Licensing & Renewals > Property Management > Opening a Brokerage
Opening a Brokerage
The first step in establishing a brokerage is to identify an individual that is eligible to be licensed with RECA as a broker. Each brokerage must have a broker that has the education and experience qualifications for the brokerage to operate. In order for a brokerage (and any industry members registered with the brokerage) to be authorized to conduct property management activities, its broker needs to be authorized to conduct property management activities.
With respect to experience, industry members wishing to become licensed as a broker must have at least two years of industry experience as a licensed real estate industry member within the past five years. For more information about the qualifications required to become licensed as a property management broker, please click here.
In order to open a new property management brokerage, the broker is required to send to RECA the following documents:(for a printable checklist, click here):
copy of Proof of Trade Name Filing/Certificate of Amendment from Alberta Registries
If the brokerage is a partnership:
copy of partnership agreement
copy of proof of partnership filing from Alberta Registries
copy of Proof of Trade Name Filing/Certificate of Amendment from Alberta Registries, if applicable
If brokerage is a corporation:
copy of certificate of incorporation from Alberta Registries (dated within the past six months);
proof of shareholder structure including percentage of ownership (i.e. current Corporation/Non-Profit Search from Alberta Registries or an original certified true copy of corporate minutes or Director’s Resolution Agreement)
Note, if the broker does not have controlling interest (minimum 51 per cent) of the corporation, RECA requires a Broker of Record Agreement between the owner(s) and the Broker of Record giving authority to carry out the duties and responsibilities under the Real Estate Act as per question #21 on the brokerage licence application. (For a sample Broker of Record Agreement, click here)
proof of officers of the corporation (i.e. original certified true copy of corporate minutes or Director’s Resolution Agreement)
proof of directors of the corporation (i.e. current Corporation/Non-Profit Search from Alberta Registries or an original certified true copy of corporate minutes or Director’s Resolution Agreement)
Proof of Trade Name Filing/Certificate of Amendment ,if applicable; and,
Original letter from a financial institution in Alberta on the financial institution’s letterhead with an initialed teller’s stamp indicating transit, institution and account number of trust account (s) [required only if the real estate brokerage will be receiving funds on behalf of clients or investors, or funds as or on account of commission or other remuneration for a trade in real estate that is to be shared between brokerages];
If the broker is currently registered as a broker with a brokerage:
And the brokerage will be applying for a change of broker, provide a copy of the letter of resignation (For more information on requirements for a change of broker application, click here )
Confirmation of zoning for business address, such as: Business Licence, Business Permit, Home Occupation/Class 1 Permit, Lease Agreement with confirmation of zoning, and/or a Zoning Certificate;
If brokerage is a franchise, copy of Franchise Agreement;
Any additional or relevant documentation to support a “YES” answer(s) on any of the completed RECA application forms; and,
Executed final page of the RECA ONLINE User Manual training for use of the RECA ONLINE system is provided by RECA staff for new broker applicants.
Following RECA’s receipt of all of the above documents and fees, and upon completion of RECA ONLINE training if required, the broker and brokerage applications will be processed by RECA. If brokers have any questions throughout the process, they are encouraged to contact RECA’s licensing department at licensing@reca.ca or (403) 228-2954 (toll-free in Alberta at 1-888-425-2754).
