Real Estate and Business Brokers Act, R.S.O. 1990, c. R.4

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Real Estate and Business Brokers Act

R.S.O. 1990, CHAPTER R.4

Historical version for the period November 1, 2005 to March 30, 2006.

Amended by: 1993, c. 27, Sched.; 1994, c. 27, s. 98; 1996, c. 19, s. 24; 1997, c. 19, s. 41; 1998, c. 18, Sched. E, ss. 203-206; 1999, c. 12, Sched. G, s. 33; 2001, c. 9, Sched. D, ss. 13, 14; 2002, c. 8, Sched. I, s. 22; 2002, c. 30, Sched. E, s. 16; 2004, c. 8, s. 46.

Note: On a day to be named by proclamation of the Lieutenant Governor, this Act is repealed by the Statutes of Ontario, 2002, chapter 30, Schedule E, section 16. See: 2002, c. 30, Sched. E, ss. 16, 22.

Definitions

1. In this Act,

“broker” means a person who, for another or others, for compensation, gain or reward or hope or promise thereof, either alone or through one or more officials or salespersons, trades in real estate, or a person who holds himself, herself or itself out as such; (“courtier”)

“business” means an undertaking carried on for the purpose of gain or profit, and includes an interest in any such undertaking, and, without limiting the generality of the foregoing, includes a boarding house, hotel, store, tourist camp and tourist home; (“commerce”)

“business premises” does not include a dwelling; (“locaux commerciaux”)

“Director” means the Director under the Ministry of Consumer and Business Services Act; (“directeur”)

“dwelling” means any premises or any part thereof occupied as living accommodation; (“logement”)

“Minister” means the Minister of Consumer and Business Services; (“ministre”)

“officer” means the chair or vice-chair of the board of directors, president, vice-president, secretary, treasurer or secretary-treasurer or general manager of a corporation or a partner or general manager of a partnership and includes the manager of the real estate department of a trust corporation; (“dirigeant”)

“prescribed” means prescribed by this Act or the regulations; (“prescrit”)

“real estate” includes real property, leasehold and business whether with or without premises, fixtures, stock-in-trade, goods or chattels in connection with the operation of the business; (“bien immeuble”)

“register” means the register under this Act; (“registre”)

“Registrar” means the Registrar of Real Estate and Business Brokers; (“registrateur”)

“regulations” means the regulations made under this Act; (“règlements”)

“salesperson” means a person employed, appointed or authorized by a broker to trade in real estate; (“agent immobilier”)

“trade” includes a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for sale, exchange, option, lease, rental or otherwise and any offer or attempt to list real estate for the purpose of such a disposition or transaction, and any act, advertisement, conduct or negotiation, directly or indirectly, in furtherance of any disposition, acquisition, transaction, offer or attempt, and the verb “trade” has a corresponding meaning; (“opération”, “effectuer des opérations”)

“Tribunal” means the Licence Appeal Tribunal. (“Tribunal”) R.S.O. 1990, c. R.4, s. 1; 1999, c. 12, Sched. G, s. 33 (1); 2001, c. 9, Sched. D, s. 13.

Registrar

Registrar

2. (1) The Deputy Minister shall appoint a person as the Registrar of Real Estate and Business Brokers. 1998, c. 18, Sched. E, s. 203.

Powers and duties

(2) The Registrar may exercise the powers and shall discharge the duties conferred and imposed upon him or her by this Act and the regulations under the supervision of the Director. R.S.O. 1990, c. R.4, s. 2 (2).

Registration

Registration

3. (1) No person shall,

(a) trade in real estate as a broker unless the person is registered as a broker;

(b) trade in real estate as a salesperson unless he or she is registered as a salesperson of a registered broker;

(c) act on behalf of a corporation or partnership in connection with a trade in real estate unless the person and the corporation or partnership are registered as brokers. R.S.O. 1990, c. R.4, s. 3 (1).

Change in partnership

(2) Any change in the membership of a partnership shall be deemed to create a new partnership for the purpose of registration. R.S.O. 1990, c. R.4, s. 3 (2).

Change in officers of corporation

(3) A change in the officers of a corporation registered as a broker may be made only with the consent of the Registrar. R.S.O. 1990, c. R.4, s. 3 (3).

Registration of branch offices

4. (1) No broker shall conduct a business of trading in real estate from more than one place at which the public is invited to deal unless the broker is registered in respect of each such place, one of which shall be designated in the registration as the main office and the remainder as branch offices. R.S.O. 1990, c. R.4, s. 4 (1).

Management of branch offices

(2) Each branch office shall be under the supervision of a registered broker and each branch office having more than one registered salesperson shall be under direct management by a registered broker or by a salesperson who has been registered for at least two years and who is under the supervision of a registered broker. R.S.O. 1990, c. R.4, s. 4 (2).

Exemptions

5. Registration shall not be required in respect of any trade in real estate by,

(a) an assignee, custodian, liquidator, receiver, trustee or other person acting under the Bankruptcy Act (Canada), the Corporations Act, the Business Corporations Act, the Courts of Justice Act, the Winding-up Act (Canada), or to a person acting under the order of any court, or an executor or trustee selling under the terms of a will, marriage settlement or deed of trust;

(b) an auctioneer where the trade is made in the course of and as part of the auctioneer’s duties as auctioneer;

(c) a person who is registered under the Securities Act where the trade is made in the course of and as part of the person’s business in connection with a trade in securities;

(d) a bank or a loan, trust or insurance corporation trading in real estate owned or administered by the corporation;

(e) a person in respect of any mine or mining property within the meaning of the Mining Act or in respect of the real estate included in a Crown grant or lease, a mining claim or mineral lands under the Mining Act or any predecessor thereof;

(f) a full-time salaried employee of a party to a trade where the employee is acting for or on behalf of his or her employer in respect of land situate in Ontario;

(g) a person who is practising as a solicitor of the Superior Court of Justice where the trade is made in the course of and as a part of the solicitor’s practice;

(h) a person, on the person’s own account, in respect of the person’s real estate, where such trade did not result from,

(i) an offer of such person to act, in connection with such trade or any other trade, for or on behalf of the other party or one of the other parties to the trade, or

(ii) a request that such person act, in connection with such trade or any other trade, for or on behalf of the other party or one of the other parties to the trade,

and the interest of such person in the real estate was acquired prior to such offer or request;

(i) a person in respect of the provision for another, for remuneration other than by commission, of all consultations, undertakings and services necessary to arrange for the routing of a right of way including the acquisition of land or interests in land for the purpose, and the person’s employees engaged in the project; or

(j) a person specifically exempted by the regulations in respect of any class of trades in real estate. R.S.O. 1990, c. R.4, s. 5; 2001, c. 9, Sched. D, s. 14.

Registration of agencies

6. (1) An applicant is entitled to registration or renewal of registration by the Registrar except where,

(a) having regard to the applicant’s financial position, the applicant cannot reasonably be expected to be financially responsible in the conduct of business; or

(b) the past conduct of the applicant affords reasonable grounds for belief that the applicant will not carry on business in accordance with law and with integrity and honesty; or

(c) the applicant is a corporation and,

(i) having regard to its financial position, it cannot reasonably be expected to be financially responsible in the conduct of its business, or

(ii) the past conduct of its officers or directors affords reasonable grounds for belief that its business will not be carried on in accordance with law and with integrity and honesty; or

(d) the applicant is carrying on activities that are, or will be, if the applicant is registered, in contravention of this Act or the regulations. R.S.O. 1990, c. R.4, s. 6 (1).

Conditions of registration

(2) A registration is subject to such terms and conditions to give effect to the purposes of this Act as are consented to by the applicant, imposed by the Tribunal or prescribed by the regulations. R.S.O. 1990, c. R.4, s. 6 (2).

Registration of broker corporation

7. (1) A corporation having share capital shall not be registered as a broker,

(a) unless the persons holding shares carrying at least 51 per cent of the voting rights attached to all shares of the corporation for the time being outstanding are registered brokers, but this clause does not apply to a corporation that is a trust corporation registered under the Loan and Trust Corporations Act;

(b) if any broker holding voting shares of the corporation acts as broker in respect of any other business registered as a broker or holds voting shares in any other corporation registered as a broker, but this clause does not apply to the holding of voting shares of a corporation that is a trust corporation registered under the Loan and Trust Corporations Act where the shares held do not give the holder a substantial interest; or

(c) if a salesperson holds shares of the corporation carrying more than 10 per cent of the voting rights attached to all shares of the corporation for the time being outstanding. R.S.O. 1990, c. R.4, s. 7 (1).

Exception

(2)...

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