Rule 40 Notifications: Remaining Suitable

As the governing body for Alberta’s real estate, and mortgage brokerage licensees, the Real Estate Council of Alberta has the responsibility of ensuring industry professionals are suitable for their chosen profession. When joining the industry – and upon transfer of registration and at renewal each September – all industry professionals must complete an application in which they are required to disclose their past disciplinary history, judgments rendered, bankruptcy and receivership proceedings, Criminal Code proceedings and criminal offence convictions. The truthfulness of the responses to suitability questions is sworn by affidavit.

But industry professionals’ disclosure responsibilities do not start or stop at renewal time each year. Once licensed and registered, throughout the year, it remains the responsibility of all industry professionals to immediately notify RECA’s Executive Director, in writing, of any changes, additions or corrections to information they provided when joining the industry and/or at renewal time. Not doing so may result in a breach of the Real Estate Act Rules section 40.

When RECA receives a section 40 notification from an industry professional, licensing staff will request that the industry professional provide additional supporting documentation, which will be reviewed. In this way, RECA helps keep the positive reputation of Alberta’s real estate industries, and ensures industry professionals are of good character and are fit to practice.

What kinds of things have to be disclosed and when?

The Real Estate Act Rules indicate such notifications must be made immediately. Did you know driving under the influence (0.08) is a Criminal Code offence and, as a result, must be disclosed to RECA’s Executive Director? In the case of Criminal Code proceedings, industry professionals must notify the Executive Director at the commencement of proceedings AND upon any convictions.

Also on the “must be disclosed in writing” list:

• Discipline by a real estate board or other industry association, regardless of the particulars of the discipline or the action that led to the discipline.
• Immediately upon filing for bankruptcy (including companies owned by the industry member and companies of which the industry member is a director or officer).
• At the commencement of Criminal Code proceedings, this includes proceedings for driving under the influence (0.08) and uttering threats. And, upon a Criminal Code conviction.
• When a judgment has been rendered against an industry member or any companies owned by the industry member or companies of which the industry member is a director or officer in relation to the provision of services or sale of goods to consumers.
• Change of name.

Rule 40 breaches are one of the most common Administrative Penalties issued to industry professionals. What do you think can be done to ensure industry members know and remember their notification responsibilities pursuant to Rule 40?