In real estate, including property management, and mortgage brokerage, associates need at least two years of licensed industry experience within the last five years to be eligible to open a brokerage.

In your myRECA account, if you are eligible to become a broker, a button to Open a Brokerage will appear below your licence in your myRECA profile (do not click this button until you complete Step 2 below).

If you do not see this button, check the broker eligibility requirements to learn potential criteria you may not have met yet.

Once you have met the eligibility requirements, you can begin to set up your brokerage business. Before completing your application you will need to:

• Select a location in Alberta for your registered business office
• If your brokerage will:
  • be a corporation, register with Alberta Registries
  • use a trade name, file for one with Alberta Registries. Before registering a corporate or trade name for the brokerage with Alberta Registries, we recommend you search existing brokerage names using the Find a Professional tool on RECA’s website. All brokerage names must be sufficiently distinct from any other existing brokerage name. Review RECA’s Brokerage Trade Name policy for guidance on creating your brokerage name.
• Document your brokerage policies and procedures. To make this task a bit easier, you can download our Real Estate Brokerage Policies and Procedures Manual template (Word doc), Mortgage Brokerage Policies and Procedures Manual template (Word doc), or Condominium Brokerage Policies and Procedures Manual template (Word doc)
• If you plan to open a mortgage brokerage, you must have errors and omissions insurance. Insurance providers must meet certain requirements to be able to provide insurance for Alberta mortgage brokerages. See RECA’s Errors and Omissions Insurance Guidelines. RECA does not set the premiums payable by Alberta mortgage brokerages; premiums are set at the discretion of the insurers. Your errors and omissions insurance provider must send proof of your insurance directly to RECA.

Errors and omissions insurance requirements

Review the list of RECA-approved Mortgage E&O providers to find a provider in your area.

Frequently Asked Questions

1. Where does it say that all Alberta mortgage brokerages need errors and omissions insurance? The errors and omissions insurance requirements for Alberta mortgage brokerages are in sections 117 and 118 of the Real Estate Act Rules.
2. What kind of coverage do I need for my brokerage? You need an errors and omissions insurance policy with additional coverage for fraudulent acts. The specifics of each brokerage’s policy will vary, but at a minimum, the RECA Errors and Omissions Insurance Guidelines must be met. Coverage levels may vary as well, but it must be sufficient to pay a minimum of $500,000 in respect of any one occurrence involving an insured and $1,000,000 in respect of all occurrences during a 365 day period involving the insured brokerage for both errors and omissions and fraud.
3. What is meant by the “insured?” In the RECA Errors and Omissions Insurance Guidelines for mortgage brokerages, “insured” refers to the mortgage brokerage, and includes licensed brokers and associates who the brokerage authorizes to deal in mortgages on the brokerage’s behalf; employees; former licensees from the brokerage; and, former employees.
4. What activities does the policy cover? The policy covers an insured Alberta licensed mortgage brokerage/broker for all acts arising from the business of a mortgage broker and dealing in mortgages as defined under the Real Estate Act of Alberta.
5. What does the policy cover? The policy covers all claims, subject to standard exclusions, made during the term of the policy for acts occurring at any previous time, providing the insured had no previous knowledge.
6. Do mortgage associates and brokers require errors and omissions insurance separate from their mortgage brokerage? No. Mortgage associates and brokers do not require errors and omissions insurance separate from their mortgage brokerage, as they are covered under the mortgage brokerage’s policy.
7. Are the insurance premiums the same for each brokerage? No. Each brokerage’s insurance premiums are based on the risk assessment for each brokerage and are set by the insurer(s).
8. My insurer has notified me that it will not be renewing my policy. I have not been able to secure insurance from a new insurer. What happens if I find out about a claim at a later time for an incident that occurred when I was insured? An automatic minimum 12-month extended reporting period (ERP) will be provided if the insurer cancels or refuses to renew the policy. If an ERP is triggered, however, it will be provided at no extra charge to the named insured.
9. My insurer has notified me that it will not be renewing my policy. I have secured insurance from a new insurer. Am I covered under my current insurer’s policy for claims that come forward during my current policy for activities that occurred during the time of the previous policy? Yes, you are covered by your current policy, as long as your brokerage had no previous knowledge with respect to those claims. Additionally, as long as the brokerage has entered into a policy with a new insurance provider, the original insurer is relieved of any obligation to provide an ERP.
10. I am closing my brokerage. Do I have errors and omissions insurance after I close my brokerage for the activities of the brokerage during the policy period? An automatic minimum extended reporting period (ERP) of 60 days will be provided if you cancel or do not renew and do not replace the policy with another. It is recommended that you purchase extended reporting period coverage from your insurer for the period after you have closed your brokerage. The lower premiums for this coverage are as a result of the brokerage no longer being active.
11. I just found out about a claim from an incident that occurred 12 months ago, before I had an E&O insurance policy with my insurer, now what? According to the RECA Guidelines agreed to by your current insurer, your current policy covers all claims, subject to standard exclusions, made during the term of the policy for acts occurring at any previous time, providing you, as the insured, had no prior knowledge. Your policy does not impose a retroactive date exclusion.
12. What is the minimum coverage needed? The insurance coverage must be sufficient to pay a minimum of $500,000 in respect of any one occurrence involving an insured and $1,000,000 in respect of all occurrences during a 365 day period involving the insured brokerage.
13. I’m the broker; do I have to tell my insurer if I think a claim is going to be filed but the individual has not filed yet? As the broker, you are responsible for notifying the insurer of every incident that might lead to a claim during the term of the policy.
14. I’m a mortgage associate and I have reason to believe one of my past clients is going to file a claim against me. Is this something I have to tell someone? You are responsible for notifying your broker of the potential claim, and your broker will notify the brokerage’s insurer.
15. An individual has filed a claim against my brokerage, but his allegations are without merit. What do I have to do? Your insurer will undertake to provide a defence for all claims covered by your policy, including groundless allegations.
16. I’m a mortgage broker and a real estate broker and I have errors and omissions insurance for my real estate brokerage through the Real Estate Insurance Exchange program (REIX), does this insurance cover my mortgage brokerage? No. Your REIX errors and omissions insurance policy only covers you for your trades in real estate. You must obtain insurance coverage for your deals in mortgages through a RECA approved insurer that covers mortgage brokering activities.
17. My mortgage brokerage is currently not conducting mortgage business. Why is errors and omissions insurance necessary? This is a licensing requirement that went into effect on September 1, 2011. This requirement applies to all licensed mortgage brokerages and is not dependent on whether or not your mortgage brokerage is conducting mortgage business. Having errors and omissions insurance is a condition of having a mortgage brokerage licence.

When you are eligible to become a broker, the Apply to Open a Brokerage button appears on the Current Licences page within the Licensing tab of your myRECA account.

Before you begin the application on myRECA, gather the documents listed below. You will need to upload these documents using myRECA to support your application. The exact documents you are required to provide depend on how you answer certain questions in the application.

Required Documents

If your brokerage is a corporation and you own more than 50%, you will need to provide:

• a copy of the Brokerage Licence Suitability Questions—signed by a representative of corporation shareholders, directors, or partners (if you own 100% of the corporation this form is not required)
• a Corporate Summary
• proof of your corporate registration
• proof of your trade name filing (if applicable)
• proof of domain name registration (if your brokerage name contains a url)
• Franchise Agreement (if your brokerage is part of a franchise)

If your brokerage is a corporation and you own 50% or less, you will need to provide:

• a signed Broker Management Acknowledgement for Real Estate or Mortgage
• a signed Continuing Guarantee, Irrevocable Letter of Credit – Real Estate, or Irrevocable Letter of Credit – Mortgage
• a copy of the Brokerage Licence Suitability Questions – Official of Brokerage signed by a representative of the corporation shareholders, directors, or partners
• a Corporate Summary
• proof of your corporate registration
• proof of your trade name filing (if applicable)
• proof of domain name registration (if your brokerage name contains a url)
• Franchise Agreement (if your brokerage is part of a franchise)

If your brokerage is a partnership, you will need to provide:

• a signed Partnership Agreement
• Proof of Partnership filing from Alberta Registries
• a signed Broker Management Acknowledgement for Real Estate or Mortgage
• a signed Continuing Guarantee, Irrevocable Letter of Credit – Real Estate, or Irrevocable Letter of Credit – Mortgage
• a copy of the Brokerage Licence Suitability Questions – Official of Brokerage signed by a representative of the corporation shareholders, directors, or partners
• a Partnership Summary
• proof of domain name registration (if your brokerage name contains a url)
• Franchise Agreement (if your brokerage is part of a franchise)

If your brokerage is a sole proprietorship, you will need to provide:

• proof of your trade name filing
• proof of domain name registration (if your brokerage name contains a url)

Once you have the required documents, go to your myRECA account and click the Open a Brokerage button to begin. Follow the steps and pay the Brokerage Licensing Review Fee.

Review the Opening a Brokerage tutorial for more information.

If you want more information about the required documents, please contact Registration Services: registration@reca.ca.