Personal Real Estate Corporation Information

• Information
  
  BCFSA’s information is clear, concise, easy-to-read explanations of the requirements for real estate professionals under the Real Estate Services Act (“RESA”), Real Estate Services Regulation (“Regulation”), Real Estate Services Rules (“Rules”), and other applicable legislation.

  This information is intended for use by real estate professionals, to support their understanding of the standards they must meet in the delivery of real estate services.

Personal Real Estate Corporation Regulations

The Regulations state that a personal real estate corporation must meet the licensing requirements outlined in RESA and can be created by a managing broker, associate broker, or representative. A corporation can be licensed as a personal real estate corporation if it is either a company as defined by the Business Corporations Act or an extra provincial company as defined by the Business Corporations Act.

The Regulations outline that all voting shares must be owned by a sole real estate professional, known as the controlling individual, who also acts as the sole director and president. If there are non-voting shares, these too must be owned by the licensee or an affiliated controlling individual and no one else.

The name of the personal real estate corporation must be the legal name or a recognized short form of the name of the licensee followed by the term “personal real estate corporation”.

(a) Licensing

If you meet the licensing requirements under RESA, you can be issued a personal real estate corporation licence. Both you and your personal real estate corporation must be licensed at the same brokerage.

You must be the only controlling individual for your personal real estate corporation (as noted above).

Under certain circumstances, BCFSA may refuse to issue a personal real estate corporation licence if it believes doing so is not in the public’s best interest.

(b) Relationship Between a Personal Real Estate Corporation and a Real Estate Professional

You and your personal real estate corporation may be engaged to provide real estate services by the brokerage you are licensed to if:

• You and the personal real estate corporation have each obtained a licence in accordance with RESA and the Regulations;
• You are engaged by your personal real estate corporation;
• The real estate services provided by your personal real estate corporation are provided only by you;
• Any other persons engaged by the personal real estate corporation are not licensees;
• The personal real estate corporation does not conduct any business other than the provision of real estate services and ancillary services directly associated with the provision of real estate services;
• You and your personal real estate corporation comply with the requirement under RESA, the Rules and the Regulation.

Providing services through a personal real estate corporation does not affect your liability when providing real estate services, your obligations to your client, or the application of RESA.

(c) Discipline

Should your personal real estate corporation engage in any professional misconduct, or conduct unbecoming a licensee, you will be personally subject to disciplinary proceedings and all other BCFSA enforcement in relation to that conduct. Your personal real estate corporation may also face disciplinary proceedings and regulatory enforcement under RESA.

Personal Real Estate Corporation Rules

(a) Business Name Changes

Your personal real estate corporation must promptly notify BCFSA in writing if it changes its business name or does not continue to maintain the attributes described in the Act, the Rules and the Regulation.

(b) Advertising

If you have a licensed personal real estate corporation, you are only permitted to advertise in the name of that corporation. This means that print and media advertisements can only advertise the services your personal real estate corporation offers and must not advertise your personal services.

What a Personal Real Estate Corporation Can and Cannot Do

A personal real estate corporation is restricted to providing real estate services and services which are subordinate to and exist to support real estate services. A personal real estate corporation cannot provide services unless the primary purpose of those services is to facilitate or further the provision of real estate services. A personal real estate corporation cannot conduct a business which can be undertaken on a standalone basis.

If you have specific questions or concerns about the allowable activities of a personal real estate corporation, you should obtain both legal and accounting advice.