Licensees Must Report Misconduct. Do you know your obligations?

RECA investigates conduct which allegedly violates the Real Estate Act (the Act), and its Rules.
Our licensees’ co-operation is critical to conducting effective investigations and disciplinary processes. We rely on your willingness to report and provide information concerning possible breaches.

To successfully regulate our industries, we need to be made aware of possible misconduct. Section 38(1) of the Act provides the authority for RECA to investigate in two specific situations:

• where a complaint has been made (these can be submitted by anyone on reca.ca), or
• where information indicates a licensee’s conduct could be in breach of the Act or the Rules.

In either situation, RECA is heavily reliant on the cooperation and collaboration of our licensees to report any suspected misconduct in a timely manner. Reporting misconduct is not only a professional obligation, but acts to uphold the industry’s integrity and reputation through the proactive protection of consumers. In short, a trusted, well-regulated industry is good for everyone, and it takes the work of all of us to protect our reputation.

ASSOCIATE BROKERS AND ASSOCIATES CAN UNIQUELY HELP

It’s common practice for licensees to work with individuals across various industries
as you guide your clients’ transactions and deals. Your intimate knowledge and access to documents and information may allow you to identify possible fraud red flags or other suspected breaches of the Act or the Rules. Please remember, if you uncover anything suspicious in your course of business, this information MUST be reported your broker, as per the Rules. Your broker may inform RECA, or guide you to inform RECA directly.

Associate brokers and associates must avoid facilitating misconduct, including fraudulent or illegal activities. They should not ignore warning signs or fail to ask questions when it looks as though possible breaches may have occurred. If you are not reporting, you could unknowingly become a part of the misconduct and subject to disciplinary action yourself.

The Rules impose specific obligations upon licensees to inform your broker when learning of any violation of the Act, Regulations,

Rules, or Bylaws by anyone associated with a brokerage. These Rules empower licensees to work with RECA to protect consumers and the integrity of our industry.

BROKERS: ENHANCED NOTIFICATION OBLIGATIONS

A primary focus of brokerage management is to ensure everyone associated with the brokerage follows all applicable laws, policies, and procedures. A broker manages the brokerage’s operations and, therefore, are not only accountable for their own conduct, but also the conduct of those working for the brokerage. If you are a broker, you have a professional and legal obligation to identify misconduct and notify authorities, including RECA.

If a broker is aware of misconduct, they must take reasonable steps to mitigate any harm caused and prevent the misconduct from happening in the future. If a broker fails to follow their notification requirements, they could be held accountable for the unreported behavior.

“Reporting misconduct is a
licensee’s duty and an opportunity
to show professionalism and
accountability”

IT TAKES A VILLAGE

We must work together to report suspected misconduct, including fraud. A well-regulated industry is one that consumers can trust. Whether you are an associate, associate broker or broker, and no matter your industry, by following your notification obligations you
are working to enhance consumer protection and maintain high ethical and professional standards throughout your industry.

Your contributions are meaningful!

MAKING A COMPLAINT:

If you need to submit a complaint to RECA, please do so using the following form:
Online Complaint Form

If you have any questions regarding the professional obligations or behavior of RECA licensees, please reach out to conductreview@reca.ca.