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Education & Licensing Policies

I. Education Guidelines

  1. Part 1 – Education Requirements for Licensing
    Division 1 – Pre-Licensing Education

    1. 1-1 English Language Proficiency Requirement
    2. 1-2 Licensing and Applied Practice Courses
    3. 1-3 Education Waivers Policy
      1. 1-3.1 Requests for Education Waivers
      2. 1-3.2 Approved Prior Knowledge and Training
  2. Part 2 – Applying for Licensing
    1. 2-1 Licence Application Requirements
    2. 2-2 Licence Reciprocity (Canada, United States, Elsewhere)
  3. Part 3 – Continuing Education
    1. 3-1 Relicensing Education Program (REP)
    2. 3-2 Applying to Add Another Real Estate Service to a Licence
    3. 3-3 Broker’s Licensing Requirements
  4. Part 4 – Relicensing and Leaves
    1. 4-1 Relicensing
      1. 4-1.1 Representatives Education Requalification Waiver Policy
      2. 4-1.2 Broker’s Education Requalification Waiver Policy
    2. 4-2 Leaves
      1. 4-2.1 Parental Leave
      2. 4-2.2 Medical Leave
      3. 4-2.3 Compassionate Care Leave
  5. Part 5 – Remedial Education

II. Licensing Guidelines for Individuals

  1. Part 1 – Licensing Requirements
    1. 1-1 Reinstatement of Licence (Transfer) (Inoperative Less Than 90 days within licence period)
    2. 1-2 Reinstatement of Licence (Inoperative More Than 90 days within licence period)
    3. 1-3 Relicensing Applicant (after previous licence has expired)
    4. 1-4 Change of Licence Level or Category
    5. 1-5 Name Change
    6. 1-6 Renewal of Licence
    7. 1-7 Surrender of Licence
  2. Part 2 – Council Guidelines
    1. 2-1 Licensee Names for Representative, Associate Broker or Managing Broker
    2. 2-2 Application for Pre-Screening
    3. 2-3 “Good Reputation” – Guidelines
    4. 2-4 Insurance and Sub-Mortgage Broker Licensing
    5. 2-5 Time of Issuance and Surrender of Licences
    6. 2-6 Waiver of Assessment for Certain Categories of Licence
    7. 2-7 Refund of Licensing Fee and Assessments
    8. 2-8 Managing Brokers
    9. 2-9 Managing Broker May be Licensed in Relation to a maximum of 4 Affiliated Brokerages (section 2-3 of the Rules)
    10. 2-10 Managing Broker May be Licensed in Relation to a maximum of 4 Licences of a Brokerage (section 2-4 of the Rules)

III. Licensing Guidelines for Brokerages

  1. Part 1 – Licensing Requirements
    1. 1-1 Name or Address Change
    2. 1-2 Renewal of Licence
    3. 1-3 Surrender of Brokerage Licence
  2. Part 2 – Council Guidelines
    1. 2-1 Licensee Names for Brokerage Applicants
    2. 2-2 Trade Names
    3. 2-3 Franchise Names
    4. 2-4 Financial Statements
    5. 2-5 Branch Offices
    6. 2-6 Operating Site Offices and Temporary Locations
    7. 2-7 Good Reputation – Managing Brokers/Sole Proprietors
    8. 2-8 Waiver of Assessment for Certain Categories of Licence
    9. 2-9 Refund of Licensing Fee and Assessments

I. Education Guidelines

Part 1 – Education Requirements for Licensing

To qualify for a real estate licence in BC, you must satisfy the Council’s education requirements. These requirements include:

  • demonstration of proficiency in English,
  • successful completion of a licensing course,
  • successful completion of a licensing examination, and
  • successful completion of an applied practice course (required for trading services licence only).

You must also meet the age requirements (you must be at least 19 years of age in order to qualify for licensing) and the Council’s Good Reputation requirements.

There are additional requirements to qualify for licensing as an associate broker or managing broker:

  • successful completion of the brokers licensing course, and
  • demonstration of sufficient experience.

For more information about licensing requirements, please see the Licensing section of the Council’s website.

Division 1. Pre-Licensing Education

English Language Proficiency Requirement

1-1

In order to ensure that licensees are competent to communicate in English with consumers and other licensees, all individuals must satisfy the English Language Proficiency Requirement (ELPR) before writing a licensing examination. The ELPR must be satisfied by achieving a level 7 or higher on each of the four components of  the Canadian English Language Proficiency Index Program – General (CELPIP-G) test. Individuals may be exempted from the requirement in one of the following ways:

    • Graduation from a recognized university Bachelor’s degree or higher program at an accredited university, college or technical institute at which English is the primary language of instruction.
    • Licensed for real estate services in another Canadian jurisdiction with English language standards and have satisfied that jurisdiction’s English language requirements.

 

Licensing and Applied Practice Courses

1-2

In order to ensure that licensees are qualified to practice, the Council, through its course providers, has developed the following required licensing and applied practice courses:

  • Real Estate Trading Services Licensing Course
  • Rental Property Management Licensing Course
  • Strata Management Licensing Course
  • Broker’s Business Planning and Financial Management Licensing Course
  • Residential/Commercial Trading Services Applied Practice Course

Delegated Course Providers

1-2 (1)

In delegating course delivery and administration, the Council sets specific standards for competency and knowledge required to practice real estate services under the Real Estate Services Act. The Council periodically conducts reviews of course content to ensure that courses remain current and that required standards continue to be met.

The Council has delegated the administration of the licensing courses to the UBC Sauder School of Business, Real Estate Division.

The Council has delegated the administration of the Applied Practice Courses to the British Columbia Real Estate Association (BCREA).

Access and Diversity for Licensing Courses

1-2 (2)

The UBC Sauder School of Business, Real Estate Division is committed to ensuring that all students, staff and visitors are able to study and work in an environment of tolerance and mutual respect that is free from harassment and discrimination.

The Real Estate Division’s goal is to ensure fair and consistent treatment of all students, including students with a disability, in accordance with their distinct needs and in a manner consistent with academic principles.

Services are available through the UBC Access and Diversity, and candidates who have physical, sensory or specific learning disabilities are encouraged to contact the UBC Access and Diversity make appropriate arrangements.

Examination Results

1-2 (3)

Examination results are only released in writing. Candidates will be advised in writing through their individual Course Resources Webpage online and by regular mail and by no other means.

Examination Rewrites

1-2 (4)

Candidates applying to rewrite examinations are allowed to do so on the scheduled dates or at the Computerized Examination Centre at the UBC Sauder School of Business, Real Estate Division. After an unsuccessful attempt, candidates must wait a minimum of 90 days to rewrite the examination.

Examinations must be completed no more than two (2) years after successful completion of the course assignments. An individual who fails an examination two (2) times in succession must retake and successfully complete the applicable licensing course before again attempting the examination. This is required by the Rules. No special examinations are provided. Waivers will be considered only in exceptional circumstances and must be made in accordance with the Education Waivers Policy.

Residential / Commercial Trading Services Applied Practice Course

1-2 (5)

Applicants applying for a licence to provide trading services are required to register in and complete Components 1 & 2 of the Residential Trading Services Applied Practice Course or complete Component 1 of the Commercial Trading Services Applied Practice Course prior to applying for licensing. Once licensed, individuals have six (6) months to complete Components 3 & 4 of the Residential course or Components 2, 3 & 4 of the Commercial course, unless the applied practice course requirement has been waived.

a) Course Waiver

You are eligible to request that the Applied Practice Course be waived if:

  1. You have completed the Applied Practice Course within the last two (2) years.
  2. You are licensed in another Canadian jurisdiction with occupational standards equivalent to those in BC, you have completed any required post-licensing education in that jurisdiction, and you are qualified for licensing in BC under labour mobility legislation.
b) Accelerated Course

You are eligible for an accelerated version of the Applied Practice Course in the following instances:

  1. You have completed the Applied Practice Course more than two (2) years ago.
  2. You have been licensed for at least one (1) of the past three (3) years in another jurisdiction in the US, New Zealand, Australia or a Canadian jurisdiction without occupational standards.

Education Waivers Policy

1-3

If you have attained the required level of education in the requisite knowledge areas through prior education or training, you may be eligible to apply to have some or all of the standard educational requirements for licensing waived.

Requests for Education Waivers

1-3 (1)

To make a request to have some or all of the licensing education requirements waived, submit the following information in writing to the Real Estate Council of British Columbia.

Requests based on prior education and training must include:

  • A full description of your experience in real estate (trading services, rental property management and/or strata management).
  • Supporting documentation to verify your stated real estate experience such as:
    • official transcripts, degrees or diplomas,
    • a resume,
    • letters of reference,
    • licensing history including disciplinary action (if applicable), and
    • any other relevant information.

 

The Council staff will consider your request. Official transcripts must be received from the educational institution in a sealed envelope. After your request has been reviewed and a determination made, you will be notified in writing with instructions on how to proceed with qualifying for licensing. The Council will notify course providers when a waiver is granted to an individual.

If your request for an education waiver is denied, the Council will provide you with written notice including the reasons for the denial.

Appeals

To appeal a Council decision to deny your education waiver request, you must submit an additional written request. The Council will reconsider an education waiver request in cases where applicants make significant additional information available. The Council will provide written notice of its decision upon reconsideration of a waiver request.

Approved Prior Knowledge and Training

1-3 (2)

The information below outlines circumstances in which previously licensed representatives or brokers may request waivers to the standard educational requirements, as well as post-secondary and professional education programs that the Council recognizes as equivalent to some or all of the standard licensing education requirements.

a. UBC Commerce Real Estate (M.Sc. or B.Comm., Real Estate)

If you have been awarded a Masters of Science (M.Sc.) Real Estate or a Bachelor of Commerce Real Estate (B.Comm) from the University of British Columbia in the last ten (10) years, you are eligible to request a waiver from the applicable trading services and/or rental property management licensing course and examination if:

  1. You hold an M.Sc. with Urban Land or Real Estate major.
  2. You hold a B.Comm. Real Estate and your transcript indicates you have completed COMM: 434 – Land Law (or BUSI 111).

If you have been awarded an M.Sc. Real Estate or a B.Comm. Real Estate from the University of British Columbia in the last ten (10) years, you are eligible to request a waiver from the managing broker course and examination.

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

If you have been a student in an M.Sc. Real Estate or a B.Comm. program at the University of British Columbia within the last ten (10) years, you are eligible to request a waiver from the trading services and/or rental property management licensing courses if:

  1. You are a B.Comm. Real Estate student and your transcript indicates you have completed the following courses: COMM 307, 306, and 434 (or BUSI 111).

If you have been a student in an M.Sc. Real Estate or a B.Comm. program at the University of British Columbia within the last ten (10) years, you are eligible to request a waiver from the managing broker course if:

  1. Your transcript indicates you have completed the following courses: COMM 203, 205, 280, 290, 292, 293, 294, 295 (or equivalent).

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

b. Diploma in Urban Land Economics (DULE)

If you have been awarded a Diploma in Urban Land Economics, including completion of BUSI 111 – British Columbia Real Property Law and Real Estate Ethics, from the University of British Columbia within the last ten (10) years, you are eligible to request a waiver from the following:

  1. Real Estate Trading Services Licensing course and examination.

If you have been awarded a Diploma in Urban Land Economics with Real Estate Management Option, including completion of BUSI 111 – British Columbia Real Property Law and Real Estate Ethics, from the University of British Columbia within the last ten (10) years, you are eligible to request a waiver from the following:

  1. Rental Property Management Licensing course and examination.

If you have been a student in the Diploma in Urban Land Economics program at the University of British Columbia within the last ten (10) years, you are eligible to request a waiver from the applicable licensing course if:

  1. Your transcript indicates you have completed the following courses: BUSI 111, 121, 221, 330 (applies to trading services).
  2. Your transcript indicates you have completed the following courses: BUSI 111, 330, 331 and 441 (applies to rental property management services).

If you have been awarded a Diploma in Urban Land Economics program at the University of British Columbia in the last ten (10) years, you are eligible to request a waiver from the managing broker course and examination if:

  1. Your transcript indicates you have completed the following courses: BUSI 111, 433.

If you have been a student in the Diploma in Urban Land Economics program at the University of British Columbia within the last ten (10) years, you are eligible to request a waiver from the applicable licensing course if:

  1. Your transcript indicates you have completed the following courses: BUSI 111, 433.

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

c. BCIT – Professional Real Estate Diploma (Marketing Management Technology)

If you have been awarded a Professional Real Estate Diploma from the British Columbia Institute of Technology in the last ten (10) years, you are eligible to request a waiver from the trading services and/or rental property management services and/or strata management licensing course and/or the managing broker course.

d. Langara College

If you have completed Real Estate Program courses from Langara College in the last ten (10) years, you are eligible to request a waiver from the applicable licensing course if:

  1. You have received a Diploma in Real Estate (applies to trading services).
  2. Your transcript indicates you have completed the following courses: PROP 1004, 1005, 1023, 1024 (applies to trading services).
  3. You are a graduate of the Property Management Certificate Program and your transcript indicates you have completed the following courses: PROP 1001, 1004, 1005, 1020 (applies to rental property management services).

You are eligible to request a waiver from the managing broker course if:

  1. You have completed a Diploma in Real Estate your transcript indicates you have completed the following courses: GBSC 1006, ENTR 1009, PROP 1095.

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

e. BC Lawyers or BC Law Degree

If you are a BC lawyer or have been awarded a law degree from a university in British Columbia in the last ten (10) years, you are eligible to request a waiver from the trading services licensing course if:

  1. You hold an LL.B. or J.D. degree conferred by a BC university.
  2. You are (or have been in the past ten (10) years) a member in good standing of the Law Society of BC.
f. University Graduates

If you have been awarded a degree from a university in the last ten (10) years, you are eligible to request a waiver from the applicable licensing course if:

  1. Your transcript indicates you have completed a sufficient number of real estate courses (content must be similar to that required for UBC B.Comm. in Real Estate).

You are eligible to request a waiver from the managing brokers course if:

  1. Your transcript indicates you have completed a sufficient number of business management courses (eg. Masters of Business Administration or Bachelor of Business Administration).

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

g. Institute of Real Estate Management (IREM)/Real Estate Institute of Canada (REIC)

You are eligible to request a waiver from the applicable licensing course and/or managing broker course if you hold one of the following designations from the IREM or REIC (status of the designation must be current):

  1. Fellow of the Real Estate Institute (FRI) designation (applies to trading services and broker).
  2. Certified Property Manager (CPM) designation (applies to trading services, rental property management services and broker).

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

h. Royal Institute of Chartered Surveyors (RICS)

*designation status must be current

You are eligible to request a waiver from the trading services licensing course and/or managing brokers course if you have been awarded one of the following designations from RICS (status of the designation must be current):

  1. Member of the Royal Institute of Chartered Surveyors (MRICS) designation.
  2. Fellow of the Royal Institute of Chartered Surveyors (FRICS) designation.

Note: to become licensed at the broker level individuals must have been licensed as a representative in BC for at least two (2) of the past five (5) years (sec 2-10 of the Rules).

i. Building Owners and Managers Institute (BOMI)

You are eligible to request a waiver from the rental property management licensing course if you have been awarded the following designation from BOMI (status of the designation must be current):

  1. Real Property Administrator (RPA) designation.
j. Mortgage Brokerage in BC course

If you previously passed the Mortgage Brokerage in British Columbia course and examination and you wish to hold a real estate licence in BC, the following is required:

  1. You must complete the applicable supplemental course and supplemental exam to become licensed to provide the applicable service if you:
    1. passed the mortgage brokerage exam in last year,
    2. are currently registered as a sub-mortgage broker, or
    3. were previously registered as sub-mortgage broker and your Education Requalification Waiver period as calculated by the Council has not expired.
  1. Must complete the applicable supplemental course and full licensing exam to become licensed to provide the applicable service if:
    1. it is more than one (1) year after you passed the mortgage brokerage exam but less than two (2) years since completing course assignments, or
    2. you were previously registered as sub-mortgage broker and your Education Requalification Waiver period as calculated by the Council has expired.
k. Sub-Mortgage Broker Registration in BC

If you passed the trading services licensing course to qualify for registration as a sub-mortgage broker in BC, you may be eligible to request a waiver from the trading services licensing course and examination if you have been continuously registered as a sub-mortgage broker and your Education Requalification Waiver period has not expired.

If you passed the real estate trading services licensing course to qualify for registration as a sub-mortgage broker in BC you may be eligible to request a waiver from the real estate trading services licensing course if:

  1. You were previously registered as a sub-mortgage broker and your Education Requalification Waiver period has expired.
  2. You were previously licensed to provide trading services in BC, you became a registered sub-mortgage broker during your Education Requalification Waiver period, you subsequently terminated your sub-mortgage broker registration and your Education Requalification Waiver period as calculated by the Council has expired.

Part 2 – Applying for Licensing

To apply for a representative licence you must submit your application within one (1) year from the date you passed the licensing examination. Completion of a supplemental course and examination will not extend the length of time you are permitted to apply for licensing. If you are applying for a trading services licence you must also complete the required pre-licensing components of the applied practice course within one (1) year of passing the licensing examination.

To apply for an associate broker or managing broker licence you must submit your application within five (5) years from the date you passed the licensing examination.

Licence Application Requirements

2-1

In order to apply for a licence, you must use the prescribed Application for Representative, Associate or Managing Broker Licence Application Form. You are required to provide the following information:

  • The category and level of licence for which you are qualified.
  • Your legal name, address and contact information.
  • Name of the brokerage where you will be working.
  • Citizenship, work visa or immigration status.
  • A copy of a piece of valid, government-issued photo identification.
  • Information relating to reputation and suitability (including a current criminal record check):
    • other discipline, court orders or judgements against you or a related business
    • bankruptcy/discharge, etc.
  • Your qualifying education including exam dates.
  • The signature of the managing broker or an officer or director at the brokerage where you will be licensed.

The Council will review the application. If the Council finds that you meet the qualification requirements for licensing, a licence will be issued and sent to the brokerage.

Licence Reciprocity

2-2 (1)

If you are currently licensed to provide real estate services in another Canadian jurisdiction with occupational standards* equivalent to those in BC, or have been licensed in the past twelve (12) months, you are eligible to apply for licensing in BC. You must submit the following with your licence application:

  • A licensing history from the jurisdiction in which you are or were licensed.
  • An Out-Of-Province Certification form.

2-2 (2)

If you have held a real estate licence in another jurisdiction, you are eligible to request a waiver from the applicable licensing course and examination if:

  1. You have completed the required licensing education in the previous twelve months in a Canadian jurisdiction with occupational standards equivalent to those in BC. You will be required to complete the applied practice course.
  2. You have been licensed in a jurisdiction in the United States for no more than two (2) years after the surrender of your licence in BC.
  3. You have been licensed in a jurisdiction in the United States for no more than two (2) years since passing the BC trading services licensing examination.
  4. You completed the BC rental property management licensing course and examination and have been providing rental property management services in a Canadian jurisdiction without rental licensing requirements for no more than two (2) years since passing the examination.

*Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Newfoundland & Labrador, Nova Scotia, Prince Edward Island and the Yukon Territory. This includes licensed rental property managers from Alberta and Saskatchewan.

If you have held a real estate licence in another jurisdiction, you are eligible to request a waiver from the applicable licensing course if:

  1. You were licensed for a minimum of one (1) year within the past three (3) years in a Canadian jurisdiction with occupational standards equivalent to those in BC. *This includes previously licensed rental property managers from Alberta and Saskatchewan
  2. You have been actively licensed at the representative level in the United States, New Zealand, Australia or a Canadian jurisdiction without occupational standards* equivalent to those in BC, for a minimum of one (1) year within the past three (3) years before applying as a representative.

You are eligible to request a waiver from the managing broker course if:

  1. You have been actively licensed to provide trading services at the broker level in the United States, New Zealand, Australia or, a Canadian jurisdiction without occupational standards* equivalent to those in BC for a minimum of two (2) years in the past five (5) years.

*Northwest Territories and Nunavut

Part 3 – Continuing Education

Re-licensing Education Program (REP)

3-1

All licensees are required to complete the Council’s Relicensing Education Program (REP) requirement before applying to renew their real estate licence.

Completing the REP Course

3-1 (1)

To satisfy the Council’s REP requirements, you are required to complete one applicable Legal Update course during your two-year licence term.

3-1 (2)

You may complete this course in a classroom setting or online.

  1. Trading services related courses are developed by BCREA and provided in the classroom at the member real estate boards and online through the UBC Sauder School of Business, Real Estate Division.
  2. Rental Property Management and Strata Management courses are developed by the Professional Association of Managing Agents (PAMA) and provided in the classroom by PAMA and online through the UBC Sauder School of Business, Real Estate Division.

If you are licensed to provide more than one service (e.g. trading services and strata management services), you are still only required to complete one Legal Update course.

The REP requirement is separate and distinct from any educational requirements mandated by the various real estate boards throughout the province.

Proof of REP

3-1 (3)

Licensees are responsible for accurately reporting REP course completion on their renewal application form. Proof that the appropriate Legal Update REP course was completed during your two-year licence term must be submitted with the renewal application by attaching a certificate of completion, or a copy of an education transcript from the course provider (e.g. real estate board) and must include:

  1. Licensee’s name.
  2. The course name.
  3. The date the course was completed.

Your licence will not be renewed unless you provide documentary evidence with your licence renewal application that you have completed a Legal Update REP course in the last two years.

Individuals who are applying for relicensing within their Education Requalification Waiver period are required to provide proof of REP.

Proof of REP is not required from anyone who must requalify for licensing by writing the applicable licensing examination.

Applying to Add Another Real Estate Service to a Licence

3-2

You may be qualified to provide one, two, or all three real estate service categories (trading services, rental property management services, strata management services) through your real estate licence. To add a real estate service category to your licence, you must qualify for licensing to provide that additional service by completing a supplemental course and examination.

If you were previously licensed and pass a supplemental examination within your Education Requalification Waiver period, you are eligible to apply for a representative’s licence to provide both services. You will be required to pass both a full licensing examination and a supplemental course and examination in both service categories in order to requalify for a representative’s licence if your Education Requalification Waiver period has expired.

Individuals adding trading services to a licence are also required to complete the Residential or Commercial Trading Services Applied Practice Course.

Broker’s Licensing Requirements

3-3

You must meet both an EDUCATION and an EXPERIENCE requirement in order to be eligible to apply for an associate broker’s/managing broker’s licence.

Education

3-3 (1)

Completion of the Broker’s Business Planning and Financial Management licensing course and examination will satisfy the education requirement for licensing as an associate broker/managing broker licensed to provide trading services, and/or rental property management services, and/or strata management services.

When upgrading to the broker level, an individual will continue to be licensed in the same categories that they were licensed for as a representative. If your rental property management licence was issued before July 21, 1994, you will be required to complete the Rental Property Management supplemental course and examination to continue providing rental property management services.

Registration in the managing broker course is limited to individuals who have:

  1. Completed the Real Estate Trading Services Licensing Course, Rental Property Management Licensing Course or Strata Management Licensing Course and Examination or equivalent.
  2. Been licensed for not less than six (6) months in BC at the time of course commencement, and
  3. Completed the Residential or Commercial Trading Services Applied Practice Course, where applicable.

Experience

3-3 (2)

To satisfy the experience requirement for licensing as an associate or managing broker, you must have:

  1. Been licensed in BC as a representative for at least two (2) of the past five (5) years, or
  2. have been licensed as a Broker in a jurisdiction in the United States, Australia or New Zealand for at least two (2) of the past five (5) years, or
  3. Licensed as a representative or equivalent in their home jurisdiction for at least two (2) of the past five (5) years and one (1) of the past five (5) years in BC.

You may apply to have the experience requirements waived if:

  1. Your experience and training is equivalent to that which you would have obtained if the services were provided as a licensee.
  2. There is an immediate need for a managing broker in the location where you propose to carry on business, or
  3. You are an applicant from another Canadian jurisdiction, and you are qualified to be licensed as an associate or managing broker or you were previously licensed as a broker and you have been unlicensed for less than one (1) year.

Part 4 – Relicensing and Leaves

Re-licensing

4-1

If you have surrendered your licence, it has been suspended or become inoperative, and you now wish to apply for relicensing, you are required to requalify by completing the applicable licensing education and examination.

In recognition of an applicant’s previous knowledge or training, the Council may waive the requalification requirements as detailed below.

Representative’s Education Requalification Waiver Policy

4-1 (1)

The Council will waive the applicable licensing course and examination requirements for individuals who wish to apply for relicensing as representatives in the same categories after their licence becomes inoperative, is suspended or is voluntarily surrendered, for specified periods known as Education Requalification Waiver periods. Education Requalification Waiver periods are calculated from the date on which a licence becomes inoperative, is suspended, or is voluntarily surrendered.

(a) The Education Requalification Waiver periods are as follows:

  1. After passing a licensing examination you may apply for relicensing for up to twelve months.
  2. If you were continuously licensed for less than a year, you may apply for relicensing for a period equivalent to your unbroken licensed period.
  3. If you were continuously licensed for one (1) year but less than five (5) years, you may reapply for licensing for up to one (1) year.
  4. If you were continuously licensed for five (5) years or more you may reapply for licensing for up to two (2) years.

If during your Education Requalification Waiver period you passed the managing broker licensing course and examination you may reapply for licensing as a representative for up to five (5) years after passing the managing broker licensing examination.

Candidates who apply for licensing within their Education Requalification Waiver period but after their previous licence has expired must provide proof that they have completed their REP requirement with their licence application.

(b) Previously licensed individuals who are no longer eligible for a waiver of the licensing course and examination will be required to qualify for licensing by:

  1. Successfully completing the applicable service category examination within required parameters as described in the Exam Rules section of this policy.
  2. Completing the applicable supplemental examination(s) if the applicant wishes to become licensed for more than one service category.
  3. In the case of an applicant for a trading services licence, completion an accelerated version of the Residential / Commercial Trading Services Applied Practice Course is required if it is more than two (2) years since the applicant completed an Applied Practice Course.

If you are a former employee of a professional real estate organization your Education Requalification Waiver period will be calculated using your last continuous licence period and will begin on the date of termination of your employment.

(c) Confirmation of Education Requalification Waiver period

The Council will provide written confirmation of your Education Requalification Waiver period, including the date of the expiry of the waiver period. To obtain confirmation, please submit a written request to: education@recbc.ca. The Council will only respond to written requests.

(d) Requests for Extensions

Extensions will be considered only in exceptional circumstances and will be made in accordance with the Medical Leave or Parental Leave policies.

Broker’s Education Requalification Waiver Policy

Relicensing as a Associate Broker or Managing Broker

4-1 (2)

The Council’s policy for reissuing an associate broker or managing broker licence to someone who has been previously licensed as a managing broker or associate broker is as follows:

(a) The Council will waive the licensing course and examination, and experience requirements for broker relicensing if the applicant has been unlicensed for less than five (5) years before the date of application.

If you are a former employee of a professional real estate organization your Education Requalification Waiver period will be calculated using your last continuous licence period and will begin on the date of termination of your employment.

(b) Previously licensed brokers who have been unlicensed for more than five (5) years are no longer eligible for education waivers and will be required to qualify for licensing by:

  1. Successfully completing the applicable service category licensing examination and the managing broker course examination.
  2. Completing the applicable supplemental examinations if the applicant wishes to relicense for more than one service category.
  3. Completing an accelerated version of the Residential or Commercial Trading Services Applied Practice Course if it is more than two (2) years since the Residential or Commercial Trading Services Applied Practice Course was completed (for trading services only).

Broker’s Education Requalification Policy for Relicensing as a Representative

4-1 (3)

The Council’s policy for reissuing a representative’s licence to someone who has been previously licensed as a managing broker or associate broker is as follows:

(a) The Council will waive the applicable licensing course and examination for representative level licensing if the applicant for a representative’s licence has been unlicensed as an associate broker or managing broker for less than five (5) years immediately preceding the date of application.

(b) Previously licensed brokers who have been unlicensed for more than five (5) years and wish to be relicensed as representatives are not eligible for education waivers and will be required to qualify for licensing by:

  1. Successfully completing the applicable service category licensing examination.
  2. Completing the applicable supplemental examination(s) if the applicant wishes to relicense for more than one service category.
  3. Completing an accelerated version of the Residential or Commercial Trading Services Applied Practice Course if it is more than two (2) years since the Residential or Commercial Trading Services Applied Practice Course was completed (for trading services only).
  4. If you have passed the Broker’s Licensing Examination in the last five (5) years.

Leaves

Parental Leave

4-2 (1)

A parental leave of up to one year is available to either parent and may be taken at any time up to one (1) year following the birth or adoption of a child. Real estate representatives who wish to take a parental leave must surrender their licence and submit a written request for parental leave to the Council, supported by a birth certificate including parents’ names or proof and/or verification of adoption.      

Upon receipt of a parental leave request, the Council will provide written permission for the leave, including start and end dates of the leave. On or before the end date of the parental leave, you must apply for relicensing in order to resume providing real estate services.        

Parental leave is not considered a break in licensing history under the Representative’s Education Requalification Waiver Policy. Should you wish to take additional leave following a parental leave, you may do so in accordance with the Representative’s Education Requalification Waiver Policy. Your Education Requalification Waiver Period will be calculated from the end date of the parental leave. To obtain confirmation of your Education Requalification Waiver Period, please submit a written request to: education@recbc.ca.          

Parental leaves may not be taken in combination with other leaves except in certain situations where medical issues arise during pregnancy or childbirth. Parental leaves may not be taken consecutively.

Medical Leaves

4-2 (2)

A medical leave of up to one (1) year is available to licensees. Licensees who wish to take a medical leave must surrender their licence and submit a written request for leave to the Council, supported by:

  1. A full description of the reason why you are/were unable to work.
  2. Supporting documentation to verify your condition, such as:
    1. letters from treating medical providers that include the following details:
      • the severity of your condition/diagnosis which leaves you unable to work
      • the dates you have been under the medical provider’s care
      • the approximate date you will be able to return to work.
    2. records of disability payments or other similar document (if applicable).

Upon receipt of a medical leave request, the Council will provide written permission for the leave, including start and end dates of the leave. On or before the end date of the medical leave, you must apply for relicensing in order to resume providing real estate services.

Medical leave is not considered a break in licensing history under the Representative’s Education Requalification Waiver Policy. Medical leaves may not be taken in combination with other leaves.

Should you wish to take additional leave following a medical leave, you may do so in accordance with the Representative’s Education Requalification Waiver Policy. Your Education Requalification Waiver Period will be calculated from the end date of the medical leave. To obtain confirmation of your Education Requalification Waiver Period, please submit a written request to: education@recbc.ca.

Compassionate Care Leave

4-2 (3)

Compassionate care leave of up to twenty-eight (28) weeks is available to licensees to care for a family member who is gravely ill. Licensees who wish to take compassionate care leave must surrender their licence and submit a written request for leave to the Council, enclosing a copy of a medical certificate. The total amount of leave that may be taken is twenty-eight (28) weeks in a twelve-month period.

Compassionate care leave will not be considered a break in licensing history under the Representative’s Education Requalification Waiver Policy. Compassionate care leaves may not be taken in combination with other leaves.

Should you wish to take additional leave following a compassionate care leave, you may do so in accordance with the Representative’s Education Requalification Waiver Policy. Your Education Requalification Waiver Period will be calculated from the end date of the compassionate care leave. To obtain confirmation of your Education Requalification Waiver Period, please submit a written request to: education@recbc.ca.

Part 5 – Remedial Education

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Remedial education is the course of studies or training prescribed by the Council pursuant to section 43-2(f) of the Real Estate Services Act. Remedial Education Courses are provided by the UBC Sauder School of Business, Real Estate Division for licensees required to complete a remedial course of studies. These courses consist of selected material from the licensing course as well as instructive information collected from recent disciplinary decisions.

Additional remedial education requirements may be selected from existing licensing course material, from existing continuing professional education courses, or from such other sources as determined by a Consent Order Review Committee or a Discipline Hearing Committee.

Completion of these requirements is as prescribed by a Consent Order or Discipline Hearing decision.

II. Licensing Guidelines for Individuals

Part 1 – Licensing Requirements

Reinstatement of Licence (Transfer) (inoperative LESS THAN 90 days within a licence period)

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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.

Reinstatement of Licence (inoperative MORE THAN 90 days within a licence period)

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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.

Re-licensing Applicant (after previous licence has expired)

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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. Submit a copy of a piece of valid, government-issued photo identification along with your licence application. Click here for more information.
  5. Licence fee, the insurance assessment, the Superintendent of Real Estate assessment, and the Real Estate Compensation Fund assessment are for a two-year period on an anniversary date basis.

Change of Licence Level or Category

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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.

Name Change

1-5

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.

Renewal of Licence

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Approximately eight weeks before your licence expiry date, you will receive an email notifying you that your renewal application is due, with instructions for renewing your licence online.

If you do not wish to renew your licence online, you may complete and return a renewal application form to the Council’s office. You must complete and submit your online or paper renewal application to the Council at least 30 days prior to your licence expiry date. Include the appropriate licence renewal fees.

You must submit proof that you have completed a Legal Update course with your renewal application. Attach a certificate of completion or a copy of your education transcript from the course provider (e.g. your real estate board). Make sure it includes:

  • your name
  • course name
  • date the course was completed.

It is your responsibility to ensure that you are properly licensed. 

The renewal of a multiple managing broker’s licence does not require an errors and omissions insurance premium.

Surrender of Licence

1-7

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 surrender and the reason for leaving. Licensees surrender their licence should request in writing from the Council their education requalification 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 Requalification Policy)

Part 2 – Council Guidelines

Licensee Names for Representative, Associate Broker or Managing Broker

2-1

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).

Application for Pre-Screening

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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.

“Good Reputation” – Guidelines

2-3

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 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

  1. been refused a licence under real estate, insurance, mortgage broker or securities legislation in British Columbia or another jurisdiction,
  2. held a licence that was suspended or cancelled under real estate, insurance, mortgage broker, or securities legislation in British Columbia or another jurisdiction,
  3. been disciplined by a professional body, or
  4. 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.

  1. 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?

  1. 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?

  2. 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 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.

Insurance and Sub-Mortgage Broker Licensing

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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 or she holds a separate licence under the Mortgage Brokers Act. Real estate licensees may be dually licensed under the Real Estate Services Act and Mortgage Brokers Act.

Time of Issuance and Surrender of Licences

2-5

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.

Waiver of Assessment for Certain Categories of Licence

2-6

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. Similarily, managing brokers only pay one insurance assessment, regardless if they hold more than one licence.

The assessment for the Real Estate Compensation Fund is $100 for each individual and $250 for brokerages. 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.

Refund of Licensing Fee and Assessments

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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 $60 for new applications and $30 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

Managing Brokers

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2-1 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 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.

Managing Broker May be Licensed in Relation to a maximum of 4 Affiliated Brokerages (section 2-3 of the Rules)

2-9

A managing broker may

  1. be licensed in relation to a maximum of 4 brokerages that are affiliated within the meaning of the Business Corporations Act, and
  2. 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.

Managing Broker May be Licensed in Relation to a maximum of 4 Licences of a Brokerage (section 2-4 of the Rules)

2-10

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.

III. Licensing Guidelines for Brokerages

Part 1 – Licensing Requirements

Name or Address Changes

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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.

Renewal of Licence

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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 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.

Surrender of Brokerage Licence

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Brokerage Obligations when Surrendering its Licence and Winding Up Business (section 8-11 of the Rules):

A brokerage that ceases to carry on the business of a brokerage must do the following:

  1. immediately surrender to the Council the brokerage’s licences and the licences of all related licensees that are in the possession of the brokerage;
  2. promptly submit to the Council the Brokerage Winding Up Report form, completed in accordance with the Council Bylaws;
  3. 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 Rules;
  4. as requested by the Council, provide to the Council
    1. any other financial records of the brokerage, and
    2. any further information about the business of the brokerage;
  5. arrange for the records referred to in section 8-10 [retention of records] of the Rules to be kept, for the period referred to in that section, by
    1. another brokerage,
    2. an accountant, lawyer or notary public, or
    3. 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 2 – Council Guidelines

Licensee Names for Brokerage Applicants

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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

  1. provide the applicant with a written notice of the refusal and the reasons for it; and
  2. 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.

Trade Names

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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

“A.B.C. Realty Ltd.
 
“John Doe
dba
OR
dba
Bombay Realty”
 
Melbourne Realty”

 

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.

Franchise Names

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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.

Financial Statements

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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:

  1. verified by the solemn declaration of the proposed managing broker or sole proprietor deposing to the accuracy of the financial statement;
    OR
  2. 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 the Brokerage Application form, is intended to assist in estimating expenses and a completed copy of the form must be submitted with the financial statement.

Branch Offices

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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.

Operating Site Offices and Temporary Locations*

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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.

*Temporary location is defined as “a location that exists for a limited amount of time and is not permanent.” Examples of such temporary locations include:

  • a booth at a seasonal farmers’ market held once a week from May through October;
  • a temporary booth at a permanent farmers’ market, e.g., set up for 2 weeks or 1 day/week for 3 months, but not on an ongoing basis even if the booth is operated only once a week; or
  • a real estate development marketing site office that operates until such time as all units are sold.

Other situations not specifically covered by the policy would be considered by the Council on a case-by-case basis.

 

Good Reputation – Managing Brokers/Sole Proprietors

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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 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 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.

Waiver of Assessment for Certain Categories of Licence

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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.

Refund of Licensing Fee and Assessments

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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 $60 for new applications and $30 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