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Licensing Guidelines for Individuals & Brokerages
PART I – LICENSING REQUIREMENTS
A. Reinstatement of Licence (Transfer) (inoperative LESS THAN 90 days within a licence period)
Individuals who are currently licensed and who wish to change employing brokerages or have been unlicensed for less than 90 days within a licence period must:
1. Submit an Application for Representative, Associate Broker or Managing Broker Licence form.
2. Submit the appropriate fee.
3. If currently licensed, arrange for the return of existing licence certificate signed off by the previous brokerage with which they were engaged, stating the date of termination and the reason for leaving.
B. Reinstatement of Licence (inoperative MORE THAN 90 days within a licence period)
Individuals who have been unlicensed for more than 90 days within a licence period must:
1. Submit an Application for Representative, Associate Broker or Managing Broker Licence form.
2. Submit the appropriate fee.
3. Submit an original criminal record check from the applicants local police agency and submit it along with the licence application to the Council. Click here for detailed information.
4. An additional errors and omissions insurance assessment may be required if a refund of the insurance assessment has been made.
C. Re-licensing Applicant (after previous licence has expired)
If you are unsure as to whether you are still within your licence requalification period, you may request this information from the Council. Click here to submit a request.
Individuals whose licence period has expired must:
1. Submit an Application for Representative, Associate Broker or Managing Broker Licence form
2. Submit the appropriate fee.
3. Submit an original criminal record check from the applicants local police agency and submit it along with the licence application to the Council. Click here for detailed information.
4. Licence fee, the insurance assessment, and the Real Estate Compensation Fund assessment are for a two-year period on an anniversary date basis.
D. Change of Licence Level or Category
Individuals holding a current licence who seek to change their level or category of licence during the current licence period (e.g. representative to associate broker; or representative or associate broker licensed to provide trading services to representative or associate broker licensed to provide trading services and rental property management services), must:
1. Submit an Application for Representative, Associate Broker or Managing Broker Licence form.
2. Submit the appropriate fee.
3. Arrange for the return of licence with an appropriate notation on the reverse side.
If a licensee changes his/her legal name, the following procedures must be completed:
1. Please provide a letter stating the change requested and the effective date of the change, accompanied by the fee referred to below.
2. Enclose a copy of Change of Name Certificate, Marriage Licence, or Birth Certificate, as applicable.
3. Submit the appropriate fee.
4. Arrange for the return of the existing licence certificate for amendment.
All renewal applications are computer generated and will be sent to the licensee’s brokerage, to the attention of the managing broker, approximately six weeks prior to the licence expiry date. Licensees are required to complete and return the form to the Council office 30 days prior to licence expiry, pursuant to section 2-13(2) of the Council Rules.
It is the licensee’s responsibility to ensure that he/she is properly licensed. Failure to receive a renewal notice does not diminish this responsibility.
Click here for appropriate licence renewal fees.
The renewal of a multiple managing broker’s licence does not require an errors and omissions insurance premium.
Arrange for the return of the licence certificate to the Council’s office with the reverse side completed by an authorized signatory of the employing brokerage (e.g. managing broker, director, officer, or partner) stating the date of termination and the reason for leaving. Licensees terminating their licence should request in writing from the Council their education re-qualification date (based on their continuous licensing history) in order to avoid having to requalify for licensing by rewriting the applicable licensing examination. (See Representative’s Education Re-qualification Policy and Education Re-qualification on Reinstatement)
A. Licensee Names for Representative, Associate Broker or Managing Broker
Representatives, associate brokers, or managing brokers are permitted to use a name other than their legal name provided that the Council has approved the name (See Licensee Names for further information).
B. Application for Pre-Screening
Successful completion of a Licensing Course and examination is not the sole requirement for licensing. The Real Estate Services Act, Regulations and Rules also stipulate that applicants for a licence shall “be of good reputation”. For this reason, applicants are investigated. The investigation process can take up to eight to ten weeks.
Individuals who have some concern about whether or not they satisfy the requirements of being of “good reputation” should, prior to registering for a Licensing Course, submit an Application for Pre-Screening form together with the fee of $100 to the Council office. An advance decision may thus be obtained as to the applicant’s suitability for licensing subject, of course, to passing the course and examination.
In the event that an applicant is found not to be suitable for licensing, the pre-screening fee of $100 is fully refunded.
If the applicant is found to be suitable for licensing but does not proceed with an application for licensing, a refund in the amount of $75 is available.
If the applicant is found suitable for licensing and applies for a licence, the balance of the fee would be required prior to licensing.
C. “Good Reputation” – Guidelines
Section 10(a) [qualifications for obtaining a licence] of the Real Estate Services Act states that every applicant for a licence shall, among other things, be of “good reputation”. General business and personal reputation, in addition to criminal convictions and charges under the Criminal Code of Canada, and contraventions of Federal Statutes such as Income Tax Act, or Provincial Statutes such as the Real Estate Services Act, Securities Act, Insurance Act, or Mortgage Broker’s Act, or whether an applicant has been disciplined by a professional body will be reviewed when considering an applicant’s “good reputation”.
The Council does not consider that personal bankruptcy necessarily reflects adversely on an applicant’s “good reputation” and accordingly, unless there is some evidence of other conduct which might render an applicant unfit, the Council will licence applicants as a representative or associate broker despite personal bankruptcy. Upon submission of an application for licence, the Council will require as an exhibit, a copy of the individual’s “secured and unsecured creditors” or a copy of his/her discharge from bankruptcy.
With respect to an individual applying for licensing as a managing broker, section 7-4 [other trust account requirements] of the Council Rules requires at least one related managing broker must be a signing authority on each trust account maintained by a brokerage. As a result, the Council performs a credit check with the appropriate credit bureau to ascertain whether an applicant is in “sound financial circumstances”.
If the credit report indicates that the applicant:
1. is an undischarged bankrupt;
2. has outstanding judgments against him/her; or
3. is in arrears on trade accounts
the managing broker/sole proprietor applicant will not be licensed.
It is standard procedure to require an original criminal record check in order to determine if the applicant has engaged in unlawful activities. It is incumbent upon applicants to ensure that all charges and convictions, including conditional discharges, are disclosed when applying for a licence. A criminal conviction will not necessarily be a bar to registration. Consideration is given as to the nature of the offence, the age of the applicant at the time the offence was committed, the length of the sentence, and whether the offence is related to the employment of the applicant as a representative, associate broker or managing broker. A continued history of convictions, charges, or other actions relating to the unlawful activity may result in the denial of a licence.
Section 10(d) of the Real Estate Services Act states that an applicant for a new licence or licence renewal must satisfy the Council that they meet the following applicable requirements:
(d) in all cases, the applicant has not
(i) been refused a licence under real estate, insurance, mortgage broker or securities legislation in British Columbia or another jurisdiction,
(ii) held a licence that was suspended or cancelled under real estate, insurance, mortgage broker, or securities legislation in British Columbia or another jurisdiction,
(iii) been disciplined by a professional body, or
(iv) been convicted of an offence
for a reason that reveals the applicant as unfit to be a licensee.
Factors that the Council will take into consideration to determine whether the applicant is unfit to be a licensee include:
1. Whether the conduct for which the applicant was disciplined or refused a licence in (i), (ii) or (iii) involved dishonesty, fraud, misappropriation or wrongful taking of funds, deceptive dealing, or any other conduct resulting in harm to the public.
2. Whether the offence the applicant was convicted of in (iv) relates to crimes of moral turpitude, crimes involving violence, or any other crime that could pose a risk to the public in a real estate transaction or bring the reputation of the profession into disrepute.
The Council may delay the consideration of applications from applicants with criminal convictions that render them unfit for licensing up to the following periods that have passed after convictions:
1. Summary Conviction Offences
For example – fraud under $5,000, theft under $5,000 (shoplifting), false pretenses under $5,000, possession of stolen property under $5,000.
The Council may not consider an application for a period of up to two years following completion of sentence parole and/or probation. These would include offences for which the applicant had received a fine, a suspended sentence and probation or a conditional discharge and probation.
2. Indictable Offences
For example, indictable offences such as possession of drugs for the purpose of trafficking, cultivation or manufacturing of drugs.
The Council may not consider applications from applicants for a period of up to three years following completion of sentence, parole and/or probation. These would include indictable offences for which the applicant received a sentence of imprisonment, a fine, a suspended sentence and probation, or a conditional discharge and probation.
For example serious indictable offences such as robbery, theft over $5,000, breaking and entering, possession of stolen property over $5,000, false pretences over $5,000, trafficking in drugs, conspiracy to traffic in drugs, serious sex offences.
The Council may not consider applications from applicants for a period of up to five years from the date of completion of sentence, parole and/or probation. These would include indictable offences, for which the applicant received a sentence of imprisonment, a fine, a suspended sentence and probation, or a conditional discharge and probation.
3. White Collar Crime
The crimes in this category include theft from employer, theft of large sums of money, serious fraud cases, embezzlement, criminal breach of trust, forgery, or any other business related crime, or a conviction for a crime where he or she was in a position of trust.
The Council may not consider applications from applicants for a period of up to seven years from the date of completion of sentence, parole and/or probation. These would include both summary and indictable offences for which the applicant received a sentence of imprisonment, a fine, a suspended sentence and probation, or a conditional discharge and probation.
Waiting Period Factors
Factors that the Council may consider in determining whether an applicant will be required to wait a time period for the offences referred to above are as follows:
(a) Does the behaviour for which the charge is laid, if repeated pose any threat to the brokerage’s ability to carry on its business safely and efficiently?
(b) What were the circumstances of the charge and the particulars of the offence involved, e.g. how old was the applicant when the events in question occurred and were there any extenuating circumstances?
(c) How much time has elapsed between the charge and the application for licensing?
(d) What has the applicant done during that period of time?
(e) Has the applicant shown any tendencies to repeat the kind of behaviour for which he/she was charged?
(f) Has the applicant shown a firm intention to rehabilitate him/herself?
4. Older and Lengthy Criminal Records
The crimes in this category are older and do not come within the above-mentioned guidelines. The following criteria may be considered in determining whether that applicant is of good reputation:
(a) How much time has elapsed since the last conviction?
(b) Whether the conviction is related to employment as a licensee (e.g. property crimes, sexual offences, theft, fraud, forgery, or any other crimes involving dishonesty).
(c) Whether the applicant is eligible to apply for a pardon (i.e. two years following a summary conviction offence and five years following an indictable offence).
(d) Is the applicant honest, trustworthy, and competent to transact the business of a real estate license in a manner, which will safeguard the interests of the public?
(e) Has the applicant rehabilitated himself or herself?
5. Disciplinary Proceedings Under Legislation Regulating Real Estate, Insurance, Mortgage Broker or Security Activities or by a Professional, Occupational or Self-regulatory Body
The Council may delay considering an application from an applicant until he or she has fulfilled any requirements of disciplinary sanction imposed under legislation regulating real estate, insurance, mortgage broker or security activities, or by any professional or occupational self-regulatory body. For the purpose of this guideline, ‘discipline sanction’ includes a warning, reprimand, fine, educational requirement, suspension or cancellation, or any other sanction arising from a disciplinary matter.
Rehabilitation Factors
The following criteria may be considered to determine whether an applicant has fully rehabilitated himself or herself and is currently of good reputation and suitable to be licensed within the meaning of section 10 of the Real Estate Services Act:
(a) Restitution to any person who has suffered monetary losses as a result of the conduct in question.
(b) Successful completion or early discharge from probation or parole.
(c) Abstinence from the use of non-prescribed drugs or alcohol, which were used as the reason for the conduct in question.
(d) Stability of family life and fulfillment of parental and familial responsibilities subsequent to the conduct in question.
(e) Completion of or sustained enrollment in formal education or vocational training courses for economic self-improvement.
(f) Correction of business practices resulting in injury to others or potential to cause injury.
(g) Significant or conscientious involvement in community, religious congregation or privately sponsored programs designed to provide social benefits or ameliorate social problems.
(h) Change in attitude from that which existed at the time of the conduct in question as evidenced by any or all of the following:
- testimony of applicant;
- evidence from family members, friends, or other persons familiar with the applicant’s previous conduct and with the subsequent attitudes and behaviour patterns;
- evidence from probation or parole officers or law enforcement officials competent to testify as to the applicant’s social adjustments;
- evidence from psychiatrists or other persons competent to testify with regard to neuro-psychiatric or emotional disturbances.
Qualification Hearing
A Qualification Hearing under section 2-6 [qualification hearings] of the Council Rules may be required to determine an applicant’s reputation and suitability for licensing. If the Council decides to licence the applicant after a hearing, the Council may impose conditions on the licence of the applicant including restricting the licence of the applicant to a particular brokerage and require an activity report of the applicant from his or her managing broker.
D. Representative’s Education Re-qualification Policy
1. Application for Reinstatement within Licensing Period
Section 2-9 [education re-qualification on reinstatement] of the Council Rules applies to a representative licence that has become inoperative under section 22(1) [person ceases to be engaged by brokerage] of the Act, been suspended under section 116(4) [person fails to provide required security] of the Act, or been voluntarily surrendered to the Council.
In order to have the licence reinstated, an applicant who has less than 5 years of continuous licensing at some time before the licence became inoperative, was suspended or was surrendered must meet the requirements of section 2-8(1)(b) [pre-licensing examinations] and section 2-8(2) [applied practice course] of the Council Rules.
However, section 2-7(3) [waiver of educational requirements] of the Council Rules states that the Council may waive, on the basis of an applicant’s previous knowledge or training, some or all of the requirements in relation to a course, a corresponding examination, or a course and it’s corresponding examination.
2. Application for Relicensing Outside of Licensing Period
An applicant for a new representative licence who has previously been licensed as a representative is required to meet the requirements of section 2-8(1)(b) [pre-licensing examinations] and section 2-8(2) [applied practice course] of the Council Rules.
However, section 2-7(3) [waiver of educational requirements] of the Council Rules states that the Council may waive, on the basis of an applicant’s previous knowledge or training, some or all of the requirements in relation to a course, a corresponding examination, or a course and it’s corresponding examination.
3. Policy Respecting Waiver of Educational Requirements
An applicant for reinstatement or re-licensing who has been previously licensed will not be required to complete the applicable pre-licensing course, but may have to rewrite the applicable licensing examination or retake the applicable applied practice course.
The Council will waive the requirements in relation to a course or an examination in the following circumstances:
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Representatives with continuous (unbroken*) licensed service in British Columbia of: |
Will not be required to re-qualify for licensing by rewriting either the Real Estate Trading Services Licensing Examination, Rental Property Management Licensing Examination or Strata Management Licensing Examination and retaking the applicable Applied Practice Course if they have been unlicensed for less than: |
|
Less than 1 year |
a period equivalent to their unbroken licensed period ** |
|
1 year but less than 5 years |
1 year |
|
5 years but less than 10 years |
2 years |
|
10 years but less than 15 years |
3 years |
|
15 years but less than 20 years |
4 years |
|
20 years and over |
5 years |
* “Unbroken” is defined as not having been unlicensed for a period of thirty (30) days or less. In calculating continuous unbroken service, registration under the Mortgage Brokers Act will be included. Any period of parental leave, as approved by the Council, will not affect your licensing history.
** An applicant is not required to re-qualify during the first twelve (12) months after passing the applicable pre-licensing examination.
Requests for extensions of up to one (1) year to an individual’s re-qualification date will be considered by the Council staff. Extensions based on medical grounds must be supported by a medical certificate.
Individuals who go beyond their re-qualification date are required to re-qualify for licensing by re-writing the appropriate examination and completing the applicable applied practice course.
If, after reviewing the policy, you are unsure of how it applies in your own case, please provide a written request to the Council for that information. Only written inquiries will obtain a response.
Real estate representatives who surrender their licences for the birth or adoption of a child are not required to re-qualify for licensing by rewriting the appropriate Licensing examination if licence application is made within one (1) year of when the parental leave began.
Parental leave is available to either parent of the child and may be taken at any time up to one (1) year following the birth or adoption of the child. Parental leave will show as a break in a representative’s licensing history but will not be considered a break for the purposes of calculating continuous unbroken service under the Council’s Representative Education Re-qualification Policy.
Licensees who wish to take parental leave must apply in writing, at the same time enclosing a copy of the child’s birth certificate or proof and/or verification of adoption.
F. Broker’s Education Re-qualification Policy for Relicensing as a Managing Broker or Associate Broker
An applicant for a new managing broker’s or associate broker’s licence who has been previously licensed as a managing broker or associate broker is required to meet the requirements of section 2-8(4) [educational requirements for managing broker and associate brokers] of the Council Rules. However, section 2-7(3) [waiver of educational requirements] of the Council Rules states that the Council may waive, on the basis of the applicant’s previous knowledge or training, some or all of the requirements in relation to a course, a corresponding examination, or a course and its corresponding examination.
The Council will waive the requirements in relation to a course or examination if the applicant has been unlicensed for less than five (5) years immediately preceding the date of application. An applicant who has been unlicensed for five (5) or more years immediately preceding the date of application will be required to successfully pass the Broker’s Licensing Course examination.
G. Broker’s Education Re-qualification Policy for Relicensing as a Representative
An applicant for new representative licence who has been previously licensed as a managing broker or associate broker and has been unlicensed for five (5) or more years immediately preceding the date of application is required to meet the requirements of section 2-8(1)(b) [pre-licensing examinations] and section 2-8(2) [applied practice course] of the Council Rules. However, section 2-7(3) [waiver of educational requirements] of the Council Rules states that the Council may waive, on the basis of the applicant’s previous knowledge or training, some or all of the requirements in relation to a course, a corresponding examination, or a course and its corresponding examination.
The Council will waive the requirements in relation to a course or examination if the applicant has been unlicensed for less than five (5) years immediately preceding the date of application. An applicant who has been unlicensed for five (5) or more years immediately preceding the date of application will be required to either successfully pass the Real Estate Trading Services Licensing Examination, the Rental Property Management Licensing Examination or the Strata Management Licensing Examination in order to re-qualify for licensing as a representative.
In the case of an applicant who rewrites the Trading Services Licensing Examination, completion of the Residential Trading Services Applied Practice Course will be waived if the applicant has previously completed the applied course within two (2) years of the date of relicensing. Applicants who have not completed the Residential Trading Services Applied Practice Course within the two (2) years preceding the date of relicensing will be required to take the Accelerated Residential Trading Services Applied Practice Course.
H. Insurance and Sub-Mortgage Broker Licensing
A real estate licensee may be dually licensed as an insurance salesperson or agent. Effective January 1, 2001, the deeming provision under the Mortgage Brokers Act permitting real estate licensees to conduct mortgage brokerage activities was repealed. Accordingly, a real estate licensee is no longer eligible to conduct mortgage brokerage activities unless he/she holds a separate licence under the Mortgage Brokers Act.
Real estate licensees may become dually licensed under the Real Estate Services Act and Mortgage Brokers Act providing that the real estate brokerage consents, in writing, to the dual licensing. The consent letter should be sent to the Licensing Department at the Council office at the address as indicated on the front of this booklet.
I. Time of Issuance and Surrender of Licences
When a licence is issued by the Council, it shall be issued as of noon on the date of issuance as shown on the face of the licence. When a licence is surrendered or returned to the Council, it shall be terminated as of noon on the date received in the Council’s office.
Licensees can change brokerages without awaiting the surrender of their previous licence. The previous licence would be deemed terminated as of noon on the date of issuance of the new licence. If a licensee ceases to be engaged by the brokerage in relation to which the person is licensed, that person’s licence becomes inoperative and the licensee must not provide real estate services while the licence is inoperative.
J. Waiver of Assessment for Certain Categories of Licence
The Real Estate Errors and Omissions Insurance Corporation has adopted a policy of assessing both brokerages and individual licensees one insurance premium, regardless of the number of licences held. As a result of this policy, managing brokers only pay one insurance assessment, regardless if they hold two or more licences.
The assessment for the Real Estate Compensation Fund is $100 for each individual. Multiple managing brokers who are licensed with a maximum of 4 separate, affiliated companies are assessed a separate $100 compensation fund fee for each licence. However, multiple managing brokers who are licensed with a maximum of 4 offices of the same brokerage (i.e. head office and branch office) are only required to pay the $100 compensation fund assessment once, with their first managing broker licence.
K. Refund of Licensing Fee and Assessments
The licensing fee is not refundable once a licence is issued. If an application is withdrawn for any reason prior to licence issuance, the application fee of $50 for new applications and $25 for renewal and reinstatement applications is not refundable. The assessment for the Real Estate Special Compensation Fund is not refundable once a licence has been issued. Requests for a refund of the 2nd year errors and omissions insurance assessment should be directed to:
Real Estate Errors and Omissions Insurance Corporation
1604 – 700 West Pender Street, Vancouver, B.C. V6C 1G8
Tel: 604-669-0019 Fax: 604-669-0021
A. Managing Broker May be Licensed in Relation to a maximum of 4 Affiliated Brokerages (section 2-3 of the Council Rules)
A managing broker may
(a) be licensed in relation to a maximum of 4 brokerages that are affiliated within the meaning of the Business Corporations Act, and
(b) provide real estate services in relation to the licence of each of those brokerages.
The total of all brokerage licences in relation to which a managing broker is licensed must not exceed 4.
When an individual has been issued multiple managing broker licences, these additional licences will then be identified as a “multiple managing broker licence”. The multiple managing broker licences are not required to carry separate errors and omissions insurance. Accordingly, if the individual then wishes to transfer his/her licence to another firm, only the “managing broker” licence will be used for transfer and the “multiple managing broker” licences will be terminated.
B. Managing Broker May be Licensed in Relation to a maximum of 4 Licences of a Brokerage (section 2-4 of the Council Rules)
A managing broker may be licensed in relation to a maximum of 4 licences of a brokerage (i.e. a head office and 3 branch offices or 4 branch offices) and may provide real estate services in relation to each of those brokerage licences. The maximum number of managing broker licences an individual may hold, whether in relation to branch offices or affiliated brokerages, is 4.
See Item A above, Managing Broker May be Licensed in Relation to a maximum of 4 Affiliated Brokerages, for more information regarding the reissuance of multiple managing broker licenses.
C. Qualification Hearings (section 2-6 of the Council Rules)
If the Council considers that there may be an issue as to whether an applicant is qualified to be licensed
(a) in accordance with section 10 [qualifications for obtaining licence] of the Act, or
(b) at the level and in the category for which the applicant is applying,
the Council may direct that the matter is to be dealt with by way of a hearing conducted by a hearing committee. Licence applicants appearing before a hearing committee should be accompanied by the managing broker of the real estate brokerage employing or intending to employ them.
D. Educational requirements (section 2-7 of the Council Rules)
(1) Courses – The courses referred to in this Division are the courses established by or on behalf of the council for the purposes of licensee qualification.
(2) Failed examinations – An applicant must not have failed an examination required under these rules within the last 90 days before again attempting the examination.
(3) Waiver – The council may waive, on the basis of an applicant’s previous knowledge or training, some or all of the requirements of this Division in relation to
(a) a course,
(b) a corresponding examination, or
(c) a course and its corresponding examination.
E. Educational Requirements for New Licensees (section 2-8 of the Council Rules)
(1) Licensing courses – In order to be issued a licence, an applicant for a new licence who is an individual must
(a) have taken the applicable licensing courses respecting the real estate services in relation to which the application is made, and
(b) have passed the examinations corresponding to those courses, no longer than 1 year before the date of the application.
(2) Applied practice courses – Subject to subsection (3), in order to be issued a licence, an applicant for a new licence who is an individual must have taken the applicable applied practice courses, if any, respecting the real estate services in relation to which the application is made, no longer than 2 years before the date of the application.
(3) Temporary licence exception – An applicant who has not completed the applied practice courses referred to in subsection (2) may be issued a temporary licence under section 14 [temporary licences] of the Act that is conditional on taking those courses, or having them waived by the Council, within the period specified in the licence.
(4) Managing broker and associate brokers – In addition to the other requirements under this section, an applicant for a new licence as a managing broker or associate broker must
(a) have taken the applicable managing broker courses, if any, respecting the real estate services in relation to which the application is made, and
(b) have passed the examinations, if any, corresponding to those courses, no longer than 5 years before the date of the application.
F. Education Re-qualification on Reinstatement (section 2-9 of the Council Rules)
(1) This section applies to a representative licence that has
(a) become inoperative under section 22(1) [person ceases to be engaged by brokerage] of the Act,
(b) been suspended under section 116(4) [person fails to provide required security] of the Act, or
(c) been voluntarily surrendered to the Council.
(2) In order to have the licence reinstated, an applicant who has less than 5 years of continuous licensing at some time before the licence became inoperative, was suspended or was surrendered must meet the requirements of
(a) section 2-8(1)(b) [licensing examinations] of these rules, and
(b) section 2-8(2) [applied practice course] of these rules.
(3) For the purpose of this section, if an applicant ceased to be licensed for
(a) a period of 30 days or less,
(b) a period approved by the Council during which the applicant was on parental leave, or
(c) a period during which the applicant was registered under the Mortgage Brokers Act,
the applicant is deemed to have continued to be licensed during that period.
G. Experience Qualifications for Managing Brokers and Associate Brokers (section 2-10 of the Council Rules)
(1) Previous experience in B.C. – In order to be licensed for the first time as a managing broker or associate broker, the applicant must have been providing real estate services as a licensee for at least 2 years during the 5 years before the date of the application.
(2) Exceptions – The Council may waive the requirements of subsection (1) if satisfied that
(a) the applicant has had experience and training equivalent to that which he or she would have obtained if he or she had provided real estate services as a licensee as required by that subsection, or
(b) in the case of an applicant for a managing broker licence, there is an immediate need of a managing broker in the location where the applicant proposes to carry on business.
(3) Experience in an equivalent capacity in another jurisdiction – Without limiting subsection (2) (a), for the purposes of that subsection an applicant is considered to have the experience and training equivalent to that referred to in subsection (1) if the applicant
(a) previously provided real estate services in a capacity equivalent to one or more of a brokerage, managing broker and associate broker,
(b) provided the services referred to in paragraph (a) in
(a) another jurisdiction of Canada,
(b) the United States of America, or
(c) another jurisdiction acceptable to Council, for a continuous period of at least 2 years during the 5 years before the date of the application, and
(c) was licensed, or otherwise authorized, under the laws of the other jurisdiction to provide the services referred to in paragraph (a).
(4) Experience in another jurisdiction combined with B.C. experience – Without limiting subsection (2)(a), for the purposes of that subsection an applicant is considered to have the experience and training equivalent to that referred to in subsection (1) if the applicant
(a) previously provided real estate services in a capacity equivalent to a representative,
(b) provided the services referred to in paragraph (a) in a jurisdiction referred to in subsection (3)(b) for a continuous period of at least 2 years during the 5 years before the date of the application,
(c) was licensed, or otherwise authorized, under the laws of the other jurisdiction to provide the services referred to in paragraph (a), and
(d) provided real estate services as a licensee in British Columbia for a period of not less than 1 year during the 5 years before the date of the application.
H. Term of Licence (section 2-13 of the Council Rules)
The term of a licence is
(a) 2 years from the effective date of the licence, ending at the end of the day before the second anniversary of that date, or
(b) in the case of a temporary licence, as specified in the licence.
I. Voluntary Surrender (section 2-16 of the Council Rules)
A licensee may voluntarily surrender their licence to the Council, in which case it becomes inoperative unless and until reinstated by the Council before the end of its term.
J. Licensee Must Give Notice of Discipline, Bankruptcy or Criminal Proceedings (section 2-21 of the Council Rules)
(1) For the purposes of this section:
discipline sanction includes a warning, reprimand, fine, educational requirement, imposed restriction or condition, suspension or cancellation, or any other sanction arising from a disciplinary matter.
(2) A licensee must promptly notify the Council, in writing, if any of the following circumstances apply:
(a) the licensee is subject to any disciplinary or regulatory proceedings in which the licensee may be or has been made subject to a discipline sanction under legislation in British Columbia or another jurisdiction regulating
(i) real estate, insurance or securities activities, or
(ii) mortgage brokers, accountants, notaries or lawyers;
(b) the licensee has any court order or judgment made against the licensee in relation to
(i) real estate services,
(ii) a dealing in insurance, mortgages or securities, or
(iii) misappropriation, fraud or breach of trust;
(c) any business that the licensee owns, or of which the licensee has been a director, officer or partner at any time during the past 2 years, has any court order or judgment made against the business in relation to
(i) real estate services,
(ii) a dealing in insurance, mortgages or securities, or
(iii) misappropriation, fraud or breach of trust;
(d) the licensee is charged with or convicted of an offence under a federal or provincial enactment or under a law of any foreign jurisdiction, excluding
(i) highway traffic offences resulting only in monetary fines or demerit points, or both, and
(ii) charges initiated by a violation ticket as defined in the Offence Act or by a ticket as defined in the Contraventions Act (Canada);
(e) the licensee is the subject of any bankruptcy, insolvency or receivership proceedings;
(f) any business that the licensee owns, or of which the licensee has been a director, officer or partner at any time during the past 2 years, is the subject of any bankruptcy, insolvency or receivership proceedings.
(3) In addition to providing a written notice, the licensee must provide
(a) particulars, and
(b) any additional information or documentation, as requested by the Council.
(4) In the case of notice required to be provided by an associate broker or representative, the licensee must give a copy of the notice under subsection (2) to the managing broker of the related brokerage.
K. Restrictions Relating to Home and Other Personal Offices (section 4-3(1) and (2) of the Council Rules)
(1) Personal office in relation to a licensee means an office from which the licensee provides real estate services, other than a related brokerage office, and includes an office that is in the residence of the licensee or any other person.
(2) The following rules apply if a licensee maintains a personal office from which the licensee provides real estate services:
(a) no sign may be placed outside the office or the building in which the office is located, or from where it is visible from outside the office or building, that indicates real estate services are provided from the office;
(b) the phone for the office must not be answered in the name of the related brokerage of the licensee;
(c) the licensee must not indicate the office address on any real estate advertising or on any other records relating to the provision of real estate services.
L. Licensee Names (section 4-4(2) of the Council Rules)
The licensee name of a managing broker, associate broker or representative is, as applicable,
(a) the legal name or a recognizable short form of the legal name of the individual, unless another name is approved under paragraph (b), or
(b) the name that is approved by the Council.
M. Relationships with Principals and Parties (Part 5 of the Council Rules)
Licensees should review Part 5 and section 10-4 of the Council Rules with respect to written service agreements, disclosures, commissions, and other remuneration.
N. Dealing with Other Licensees and Unlicensed Persons (Part 6 of the Council Rules)
Licensees should review Part 6 of the Council rules with respect to the payment of commissions to unlicensed persons and acting for unlicensed persons.
O. Brokerage Accounts and Financial Requirements (Part 7 of the Council Rules)
A managing broker should review Part 7 of the Council Rules with respect to brokerage trust accounts, commission trust accounts, accountant’s reports and solvency issues.
PART I – LICENSING REQUIREMENTS
If a brokerage changes its name or business address, the following procedures must be completed:
1. Obtain approval from the Council regarding the intended name change prior to registering the name change with the Registrar of Companies. Please note, if using a trade or franchise name, it must also be registered with the Registrar of Companies prior to the Council’s records being amended. In order to assist applicants, the Council requests that you complete and submit the Request for Brokerage Name Approval form, accompanied by the fee referred to below.
2. In the case of a name change, please submit a Request for Brokerage Name Change form. In the case of an address change, please submit a Request for Brokerage Address Change form.
3. Return of the existing brokerage licence certificate(s) to be amended. All licensed offices of the brokerage must have their licences amended in the case of a name change. Certificates of related licensees are not required to be amended.
4. Submit the appropriate fee.
5. Submit a copy of the city or municipal business licence.
6. Written confirmation that the business address is in a commercial location. Alternatively, if the brokerage is moving to a residential office, please see Residential Brokerage Office for additional information and requirements.
All renewal applications are computer generated and will be sent to each brokerage’s business address approximately six weeks prior to the licence expiry date. Brokerages are required to complete and return the forms to the Council office 30 days prior to licence expiry, pursuant to section 2-13(2) of the Council Rules. It is the responsibility of the managing broker to ensure that the brokerage is properly licensed. Failure to receive a renewal notice does not diminish this responsibility. Click here for the fees for the licence renewal of corporations, partnerships, sole proprietors and branch offices. Branch offices do not pay the errors and omissions insurance or compensation fund assessments.
C. Surrender of Brokerage Licence
Brokerage Obligations when Surrendering its Licence and Winding Up Business (section 8-11 of the Council Rules):
A brokerage that ceases to carry on the business of a brokerage must do the following:
(a) immediately surrender to the Council the brokerage’s licences and the licences of all related licensees that are in the possession of the brokerage;
(b) promptly submit to the Council the Brokerage Winding Up Report form, completed in accordance with the Council Bylaws;
(c) if requested by the Council, submit to the Council one or more of the financial statements and reports required under section 7-7 [annual financial statements, accountant’s report and brokerage activity report] of the Council Rules;
(d) as requested by the Council, provide to the Council
(i) any other financial records of the brokerage, and
(ii) any further information about the business of the brokerage;
(e) arrange for the records referred to in section 8-10 [retention of records] of the Council Rules to be kept, for the period referred to in that section, by
(i) another brokerage,
(ii) an accountant, lawyer or notary public, or
(iii) another person acceptable to the Council.
Please note that any “subject” transactions must have the subject clauses removed prior to the winding up of the brokerage. If this is not possible, the transaction (including the deposit monies related thereto) must be transferred to another licensed brokerage prior to the termination of the brokerage’s licence. The brokerage must obtain the written authorization from all parties to the transaction prior to transferring it to another brokerage. The foregoing is necessary because the act of removing a subject clause requires licensing pursuant to the Real Estate Services Act. It is not necessary to transfer transactions that are “firm” or where all subject clauses have been removed. The brokerage may do the usual payouts upon completion of the transaction even after the brokerage’s licence has been terminated.
Any interest that was earned on the brokerage’s general trust account should be paid to the Real Estate Foundation pursuant to section 29(1)(b) [interest on trust account] of the Real Estate Services Act.
Pursuant to section 32 [unclaimed money held in trust] of the Real Estate Services Act, a brokerage may transfer money held in trust by a brokerage to the administrator appointed under the Unclaimed Property Act, if
1. the brokerage has made reasonable efforts to ascertain the identity of or to locate the person entitled to claim the money and to notify that person about the money, and
2. despite those efforts, the money has been unclaimed for longer than one year after the applicable time prescribed for the purposes of this section.
If the above conditions have been satisfied, the unclaimed money may be paid to the British Columbia Unclaimed Property Society. Information with respect to the procedure for paying funds to the Society can be obtained from the British Columbia Unclaimed Property Society at 604-662-3518 or from their website at www.bcunclaimedproperty.bc.ca.
If there are adverse claimants, the brokerage may apply to the Supreme Court for an order to pay the trust monies into court. The procedure to pay trust monies into court can be found in the Brokerage Standards Manual.
Please ensure that the Real Estate Council is immediately informed when the trust account balance reaches zero ($0.00), except for any unclaimed monies which have not been disbursed. In this instance, please provide written details of the unclaimed funds and confirm the manner in which you will be dealing with these monies.
It should be noted that failure to submit the Brokerage Winding Up Report (section 4-11 of the Council Bylaws) could delay the licence reissuance of a licence to any managing broker, director, officer, partner or sole proprietor of the brokerage.
PART II – COUNCIL GUIDELINES – BROKERAGES
A. Licensee Names for Brokerage Applicants
If an applicant for a new brokerage licence has a legal name or a trade name (See Licensee Names for further information) that is likely to confuse or mislead the public, the Council may refuse to issue the licence. Before refusing to issue the licence, the Council must give notice to the applicant and provide the applicant with an opportunity to be heard respecting the matter. (Section 13(3) of the Real Estate Services Act)
If the Council refuses to issue a licence because of the legal name or trade name, it must
(a) provide the applicant with a written notice of the refusal and the reasons for it; and
(b) advise the applicant of the right to appeal under Division 4 [Appeals to Financial Services Tribunal] of Part 4 (Section 13(3) of the Real Estate Services Act)
The Council may, however, approve similar names for companies, which are affiliated within the meaning of the Business Corporations Act. Alternatively, a licensing agreement may be entered into by the two entities allowing for the use of similar names. The Council would require a copy of the licensing agreement prior to giving name approval for licensing. If you are in doubt as to whether two companies are affiliated within the meaning of the Business Corporations Act, you may wish to seek independent legal advice in this regard.
Some corporations, partnerships and sole proprietors, when applying for their first licence as a brokerage, indicate that they propose doing business under a name other than their legal name. After receiving approval from the Council for both the legal and trade name and registering both names with the Registrar of Companies, the licence certificate, when issued, will reflect both the legal and trade name.
For example, a licence could be issued showing
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“A.B.C. Realty Ltd.
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“John Doe
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| dba |
OR
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dba |
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Bombay Realty”
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Melbourne Realty”
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In order to ensure that the public can identify the brokerage with whom they are dealing, a brokerage can only do business under the trade name. It would not be permissible to do business under more than one name. The telephone would be answered as “Bombay Realty” or “Melbourne Realty” as the case may be and the trade name would be shown on signs, advertisements and business cards.
If a brokerage, after licensing, decided to use a trade name rather than the legal name under which it was licensed, the trade name would again have to be cleared with the Council and registered with the Registrar of Companies. The real estate licences would then have to be amended.
Brokerages associated under a franchise agreement may all share a common part of their names (i.e. that part which identifies them as franchisees). However, franchisee brokerages must be readily identifiable by their full name or trade name.
The franchise name must be approved by the Council and registered with the Registrar of Companies. The Council may require a copy of the licensing agreement or “consent for use of name” from the franchisor. If necessary, real estate licences would have to be amended.
In order to ensure that the public can identify the brokerage with whom they are dealing, the brokerage can do business only under the franchise name. It would not be permissible to do business under more than one name.
Section 4-5(2) [materials that must accompany applications for new brokerage licences] of the Council Bylaws requires that a financial statement accompany each application for a brokerage’s licence and section 2-11 [financial qualifications for brokerages] stipulates that brokerage applicants must be in sound financial circumstances. To satisfy both requirements, a brokerage applicant’s financial statement must show unimpaired working capital, i.e. cash in bank, in an amount not less than is required to meet all operating expenditures for the first three months, plus $5,000. Eighty percent of accounts receivable may be treated as a current asset.
If shareholders’ loans are required to achieve that position, it is necessary that a subordination agreement be executed between the shareholders and the applicant in the form provided by the Council.
PLEASE NOTE: The Financial Statement must be:
(a) verified by the statutory declaration of the proposed managing broker or sole proprietor deposing to the accuracy of the financial statement;
OR
(b) certified by a chartered accountant or certified general accountant as to the accuracy of the financial statement. (Notice to Reader, Review Engagement Report or Audit Report are acceptable.)
The Form A – Brokerage Operating Expenses, included in this package, is intended to assist in estimating expenses and a completed copy of the form must be submitted with the financial statement.
If a brokerage wishes to provide real estate services at premises other than the brokerage’s head office, the brokerage must obtain licensing for those premises as a “branch office”. If the office is used by related licensees to only complete paperwork and make telephone calls, and the office does not have any signage to indicate that it is a real estate office, it will not be required to obtain licensing under the Act. (See Restrictions Relating to Home and Other Personal Offices)
A branch office must have a qualified individual to act as the managing broker. A managing broker may be licensed in relation to a maximum of 4 offices of a brokerage (e.g. a head office and three branch offices or four branch offices). (Please note that an application form and licensing fee will be required for each additional managing broker licence.) This managing broker would then be required to be actively engaged and provide an adequate level of supervision for all of the office locations and would be responsible for all related licensees of the offices. (See Managing Broker May be Licensed in Relation to a maximum of 4 Licences of a Brokerage).
A staffed kiosk in a shopping mall does not require licensing as a branch office provided that the brokerage has a permanent licensed office situated in the same shopping mall and the Council has been notified, in writing, of the kiosk’s existence.
A display kiosk does not require licensing as a branch office provided it is only a display and not staffed by real estate licensees or others.
F. Operating Site Offices and Temporary Locations
A brokerage conducting real estate activity on a temporary basis at trade shows, flea markets or sites at a project or subdivision, does not require a branch office licence provided that the activity is restricted to the duration of the event or the life of the project.
G. Good Reputation – Managing Brokers/Sole Proprietors
Section 10 [qualifications for obtaining licence] of the Real Estate Services Act requires that an applicant for a licence be of “good reputation” which includes, among other things, whether an applicant is in “sound financial circumstances”. In addition, section 7‑4 [other trust account requirements] of the Council Rules requires at least one related managing broker must be a signing authority on each trust account maintained by a brokerage. As a result, a managing broker/sole proprietor applicant will not be licensed if the applicant:
1. is an undischarged bankrupt;
2. has outstanding judgments against him/her; or
3. is in arrears on several trade accounts.
In the above circumstances, a qualification hearing under section 2-6 [qualification hearings] of the Council Rules may be required to determine an applicant’s suitability for licensing. This policy does not apply to those individuals licensed as representatives or associate brokers.
H. Waiver of Assessment for Certain Categories of Licence
The Real Estate Errors and Omissions Insurance Corporation has adopted a policy of assessing both brokerages and individual licensees one insurance premium, regardless of the number of licences held. As a result of this policy, brokerages do not pay an additional assessment for each licensed branch office. Similarly, managing brokers only pay one insurance assessment, regardless if they hold more than one licence.
The assessment for the Real Estate Compensation Fund is $250 for each brokerage and $100 for each individual. Multiple managing brokers who are licensed with a maximum of 4 separate, affiliated companies are assessed a separate $100 compensation fund assessment for each licence. However, multiple managing brokers who are licensed with a maximum of 4 offices of the same brokerage (i.e. head office and branch office) are only required to pay the $100 compensation fund assessment once, with their first managing broker licence.
I. Refund of Licensing Fee and Assessments
The licensing fee is not refundable once a licence is issued. If an application is withdrawn for any reason prior to licence issuance, the application fee of $50 for new applications and $25 for renewal and reinstatement applications is not refundable.
The assessment for the Real Estate Special Compensation Fund is not refundable once a licence has been issued.
Requests for a refund of the 2nd year errors and omissions insurance assessment should be directed to:
Real Estate Errors and Omissions Insurance Corporation
1604 – 700 West Pender Street
Vancouver, B.C. V6C 1G8
Tel: 604-669-0019 Fax: 604-669-0021
Section 6-1(a) of the Real Estate Services Act requires that a brokerage must have one or more managing brokers and section 3-1(1) of the Council Rules requires that a managing broker be actively engaged in the management of the related brokerage. The managing broker must also ensure that the business of the brokerage is carried out competently and in accordance with the Act, Regulation, Rules, and Bylaws. In addition, managing brokers must ensure that there is an adequate level of supervision for related associate brokers and representatives and for employees and others who perform duties on behalf of the brokerage.
B. Managing Broker May be Licensed in Relation to a maximum of 4 Affiliated Brokerages (section 2-3 of the Council Rules)
A managing broker may
(a) be licensed in relation to a maximum of 4 brokerages that are affiliated within the meaning of the Business Corporations Act, and
(b) provide real estate services in relation to the licence of each of those brokerages.
The total of all brokerage licences in relation to which a managing broker is licensed must not exceed 4.
As evidence of affiliation, the Council requires a letter from the brokerage’s corporate lawyer confirming that the brokerages are affiliated within the meaning of the Business Corporations Act.
When an individual has been issued multiple managing broker licences, these additional licences will then be identified as a “multiple managing broker licence”. The multiple managing broker licences are not required to carry separate errors and omissions insurance. Accordingly, if the individual then wishes to transfer his/her licence to another firm, only the “managing broker” licence will be used for transfer and the “multiple managing broker” licences will be terminated.
C. Managing Broker May be Licensed in Relation to a maximum of 4 Licences of a Brokerage (section 2-4 of the Council Rules)
A managing broker may be licensed in relation to a maximum of 4 licences of a brokerage (i.e. a head office and 3 branch offices or 4 branch offices) and may provide real estate services in relation to each of those brokerage licences. The maximum number of managing broker licences an individual may hold, whether in relation to branch offices or affiliated brokerages, is 4.
D. Residential Brokerage Office (section 2-5 of the Council Rules)
1. A brokerage may only have a residential office as its head office or as a branch office if
(a) the office is located in the residence of a related managing broker,
(b) the office is a separate office within the residence, and
(c) the local government bylaws applicable to the residence permit the brokerage business to be conducted from the residence.
2. In addition to the requirements of subsection (1), a brokerage may only have a residential office as its head office if the managing broker referred to in subsection (1)(a) is, as applicable,
(a) in the case of a brokerage that is a sole proprietor, the sole proprietor,
(b) in the case of a brokerage that is a partnership, a partner, or
(c) in the case of a brokerage that is a corporation, either
(i) a controlling shareholder of the corporation, or
(ii) one of only 2 shareholders of the corporation, the other of whom is the spouse or family partner of the managing broker.
3. Subject to any further restrictions or conditions contained in any local government bylaws that regulate residential business activities, only 2 licensees may be licensed in relation to a residential head office or residential branch office.
E. Term of Licence (section 2-13 of the Council Rules)
The term of a licence is
(a) 2 years from the effective date of the licence, ending at the end of the day before the second anniversary of that date, or
(b) in the case of a temporary licence, as specified in the licence.
F. Partnership Brokerage Licence (section 2-14 of the Council Rules)
A brokerage licence issued to a partnership is specific to the partnership as it exists at the time of the application for the licence.
If a partnership continues but with different partners, the brokerage licence is cancelled effective 14 days after the change or at the end of a longer period permitted by the Council.
G. Brokerage Must Give Immediate Notice Respecting Solvency (section 2-20 of the Council Rules)
A brokerage must immediately notify the Council if it is not able to pay its debts as they become due.
H. Notice of Business Changes (section 2-22 of the Council Rules)
1. A brokerage must promptly notify the Council in writing of the following:
(a) a change in the telephone number, fax number or email address of a brokerage’s head office or branch office;
(b) if any related managing broker, associate broker or representative ceases to be engaged by the brokerage, and the reasons for this;
(c) in the case of a brokerage that is a partnership,
(i) any change in the partners and whether, as a result of licence cancellation under section 2-14 [partnership brokerage licence is specific to partnership] of the Council Rules, an application for a new brokerage licence is intended to be made, or
(ii) any change in the nature of the partnership, such as registration as a limited liability partnership;
(d) in the case of a brokerage that is a corporation,
(i) any change in the directors or officers of the corporation, or
(ii) any fundamental change to the corporation, such as an amalgamation or continuation;
(e) a change in the end date of the brokerage’s fiscal year;
(f) a change in the savings institutions, or branch location of a savings institution, at which the brokerage maintains accounts.
2. If notice is required under subsection (1)(d) because a new director or officer is appointed or elected, within 30 days after the appointment or election, the brokerage must submit to the Council the information and statements required under section 4-5(2)(c) [materials that must accompany applications – directors and officers] of the Council Bylaws for each new director or officer.
I. Displaying and Keeping of Licences (section 4-1 of the Council Rules)
A brokerage must
(a) keep the brokerage licence for its head office prominently displayed in the head office;
(b) if applicable, keep any branch office licence prominently displayed in the branch office, and
(c) keep the licences of all related licensees available for public inspection at the related brokerage office.
J. Business Signs Required (section 4-2 of the Council Rules)
A brokerage must
(a) display, on or near the door of its head office and any branch offices, a sign that clearly shows the brokerage’s licensee name, and
(b) have its licensee name listed in the building directory, if any, for the places where the offices are located.
K. Restrictions Relating to Home and Other Personal Offices (section 4-3(1) and (2) of the Council Rules)
Personal office in relation to a licensee means an office from which the licensee provides real estate services, other than a related brokerage office, and includes an office that is in the residence of the licensee or any other person.
The following Rules apply if a licensee maintains a personal office from which the licensee provides real estate services:
(a) no sign may be placed outside the office or the building in which the office is located, or from where it is visible from outside the office or building, that indicates real estate services are provided from the office;
(b) the phone for the office must not be answered in the name of the related brokerage of the licensee;
(c) the licensee must not indicate the office address on any real estate advertising or on any other records relating to the provision of real estate services.
L. Licensee Names (section 4-4 of the Council Rules)
The licensee name of a brokerage is, as applicable,
(a) the legal name of the brokerage, unless another name is indicated on the brokerage licence under paragraph (b), or
(b) the trade name of the brokerage if this has been approved by the Council, has been registered with the Registrar of Companies and is indicated on the brokerage licence.
M. Relationships with Principals and Parties (Part 5 of the Council Rules)
A brokerage should review Part 5 and section 10-4 of the Council Rules with respect to written service agreements, disclosures, commissions, and other remuneration.
N. Dealing with Other Licensees and Unlicensed Persons (Part 6 of the Council Rules)
A brokerage should review Part 6 of the Council Rules with respect to the payment of commissions to unlicensed persons and acting for unlicensed persons.
O. Brokerage Accounts and Financial Requirements (Part 7 of the Council Rules)
Section 26 [obligation to maintain trust account] of the Real Estate Services Act requires that every licensed brokerage must maintain at least one or more interest bearing trust accounts. Every trust account must be in a savings institution located within the Province.
A brokerage should review Part 7 of the Council Rules with respect to brokerage trust accounts, commission trust accounts, accountant’s reports and solvency issues.