Unit 2-2: Real estate broker authorizations Flashcards
Office of the registrar
Responsible for RECAs reg functions
- licensing, prof standards, conduct reviews
- oversees applications for licenses
- administers licensing reciprocity
- administers myRECA database
-process suspensions and cancellations
License classes
4 classes: brokerage, broker, associate broker, associate
Brokerage
legal entity licensed and registered to trade in real estate by RECA
May be sole proprietor, partnership, corp.
Expires Sept 30 unless renewed
Broker
individual licensed and registered for specific responsibilities on behalf of the brokerage
Can only have one per brokerage
Must be authorized in residential, commercial, rural, and prop mgmt and complete brokers program; plus 2 years experience in past 5 years; and be able to employed as a broker
Responsible for ensuring adequate supervision for new staff, verify all trades comply with the ACT and RULES, maintain proper mgmt control of docs and trust accounts
Associate broker
individual licensed and registered who holds qualifications of broker; cannot operate brokerage but can trade
Associate
Individual authorized to trade on behalf of the brokerage; works with sellers, buyers, property owners, tenants
Brokerage business office
Req’d to have a physical office location
Documents served at this location and records maintained there
Must swear an affidavit
Immediately notify if address changes
Real and substantial connection test
Not defined in ACT; used to determine which jurisdictions are most appropriate to deal with dispute or legal action when some of trade is not in AB; needs to have a substantial connection to AB or other province to determine
Req’d by supreme court of Canada
Public auctions
Only qualified auctioneer can conduct bidding at public auction; business selling goods by auction must be licensed by service alberta
Due Diligence Package
Brokerage prepares full presentation package for public auction; for nominal fee to bidder
Authorization process
License + Registration certificate = Authorization
Broker initiates licensing application via myRECA; expires after 36 months from last date registered with brokerage
Licensing concepts
3 key components:
1. eligibility
2. suitability
3. decide to refuse or issue certificate
Re-entry requirements
Absence <1 year:
online application, CCRC, ID
12-36 months:
CCRC, REAP courses, application
> 36 months:
treated as first time applicant
Associate to associate broker
complete REAP in all sectors
complete brokers program 70%
two years experience in past 5
License reciprocity
Reciprocal relationship between AB and some US states
License suspensions/cancellations
Fail to:
Comply with term, condition or restriction
Comply with order of hearing or appeal panel or court
Pay outstanding monies
Must undertake evidence gathering (Executive Director)
Suspend brokerage license
Poor records at registered office
When fails to fund a trust shortage
Preventing auditor/investigator access
All associated professionals with brokerage have to stop trading
Request for review
Appeal ED decision to suspend etc within 30 days; appeal decision is final
Reapplication for license
have to wait 36 months
Authorization termination
If RE prof ceases to be registered with brokerage, they have 36 months to be re-registered without more education; after license terminated
