Industry Members and Their Roles

The Real Estate Council of Alberta (RECA) is responsible for the licensing and regulation of the real estate and mortgage industry in the province. 

Consumers may be familiar with the terms “broker” or “associate” when referring to real estate and mortgage professionals, however, RECA uses the term “industry member” for the industry as a whole because of the types of license categories under its jurisdiction.

All industry members, regardless of licence type, must comply with the Real Estate Act, Rules and Regulations. In Alberta, the types of licences that apply to the real estate and mortgage broker sectors are as follows:

Brokerage: The brokerage is the legal entity, licensed to trade in real estate or mortgages, with whom a real estate or mortgage associate or associate broker’s licence is registered. An individual person (sole proprietor), a partnership or a corporation can obtain a brokerage license. If the brokerage is a partnership or corporation, it must employ a broker, who is responsible and accountable for the brokerage’s operations.

Broker: A brokerage must employ a broker to operate the brokerage. The broker is responsible for ensuring all the business of the brokerage is conducted in compliance with the Real Estate Act. This includes supervision of all brokerage employees, including the associate brokers and associates registered to the brokerage.

A broker may also represent buyers and sellers in their real estate transactions. In small brokerages or sole proprietorships, the broker often represents clients in addition to management duties; however, brokers responsible for large operations tend to focus on the management role.

As a consumer working with an industry member, you may have a concern with the industry member ’s activities. If you cannot resolve the concern with the industry member, you may consider contacting the industry member ’s broker to discuss the matter.

Associate Broker: An associate broker is an individual, who has earned the necessary qualifications to become a broker, however chooses the role and responsibilities of an associate.

Associate: The real estate associate (or associate broker) or mortgage assocate is the person most consumers deal with. While the brokerage is the legal entity, the associate represents the brokerage in its dealings with you. A real estate associate will draw up the agreement between the brokerage and a seller to list property for sale, show properties to buyers, hold open houses, etc. A mortgage associate’s duties include taking your mortgage application on behalf of the brokerage, discussing financing options and quoting interest rates.

Real estate appraisers also come under the jurisdiction of the Real Estate Act, with certain exemptions such as for an individual who only performs appraisers for his or her employer and for a real estate agent who prepares a market value comparison for a client. An appraiser’s role is to:

estimate the defined value of real estate sign and take responsibility for a real estate appraisal report prepared by another person provide real estate appraisal consulting services

In Alberta, there are 2 classes of real estate appraisers:

appraiser candidate

A candidate must be supervised by a licensed appraiser, who must sign the candidate’s appraisal report, confirm the appraisal has been completed within the accepted standards and take responsibility for it.

Unlicensed Individuals and Companies: The Real Estate Council cautions you to protect your interests by dealing with licensed individuals and companies in your real estate or mortgage
transaction.


Keeping you Informed

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Michele