WHEREAS pursuant to section 84(1) of the Real Estate Act, S.A. 1995, c. R-4.5 (the “Act”), the Real Estate Council of Alberta (the “Council”) has the power, duty and responsibility to amend or appeal bylaws and rules.
THEREFORE BE IT RESOLVED THAT:
Rule 46 be amended from:
46(1) All payments received by an agent as or on account of commission or other remuneration for transactions in real estate, excluding a share of a commission or other remuneration received from another agent, shall be classified as trust money and shall be paid into the agent’s trust account notwithstanding that the commission or remuneration may already have been earned, and, where applicable, the payments shall be recorded as being received in trust for the person liable to pay the commission or other remuneration.
(2) Any money in an agent’s trust account which represents a commission or remuneration that has been earned and is no longer required to be held in trust may be paid out in accordance with the following rules
(a) any share of such commission or remuneration payable to another agent shall be paid out to that agent directly out of the trust account;
(b) after the payment pursuant to clause (a) has been made the commission or remuneration shall be withdrawn by cheque into the agent’s general account; and
(c) where a client fails to pay in full when due a commission which is to be shared between two or more agents, the amount actually received shall be shared between them as they may agree and, in the absence of an agreement, the agent holding the commission may not withdraw any part into his or her general account until the other agent or agents have been paid in full.
(3) An agent shall not pay any of the agent’s personal or general office expenses, commission or other remuneration payable to the agent’s own authorized officials or salespersons out of a trust account.
to read as follows:
46(1) All payments received by an agent as or on account of commission or other remuneration for transactions in real estate shall be classified as trust money and shall be paid into the agent’s trust account notwithstanding that the commission or remuneration may already have been earned, and, where applicable, the payments shall be recorded as being received in trust for the person liable to pay the commission or other remuneration.
(2) Subsection (1) does not apply to a commission or other remuneration that is not to be shared between agents or to a share of commission or other remuneration received from another agent.
(3) Any money in an agent’s trust account which represents a commission or remuneration that has been earned and is no longer required to be held in trust may be paid out in accordance with the following rules
(a) any share of such commission or remuneration payable to another agent shall be paid out to that agent directly out of the trust account;
(b) after the payment pursuant to clause (a) has been made, the commission or remuneration shall be transferred into the agent’s general account; and
(c) where a client fails to pay a commission or other remuneration in full when due, which is to be shared between two or more agents, the amount actually received shall be shared between them as they may agree and, in the absence of an agreement, the agent holding the commission may not withdraw any part into his or her general account until the other agent or agents have been paid in full.
(4) An agent shall not pay any of the agent’s personal or general office expenses, commission or other remuneration payable to the agent’s own authorized officials or salespersons out of a trust account.
(5) If at any time there is a shortage of money in a trust ledger or a trust account, the agent shall deposit the agent’s own money into the trust account as soon as the amount of the shortage is determined.
DATED at Edmonton, Alberta, this 21st day of October 1998.
