What’s Happening With RECA – April 2024

RECA’s modernized governance model consists of a Board of Directors and four Industry Councils representing each industry RECA regulates.  In November 2023, new Council Members were elected to each Industry Council. The first quarter of 2024 marked the first quarter term for the new Councils.  
 
This general summary includes the key activities of the Board and all Industry Councils over the last quarter.   

2023 Annual Report & Audited Financial Statements  

RECA’s Annual Report and Audited Financial Statements for the fiscal year ending September 30, 2023, were published on January 31 and are available on reca.ca. Licensees are encouraged to read this report thoroughly, as it includes a comprehensive and transparent accounting of RECA’s activities and finances over the year. 

It is important to note that RECA’s financial results on September 30 include the largest portion of revenue, obtained annually from the licensing fees due on September 30. This revenue is drawn down over the next fiscal year. 

RECA’s 2022-2023 Financial Statements were audited by BDO Canada LLP. The full, audited statements are available on reca.ca. 

Unprecedented Industry Increase 

In 2022 the number of new RECA licensees increased by over 175% when compared to 2021. In 2023, a similar industry increase occurred. 
 
RECA currently has approximately 20,000 total licensees, the largest in history.    
 
This unforeseen and unprecedented level of individuals entering RECA’s regulated industries over the last couple of years, along with an unprecedented level of sustained active licences, has contributed to a surplus in revenue. 
 
Accordingly, RECA plans to issue a licensing fee credit. Eligibility and timing of the credit will be determined and announced once the annual budget is set in July. 
 

Rules Review – Phase 2 – Part 2

The Rules Review continued during the first quarter. 

Phase 2 of Part 2 launched on March 18 when all stakeholders should have received a unique survey link via email.  This phase includes feedback on any proposed Rule changes regarding Standards of Practice (Rules 41-80.89). Licensee feedback is currently being collected through the survey as well as two town halls which took place during the last week of March and the first week of April. Feedback has also been solicited at ongoing brokerage presentations. 
 
Part 3 of Phase 2 will begin shortly and will focus on any proposed changes to records, reporting, and the remaining Rules (Rule 82-118.3 plus Schedules 1-5).  
 
Please be aware that any proposed changes in both Part 1 and 2 are proposals only. To date, nothing has been decided nor implemented by RECA’s Industry Councils. Each Industry Council will continue to review the feedback from licensees and stakeholders on all the proposed changes, along with the recommendations of the Rules Review Steering Committee, before making any decisions. All stakeholders are strongly encouraged to provide any additional feedback to consultation@reca.ca.  
 
Phase 3 will be a final stakeholder consultation on any potential issues that could arise should the final proposed Rule changes come into force.  
 
The Rules Review consultation will continue until this fall. 

Below Grade Measurement Standard (BGMS) Postponed  

The implementation of the BGMS, which was to take effect on January 1, was postponed by the Residential Real Estate Broker Industry Council in late December.  
 
The BGMS is the new proposed standard licensees must use to measure below grade space should their client agree to advertise it as an additional measurement to the Residential Measurement Standard (RMS). It was not planned to be a mandatory measurement when advertising living space, nor part of the RMS.  
 
The BGMS is still under consideration by the Industry Council. Learn more about the BGMS.

Improvements to Semi-detached and Townhouse Measurements

A reminder that beginning January 1, licensees need to measure semi-detached and townhouse properties using the exterior wall at the foundation.  If the thickness of the demising wall(s) cannot be determined, the thickness of an exterior wall should be used. 
 
Under the previous RMS, all semi-detached and attached properties were measured using interior (paint-to-paint) measurements. Please note that attached, apartment-style properties continue to be measured using interior measurements.  

This change for semi-detached and townhouse properties has simplified the measuring process and ensures measurement standards are more accurate for consumers. 

Get Involved in Self-Regulation 

RECA is looking for residential real estate, condominium management, and mortgage brokerage licensees to join the Hearing Panel Roster. Roster members serve as decision makers as part of hearing and appeal panels under the Real Estate Act and Rules.  
 
If you are an enthusiastic supporter of self-regulation with a genuine interest in maintaining and raising professional standards, visit Hearings Information and Procedures to learn more and apply.