It's no big deal, if I dont have a Real Estate License

By
Real Estate Agent with Keller Williams Elite Realty, Port Coquitlam, BC 27-01262

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This morning I received a very naive email from a young man who was trying to find buyers for a lakeview resort condo development in a vacation area of British Columbia.  After exchanging a couple of emails, only because a relative of mine told him he should contact me, it became quite clear to me was was providing real estate trading services without a license in expectation of a 'kickback' [his words] commission from the development's Director of Marketing.  I told him he was clearly providing Real Estate Trading Services as defined in the Real Estate Services Act of British Columbia.

I thought it appropriate for this young man and myself to review the definition and the R.E.S.A. with respect to this matter.  Real Estate Trading Services are defined as:

"trading services" means any of the following services provided to or on behalf of a party to a trade in real estate:

  • (a) advising on the appropriate price for the real estate;
  • (b) making representations about the real estate;
  • (c) finding the real estate for a party to acquire;
  • (d) finding a party to acquire the real estate;
  • (e) showing the real estate;
  • (f) negotiating the price of the real estate or the terms of the trade in real estate;
  • (g) presenting offers to dispose of or acquire the real estate;
  • (h) receiving deposit money paid in respect of the real estate

 This young man was clearly making efforts of 'finding a party to acquire the real estate' and 'making representations about the real estate' .  What about those promised 'kickbacks'?

  • 3  (1) A person must not provide real estate services to or on behalf of another, for or in expectation of remuneration, unless the person is
  • (a) licensed under this Part to provide those real estate services, or
  • (b) exempted by subsection (3) or the regulations from the requirement to be licensed under this Part in relation to the provision of those real estate services.
  • (2) A licence required by this Part is additional to any licence, registration, certificate, enrollment or qualification required under any other Act.
  • (3) In addition to any exemption provided by regulation, the following are exempt from the requirement to be licensed under this Part:
  • (a) a person acting under the authority of a court;
  • (b) a trustee in bankruptcy, custodian, receiver, receiver manager or liquidator who is appointed under a provincial or federal enactment, in respect of real estate services undertaken by the person in that capacity;
  • (c) an executor or administrator of an estate, in respect of real estate services provided in relation to real estate owned or held by the estate;
  • (d) a trustee, in respect of real estate services provided under the terms of a will, marriage settlement or deed of trust;
  • (e) a financial institution that has a trust business authorization under the Financial Institutions Act, in respect of real estate services provided in relation to real estate that it owns, holds or administers;
  • (f) a practising lawyer as defined in section 1 of the Legal Profession Act, in respect of real estate services provided in the course of the person's practice.

Shall we consider  the penalties?  Yes we shall:

  • (2) An individual who commits an offence under section 118 [offences] is liable
  • (a) on a first conviction, to a fine of not more than $50 000, or to imprisonment for not more than 2 years, or to both, and
  • (b) on each subsequent conviction, to a fine of not more than $100 000, or to imprisonment for not more than 2 years, or to both.

In summary, a couple of thousand dollars 'kickback' is hardly worth the grief, n'est-ce pas?

 

Posted by

Scott Leaf - Keller Williams Elite Realty

Real Estate Board of Greater Vancouver

Medallion Presidents Club 2014 Top 1% Homes Sold

Top 100 Realtor Homes Sold 2015-2017

Medallion Club 2010-2017

 

Coquitlam, Port Coquitlam, Pitt Meadows, Maple Ridge, Langley, River Springs and surrounding areas Realtor 


 

 

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Rainmaker
248,147
Matt Grohe
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003

Scott: Some folks need to do more research! Really well done. Cheers,

Mar 03, 2011 03:59 PM #1
Rainmaker
1,550,841
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Scott,

Our provincial regulatory body just secured a conviction against someone selling vacation spots at Blue Mountian, in Collingwood with being registered.

 

Brian

Mar 03, 2011 11:59 PM #2
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Scott Leaf Personal Real Estate Corporation
Keller Williams Elite Realty, Port Coquitlam, BC - Port Coquitlam, BC
Scott Leaf & Associates Real Estate Team

Matt:  Thank you

Brian:  Good to hear Brian, I suspect this outfit I was referring to was really playing loosey goosey.  I do not think they have filed a developeers property disclosure statement either (in BC 5 units or more it is required)

Mar 04, 2011 03:29 AM #3
Anonymous
Peter Talbot

Well done Scott. Ever thought of getting your Associate Broker's license?

Peter

Mar 04, 2011 06:38 AM #4
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Scott Leaf Personal Real Estate Corporation
Keller Williams Elite Realty, Port Coquitlam, BC - Port Coquitlam, BC
Scott Leaf & Associates Real Estate Team

I have PT and I have declined, it doesnt pay well enough :)

Mar 04, 2011 12:45 PM #5
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