News Bytes – May 2022

Changes coming to CDIC Insurance for Trust Accounts

Did you know the Government of Canada has made important changes to the rules governing CDIC deposit insurance protection for deposits held “in trust”?

As of April 30, 2022, real estate and property management brokerages will be able to designate their trust accounts as professional trustee accounts. This is of particular importance to real estate and property management brokers who operate pooled trust accounts, as there is no longer the requirement to report the beneficiary information to CDIC member institutions on an annual basis. This can be a significant time-saver, given that pool trust accounts often include many beneficiaries. Please note the requirement remains for brokerages to keep beneficiary records and report to CDIC if required. The coverage per beneficiary also remains at $100,000/beneficiary.

Licensees are encouraged to review their trust accounts and make this designation if appropriate.

For more information, please contact practicereview@reca.ca

Advise Your Clients—Land Titles Delays and Municipal Property Tax

Due to the current increase in real estate transactions province-wide, there is an average delay of three months in updating ownership information and mailing addresses through Alberta Land Titles.

Municipalities are concerned about how these delays are affecting the receipt of municipal property tax bills which are mailed out in late May.

Licensees should advise clients who recently bought property that it is likely they will not receive their property tax bills on time. If property owners have not received their property tax bill by the first week of June, they are advised to contact their municipality to obtain an up-to-date statement of account for their property and avoid late payment penalties. Up-to-date information on the status of registrations can be found on the provincial government’s land titles website.

If you or your clients have any questions regarding the delay, please contact your local municipality.