Managing Broker Responsibilities Information

• Information
  
  BCFSA’s information is clear, concise, easy-to-read explanations of the requirements for real estate professionals under the Real Estate Services Act (“RESA”), Real Estate Services Regulation (“Regulation”), Real Estate Services Rules (“Rules”), and other applicable legislation.

  This information is intended for use by real estate professionals, to support their understanding of the standards they must meet in the delivery of real estate services.

The Real Estate Services Rules (the “Rules”) outline the general responsibilities of real estate licensees, including managing broker responsibilities. Managing brokers should be aware of and understand these requirements to ensure that the brokerage and all the brokerage’s licensed and unlicensed staff are operating within the requirements of the Real Estate Services Act (“RESA”).

For additional information and best practices relating to these responsibilities, read the Managing Broker Responsibilities – Guidelines.

Managing Broker Responsibilities

As outlined in Section 6 of RESA, managing brokers are responsible for ensuring that their brokerage, any affiliated branch offices, and the brokerage’s related licensees and staff are operating in line with the requirements set out in RESA and the accompanying Real Estate Services Regulation (the “Regulation”) and Rules. At a brokerage level, this means that any duty placed on the brokerage is also placed on the managing broker. For example, the managing broker is responsible for ensuring that the brokerage’s records are kept in accordance with regulatory requirements and ensuring that licensees are providing disclosures to the managing broker in compliance with the Rules.

The Rules also outline several specific managing broker responsibilities, which include the following:

(a) Supervision

As a managing broker, you must:

• Be actively engaged in the management of your related brokerage;
• Ensure that your brokerage business is carried out competently and in accordance with RESA, the Regulation and Rules; and
• Ensure that there is an adequate level of supervision for related associate brokers and representatives, and for employees and others who perform duties on behalf of the brokerage.

(b) Knowledge of Improper Conduct

As a managing broker, you must take reasonable steps if you have knowledge of conduct that you consider to be:

• Professional misconduct or, conduct unbecoming a real estate licensee; or,
• Improper or negligent conduct in relation to the provision of real estate services on the part of a related licensee, an employee of your brokerage, or any other person associated with your brokerage.

In some situations, one reasonable step to address a matter may be reporting the improper conduct to the regulator. Please visit the Licensee Obligation to Report Misconduct Guidelines for more information.

(c) Accounts and Records

As a managing broker, you must ensure that the brokerage trust accounts and records are maintained in accordance with RESA and its accompanying Regulation and Rules. You must also ensure proper management and control of the documents and other records related to licensing and regulatory requirements.

It is important to keep in mind that records are the property of the brokerage and not the property of individual real estate licensees who provide services on its behalf. Read the Document Retention Guidelines and Trust Accounts Guidelines for additional information.

(d) Notice to Parties Respecting Deposits

As a managing broker, you must ensure that all parties to an agreement giving effect to a trade in real estate are immediately notified in writing if:

• A deposit that was to be held by your brokerage as a stakeholder is not received per the terms of the contract; or
• The deposit cheque or other negotiable instrument is not honoured by your brokerage’s financial institution.

Additional information about deposits can be found in the Deposits Guidelines.

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