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Brokerage Standards Manual

VI. Managing Broker Duties

Delegation

delegatingManaging brokers may delegate their responsibilities under RESA, as long as they have not abdicated control or become so uninvolved as to have effectively abdicated control. To determine whether there has been an abdication of control, the Council looks at the context of each situation, asking the following questions:

  • What work was delegated?
  • What is the scope of authority that was delegated?
  • To whom was the work delegated?

It is the Council’s view that, depending on the nature of the task being delegated, a managing broker should only delegate their responsibilities to an experienced licensee, preferably an associate broker. A managing broker can only delegate duties to someone who is engaged by the same brokerage.

It is important to remember that, despite any delegation, the managing broker retains ultimate responsibility for the control and conduct of the business of the brokerage. This means that even when duties are delegated, the managing broker should regularly review the work of the person to whom the work has been delegated.

Managing brokers may delegate responsibilities on an ongoing basis, or periodically— for example, when away from the office for a short period, such as vacation. Even though not physically attending the office while on vacation, the managing broker may need to be available electronically for emergency purposes.

If a managing broker is not able or prepared to remain connected to the office electronically, and is therefore not able to exercise the control expected, they are required to take steps to upgrade the licence of a qualified individual to become the managing broker during that absence. The managing broker should inform licensees engaged by the brokerage of their impending absence, let them know the name of the individual to whom managing broker responsibilities have been delegated during the absence, and provide an expected date of return.

Practice Tip: Put it in writing. When delegating tasks to another licensee, either on an ongoing or a short-term basis, make sure that the agreed-upon responsibilities are clearly outlined in a written document, which specifies the name of the licensee who has accepted the responsibilities, the date when the tasks were delegated, and the expected end date (if any) of the delegation.

In the case of any absence of longer than one month, the managing broker must inform the Council licensing department of the absence by calling 604-683-9664 (toll free 1-877-683-9664). In the case of any absence of longer than one month, or if the appointed licensee will be submitting signed documents, such as application forms or licences, to the Council’s office during the absence, the managing broker must inform the Council licensing department of the absence and appointed individual’s name in writing. This notice may be sent by fax to 604-683-9017 or by email to info@recbc.ca. Consideration should also be given to upgrading an associate broker’s licence to that of managing broker in such extended absences.

Note: In some situations where a managing broker’s licence is suspended, that person may be allowed to be licensed as an associate broker or representative. Whether this person remains unlicensed or becomes licensed as an associate broker or representative during the suspension period, that person may not perform, nor may they accept the delegation of any duties or obligations of a managing broker (as outlined in section VI of this manual) during the suspension period.