Updates and Reminders for Managing Brokers

Updates and Reminders for Managing Brokers

As a managing broker, you play an important role in public protection by ensuring that your brokerage and the licensees under your supervision carry out the duties imposed by the Real Estate Services Act. The following reminders and updates from the Council are intended to support you in meeting your legislated obligations.

Reporting Suspicious Transactions

All licensees have a legal obligation to comply with the reporting requirements of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

Earlier this year, the Financial Transactions and Reports Analysis Centre (FINTRAC) introduced new methods to be used by reporting entities, such as brokerages, to ascertain the identity of clients. Until June 30, 2017, there will be a transitional period during which brokerages may use either the new methods or the methods listed in Guideline 6 (b). As of June 30, 2017, the transition period will end and brokerages will be required to apply the new methods to ascertain the identity of clients.

For full information on these changes, see FINTRAC’s Guideline: Methods to ascertain the identity of individuals. The guideline offers plain-language interpretations of the new regulations and useful examples as illustration. The new protocols involve additional record-keeping requirements, so managing brokers are advised to pay particular attention to their obligations in this regard.

The following information sources and educational resources are available to help ensure that your brokerage and licensees under your supervision are meeting all obligations and fully reporting on any suspicious transactions:

• The Professional Standards Manual includes an overview of obligations for licensees and brokerages.
• Detailed guidelines are available on the Government of Canada’s Financial Transactions and Reports Analysis Centre (FINTRAC) website.
• An online professional development course is available through REvia, developed in close consultation with government.
• The Canadian Real Estate Association has resource materials to help members meet their FINTRAC obligations, including forms, training modules, and a step-by-step compliance manual available at www.realtorlink.ca.

Lead Generation Services Prohibited

The Real Estate Services Act prohibits the payment of referral fees to unlicensed people operating real estate lead generation services.

Websites that find people who are interested in buying, renting, or selling real estate, and refer those people to licensees for a fee, are soliciting for the purpose of providing real estate services. This activity requires a real estate licence.

An unlicensed individual may only make a referral to a licensee and be paid for the referral when:

• they do not engage in activities to solicit names of persons who may be interested in acquiring or disposing of real estate; and
• the practice of making referrals and receiving referrals is incidental to their main business.

Learn more about the prohibition against unlicensed lead generation services.

Questions?

If you have questions about your obligations under the Real Estate Services Act, contact the Council’s Professional Standards Advisor at [email protected].

This information is provided to you by the Real Estate Council of British Columbia (RECBC).

Your feedback is always welcome and can be sent to [email protected].