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Brokerage Standards Manual

VII. Brokerage Office Business Practices

Licence Suspension/Cancellation Procedure

(a) When the licence of an individual (representative, associate broker, or managing broker) is suspended, the licensee must cease all licensed activity for the period of the suspension. A licensee may attend the office during the terms of the suspension. However, he/she must not:

  • be involved in any listing, selling, or management activity (including managing broker activities);
  • host open houses or solicit sellers, buyers, landlords, or tenants in any manner;
  • provide advice or guidance to a consumer with regards to a listing contract, property management contract, or a Contract of Purchase and Sale;
  • meet with owners to obtain new listing or property management contracts;
  • present or negotiate offers;
  • enter into a rental contract on behalf of the brokerage;
  • communicate with consumers about any real estate transaction or service agreement;
  • present or negotiate an offer or any form of service agreement; or
  • perform any other activity for which a licence under the Act is required.

The suspended licensee must cease and remove all advertising during the term of the suspension. This includes, but is not limited to the following: real estate lawn signs, TV ads and/or channels, radio ads, bus shelters/benches, newspaper/magazine ads, sponsorship materials and signs, billboards, stadium/arena signs and automobile signs. In addition, all websites, web pages and any other online representation, promotion or solicitation must be disabled during the term of the suspension. For more information, see What to Do, and Not Do, If Your Licence is Suspended (Report from Council, December 2014).

Prior to the suspension of a representative/associate broker taking effect, the related brokerage must contact all clients/customers of the licensee who is to be suspended and explain how the related brokerage intends to comply with the listing/service agreements.

Where the brokerage assigns listings or service agreements to another licensee, it would be an internal management decision as to whether any related commission or fee should be paid to the suspended licensee.

If the suspended licensee is the only managing broker for a real estate brokerage and a managing broker is not licensed to replace the suspended managing broker, the office must close for the duration of the suspension or until a replacement managing broker is licensed [see (b) and (c)]. 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.

(b) When the licence of a brokerage is suspended, the head office and any brokerage/branch office including kiosks must close for the period of suspension:

  • All activity requiring a real estate licence must cease.
  • All clients/customers of the brokerage (including those of all licensee employed by the brokerage) must be advised in writing of the suspension.
  • All licensees licensed to the suspended brokerage become inoperative for the term of the suspension unless they transfer to another brokerage.
  • All advertising in the media must cease (including contract ads). The suspended brokerage must cease and remove all advertising during the term of the suspension. This includes, but is not limited to the following: real estate lawn signs, TV ads, and/or channels, radio ads, but shelters/benches, newspaper/magazine ads, sponsorship materials and signs, billboards, stadium/arena signs and automobile signs. In addition, all websites, web pages and any other online representation, promotion or solicitation must be disabled during the term of the suspension.
  • All real estate signs must be removed.
  • The brokerage, during the term of the suspension, must continue to fulfil the obligation of disbursing funds, as required, from the trust account.

(c) When the licence of a brokerage/branch office is suspended

  • All activity of the brokerage/branch office requiring a real estate licence must cease.
  • Prior to the suspension, advise all clients/customers of the suspension and determine if listing/service agreements are to be transferred to the head office, to another brokerage, or are to be cancelled.
  • All licensees licensed at the suspended brokerage/branch office become inoperative for the term of the suspension unless they transfer to another office.
  • All advertising in the media must cease (including contract ads).
  • All real estate signs that refer to the suspended brokerage/branch office must be removed.

For more information, see Suspended: Brokerage Licence Suspensions and What They Mean to You (Report from Council, October 2014).