Bob Myroniuk on Self-Regulation

When it comes to regulating any industry, occupation, or profession, the primary objective is always the same – to set and enforce standards and to protect consumers. This is also referred to as the “public interest” mandate.

This mandate can be achieved in a variety of ways including:

•  Government regulation
•  Self-regulation
•  Some combination of the two

I was employed with the Alberta Government in 1994 when we first met with representatives of the Alberta Real Estate Association (AREA) to discuss the idea of transferring regulating responsibility to the real estate industry itself. In order to implement the idea, we needed new legislation that would establish a new model for regulation of the real estate industry.

The Real Estate Act of Alberta (REA) was passed by the Alberta Legislature in the summer of 1995, establishing the Real Estate Council of Alberta (RECA) as a non-profit corporation and the governing body for the real estate industry.

At that time, RECA’s responsibilities covered real estate brokers, property managers, and mortgage brokers. In 2005, the REA was amended and real estate appraisers were added to the list of industry sectors regulated by RECA. This group of industry sectors is what I collectively refer to as the “real estate industry”.

The doors of RECA opened for business on July 1, 1996 and the process of self-regulation was underway. The Office of the Superintendent of Real Estate was shut down and the provincial government removed itself from the day-to-day regulation of the real estate industry.

What may not be well understood is that REA established a model of self-regulation similar to the one we see for traditional professions – like accountants, engineers, doctors, lawyers and so on. The model we work under is specifically designed to facilitate responsible self-regulation and professionalism.

In my next post, I’ll talk about how this model of self-regulation actually works?

What do you think of the concept of self-regulation?