Complaints & Discipline > Consumer Protection Fund > Trust

Claims Based on an Industry Member’s Failure to Disburse or Account for Money Held in Trust (Real Estate Act section 25)

There are three instances where a person may make a claim for compensation from the Assurance Fund for financial loss suffered as a result of the actions of an industry member during the course of a transaction in the business of the industry member. These are:

1. Where the industry member has committed fraud;
2. Where the industry member has committed a breach of trust; or,
3. Where an industry member fails to disburse or account for money held in trust in accordance with section 25 of the Real Estate Act.

Claims arising in circumstances where an industry member failed to disburse or account for money held in trust are processed differently than claims arising from a fraud or a breach of trust. Information on claims made as a result of fraud or breach of trust can be found here. 

Claims Based on a Failure to Disburse or Account for Money Held in Trust

A judgment is not necessary when a person makes a claim for compensation arising from an industry member’s failure to disburse or account for monies held in trust under the s.25 of the Real Estate Act. This section outlines how industry members must handle money held in trust, including how it is to be disbursed and accounted for. Should an industry member not meet the requirements and a loss is suffered, a claim for compensation may be made directly to Council for compensation from the Assurance Fund.

In order to make a claim in such a situation, the person must provide Council with the following:

1. A Statutory Declaration that contains
1. particulars of the basis of the claim, and
2. a statement that the applicant did not participate in and was not willfully blind to the actions of the industry member in respect of which the claim is made;
2. Any other information and documents prescribed by the regulations.

A form for the statutory declaration may be obtained from RECA. 

Additional information relating to information exchanges between the claimant and the industry member as well as the processing of these claims may be found here.

Maximum Claim Amounts

Generally, Assurance Fund compensation is subject to the following maximums:

Real estate:               $35,000 per applicant
                                  $350,000 for all claims against an industry member

Mortgage broker:      $25,000 per applicant
                                 $100,000 for all claims against an industry member

Time Limits for Applying for Compensation from the Fund

For a claim resulting from an industry member’s failure to disburse or account for money held in trust, the application for compensation must be made within one (1) year from the date on which the alleged loss or damages occurred [Real Estate Act, Part 4, section 60.3(2)].

Failure to adhere to this timeline will mean the claim cannot be processed.

Contact Us

If you have additional questions, or if you wish to make a comment about this brochure, please call the Real Estate Council of Alberta (RECA) at (403) 228-2954. If you prefer, you can call toll-free from anywhere in Alberta at 1-888-425-2754. You can also write us at:

Attention: Legal Services Administrator
Real Estate Council of Alberta
Suite 350, 4954 Richard Road SW
Calgary, AB T3E 6L1

You may email a question to RECA at info@reca.ca. Be sure to direct your question to Legal Services and include in your heading “Assurance Fund.”

For the latest information regarding updates to the Real Estate Council of Alberta Assurance Fund, please refer to this website.