Real Estate Council of Alberta (RECA) investigators receive inquiries and complaints relating to property management activities. The following are some examples of situations or activities related to property management practice that could result in an investigation of an industry member or a non-industry member for unlicensed activities.

Authorized to conduct property management activities

Being licensed as a real estate industry member does not automatically ensure an individual is authorized to provide all services under the banner of trading in real estate. Real estate industry members who wish to conduct property management activities can only do so if their authorization includes property management activities.

The public search function on the RECA website allows industry members to check the specifics of their authorization. Search results clearly indicate what activities a real estate industry member is authorized to conduct. If the search result indicates “all real estate activities,” the individual in question is authorized to conduct property management activities. If the search results list “commercial, rural and residential real estate activities,” the individual is not authorized to conduct property management activities.

Real Estate Act Rules section 1(1)(w) defines property management to include:

1. leasing, negotiating, approving or offering to lease, negotiate or approve a lease or rental of real estate;

2. collecting or offering or attempting to collect money payable for the use of real estate;

3. holding money received in connection with a lease or rental of real estate; and

4. advertising, negotiating, or any other act, directly or indirectly for the purpose of furthering an activity described in sub-clauses (i) to (iii).

If you are unsure whether you are authorized to conduct property management or whether your brokerage allows property management activities, please use the public search function on the RECA website or speak with your broker. If you currently are not authorized to conduct property management activities, but wish to do so and your brokerage allows it, please contact RECA at 403-228-2954 or visit the Education portion of the RECA website at www.reca.ca.

Conducting property management activities for your brokerage

All licensed activity conducted by real estate industry members must be carried out through the brokerage with which they are registered. Some brokerages may choose a business model that does not allow for property management activities. If property management activities are not permitted according to the policies of a brokerage, industry members registered with that brokerage cannot conduct those activities. This is the case even though an individual industry member may be permitted to conduct property management activities according to their authorization from RECA.

RECA has investigated occurrences of licensed real estate industry members setting up property management companies through which they trade in real estate conducting property management activities, separate from the real estate activity they conduct through their brokerage. This is not allowed as licensed industry members must only trade in real estate in the name of the brokerage with which they are registered. All trust monies and all activities must occur through the brokerage with which they are registered.

In addition, brokerages that conduct property management activities must ensure that individuals who are representing the brokerage are licensed with RECA if they are providing services that require an authorization with RECA pursuant to the Real Estate Act and the Real Estate Act Rules.

Licensed name vs. trade name

Brokerages and individual industry members can only trade in real estate, including property management activities, in the trade name in which they are authorized.

If a brokerage becomes licensed with RECA in one name and registers a trade name with Alberta Registries, the “trade as” name is the name the brokerage must use for all real estate activities. It is not acceptable to conduct property management activities using the “licensed as” corporate name and sales in the “trade name” (and vice versa).

RECA is working with a number of brokerages on this issue to ensure compliance with the legislation. If you are unsure whether your brokerage is operating within the Rules, please contact RECA directly.

 

 

 

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