs 7(1)(d) and 9(1)(g) shall be repealed on the day that section 25 comes into force. 2019 cR-2.1 s52 Back to Top RSNL1990 cR-2 Rep. 53. The Real Estate Trading Act is repealed. 2019 cR-2.1 s53 Back to Top Commencement 54. (1) This Act comes into force on September 1, 2020. (2) Notwithstanding subsection (1), paragraphs 6(1)(e) and sections 9 and 10 or a subsection, paragraph or subparagraph of those sections come into force on a day or days to be proclaimed by the Lieutenant-Governor in Council. 2019 cR-2.1 s54 [In force Nov. 25/22]