Module 5 Flashcards
Who imposes penalties when Code of Ethics is not followed?
What are the penalties?
Discipline Committee
- education
- fine
- fixed/imposed costs
Copy published to RECO website for min of 60 months
Exemptions to being registered under REBBA for real estate trade
Auctioneer
Salaried employee working at new home development
Lawyer
Financial institute
Property owner selling privately
Property manager leasing on behalf of landlord
RECO complaint process
Screen to see if complaint is frivolous, outside of RECO jurisdiction, or could be resolved informally.
What can RECO not do when enforcing disciplinary decisions
Cannot award compensation or damages to complainants
Cannot cancel contracts
What can the Registrar do when handing a complaint (x6)
- accept acknowledgement from registrant and an undertaking that it won’t be repeated
- apply voluntary conditions (registrant has to consent)
- request a meeting with registrant (to provide advice/caution)
- mediate or resolve complaint
- issue a written writing
- require educational courses
RECO addressing serious complaints (x5)
- immediate suspension
- Registrar proposal (what action will be taken)
- Directors action (appoint investigator to determine what’s happened, severity will dictate course of action)
- Provincial offence prosecution (individual fines up to 50k, corporate fines up to 250k. Doesn’t apply to code of ethics breaches).
- refer to law enforcement agency (e.g. fraud)
RECO inspections
RECO can inspect brokerage during reasonable hours.
Purposes:
1. ensure compliance with REBBA
2. deal with a complain
3. ensure registrant remains entitled to registration
Real estate trust account
Used to deposit all money received by the brokerage in trust for other persons in connection with the brokerage’s trades.
Must be kept separate from money belonging to the brokerage.
All transactions authorized by broker of record, all trust cheques signed by broker of record. BoR also complete monthly bank reconciliations.
Trust account REBBA regulations
- Deposit funds within 5 business days
- Disburse funds from trust as soon we possible (if transaction doesn’t close, funds may only be disbursed if buyer and seller sign mutual release or court orders disbursement).
- Interest earned on trust funds (must disclose interest earned, and unless it’s in the contract, all interest paid to owner of trust money)
- When receiving a deposit, they should be made based on the agreed amounts, certified cheque if needed (not always needed), receipt received from co-operating brokerage.
PREC
Personal Real Estate Corporation
it’s a corporation that a salesperson establishes that it permitted to directly receive remuneration from a brokerage (tax loophole).
Purchase or sale by registrant - must disclose (x3)
Must provide notice in writing and receive signatures from all parties BEFORE making an offer (can’t be same doc). Must include:
1. statement that the person is a registrant
2. all known facts that might affect value of property
3. third party negotiations for the subsequent sale of the property
Have to do this for direct or indirect interest.
What Act do false statements fall under if charged
Charges under the Provincial Offences Act.
The Provincial Offences Act sets out procedures for legal prosecutions in the Ontario Course of Justice system.
PIPEDA
Personal Information Protection and Electronic Documents Act.
Consumer protection regarding things like signage, ads, etc.
Advertising requirements (3)
- identification of registrant (the name registered with RECO) - clearly and prominently
- identification of brokerage - clearly and prominently
- description of registrant (e.g. salesperson, broker, realtor, real estate agent).
Can’t use terms like ‘sales agent’ or ‘sales associate’
