The Real Estate Brokers Act, 1987

Transcription

1 1 REAL ESTATE BROKERS, 1987 c. R-2.1 The Real Estate Brokers Act, 1987 Repealed by Chapter R-1.3 of the Statutes of Saskatchewan, 1996 (effective January 1, 1997). Formerly Chapter R-2.1 of the Statutes of Saskatchewan, (consult Tables of Saskatchewan Statutes for effective date) as amended by the Statutes of Saskatchewan, , c.54; and 1992, c.36. NOTE: This consolidation is not official. Amendments have been incorporated for convenience of reference and the original statutes and regulations should be consulted for all purposes of interpretation and application of the law. In order to preserve the integrity of the original statutes and regulations, errors that may have appeared are reproduced in this consolidation.

2 2 c. R-2.1 REAL ESTATE BROKERS, 1987

3 3 REAL ESTATE BROKERS, 1987 c. R-2.1 Table of Contents 1 Short title SHORT TITLE INTERPRETATION 2 Interpretation COMMISSION 3 Established 4 Not agent of Crown 5 Members, chairman and vice-chairman 6 Officers and employees BYLAWS 7 Passing and review of bylaws 8 Regulations prevail 9 Power to enter into agreements 10 Temporary borrowing 11 Annual meeting of registrants REGISTRATION 12 Required 13 Application 14 Firms 15 Corporations 16 Deemed registration 17 Salesmen 18 Deemed authorization to act for broker 19 Deemed termination of registration 20 Transfer of registration prohibited 21 Qualifications of brokers 22 Office requirement of broker 23 Certificate of registration 24 Terms, conditions and restrictions 25 Expiry 26 Further information 27 Change of address for service 28 Suspension or cancellation HEARING BEFORE SUPERINTENDENT 29 Hearing 30 Right to counsel, etc. 31 Powers of superintendent on appeal APPEAL FROM THE SUPERINTENDENT S DECISION 32 Appeal to Queen s Bench 33 Evidence 34 Exemptions EXEMPTIONS REAL ESTATE ASSURANCE FUND 35 Fund continued 35.1 Claims on fund 36 Investment 37 Income property of commission 38 Annual report re fund REGULATION OF TRADING 39 Advertising 40 Prohibited advertising 41 Listing agreement 42 Offer to purchase 43 Contents of offer 44 Non-compliance 45 Prohibited representations 46 Employees to be registered 47 Payment prohibited 48 Salesman to turn over moneys 49 Broker s records

4 4 c. R-2.1 REAL ESTATE BROKERS, 1987 INTEREST FROM TRUST ACCOUNTS 50 Trust accounts 51 Unclaimed trust money 52 Use of interest 53 Administration fee 54 Broker to disclose information 55 Restrictions on salesmen 56 Prohibition re listing agreements REAL ESTATE OUTSIDE SASKATCHEWAN 57 Prospectus and certificate 58 Change in prospectus 59 Expiry date of certificate of acceptance 60 Additional material 61 Purchaser to receive prospectus COMMISSION ON REAL ESTATE TRADES 62 Commission arrangements 63 Registration required 64 When commission not payable 65 Recovery 66 Notice of action INSPECTION BY COMMISSION 67 Inspection of records, etc. POWERS OF SUPERINTENDENT 68 General supervision 69 Power to investigate 70 Power to demand production of documents, etc. 71 Warrant 72 Application to freeze funds 73 Annual report by commission 74 Regulations REGULATIONS GENERAL 75 Publication of lists of registered persons 76 Information available to public 77 Certificate as evidence 78 Privileged information 79 Immunity from liability 80 Confidentiality 81 Common law 82 Service OFFENCE AND PENALTIES 83 Offence 84 Limitation on prosecution REPEAL AND TRANSITIONAL 85 R.S.S. 1978, c.r-2 repealed 86 Transitional

5 5 REAL ESTATE BROKERS, 1987 c. R-2.1 CHAPTER R-2.1 An Act to provide for the Registration and Regulation of Persons Engaged in the Real Estate Trade SHORT TITLE Short title 1 This Act may be cited as The Real Estate Brokers Act, INTERPRETATION Interpretation 2 In this Act: (a) broker means a person who for himself or any other person: (i) trades in real estate located in Saskatchewan; (ii) trades in Saskatchewan in real estate located outside Saskatchewan; but does not include a salesman; (b) business means either or both of: (i) an undertaking or any interest in an undertaking carried on for the purpose of gain or profit; (ii) a boarding house, hotel, store, tourist camp or tourist home; (c) business name means a business name as defined in The Business Names Registration Act; (d) bylaws means the bylaws of the commission approved by the superintendent that have come into force pursuant to section 7 and that have not been disapproved by the Lieutenant Governor in Council; (e) commission means the Real Estate Commission established in section 3 and includes the first commission appointed pursuant to section 86; (f) financial institution means: (i) a bank governed by the Bank Act (Canada), as amended from time to time; (ii) a credit union incorporated or continued pursuant to The Credit Union Act, 1984; or (iii) a trust corporation or loan corporation that is licensed pursuant to The Trust and Loan Corporations Act and that is a member of or has effected insurance with the Canada Deposit Insurance Corporation;

6 6 c. R-2.1 REAL ESTATE BROKERS, 1987 (g) firm means: (i) a person who is a sole proprietor of a business and who uses as his business name a name other than his own or uses his own name with the addition of some other word or phrase; or (ii) persons who are associated as partners in a business; (h) fund means the Real Estate Assurance Fund continued pursuant to section 35; (i) fraud, fraudulent and fraudulent act, in addition to their ordinary meanings, include, in connection with a trade in real estate: (i) any intentional misrepresentation by word, conduct or manner of a material fact, present or past, and an intentional omission to disclose such a material fact; (ii) a promise or representation as to the future that is beyond reasonable expectation and that is not made in good faith; (iii) the failure, within a reasonable time, to properly account for or pay over any moneys received to the person entitled to them; (iv) the failure on the part of a broker, manager or salesman to disclose to all parties concerned whether he is acting as a principal or as an agent in the trade; (v) any course of conduct or business calculated or put forward with the intent to deceive the public, the purchaser or the vendor about the value of any real estate; (vi) the failure on the part of a broker, manager or salesman to disclose to a vendor of any real estate for whom he acts directly or indirectly any offer that he has received to purchase the same real estate; (vii) the gaining of, or attempt to gain, a commission, fee or gross profit that is so large and so exorbitant that it is unconscionable and unreasonable; (viii) generally, any artifice, agreement, device, scheme, course of conduct or business, to obtain money, profit or property by any of the means set forth in subclauses (i) to (vii) or otherwise contrary to law or by wrongful or dishonest dealing; and (ix) anything specifically defined in the regulations as coming within the meaning of this definition; (j) manager means an official who is authorized to act as the representative of a broker and is named in the certificate of registration of that broker; (k) minister means the member of the Executive Council to whom for the time being the administration of this Act is assigned;

7 7 REAL ESTATE BROKERS, 1987 c. R-2.1 (l) official, with respect to a corporation or firm, includes the president, vice-president, secretary, treasurer, secretary-treasurer, managing director, general manager, department manager, branch office manager and any person acting in a similar capacity whether so designated or not and, in the case of a firm, also includes the sole proprietor or any partner of the firm; (m) period of continuous use means use, occupation or possession for a period which is greater than two consecutive days but less than 12 consecutive months; (n) real estate includes: (i) real or leasehold property; (ii) any business, whether with or without premises, fixtures, stock-intrade, goods or chattels connected with the operation of the business; and (iii) a time-sharing arrangement; (o) registered means registered pursuant to this Act; (p) registrant means any person registered pursuant to this Act; (q) salesman means a person employed, appointed or authorized by a broker to trade in real estate, but does not include a manager or a person who is not required by this Act to be registered; (r) superintendent means the Superintendent of Insurance for Saskatchewan or the Deputy Superintendent of Insurance for Saskatchewan; (s) time-sharing arrangement means an arrangement or contract with respect to premises which: (i) allows a person to use, occupy or possess premises for two or more periods of continuous use; and (ii) provides that at least one period of continuous use following the first period of continuous use commences in a year subsequent to the year in which the first period commences; and, without limiting the generality of the foregoing, includes a membership in an association or corporation, vacation plan, prepaid reservation or any other similar arrangement; (t) trade means one or more of: (i) a disposition of, acquisition of or transaction in real estate by sale, purchase, agreement for sale, exchange, option, lease, rental or otherwise; (ii) the offering, listing or advertising of real estate for sale, purchase, exchange, option, lease, rental or otherwise; (ii.1) an offer to purchase, lease, exchange, option or rent real estate;

8 8 c. R-2.1 REAL ESTATE BROKERS, 1987 (iii) the showing of real estate for sale to potential purchasers; (iv) the management of property or the collection of rent for another or others; or (v) the solicitation or obtaining of a contract, agreement or any other arrangements to advertise real estate for sale, exchange or other disposition thereof, either directly or indirectly, through any medium of advertising, including any conduct, act or negotiation, directly or indirectly, in the furtherance or attempted furtherance of any one or more of the things mentioned in this subclause; (u) trust account means an account described in section 50; (v) urban municipality means an urban municipality incorporated or continued pursuant to The Urban Municipality Act, 1984 and includes a hamlet as defined in The Rural Municipality Act and a town, northern hamlet, northern village and northern settlement within the meaning of The Northern Municipalities Act , c.r-2.1, s.2; 1992, c.36, s.3. COMMISSION Established 3 The Real Estate Commission is hereby established as a corporation , c.r-2.1, s.3. Not agent of Crown 4 The commission is not for any of its purposes an agent of the Crown and its powers granted by this Act shall be exercised in its own right and not as an agent of the Crown , c.r-2.1, s.4. Members, chairman and vice-chairman 5(1) The commission shall consist of: (a) four members appointed by the Lieutenant Governor in Council; (b) five members elected by the registrants in the manner prescribed in the bylaws. (2) The members of the commission: (a) appointed pursuant to clause (1)(a) shall hold office for a period of three years and until their successors are appointed; (b) elected pursuant to clause (1)(b) shall hold office for a period of three years or for any other period that may be specified in the bylaws.

9 9 REAL ESTATE BROKERS, 1987 c. R-2.1 (3) Where a member of the commission for any reason fails to complete his term of office: (a) in the case of a person appointed pursuant to clause (1)(a), the Lieutenant Governor in Council may appoint a person to serve the remaining portion of the term; and (b) in the case of a person elected pursuant to clause (1)(b), the Saskatchewan Real Estate Association shall appoint a person to serve the remaining portion of the term in accordance with any procedures that may be prescribed in the bylaws. (4) The members of the commission may elect one of their members as the chairman of the commission and one as vice-chairman. (5) Where the chairman is absent or unable to act or the office of chairman is vacant, the vice-chairman shall act as chairman and, while so acting, has all of the powers and shall perform all of the duties of the chairman. (6) The commission shall pay to the members of the commission any remuneration for their services and allowances for travelling and other expenses that may be prescribed in the bylaws. (7) The commission shall appoint a secretary and a treasurer or a secretarytreasurer. (8) A majority of the members of the commission constitutes a quorum. (9) Subject to subsection (8), a majority vote of the members present at any meeting of the commission determines any question , c.r-2.1, s.5. Officers and employees 6 The commission may: (a) appoint any officers that may be provided for by the bylaws; (b) engage any employees that they consider necessary to carry out the duties and functions of the commission; and (c) subject to the bylaws, determine the duties, responsibilities and remuneration of officers and employees of the commission , c.r-2.1, s.6. BYLAWS Passing and review of bylaws 7(1) Subject to this Act and the regulations, the commission may make bylaws: (a) respecting the execution of documents by the commission; (b) respecting the banking and financial dealings of the commission;

10 10 c. R-2.1 REAL ESTATE BROKERS, 1987 (c) governing the application of the moneys of the commission; (d) fixing the fiscal year of the commission and providing for the audit of the accounts and transactions of the commission; (e) determining procedures for the election of members of the commission mentioned in clause 5(1)(b) and prescribing their terms of office; (f) prescribing the duties of members of the commission; (g) prescribing the remuneration and reimbursement for expenses to which members of the commission are entitled; (h) providing for the appointment of officers and employees of the commission and prescribing their duties and the remuneration and reimbursement for expenses to which they are entitled; (i) respecting the calling and holding of and procedures to be followed at meetings of the commission; (j) prescribing or establishing classes, lectures, courses of study, systems of training, periods of service and examinations for registrants and applicants for registration; (k) prescribing the amounts of registration and other fees payable to the commission, the times of payment and penalties for late payment; (l) providing for the charging of fees for any services provided by the commission pursuant to this Act; (m) providing for the receipt, management and investment of contributions, donations or bequests received by the commission; (n) respecting investigation and inspection of methods of practice of registrants by the commission; (o) governing the reinstatement of a person whose registration has been suspended or cancelled; (p) respecting the business practices to be followed by registrants; (q) requiring reports from registrants with respect to their operations; (r) regulating advertising by registrants; (s) respecting the keeping of trust accounts by registrants including: (i) providing for the investigation of complaints regarding trust monies; (ii) providing for the inspection and auditing of registrant s trust accounts; (iii) prescribing the books, records and accounts to be kept and maintained by registrants with respect to trust accounts; (iv) requiring reports from registrants with respect to their trust accounts;

11 11 REAL ESTATE BROKERS, 1987 c. R-2.1 (t) fixing the amount of assessment to be levied pursuant to subsection 35(2); (u) prescribing the forms to be used by registrants when trading in real estate; (v) prescribing any other matter or thing respecting the administration of this Act and the activities and affairs of the commission, not contrary to this Act, the regulations or any other law, that it considers necessary. (2) The commission shall deliver to the superintendent three copies, certified to be true copies by the chairman of the commission and the secretary, of every bylaw and amendment thereto made by the commission within 30 days of making it. (3) Within 30 days of receiving a bylaw or amendment to a bylaw, the superintendent shall: (a) where he is of the opinion that the bylaw or amendment is: (i) appropriate and not contrary to the public interest, approve the bylaw; (ii) inappropriate and contrary to the public interest, disapprove the bylaw; (b) notify the commission in writing of his approval or disapproval. (4) Where the superintendent approves a bylaw or an amendment to a bylaw pursuant to subsection (3), he shall: (a) forward one copy of the bylaw or amendment stamped with his approval to the commission; (b) file one copy of the bylaw or amendment with the Clerk of the Executive Council; and (c) notify the commission of the date on which he filed the bylaw or amendment with the Clerk of the Executive Council. (5) A bylaw or amendment comes into force on the day on which it is filed with the Clerk of the Executive Council. (6) The superintendent may, where he considers it to be in the public interest, request the commission to: (a) amend or repeal a bylaw; (b) make a new bylaw. (7) Where the commission fails, within 60 days of the date of a request of the superintendent pursuant to subsection (6), to comply with that request, the superintendent: (a) may amend, repeal or make a new bylaw in accordance with his request; and

12 12 c. R-2.1 REAL ESTATE BROKERS, 1987 (b) shall: (i) file a copy of the bylaw or amendment, as the case may be, with the Clerk of the Executive Council; and (ii) deliver a copy of the bylaw or amendment, as the case may be, to the commission. (8) Within 90 days of the filing of a bylaw or amendment pursuant to subsection (3) or (7), the Lieutenant Governor in Council may disapprove the bylaw or amendment where he considers it to be inappropriate and contrary to the public interest. (9) Where a bylaw or amendment is disapproved by the Lieutenant Governor in Council pursuant to subsection (8): (a) the bylaw or amendment is deemed to have been revoked as of the date of the order revoking it; and (b) the Clerk of the Executive Council shall promptly notify the superintendent and commission in writing of the disapproval and the date of the order disapproving it. (10) Failure to comply with any of subsections (2) to (9) does not, of itself, invalidate a trade in real estate. (11) Repealed , c.54, s , c.r-2.1, s.7; , c.54, s.5. Regulations prevail 8(1) Where there is a conflict between a provision in the regulations and a provision in the bylaws, the provision in the regulations prevails. (2) The commission shall cause the bylaws to be available for public inspection , c.r-2.1, s.8. Power to enter into agreements 9 The commission may enter into any agreements that it considers necessary for exercising its powers or carrying out its duties pursuant to this Act , c.r-2.1, s.9. Temporary borrowing 10(1) Subject to subsections (2) and (3), the commission may borrow, by way of temporary loans, bank overdraft or line of credit from any bank, credit union or trust company or from any person or corporation, on any terms and conditions, any sums that the commission may require to carry out its responsibilities, and any instruments that may be necessary or desirable in connection with the borrowing of money and obtaining of advances by way of temporary loans may be executed in any manner that the commission may determine.

13 13 REAL ESTATE BROKERS, 1987 c. R-2.1 (2) Subject to subsection (3), any sum borrowed pursuant to subsection (1) is to be borrowed on the condition that the sum is to be repaid or the loan otherwise retired within the fiscal year in which the loan is made. (3) The commission may, during the fiscal year in which any sum is borrowed and the two succeeding fiscal years, extend the loan and renew or extend the promissory notes or other obligations securing the loan , c.r-2.1, s.10. Annual meeting of registrants 11(1) The commission shall call an annual meeting of registrants in accordance with any procedures that may be prescribed in the bylaws. (2) The annual meeting of registrants shall be held at a time and place determined by the commission , c.r-2.1, s.11. REGISTRATION Required 12(1) Subject to subsection (2), no person shall trade or hold himself out as trading in real estate: (a) as a broker unless he is registered as a broker; (b) as a manager unless he is registered as the manager of a registered broker; or (c) as a salesman unless he is registered as a salesman. (2) No person shall trade in real estate with respect to which a prospectus is required to be filed pursuant to section 57 unless he is registered as a broker, manager or salesman of a registered broker. (3) No person shall trade in real estate for or on behalf of a registered broker unless he is registered as a salesman or the manager of that broker , c.r-2.1, s.12. Application 13 Every applicant for registration shall apply to the commission on a form provided by the commission and shall: (a) forward with the application the fee prescribed by the commission and the amount of assessment levied for the fund; and (b) state on the application his address for service in Saskatchewan , c.r-2.1, s.13.

14 14 c. R-2.1 REAL ESTATE BROKERS, 1987 Firms 14(1) A firm may apply for and obtain registration as a broker in its business name. (2) No firm that is registered as a broker shall carry on business as a broker under a name other than the name shown in its certificate of registration. (3) Every firm, in its application for registration, shall state its business name and: (a) if a sole proprietor, the name of the sole proprietor; or (b) if a partnership, the names of the partners, designating one of them as the manager of the firm. (4) A registration that is granted to a firm is deemed to be granted in the name of the sole proprietor, or in the names of the partners, as the person or persons carrying on business in the business name, and the certificate of registration is to indicate on it the manager who: (a) in the case of a sole proprietorship, is the sole proprietor; (b) in the case of a partnership, is the partner designated in the application for the purpose. (5) On the granting of registration to the firm, the manager of the firm may trade in real estate on behalf of the firm without registration as a salesman but no other person shall so trade unless he is registered as a salesman. (6) Any change in the membership of a firm or in its business name is deemed to create a new firm and to terminate any existing registration , c.r-2.1, s.14. Corporations 15(1) A corporation, in its application for registration, shall designate one of its officials as the manager of the corporation. (2) Any registration granted to a corporation is to be granted in the name of the corporation and the certificate of registration is to indicate on it the manager who is the official designated in the application for the purpose. (3) On the granting of registration to the corporation, the manager of the corporation may trade in real estate on behalf of the corporation without registration as a salesman, but no other person shall so trade unless he is registered as a salesman , c.r-2.1, s.15. Deemed registration 16 Every person who is: (a) designated as a manager; and (b) named in a certificate of registration of a broker; is deemed to be registered as a manager pursuant to this Act , c.r-2.1, s.16.

15 15 REAL ESTATE BROKERS, 1987 c. R-2.1 Salesmen 17(1) Every applicant for registration as a salesman shall forward with his application a notice in writing given by a registered broker stating that the applicant, if granted registration, is authorized to act as a salesman representing that broker. (2) A certificate of registration granted to a salesman is to indicate on it the name of the broker, as principal of the salesman, who has given the notice accompanying the application for that registration pursuant to subsection (1) , c.r-2.1, s.17. Deemed authorization to act for broker 18(1) A registered manager or a registered salesman is deemed to be authorized by the broker specified in his certificate of registration to act for or on behalf of that broker. (2) No registered manager and no registered salesman shall trade in real estate other than for or on behalf of the broker whose name is stated on the certificate of his registration , c.r-2.1, s.18. Deemed termination of registration 19(1) Where a registered salesman ceases to represent a broker, that broker shall immediately give notice in writing to the commission that the salesman has ceased to represent him and the receipt of that notice by the commission operates as a termination of the registration of the salesman. (2) A broker who fails to give the notice mentioned in subsection (1) within five days after the salesman has ceased to represent him is guilty of an offence , c.r-2.1, s.19. Transfer of registration prohibited 20(1) The transfer of the registration of a salesman from one broker to another is prohibited. (2) Where a salesman whose registration is terminated is: (a) appointed by another broker; or (b) reappointed by the broker with whom he was previously registered; the salesman shall make a new application to the commission for registration , c.r-2.1, s.20. Qualifications of brokers 21(1) No applicant for registration as a broker is entitled to registration unless he, or the person designated as manager by the applicant, as the case may be, has successfully completed an educational course prescribed by the bylaws and has: (a) been actively employed as a registered salesman or as a manager of a registered broker for a period of two years during the preceding five years; or

16 16 c. R-2.1 REAL ESTATE BROKERS, 1987 (b) related experience that, in the opinion of the commission, is equivalent to the experience described in clause (a). (2) No applicant for registration as a salesman is entitled to registration unless he has successfully completed an educational course prescribed by the bylaws. (3) The commission may grant registration as a broker or as a salesman for a limited period to an applicant who does not meet the requirements of subsection (1) or (2), as the case may be, if, in the opinion of the commission, special circumstances exist. (4) The commission may refuse to grant a registration or the renewal of a registration where: (a) having regard to financial stability, the applicant or its officers or directors cannot reasonably be expected to be financially responsible in the conduct of his or its business; or (b) the past conduct of the applicant affords reasonable grounds for believing that he or it will not carry on business in accordance with law and with integrity and honesty. (5) Subsection (1) does not apply to: (a) an applicant for registration as a broker where: (i) the applicant applies to dispose of real estate that is located in Saskatchewan and is owned by the applicant or in which the applicant has a substantial interest; and (ii) the registration, if granted, is restricted to the disposal of the real estate described in subclause (i); (b) an applicant for registration as a salesman where the applicant: (i) was not required to be licensed pursuant to The Real Estate Brokers Act, as that Act existed on the day before the coming into force of this Act; and (ii) was actively trading in real estate in Saskatchewan during the 12- month period before the coming into force of this Act; (c) a manager of an applicant mentioned in clause (a) or (b). (6) Subsection (2) does not apply to an applicant for registration as a salesman where the applicant: (a) was not required to be licensed pursuant to The Real Estate Brokers Act, as that Act existed on the day before the coming into force of this Act; and (b) was actively and lawfully trading in real estate in Saskatchewan during the 12-month period before the coming into force of this Act , c.r-2.1, s.21.

17 17 REAL ESTATE BROKERS, 1987 c. R-2.1 Office requirement of broker 22(1) The commission shall not grant registration as a broker to any person unless the person maintains an office in Saskatchewan that is satisfactory to the commission and from which he conducts all or a part of his business. (2) Where a broker maintains more than one office, he shall designate one of those offices as his main office and any other office as his branch office. (3) Every main office and every branch office of a broker is to be managed by a person who: (a) would, if he applied for registration as a broker, be entitled to that registration; (b) is registered as a salesman or a manager of the broker; and (c) manages only one office of the broker , c.r-2.1, s.22. Certificate of registration 23(1) Where the commission is satisfied that an applicant has complied with this Act, the regulations and the bylaws and is suitable for registration, it shall register the applicant by issuing a certificate of registration to the applicant. (2) The commission shall not refuse to grant a certificate of registration without giving the applicant an opportunity to be heard , c.r-2.1, s.23. Terms, conditions and restrictions 24(1) The commission may grant a certificate of registration subject to any terms, conditions and restrictions that it considers necessary. (2) The commission may, at any time that it considers necessary and subject to the requirement of giving the registrant the right to be heard, by notice to the registrant: (a) make a certificate of registration subject to any new or additional terms, conditions and restrictions; or (b) amend, vary, add to or revoke any terms, conditions and restrictions to which the certificate of registration is subject. (3) Every registrant shall comply with the terms, conditions and restrictions to which his certificate of registration is subject , c.r-2.1, s.24. Expiry 25 Unless terminated or cancelled earlier, every certificate of registration expires at midnight on June 30 next following the date its issuance , c.r-2.1, s.25.

18 18 c. R-2.1 REAL ESTATE BROKERS, 1987 Further information 26 The commission may at any time require further information or material to be submitted by an applicant for registration or by a registrant within a specified time and may require verification by affidavit or otherwise of any information or material so submitted or previously submitted , c.r-2.1, s.26. Change of address for service 27 Every registrant shall, within 10 days after changing his address for service, notify the commission in writing of his new address for service , c.r-2.1, s.27. Suspension or cancellation 28(1) The commission may: (a) after an inquiry; or (b) on its own motion; subject to the requirement of giving the registrant the right to be heard, suspend or cancel, on any terms and conditions that the commission may prescribe, the certificate of registration of any person on any ground on which the commission might have refused to grant the certificate of registration or where the commission is satisfied that the registrant: (c) has violated any provision of this Act, the regulations or the bylaws or has failed to comply with any terms, conditions or restrictions to which his certificate of registration is subject; (d) has made a material mis-statement in the application for his registration or in any information or material submitted by him to the commission pursuant to section 26; (e) is guilty of misrepresentation, fraud or dishonesty; (f) has demonstrated his incompetence or untrustworthiness to carry on the business in respect of which his certificate of registration was granted; (g) having regard to financial stability, cannot reasonably be expected to be financially responsible in the conduct of his business. (2) Where the registration of a broker is suspended or cancelled, the registrations of the manager and all salesmen of the broker are automatically terminated. (3) The commission and the registrant may be represented by counsel in any hearing for the purposes of this section. (4) The commission shall, on request, provide reasons for a decision pursuant to subsection (1) , c.r-2.1, s.28.

19 19 REAL ESTATE BROKERS, 1987 c. R-2.1 HEARING BEFORE SUPERINTENDENT Hearing 29(1) An applicant for registration or a person who is dissatisfied with a decision of the commission pursuant to section 28 or with any terms or conditions imposed on him pursuant to section 24 may, within 30 days after the date of the decision or the date on which the terms and conditions were imposed, apply in writing to the superintendent, with a copy to the commission, for a hearing. (2) On receipt of an application pursuant to subsection (1), the superintendent shall fix a date for a hearing that is, unless otherwise agreed, not later than seven days after the date of the receipt of the application for the hearing. (3) The chairman or secretary of the commission shall, immediately on receiving a copy of a request for a hearing pursuant to subsection (1) deliver or cause to be delivered to the superintendent: (a) a copy of the decision appealed from; (b) all documents and materials from the files of the commission or certified true copies thereof that were before the commission in the making of the decision; and (c) any reasons provided by the commission for its decision. (4) An application pursuant to subsection (1) for a hearing operates as a stay of the decision appealed from, unless otherwise ordered by the superintendent , c.r-2.1, s.29. Right to counsel, etc. 30(1) The commission and the appellant may be represented by counsel in any hearing before the superintendent. (2) The commission and the appellant may present evidence at the hearing and may cross-examine witnesses , c.r-2.1, s.30. Powers of superintendent on appeal 31(1) On hearing an appeal, the superintendent may: (a) dismiss the appeal; (b) allow the appeal; (c) allow the appeal subject to terms and conditions; (d) vary the decision or terms and conditions appealed against; (e) make any other order that he considers appropriate. (2) The superintendent shall, within 10 days after the hearing, provide the appellant and the commission with a decision in writing, including reasons for the decision , c.r-2.1, s.31.

20 20 c. R-2.1 REAL ESTATE BROKERS, 1987 APPEAL FROM THE SUPERINTENDENT S DECISION Appeal to Queen s Bench 32(1) A person who is dissatisfied with a decision of the superintendent pursuant to this Act may, within 30 days from the date of the decision, appeal by notice of motion to a judge of Her Majesty s Court of Queen s Bench for Saskatchewan who may, by order: (a) dismiss the appeal; (b) allow the appeal; (c) allow the appeal subject to terms and conditions; (d) vary the decision appealed against; (e) refer the matter back to the superintendent for further consideration and decision; (f) award costs of the appeal; (g) make any other order that he considers just. (2) The appeal is to be by notice of motion which shall be served on the superintendent not less than 10 days before the day on which the motion is returnable. (3) On receipt of a copy of the notice of motion, the superintendent shall forward to the appropriate local registrar of Her Majesty s Court of Queen s Bench for Saskatchewan a certified copy of all documents in the possession of the superintendent relating to the decision from which the appeal is being taken. (4) An appeal from a decision of the superintendent operates as a stay of that decision unless the judge orders otherwise. (5) There is no appeal from the decision of a judge pursuant to this section , c.r-2.1, s.32. Evidence 33 The commission or superintendent may admit as evidence at a hearing, whether or not given under oath or affirmation or admissible in evidence in a court: (a) any oral testimony; and (b) any document or other thing; that the commission or the superintendent, as the case may be, considers relevant to the subject matter of the proceedings, and may act on such evidence , c.r-2.1, s.33.

21 21 REAL ESTATE BROKERS, 1987 c. R-2.1 EXEMPTIONS Exemptions 34(1) Subject to subsection (2) and section 61, this Act does not apply to: (a) an isolated trade in real estate by or on behalf of the owner of the real estate and for the owner s account where: (i) the transaction is not made in the course of continued and successive transactions of a like character; and (ii) no commission or other remuneration is paid with respect to the trade; (b) an assignee, custodian, liquidator, receiver, trustee or other person acting: (i) as directed by an Act or an Act of the Parliament of Canada; or (ii) under the order of any court; (c) an executor or personal representative of an estate selling real estate belonging to the estate or an executor or trustee selling real estate under the terms of a will, marriage settlement or trust; (d) a financial institution or insurance company trading in real estate owned or administered by it; (e) a person engaged in the business of home construction where the trade in question involves real estate owned by him in connection with that business; (f) subject to subsection (3), a member in good standing of the Law Society of Saskatchewan where the trade is made in the course of and as part of his practice; (g) subject to subsection (3), an auction sales company or an auctioneer licensed under The Auctioneers Act where the trade in real estate is by auction; and (h) a person trading in mineral rights and not otherwise required to be registered. (2) Subsection (1) does not apply to: (a) any person; or (b) a trade by any person; who is a registrant. (3) A person mentioned in clause (1)(f) or (g) shall advertise the real estate in the name of the owner of the real estate , c.r-2.1, s.34.

22 22 c. R-2.1 REAL ESTATE BROKERS, 1987 REAL ESTATE ASSURANCE FUND Fund continued 35(1) The Real Estate Assurance Fund is continued. (2) There is to be credited to the fund: (a) money transferred to the commission pursuant to subsection (3); (b) the money collected by the levy of an assessment of any amount that the commission may fix from time to time: (i) on every applicant for registration as a broker; and (ii) on every registered broker; and (c) subject to section 37, any earnings from the investment of moneys in the fund; for the purpose of paying, in whole or in part, any claim arising out of a trade in real estate against any person who is or was a registrant. (3) Immediately on the coming into force of this section, the Saskatchewan Real Estate Association shall transfer to the commission all moneys, investments and assets of every kind of the Real Estate Assurance Fund existing immediately before the coming into force of this section. (4) The commission is deemed to hold in trust all money received pursuant to subsection (2) and shall immediately deposit or cause to be deposited that money in an account in a financial institution, separate and apart from any other money of the commission. (5) Notwithstanding subsection (4), the commission may: (a) recover any money advanced to the fund; and (b) take a fee for the administration of the fund in any amount that may be prescribed in the regulations , c.r-2.1, s.35. Claims on fund 35.1 A claimant is not entitled to be paid from the fund where: (a) the claim arises out of a trade in real estate that occurred on a day that is more than 90 days after the date on which the registration of the broker against whom the claim is made was terminated pursuant to the Act, whether by expiry, suspension or cancellation; (b) the notice of claim is received by the commission after the maximum amount from the fund has been disbursed; or (c) the claim arises out of a trade in real estate that occurred on a day that is more than two years from the date on which the notice of claim is received by the commission. 1992, c.36, s.4.

23 23 REAL ESTATE BROKERS, 1987 c. R-2.1 Investment 36 The commission may invest any part of the fund not presently required for disposition in any security or class of securities in which trustees are by law permitted to invest trust funds , c.r-2.1, s.36. Income property of commission 37(1) When the amount of the fund exceeds: (a) $250,000; or (b) any greater amount that may be prescribed in the regulations; the income from the fund becomes the property of the commission to be used for any purposes that the commission considers proper. (2) The commission may direct that moneys in the fund be assigned or paid: (a) to any person who has obtained a judgment; (b) to any person who, in the opinion of the commission, is entitled to be paid with respect to a claim; or (c) into court in trust for any person who may become a judgment creditor in respect of a claim; arising out of a trade in real estate against a person who is or was a holder of a licence pursuant to The Real Estate Brokers Act or is or was a registrant. (3) The commission shall cause every assignment or payment pursuant to subsection (2) to be made in accordance with any regulations that may be made by the Lieutenant Governor in Council. (4) Where any payment is made by the commission pursuant to this section, the commission is deemed to be an assignee and to be subrogated to any and all rights of recovery of the person to whom the payment was made to the extent of the payment and may: (a) bring a separate action to recover the amount of the payment, but the person to whom the payment was made may bring an action in his own name for the amount by which his claim exceeds the amount of the payment; or (b) join with the person to whom the payment is made to bring one action in the name of that person for recovery of the total amount of the claim, and make any arrangements for the apportionment of the costs of recovery that they may agree on; any moneys recovered by the commission, less the costs of recovery, form part of the fund. (5) On notice that the commission has commenced or is commencing a proceeding pursuant to subsection (4): (a) no person shall negotiate a settlement of any claim to the prejudice of the commission; and

24 24 c. R-2.1 REAL ESTATE BROKERS, 1987 (b) no person to whom payment was made pursuant to this section shall interfere in any negotiations for settlement or in any legal proceedings but, whenever requested by the commission, that person shall: (i) aid in securing information, evidence and the attendance of any witness; and (ii) co-operate with the commission in any action or proceedings or in the prosecution of an appeal; but no person is required to pay or contribute money , c.r-2.1, s.37. Annual report re fund 38(1) The commission shall: (a) not later than the last day of February in each year, cause a report to be prepared, in the form and verified in the manner that the superintendent may require with respect to the fund and all dispositions made during the preceding year; and (b) not later than March 15, cause a copy of the report to be delivered to the minister. (2) The superintendent may investigate and inquire into any matter relating to the fund and sections 68 to 71 apply mutatis mutandis to the investigation or inquiry , c.r-2.1, s.38. REGULATION OF TRADING Advertising 39(1) No broker shall advertise a trade in real estate unless he indicates: (a) his own name as the advertiser; and (b) that he is a broker. (2) Subject to subsection (1), no manager or salesman shall advertise a trade in real estate unless the advertisement indicates the name of the broker for whom the manager or salesman is authorized to act. (3) For the purposes of subsection (1), a broker may indicate that he is a broker by words which fairly convey that he is a person trading in real estate , c.r-2.1, s.39. Prohibited advertising 40 No broker, manager or salesman shall in any manner represent or hold himself out as being registered or bonded pursuant to this Act , c.r-2.1, s.40.

25 25 REAL ESTATE BROKERS, 1987 c. R-2.1 Listing agreement 41(1) Immediately after the execution of an agreement to list real estate for sale, exchange, lease or rent with the broker, the broker, his manager or his salesman, as the case may be, shall deliver to the person who signs the agreement a true copy of the agreement. (2) An agreement with a broker to list real estate for sale, exchange, lease or rental is not valid if: (a) it does not contain an expiry date; (b) it contains more than one expiry date; (c) the expiry date is later than 12 months from the date of the agreement; or (d) a true copy of it is not delivered by the broker, his manager or salesman in accordance with subsection (1) , c.r-2.1, s.41. Offer to purchase 42(1) Every offer to purchase real estate, obtained by a broker, manager or salesman is to be in writing, executed by the offeror in the presence of a witness. (2) The broker, manager or salesman, as the case may be, who obtains an offer to purchase shall deliver a copy of the offer immediately on execution of the offeror. (3) Where a broker, manager or salesman presents an offer to purchase real estate to a vendor for his acceptance and the vendor accepts the offer, the broker, manager or salesman, as the case may be, shall: (a) obtain the acceptance in writing signed by the vendor and duly witnessed; (b) leave one copy of it with the vendor; and (c) immediately notify the purchaser of the acceptance by delivering a copy of the acceptance to the purchaser , c.r-2.1, s.42. Contents of offer 43(1) Every offer to purchase real estate made in accordance with section 42 shall, before execution by either a vendor or a purchaser, clearly show: (a) the date on which the offer is made; (b) the names and addresses of the offeror and offeree; (c) the street address or legal description of the real estate concerned; (d) the price offered by the offeror and the terms and conditions of the purchase; (e) the amount of deposit, if any, made by the offeror at the time of the offer and whether or not that deposit is to form part of the purchase price;

26 26 c. R-2.1 REAL ESTATE BROKERS, 1987 (f) a brief description and list of any chattels that are to be included in the sale price; (g) the date of possession by the offeror and whether possession shall be vacant or otherwise; (h) the date of adjustments; (i) the date by which the offer is to be accepted by the offeree; (j) the name, address and telephone number of the broker. (2) Where an offer to purchase or sell real estate is submitted through a broker, manager or salesman and is accepted by the offeree the acceptance is to show: (a) the date of the acceptance; and (b) the total amount of commission, if any, to be paid to the broker by the offeree, stated as a lump sum or as a percentage of the sale price , c.r-2.1, s.43. Non-compliance 44 Non-compliance with section 42 does not of itself render an offer to purchase real estate and the acceptance of it invalid, but where the offer and non-compliance is by a broker, manager or salesman, as the case may be, acting in bad faith, the broker thereby forfeits his right to any commission that might otherwise be payable to him , c.r-2.1, s.44. Prohibited representations 45 No broker, manager or salesman shall, as an inducement to purchase, sell or exchange real estate, make any representation or promise that he or any other person will: (a) re-sell or in any way guarantee or promise to re-sell any real estate offered for sale by him; (b) purchase or sell any of the purchaser s real estate; (c) procure a mortgage, extension of a mortgage, lease or extension of a lease; or (d) purchase or sell a mortgage or agreement for sale or procure a loan; unless at the time of making the representation or promise the broker, manager or salesman making it delivers to the person to whom the representation or promise is made a statement signed by the broker, manager or salesman clearly setting forth all the details of the representation or promise made , c.r-2.1, s.45.

27 27 REAL ESTATE BROKERS, 1987 c. R-2.1 Employees to be registered 46 No broker shall employ, permit or engage the salesman of another broker or an unregistered person to trade in real estate or pay commission or other remuneration to any such salesman or person , c.r-2.1, s.46. Payment prohibited 47 No broker, manager or salesman shall pay commission or other remuneration to a person who is required by this Act to be registered but who is not registered , c.r-2.1, s.47. Salesman to turn over moneys 48 Every registered manager and every registered salesman shall immediately on receipt of moneys in connection with any trade in real estate pay those moneys over to the broker whose name is set forth in his certificate of registration , c.r-2.1, s.48. Broker s records 49(1) Every broker shall keep proper records with respect to his trades in real estate, and shall enter in those records with respect to each trade: (a) the nature of the trade; (b) a description of the real estate that is sufficient to identify it; (c) the true consideration for the trade; (d) the names of all parties to the trade; (e) the amount of deposit received and a record of the disbursement of the deposit; and (f) the amount of his commission or other remuneration and the name of the party paying it. (2) Every broker shall keep, as part of his records, a trust ledger in which he shall maintain a separate record for each person on whose behalf he is acting of all: (a) money that he receives in trust; (b) money that he holds in trust; (c) interest on money that he holds in trust; and (d) disbursements he makes from money received in trust , c.r-2.1, s.49.