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Brokerage Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

Managing Broker Duties

2. Supervision

The managing broker is responsible for the supervision of all licensees who are licensed in relation to the brokerage. Section 3-1 of the Rules requires that the managing broker be actively engaged in the management of the related brokerage and ensure that there is an adequate level of supervision for all licensees, employees and others in the brokerage.

In a well-managed office, where the activities of licensees and other employees are adequately supervised, RECBC would expect that:

  • The managing broker ensures that the brokerage, and all its licensees are currently and properly licensed. A managing broker, who allows unlicensed individuals to perform activities that require licensing, is subject to disciplinary action by RECBC. For more information, see Licensing: The First Step in Supervision.
  • Training/professional development assistance/guidance is provided for licensees, employees and others in the brokerage. For more information, see Education and Training.
  • The managing broker is able and available to assist and advise licensees and other employees as they encounter problems in their day-to-day activities. When the managing broker is not at the office, the managing broker should be “connected” to the office by other electronic means.  For more information, see Supervision 101: Stay in Touch, and Deciding to Delegate.
  • The managing broker follows up on the activities of licensees who are absent for prolonged periods from the office.
  • Although the managing broker is not expected to review all advertisements, the managing broker ensures that licensees are made aware of sections 4-64-7 and 4-8 of the Rules, which relate to advertising, as well as advertising guidelines and policies established by RECBC. The managing broker should periodically discuss examples of appropriate and inappropriate advertising with licensees.
  • A brokerage procedures manual has been read and acknowledged by its licensees clearly disclosing to them the rules and office policies of the brokerage. For more information see Managing Unlicensed Activities with the Brokerage.
  • There is a means of communicating (e.g.: office meetings, memorandums, etc.) with licensees respecting policy matters or changes in the law. It is recommended that the brokerage keep copies of any written communications on file.
  • The managing broker ensures that licensees are aware of and comply with the Rules, including the application of RESA to the provision of all real estate services by a licensee, and the requirements for disclosure, including the need to provide certain disclosures in writing. 
  • The managing broker ensures that written service agreements include a general description of services and that the services are in accordance with the policies of the brokerage. For more information, see Reviewing Licensee’s Practices: Written Service Agreements.
  • Where a brokerage engages licensees who conduct business outside of the brokerage’s usual market area, the managing broker ensures the following procedures are in place.
  • Listing, buyer agency, rental property and strata management contracts, amendments thereto, and Contracts of Purchase and Sale are, as soon as possible after their execution, faxed, couriered, delivered or e-mailed to the brokerage’s office in order that the managing broker can review the documentation, and that a legible true copy is maintained on file in the office.

In order for funds received on behalf of clients (e.g., trust deposits, rental funds, security deposits, etc.) to be deposited into trust upon receipt, arrangements must be made for licensees to deliver these funds immediately to the brokerage.