Managing Broker’s Corner: Supervising Licensees in a Time of Change
Managing brokers play an important role in training and supervising licensees and employees at your brokerage. Managing brokers aren’t just responsible for their own actions, but for the actions of the other licensees and individuals associated with their brokerage. It is critical for managing brokers to be familiar with industry best practices and ensure that they maintain their expertise and awareness through ongoing continuing education.
Because of those additional responsibilities, the Report from Council will now feature an additional section every month dedicated to providing support and guidance for managing brokers.
This month in the Managing Broker Corner, we’re focusing on how to comply with the obligation to keep the records that arise out of the Superintendent’s agency and disclosure rules.
1. Review Your Legislated Requirements
Make sure you understand sections 8-4 and 8-5 of the Rules. These two rules set out the various general records relating to the provision of real estate services that a brokerage must retain and the documents that must be kept in respect of trades in real estate.
2. Ensure Your Licensees Know the Rules
As a managing broker, you need to ensure that your licensees are aware of and comply with the Rules and the application of the Real Estate Services Act to the provision of all real estate services by a licensee, including the requirements for disclosure.
Licensees must promptly provide your brokerage with records related to the real estate services they provide. Remember that the obligation to provide records ‘promptly’ means without delay.
Licensees must provide the brokerage with copies of all of the mandatory disclosures they make to consumers, including all Disclosures of Expected Remuneration to Sellers (regardless of whether the offer was successful).
3. Establish Clear Procedures and Policies
Your brokerage should create policies and procedures for how disclosures and other records relating to a trade in real estate are collected, filed, and stored. By following these procedures each time they work with a consumer, licensees at the brokerage will help to ensure consumers are protected, and they’ll protect themselves and the brokerage from risk.
Mistakes can occur when things get busy and crucial steps are missed. Following standardized processes and checklists will help ensure that this does not happen at your brokerage.
4. Conduct Regular Training Sessions
It isn’t enough just to establish policies, you should also conduct regular training with your licensees to ensure they are familiar with your brokerage’s policies. As a managing broker you are expected to facilitate and encourage training and professional development for your licensees as part of your supervision responsibilities. Remember that under section 7.1 of the Real Estate Services Act, unlicensed directors, partners, officers or shareholders at the brokerage may not train or supervise licensees.
5. Learn More About Records Management
In this recent Council webinar, Maureen Coleman, Manager of Professional Standards, discusses how to maintain records in compliance with the Rules. You can also find additional information about records management on the Knowledge Base.