Unit 2-1: The Real Estate Act

Question 1

Real estate act

Answer 1

Provincial legislation that establishes framework for regulating the real estate, mortgage brokerage, and RE appraisal professions in AB

Question 2

The ACT

Answer 2

statute enacted by prov legislature and responsibility of minister of service AB

Intro plus 6 parts, then sections
Part 1: RECA established, defines purpose
Part 2: Regulation of business, authorization, commission, trust accounts, record keeping
Part 3: Conduct proceedings, investigations, hearings, appeals
Part 4: REAF designed, RECA administers fund
Part 5: AREF established promote education
Part 6: Guidelines on council orders

Question 3

The RULES

Answer 3

standards of practice for industry professionals by the council

Interpretation plus 6 parts
Part 1: eligibility and qualifications
Part 2: standards of conduct
Part 3: Accounting etc.
Part 4: E & O insurance; REIX
Part 5: Fee schedules
Part 6: Coming into force date

Question 4

The REGULATIONS

Answer 4

Amendments or interpretations to the ACT made by minister or lieutenant governor in council

Ministerial regulations: sets policy for AREF and REAF

Exemption regs: Last amended July 28 2008

Question 5

The BYLAWS

Answer 5

Guidelines adopted by council for its governance and admin functions

7 parts:
1: Election process
2: meeting and voting procedures
3: admin policies and $ ops
4: admin penalties
5: hearing & appeals
6: operating proc & $ accountability
7: fee schedules

Question 6

Amendments to the ACT

Answer 6

Must be discussed and passed by legislature; 3 readings then law; amendment effective after proclaimed by Lt. Gov. in Council

Notables: 2006 suppress mortgage fraud; 2008 timing of trust $, interest, REAF claims

Question 7

Current legislation avail.

Answer 7

Posted on website
in ed courses
info sessions
e-pubs
archives

Question 8

RECA responsibility

Answer 8

Section 5 of ACT
sets and enforces standards of conduct
provides services to improve industry
administer the ACT

Question 9

Info bulletins

Answer 9

helps professionals to understand the ACT and RULES
Legislative compliance, standards
found on website reca.ca

Question 10

RECA guides

Answer 10

focus on various topics
assist in legislative compliance
more detailed than bulletins
reca.ca