Know the Difference Between Your Corporation vs Your RECA Licence

Do you have a personal corporation that your commissions are paid into? If you do, you should be aware of Section 50(a) of the Real Estate Act Rules. This Rule tells you what you need to do to use a personal corporation to collect your commissions.

If you own a corporation, you need to understand that your RECA licence must be in your legal name. You cannot update your licence to the corporation’s name and your insurance
(such as REIX) cannot be in a corporate name.

You can be paid by your brokerage to the corporation but may not operate in your corporate name.

CORPORATIONS ARE SEPARATE ENTITIES

If you are incorporated, it doesn’t change anything about your licence. You can’t use
your corporation to take any responsibility for your work as a licensee. Licensed individuals must still follow the standards of practice; your corporation is not a licensee and has no rights or duties as a licensee.

If you are a licensee who chooses to be paid to their corporation, ensure you are following the Rules and know what they mean for your specific circumstances.

WHAT THE RULES SAY:

• a maximum of two licensees may have their commissions paid to the same corporation
• any licensee who has their commissions paid to a corporation must own at least 50 percent of that corporation
• brokers must ensure any corporation which a licensee is paid commissions to is currently registered

If you have any questions about being paid commissions into a corporation or what the Real Estate Act Rules say regarding owning a corporation as a licensee, please reach out to info@reca.ca.