Bill 152, Real Estate and Business Brokers Act, 2001

[37] Bill 152 Original (PDF)

Bill 152 2001

An Act to revise
the Real Estate and Business
Brokers Act and to amend
other Acts administered by
the same Ministry

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definitions

Definitions

1. (1) In this Act,

"administrative authority" has the same meaning as in the Safety and Consumer Statutes Administration Act, 1996; ("organisme d'application")

"broker" means an individual who has the prescribed qualifications to be registered as a broker under this Act and who is employed by a brokerage to trade in real estate; ("courtier")

"brokerage" means a corporation, partnership, sole proprietor, association or any other organization or entity that, on behalf of others, for compensation or reward or the expectation of such, trades in real estate or holds himself, herself or itself out as such; ("maison de courtage")

"business" means an undertaking carried on for gain or profit and includes any interest in such undertaking; ("commerce")

"employ" means to employ, appoint, authorize or otherwise arrange to have another person act on one's behalf, including as an independent contractor; ("employer")

"equity share" means a share of a class of shares that carries a voting right either under all circumstances or under circumstances that have occurred and are continuing; ("action participante")

"Minister" means the Minister of Consumer and Business Services or such other member of the Executive Council to whom administration for this Act is assigned under the Executive Council Act; ("ministre")

"officer" includes the chair and vice-chair of the board of directors, the president and vice-president, the secretary and assistant secretary, the treasurer and assistant treasurer and the general manager or assistant general manager of the corporation or a partner or general manager or assistant general manager of a partnership, any other individual designated as an officer by by-law or resolution or any other individual who performs functions for the corporation normally performed by an individual occupying such office and the manager of the real estate department of a trust corporation; ("dirigeant")

"prescribed" means prescribed by regulations made under this Act; ("prescrit")

"real estate" includes leasehold interests and businesses, whether with or without premises, and fixtures, stock-in-trade and goods connected with the operation of a business; ("bien immeuble")

"registrant" means a brokerage that is registered under this Act or a broker or salesperson who is registered under this Act; ("personne inscrite")

"salesperson" means an individual who has the prescribed qualifications to be registered as a salesperson under this Act and who is employed by a brokerage to trade in real estate and includes an independent contractor; ("agent immobilier")

"trade" includes a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for purchase and sale, exchange, option, lease, rental or otherwise and any offer or attempt to list real estate for the purpose of such a disposition, acquisition 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", "mener des opérations")

"Tribunal" means the Licence Appeal Tribunal established under the Licence Appeal Tribunal Act, 1999 or such other tribunal as may be prescribed. ("Tribunal")

Associated shareholders

(2) For purposes of this Act, one shareholder is associated with another shareholder in any of the following circumstances:

1. One shareholder is a company of which the other shareholder is an officer or director.

2. One shareholder is a partnership of which the other shareholder is a partner.

3. One shareholder is a company that is controlled directly or indirectly by the other shareholder.

4. Both shareholders are companies and one shareholder is controlled directly or indirectly by the same person that controls directly or indirectly the other shareholder.

5. Both shareholders are members of a voting trust where the trust relates to shares of a corporation.

6. Both shareholders are associated within the meaning of paragraphs 1 to 5 with another person.

Officers

Director

2. (1) Subject to subsection (2), a director shall be appointed for the purposes of this Act and a maximum of two deputy directors may be appointed,

(a) by the board of the administrative authority designated under the Safety and Consumer Statutes Administration Act, 1996; or

(b) by the Minister if no administrative authority is so designated.

Director cannot be registrar

(2) A person appointed as the registrar or a deputy registrar under subsection 3 (1) shall not be appointed as the director or a deputy director under subsection (1).

Deputy director, duties

(3) A deputy director shall perform such duties as are assigned by the director and shall act as director in his or her absence.

Deputy director

(4) Where more than one deputy director has been appointed, only one deputy director may act as the director under subsection (3) at any one time.

Registrar

3. (1) Subject to subsection (2), a registrar shall be appointed for the purposes of this Act and a maximum of two deputy registrars may be appointed,

(a) by the board of the administrative authority designated under the Safety and Consumer Statutes Administration Act, 1996; or

(b) by the deputy minister to the Minister if no administrative authority is so designated.

Registrar cannot be director

(2) A person appointed as the director or a deputy director under subsection 2 (1) shall not be appointed as the registrar or a deputy registrar under subsection (1).

Powers and duties

(3) The registrar shall exercise the powers and perform the duties imposed on him or her under this Act under the supervision of the director and a deputy registrar shall perform such duties as are assigned by the registrar and shall act as the registrar in the registrar's absence.

Deputy registrar

(4) Where more than one deputy registrar has been appointed, only one deputy registrar may act as the registrar under subsection (3) at any one time.

Prohibitions
re: Practice

Prohibition against trade in real estate unless registered

4. (1) No person shall,

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

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

(c) trade in real estate as a salesperson unless he or she is registered as a salesperson of a brokerage.

Unregistered persons

(2) A person who is not registered as a brokerage, broker or salesperson shall not,

(a) directly or indirectly hold himself, herself or itself out as being a brokerage, broker or salesperson, respectively; or

(b) perform any of the functions of a brokerage, broker or salesperson as provided in this Act.

Change in partnership

(3) A change in the membership of a partnership shall be deemed to create a new partnership for the purpose of registration.

Change in corporation

(4) A change in the officers or directors of a corporation registered as a brokerage may be made only with the consent of the registrar.

Exemptions

5. Despite section 4, 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 and Insolvency Act (Canada), the Corporations Act, the Business Corporations Act, the Courts of Justice Act, the Winding-up and Restructuring Act (Canada), or 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, and subject to such conditions as may be prescribed;

(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 authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), a credit union as defined in the Credit Unions and Caisses Populaires Act, 1994 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 of that Act;

(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 dominant purpose for which the solicitor is engaged by his or her client is the provision of legal services to the client and the trade in real estate is incidental to and directly arising from the provision of such legal services;

(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;

(j) a person who trades in real estate solely for the purpose of arranging leases to which the Tenant Protection Act, 1997 applies; or

(k) such persons or classes of persons that are prescribed as exempt from registration in respect of any class of trades in real estate.

Notification of registration required

6. Subject to subsection 14 (8), no brokerage, broker or salesperson shall trade in real estate until notified in writing by the registrar that the brokerage, broker or salesperson, as the case may be, is registered.

Prohibition against multiple offices unless registered

7. (1) No brokerage shall conduct a business of trading in real estate from more than one place to which the public is invited unless the brokerage is registered in respect of each place, one of which shall be designated as the main office and the remainder as branch offices.

Branch offices

(2) Every branch office of a brokerage shall be under the supervision of a broker and each such office having more than one salesperson shall be under the direct management of a broker or of a salesperson who has been registered for at least two years and who is under the supervision of a broker.

Specialist certification

8. (1) No registrant shall hold himself, herself or itself out as a specialist in trading in any type of real estate unless,

(a) the trading in that type of real estate is prescribed as an area of specialization; and

(b) the registrant is certified as a specialist in trading in that area of specialization in accordance with the regulations.

Brokerage categories

(2) A regulation under this section may differentiate among brokerages and between brokerages and brokers and salespersons and may provide that brokerages that are corporations may not be certified as specialists.

Registration a requirement to bring action

9. No action shall be brought for commission or other remuneration for services in connection with a trade in real estate unless at the time of rendering the services the person bringing the action was registered or exempt from registration under this Act and the court may stay any such action upon motion.

Registration

Registration

10. (1) An applicant is entitled to registration or renewal of registration by the registrar unless the applicant is carrying on activities that are, or will be if the applicant is registered, in contravention of this Act or the regulations or unless,

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

(b) the past conduct of the applicant or of an interested person in respect 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;

(c) the applicant or an employee or agent of the applicant makes a false statement or provides a false statement in an application for registration or for renewal of registration; or

(d) the applicant is a corporation and,

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

(ii) having regard to the financial position of its officers or directors, the applicant cannot reasonably be expected to be financially responsible in the conduct of its business,

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

(iv) an officer or director of the corporation makes a false statement or provides a false statement in an application for registration or for renewal of registration.

Conditions

(2) A registration is subject to such conditions as are consented to by the applicant or registrant, as are applied by the registrar under section 13, as are ordered by the Tribunal or as are prescribed.

Interested person

(3) For the purposes of this section, a person shall be deemed to be an interested person in respect of another person if, in the opinion of the registrar, the person exercises or may exercise control either directly or indirectly over the other person.

Registration of brokerage

11. When it registers and on each renewal of its registration, a brokerage that is a corporation shall disclose to the registrar the identity of any shareholders or any associated shareholders that hold 10 per cent or more of the equity shares issued and outstanding at the time of the registration or the renewal of registration, as the case may be.

Broker of record

12. (1) Every brokerage shall,

(a) designate a broker who is employed by the brokerage as the broker of record and notify the registrar of his or her identity; and

(b) notify the registrar if the broker of record changes, within five days of the change.

Duties

(2) The broker of record shall ensure that the brokerage complies with this Act and the regulations.

Sole proprietor

(3) Where a brokerage is a sole proprietorship, it shall designate the sole proprietor as the broker of record even though other brokers may be employed by the brokerage.

Refusal to register or renew, suspension, etc.

13. (1) Subject to section 14, the registrar may refuse to register an applicant or may suspend or revoke a registration or refuse to renew a registration if, in his or her opinion, the applicant or registrant is not eligible for registration under section 10 or the registrant is in breach of a condition of the registration.

Conditions

(2) Subject to section 14, the registrar may,

(a) approve the registration or renewal of a registration on such conditions as he or she considers appropriate; and

(b) at any time apply to a registration such conditions as he or she considers appropriate.

Notice re: refusal, suspension, etc.

14. (1) The registrar shall notify an applicant or registrant in writing if he or she proposes to,

(a) refuse to grant or renew a registration;

(b) suspend or revoke a registration; or

(c) apply conditions to a registration or renewal and the conditions have not been consented to by the applicant or registrant.

Content of notice

(2) The notice of proposal shall set out the reasons for the proposed action and shall state that the applicant or registrant is entitled to a hearing by the Tribunal if the applicant or registrant mails or delivers, within 15 days after service of the notice, a written request for a hearing to the registrar and to the Tribunal.

Service

(3) The notice of proposal shall be served on the applicant or registrant in accordance with section 44.

Where no request for hearing

(4) If an applicant or registrant does not request a hearing in accordance with subsection (2), the registrar may carry out the proposal.

Hearing

(5) If a hearing is requested, the Tribunal shall hold the hearing and may by order direct the registrar to carry out the registrar's proposal or substitute its opinion for that of the registrar and may attach conditions to its order or to a registration.

Parties

(6) The registrar, the applicant or registrant and such other persons as the Tribunal may specify are parties to the proceedings under this section.

Voluntary cancellation

(7) The registrar may cancel a registration upon the request in writing of the registrant and this section does not apply to the cancellation.

Continuation pending renewal

(8) If, within the time prescribed or, if no time is prescribed, before the expiry of the registrant's registration, the registrant has applied for renewal of a registration and paid the required fee, the registration shall be deemed to continue,

(a) until the renewal is granted; or

(b) if the registrant is served notice that the registrar proposes to refuse to grant the renewal, until the time for requesting a hearing has expired or, if a hearing is requested, until the Tribunal makes its order.

Immediate effect

(9) Even if a registrant appeals an order of the Tribunal under section 11 of the Licence Appeal Tribunal Act, 1999, the order takes effect immediately but the Tribunal may grant a stay until the disposition of the appeal.

Immediate suspension

15. (1) If the registrar proposes to suspend or revoke a registration under section 14 and if the registrar considers it in the public interest to do so, the registrar may by order temporarily suspend the registration.

Timing

(2) The order under subsection (1) takes effect immediately and, if a hearing is requested under section 14, the order expires 15 days after the written request for a hearing is received by the Tribunal but if a hearing is commenced within the 15-day period, the Tribunal may extend the time of expiration until the hearing is concluded.

Service rules for hearing request

16. (1) A request for a hearing under sections 14 and 15 is sufficiently served if delivered personally or sent by registered mail to the registrar and to the Tribunal.

Same

(2) If service is made by registered mail, it shall be deemed to be made on the third day after the day of mailing.

Other methods

(3) Despite this section, the Tribunal may order any other method of service.

Further application

17. A person whose registration is refused, revoked or refused renewal may reapply for registration only if,

(a) the time prescribed to reapply has passed since the refusal, revocation or refusal to renew; and

(b) new or other evidence is available or it is clear that material circumstances have changed.

Notice of transfer of shares

18. (1) In addition to disclosure under section 11, every brokerage that is a corporation shall notify the registrar in writing within 30 days after the issue or the entry of the transfer of any shares of its capital stock where such issue or transfer results in any one shareholder or any associated shareholders,

(a) acquiring or accumulating 10 per cent or more of the total number of all issued and outstanding
equity shares of such stock; or

(b) increasing such holding, if the shareholder or associated shareholders already own 10 per cent or more of the total number of all issued and outstanding equity shares of such stock.

Same

(2) Despite subsection (1), where a registrant that is a corporation becomes aware of a transfer that otherwise falls into subsection (1) after the transfer has taken place, it shall notify the registrar in writing within 30 days after such knowledge came to the attention of its officers or directors.

Calculation of total number of equity shares

(3) In calculating the total number of equity shares of the corporation beneficially owned or controlled for the purpose of this section, the total number shall be calculated as the total of all the shares actually owned or controlled, but each share that carries the right to more than one vote shall be calculated as the number of shares equalling the total number of votes it carries.

Complaints, Inspection and Discipline

Complaints

19. (1) If the registrar receives a complaint about a registrant and requests in writing that information be provided by the registrant in relation to the complaint, the registrant shall promptly provide the relevant information.

Request

(2) The request shall indicate the nature of the complaint.

Procedures

(3) In handling complaints, the registrar may, in accordance with the information received, do any of the following, as appropriate:

1. Give the registrant a written warning that if the registrant continues with the activity that lead to the complaint, action may be taken against the registrant.

2. Require the broker or salesperson to take further educational courses.

3. Refer the matter, in whole or in part, to the discipline committee.

4. Take an action under section 13, subject to section 14.

5. Subject to section 14, take further action as he or she considers appropriate.

Inspection

20. (1) The registrar or any person designated in writing by him or her may at any reasonable time enter upon and inspect the business premises of a registrant, other than any part of the premises used as a dwelling, for the purpose of,

(a) ensuring that this Act and the regulations are being complied with; or

(b) dealing with a complaint under section 19.

Powers on inspection

(2) The person carrying out an inspection,

(a) is entitled to free access to all money, valuables, documents and records of the person being inspected that are relevant to the inspection;

(b) may use any data storage, processing or retrieval device or system used in carrying on business in the place in order to produce a document or record in readable form; and

(c) may, upon giving a receipt for them, remove any documents or records in order to make copies but shall promptly return them to the person being inspected.

Identification

(3) A person conducting an inspection shall produce, on request, evidence of his or her authority.

Assistance to be given

(4) An inspector may, in the course of an inspection, require a person to produce a document or record and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce a document or record in readable form and the person shall produce the document or record or provide the assistance.

Obstruction prohibited

(5) No person shall obstruct an inspector conducting an inspection or withhold from him or her or conceal or destroy any money, valuables, documents or records relevant to the inspection.

Admissibility of copies

(6) A copy of a document or record certified by an inspector as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Inspection re: unregistered persons

(7) If the registrar has reasonable grounds to believe that any person is acting as a brokerage, broker or salesperson while unregistered, an inspector appointed by the registrar may at any reasonable time enter the person's business premises, excluding any portion used as a dwelling, to make an inspection to determine whether or not the person is in contravention of section 4 or 7.

Inspection powers, etc.

(8) Subsections 22 (2), (3) and (5) to (14) apply with necessary modifications to the inspector and to an inspection under subsection (7) in the same way they apply to an investigator and an investigation under that section except that the results of the inspection shall be reported to the registrar.

Discipline proceedings

21. (1) A discipline committee shall be established to hear and determine, in accordance with the prescribed procedures, if a registrant has failed to comply with the code of ethics established by the Minister.

Appeals committee

(2) An appeals committee shall be established to consider, in accordance with the prescribed procedures, appeals from the discipline committee.

Composition

(3) The composition and manner of appointment of the members of the discipline committee and appeals committee shall be as prescribed.

Result of a determination

(4) If the discipline committee makes a determination under subsection (1) that a registrant has failed to comply with the code of ethics, it may order any of the following as appropriate:

1. Require the broker or salesperson to take further educational courses.

2. Despite subsection 12 (1) of the Safety and Consumer Statutes Administration Act, 1996, impose such fine as the committee considers appropriate, to a maximum of $25,000, or such lesser amount as is prescribed, to be paid by the registrant to the designated administrative authority or to the Minister of Finance if no administrative authority has been designated.

3. Suspend or postpone the imposition of a penalty for such period and upon such terms as the committee designates.

4. Fix and impose costs to be paid by the registrant to the designated administrative authority or to the Minister of Finance if no administrative authority has been designated.

Appeal

(5) A party to the discipline proceeding may appeal the decision of the discipline committee to the appeals committee.

Payment of fine

(6) If a fine is imposed under subsection (4), the registrant shall pay the fine within the period specified by the discipline committee or, where there has been an appeal, by the appeals committee, and where no period has been specified, within 60 days after the fine has been imposed.

Public access

(7) Decisions of the discipline committee and the appeals committee shall be made available to the public in such manner as may be prescribed.

Investigation by director

22. (1) The director may appoint one or more investigators to conduct an investigation if the director believes on reasonable grounds, on the basis of a statement made under oath, that any person has,

(a) contravened this Act or the regulations; or

(b) committed an offence under the Criminal Code (Canada) or under the law of any jurisdiction that is relevant to the person's fitness for registration under this Act.

Role of investigator

(2) The investigator shall determine whether a contravention of this Act or the regulations has occurred or the commission of an offence has occurred and shall report the result of the investigation to the director.

Powers

(3) For purposes relevant to the investigation, the investigator may inquire into and examine the money, valuables, documents, records and other things of the person in respect of whom the investigation is being made and may,

(a) upon producing his or her appointment, enter at any reasonable time the business premises of the person, excluding any part of the premises used as a dwelling, and examine money, valuables, documents, records and other things relevant to the investigation;

(b) use any data storage, processing or retrieval device or system used in carrying on business in order to produce a document or record in readable form;

(c) inquire into negotiations, transactions, loans and borrowings made by or on behalf of or in relation to the person and into property or things acquired or disposed of by the person or anyone acting on the person's behalf that are relevant to the investigation.

Same

(4) For the purposes of this section, the investigator has the powers of a commission under Part II of the Public Inquiries Act, which Part applies to the investigation as if it were an inquiry under that Act.

Obstruction

(5) No person shall obstruct an investigator carrying out an investigation under this section or withhold from him or her or conceal or destroy any money, valuables, documents, records or other things relevant to the investigation.

Assistance

(6) An investigator may, in the course of an investigation, require a person to produce a document or record and to provide whatever assistance is reasonably necessary, including using any data storage, processing or retrieval device or system to produce a document or record in readable form and the person shall produce the document or record or provide the assistance.

Search warrant

(7) Upon application made without notice by the investigator, a justice of the peace may issue a warrant authorizing the investigator named in the warrant to enter premises specified in the warrant and to exercise any of the powers specified in subsection (3), if the justice of the peace is satisfied on information under oath that there is reasonable ground for believing there are in any building, dwelling, receptacle or place any money, valuables, documents, records or other things relating to the subject-matter of the investigation.

Attempted entry not necessary

(8) The warrant may be issued whether or not an entry has been made under clause (3) (a).

Time of execution

(9) An entry under a warrant issued under subsection (7) shall be made between 6 a.m. and 9 p.m, unless the warrant specifies otherwise.

Expiry of warrant

(10) A warrant issued under this section shall name a date of expiry, which shall be no later than 30 days after the warrant is issued but a justice of the peace may extend the date of expiry for an additional period of no more than 30 days, upon application without notice by the investigator named in the warrant.

Use of force

(11) The investigator named in the warrant may call upon police officers for assistance in executing the warrant and, when police officers are present to provide assistance, the investigator may use whatever force is necessary to execute the warrant.

Removal of things

(12) An investigator carrying out an investigation may, upon giving a receipt for it, remove for review and copying a document, record or other thing relevant to the investigation, including removing any data storage disk or other retrieval device in order to produce a document or record in readable form, but the investigator shall return the item within a reasonable time.

Admissibility

(13) A copy of a document or record certified by an investigator as being a true copy of the original is admissible in evidence to the same extent as the original and has the same evidentiary value.

Experts

(14) The director may appoint an expert,

(a) to examine valuables, documents, records or other things obtained under this section; or

(b) to provide assistance in producing a document or record in readable form from any data storage, processing or retrieval device or system.

Freeze order

23. (1) If the conditions in subsection (2) are met, the director may in writing,

(a) order any person having on deposit or controlling any assets or trust funds of a registrant or former registrant to hold those funds or assets;

(b) order a registrant or former registrant to refrain from withdrawing any asset or trust fund from a person having them on deposit or controlling them; or

(c) order a registrant or former registrant to hold any asset or trust fund of a client, customer or other person in trust for the person entitled to it.

Conditions

(2) The director may make an order under subsection (1) if he or she believes that it is advisable for the protection of the clients or customers of a registrant or former registrant and,

(a) an investigation of the registrant or former registrant has been undertaken under section 22; or

(b) criminal proceedings or proceedings in relation to a contravention of any Act or regulation are about to be or have been instituted against the registrant or former registrant in connection with or arising out of the business in respect of which the registrant or former registrant is or was registered.

Limitation

(3) In the case of a bank, loan or trust corporation, the order under subsection (1) applies only to the offices and branches named in the order.

Release of assets

(4) The director may consent to the release of any particular asset or trust fund from the order or may wholly revoke the order.

Exception

(5) Subsection (1) does not apply if the registrant or former registrant files with the director, in such manner and amount as the director determines,

(a) a personal bond accompanied by collateral security;

(b) a bond of an insurer licensed under the Insurance Act to write surety and fidelity insurance; or

(c) a bond of a guarantor accompanied by collateral security.

Application to court

(6) An application may be made to the Superior Court of Justice for a determination in respect of the disposition of any asset or trust fund,

(a) by a person in receipt of an order under subsection (1), if that person is in doubt as to whether the order applies to any asset or trust fund; or

(b) by a person who claims an interest in any asset or trust fund subject to the order.

Notice

(7) If an order is made, the director may register in the appropriate land registry office a notice that an investigation under clause (2) (a) has been undertaken or proceedings under clause (2) (b) have been or are about to be instituted and that the investigation or proceedings may affect land belonging to the person referred to in the notice, and the notice has the same effect as the registration of a certificate of pending litigation, except that the director may in writing revoke or modify the notice.

Cancellation or discharge application

(8) A registrant or former registrant in respect of which an order has been made under subsection (1) or any person having an interest in land in respect of which a notice has been registered under subsection (7) may apply to the Tribunal for cancellation in whole or in part of the order or for discharge in whole or in part of the registration.

Disposition by Tribunal

(9) The Tribunal shall dispose of the application after a hearing and may, if it finds that an order or registration is not required in whole or in part for the protection of clients or customers of the applicant or of other persons having an interest in the land or that the interests of other persons are unduly prejudiced thereby, cancel the order or discharge the registration in whole or in part.

Parties

(10) The applicant, the director and such other persons as the Tribunal may specify are parties to the proceedings before the Tribunal.

Court application

(11) If the director has made an order under subsection (1) or registered a notice under subsection (7), he or she may apply to the Superior Court of Justice which may give directions or make an order as to the disposition of assets, trust funds or land affected by the order or notice.

Notice not required

(12) An application by the director under this section may be made without notice to any other person.

Conduct

Duty of brokerage

24. A brokerage shall ensure that every salesperson and broker that the brokerage employs is carrying out their duties in compliance with this Act and the regulations.

Duty of brokers and salespersons

25. Where a broker or salesperson believes that the brokerage that employs him or her or any person who is employed by the same brokerage that employs him or her is acting or has acted in contravention of this Act or the regulations, the broker or salesperson shall promptly inform that brokerage or the registrar.

Trust account

26. (1) Every brokerage shall maintain in Ontario an account designated as a trust account in a bank or authorized foreign bank within the meaning of section 2 of the Bank Act (Canada), loan or trust corporation, credit union, as defined in the Credit Unions and Caisses Populaires Act, 1994 or Province of Ontario Savings Office in which shall be deposited all money that comes into the brokerage's hands in trust for other persons in connection with the brokerage's business, and shall at all times keep the money separate and apart from money belonging to the brokerage and shall disburse the money only in accordance with the terms of the trust.

Disclosure

(2) Brokerages shall fully and clearly disclose in writing to a person depositing trust money the terms on which the brokerage deposits the money, including whether the money is deposited in an interest bearing account and the interest rate that the brokerage receives on the money.

Interest

(3) Unless otherwise provided by contract, all interest on the trust money referred to in subsection (1) shall be paid to the beneficial owner of the trust money.

Entitlement unclear

(4) If a brokerage holds money in trust for a period of two years and entitlement to the money has not been determined or is unclear, the brokerage shall pay the money to,

(a) the administrative authority designated under the Safety and Consumer Statutes Administration Act, 1996 in respect of the administration of this section; or

(b) if no administrative authority is so designated, the Minister of Finance.

Unclaimed trust money

(5) If a brokerage holds money in trust for a period of one year after the person for whom it is held first became entitled to payment of the money and the person cannot be located, the brokerage shall pay the money to,

(a) the administrative authority designated under the Safety and Consumer Statutes Administration Act, 1996 in respect of the administration of this section; or

(b) if no administrative authority is so designated, the Minister of Finance.

Attempt to locate person entitled to payment of money

(6) Before the brokerage pays the money under subsection (5), the brokerage shall use reasonable efforts to locate the person entitled to the money being held in trust.

Information on entitlement

(7) When a brokerage pays money over under subsection (4) or (5), the brokerage shall provide to the administrative authority or to the Minister of Finance, as the case may be, as much information as the brokerage has in order to determine who is entitled to the trust money.

Money held in trust

(8) An administrative authority that has been paid money under clause (4) (a) or (5) (a) shall hold the money in trust until the money is claimed by the person who is entitled to it or the money is transferred to the Minister of Finance under subsection (11).

Use of interest

(9) Where money has been paid to an administrative authority under clause (4) (a) or (5) (a), the administrative authority shall allocate any interest that is earned after the administrative authority has received the money to a separate account and may use the money from that account only to cover the costs of administering the trust fund and processing claims for the recovery of money held in trust.

Same

(10) Where money to which clause (4) (a) or (5) (a) applies is held in an interest bearing account and the money is paid to an administrative authority, the administrative authority shall treat the money that is paid as a capital amount, and for purposes of subsection (9), interest shall be deemed not to be earned on the money until after the administrative authority has received it.

Unclaimed trust money to Minister of Finance

(11) If an administrative authority holds money that has been paid under clause (4) (a) or (5) (a) for a period of five years, the administrative authority shall pay the money to the Minister of Finance within one year after it has been held for the five-year period.

Attempt to locate person entitled to money

(12) The Minister of Consumer and Business Services or the administrative authority, as the case may be, shall use reasonable efforts to locate the person entitled to the money paid under subsection (5).

Rights preserved

(13) The payment of money held in trust to the Minister of Finance or the administrative authority is made without any prejudice to the rights of any person to claim entitlement to the trust money.

Payment

(14) The Minister of Finance or the administrative authority that receives money under subsection (4) or (5) shall pay it to the person entitled to the money.

Transition

(15) If a person who was registered as a broker under the Real Estate and Business Brokers Act immediately before that Act is repealed is holding money to which subsection (4) or (5) would apply if they were in force for the period specified in the subsection or for a longer period immediately before this section is proclaimed into force, within one year after this section has come into force, the person deemed to be a brokerage under subsection 48 (2) shall pay the money to,

(a) the administrative authority designated under the Safety and Consumer Statutes Administration Act, 1996 in respect of the administration of this section; or

(b) if no administrative authority is so designated, the Minister of Finance.

Notice of changes to registrar

27. (1) Every brokerage shall, within five days after the event, notify the registrar in writing of,

(a) any change in address for service;

(b) in the case of a corporation or partnership, any change in the officers or directors; or

(c) the commencement or termination of the employment of a broker or salesperson and the date of the commencement or termination.

Same

(2) Every broker or salesperson shall, within five days after the event, notify the registrar in writing of,

(a) any change in address for service; or

(b) the commencement or termination of his or her employment by a brokerage and the date of the commencement or termination.

Timing

(3) The registrar shall be deemed to have been notified on the day on which he or she is actually notified or, where the notification is by mail, on the day of mailing.

Financial statements

(4) Every brokerage shall, when required by the registrar with the approval of the director, file a financial statement showing the matters specified by the registrar and signed by the broker of record and certified by a person licensed under the Public Accountancy Act.

Confidential

(5) The information contained in a financial statement filed under subsection (4) is confidential and no person shall otherwise than in the ordinary course of the person's duties communicate any such information or allow access to the financial statement.

Carrying on business as sole proprietor

28. (1) A brokerage carrying on business alone through an individual broker shall carry on business in the name of the broker and shall not use any description or device that would indicate that the brokerage's business is being carried on by more than one person or by a corporation.

Exception

(2) Despite subsection (1), a surviving or remaining partner may carry on business in the name of the original partnership if the surviving or remaining partner publishes on all letterhead, circulars and advertisements used in connection with the business the fact that the surviving or remaining partner is the sole proprietor.

Restrictions re: employees

29. (1) No brokerage shall,

(a) employ another brokerage's broker or salesperson to trade in real estate or permit such broker or salesperson to act on the brokerage's behalf;

(b) employ an unregistered person to trade in real estate or permit such person to act on the brokerage's behalf; or

(c) pay any commission or other remuneration to a person referred to in clause (a) or (b).

Exception

(2) This section does not prevent the employment or engagement of or payment to a person who is registered or licensed as a brokerage or broker or its equivalent in another jurisdiction in respect of a trade in that jurisdiction.

Restriction re: brokers and salespersons

30. (1) No broker or salesperson shall trade in real estate on behalf of any brokerage other than the brokerage which employs the broker or salesperson.

Same

(2) No broker or salesperson is entitled to or shall accept any commission or other remuneration for trading in real estate from any person except the brokerage which employs the broker or salesperson.

Statement respecting interest

31. (1) No registrant shall purchase, lease, exchange or otherwise acquire for himself, herself or itself, any interest in real estate or make an offer to do so, either directly or indirectly, unless the registrant first delivers to the vendor a written statement that he, she or it is a brokerage, broker or salesperson, as the case may be, and the vendor has acknowledged in writing that the vendor has received the statement.

Details where property listed

(2) Where real estate in respect of which a registrant is required to give a statement under subsection (1) is listed with the brokerage or, in the case of a broker or salesperson, is listed with the brokerage by which the broker or salesperson is employed, the statement shall include,

(a) full disclosure of all facts within the registrant's knowledge that affect or will affect the value of the real estate; and

(b) the particulars of any negotiation or agreement by or on behalf of the registrant for the sale, exchange, lease or other disposition of any interest in the real estate to any other person.

Prohibition re: breaking contract

32. (1) No registrant shall induce any party to an agreement for purchase and sale or an agreement for rental of real estate to break the agreement for the purpose of entering into another such agreement.

Date of signing

(2) Every salesperson and broker shall make all reasonable efforts to ensure that a person signing an agreement in respect of a trade in real estate sets out the date upon which the signature was affixed.

Commission

(3) Unless agreed to in writing by the vendor, no brokerage is entitled to claim commission or other remuneration from the vendor in respect of a trade in real estate if the real estate is, to the knowledge of the brokerage, covered by an unexpired listing agreement with another brokerage.

False information

33. No registrant shall falsify, assist in falsifying or induce or counsel another person to falsify or assist in falsifying any information or document relating to a trade in real estate.

Furnishing false information

34. No registrant shall furnish, assist in furnishing or induce or counsel another person to furnish or assist in furnishing any false or deceptive information or documents relating to a trade in real estate.

Commission and remuneration, scale

35. (1) All commission or other remuneration payable to a brokerage in respect of a trade in real estate shall be either an agreed amount or percentage of the sale price or rental price, as the case may be, but not both and, where there is no agreement as to the amount of the commission, the rate of commission or other remuneration or other basis or amount of remuneration shall be that generally prevailing in the community where the real estate is located.

Same

(2) Where the commission payable in respect of a trade in real estate is expressed as a percentage of the sale price or rental price, the percentage does not have to be fixed but may be expressed as a series of percentages that decrease at specified amounts as the sale price or rental price increases.

Same

(3) No registrant shall request or enter into an arrangement for the payment of a commission or any other remuneration based on the difference between the price at which real estate is listed for sale or rental and the actual sale price or rental price, as the case may be, of the real estate, nor is a registrant entitled to retain any commission or other remuneration computed upon any such basis.

False advertising

36. No registrant shall make false, misleading or deceptive statements in any advertisement, circular, pamphlet or material published by any means relating to trading in real estate.

Order of registrar re: false advertising

37. (1) Where the registrar believes on reasonable grounds that a registrant is making a false, misleading or deceptive statement in any advertisement, circular, pamphlet or material published by any means, the registrar may,

(a) order the cessation of the use of such material;

(b) order the registrant to retract the statement or publish a correction of equal prominence to the original publication; or

(c) order both a cessation described in clause (a) and a retraction or correction described in clause (b).

Procedures

(2) Section 14 applies with necessary modifications to an order under this section in the same manner as to a proposal by the registrar to refuse a registration.

Effect

(3) The order of the registrar shall take effect immediately, but the Tribunal may grant a stay until the registrar's order becomes final.

Pre-approval

(4) If the registrant does not appeal an order under this section or if the order or a variation of it is upheld by the Tribunal, the registrant shall, upon the request of the registrar, submit all statements in any advertisement, circular, pamphlet or material to be published by any means to the registrar for approval before publication for such period as may be prescribed.

Restraining orders

38. (1) If it appears to the director that a person is not complying with this Act or the regulations or an order made under this Act, despite the imposition of any penalty in respect of such non-compliance and despite any other rights the person may have, the director may apply to the Superior Court of Justice for an order directing that person to comply, and the court may make such order or such other order as the court thinks fit.

Appeal

(2) An appeal lies to the Divisional Court from an order made under subsection (1).

Offence

39. (1) A person is guilty of an offence who,

(a) furnishes false information in any application under this Act or in any statement or return required under this Act;

(b) fails to comply with any order, other than an order issued under section 21, direction or other requirement under this Act; or

(c) contravenes or fails to comply with any section of this Act or the regulations made under the Act.

Brokerages

(2) An officer or director of a brokerage is guilty of an offence who fails to take reasonable care to prevent the brokerage from committing an offence mentioned in subsection (1).

Penalties

(3) An individual who is convicted of an offence under this Act is liable to a fine of not more than $50,000 or to imprisonment for a term of not more than two years less a day, or both, and a corporation that is convicted of an offence under this Act is liable to a fine of not more than $250,000.

Limitation

(4) No proceeding under subsection (1) shall be commenced more than two years after the facts upon which the proceeding is based first came to the knowledge of the director.

Orders for compensation, restitution

40. (1) If a person is convicted of an offence under this Act, the court making the conviction may, in addition to any other penalty, order the person convicted to pay compensation or make restitution.

Where insurance has paid

(2) If an order is made in a person's favour under subsection (1) and that person has already received compensation or restitution from an insurer, the person ordered to pay the compensation or make restitution shall deliver the amount to the insurer.

Default in payment of fines

41. (1) If a fine payable as a result of a conviction for an offence under this Act is in default for at least 60 days, the director may disclose to a consumer reporting agency the name of the defaulter, the amount of the fine and the date the fine went into default.

Where payment made

(2) Within 10 days after the director has knowledge of the payment in full of the fine, the director shall inform the consumer reporting agency.

Transition

(3) If a fine is payable as a result of a conviction under the Real Estate and Business Brokers Act, despite the repeal of that Act, the director may treat the fine as if it is payable as a result of a conviction under this Act, and subsections (1) and (2) apply to such a fine in like manner as they apply to a fine payable for a conviction under this Act.

Liens and charges

42. (1) If a fine payable as a result of a conviction for an offence under this Act is in default for at least 60 days, the director may by order create a lien against the property of the person who is liable to pay the fine.

Liens on personal property

(2) If the lien created by the director under subsection (1) relates to personal property,

(a) the Personal Property Security Act, except Part V, applies with necessary modifications to the lien, despite clause 4 (1) (a) of that Act;

(b) the lien shall be deemed to be a security interest that has attached for the purposes of the Personal Property Security Act; and

(c) the director may perfect the security interest referred to in clause (b) for the purposes of the Personal Property Security Act by the registration of a financing statement under that Act.

Liens and charges on real property

(3) If the lien created by the director under subsection (1) relates to real property, the director may register the lien against the property of the person liable to pay the fine in the proper land registry office and on registration, the obligation under the lien becomes a charge on the property.

Initiation of sale proceedings prohibited

(4) The director shall not initiate sale proceedings in respect of any real property against which he or she has registered a lien under subsection (3).

Discharge of lien

(5) Within 10 days after the director has knowledge of the payment in full of the fine, the director shall,

(a) discharge the registration of any financing statement registered under clause (2) (c); and

(b) register a discharge of a charge created on registration of a lien under subsection (3).

General

Matters confidential

43. (1) Every person exercising any power or carrying out any duties related to the administration of this Act and regulations shall preserve secrecy with respect to all matters that come to his, her or its knowledge in the course of exercising those powers or carrying out those duties except,

(a) as may be required in connection with the administration of this Act and the regulations, including any proceedings under this Act;

(b) to a ministry, department or agency of a government engaged in the administration of legislation similar to this Act or engaged in the administration of consumer protection legislation or to any other entity to which the administration of legislation similar to this Act or of consumer protection legislation has been assigned;

(c) to a law enforcement agency;

(d) to his or her counsel; or

(e) with the consent of the person to whom the information relates.

Testimony

(2) No person to whom subsection (1) applies shall be required to give testimony in any civil proceeding with regard to information obtained in the course of his or her duties under this Act except in a proceeding under this Act.

Service

44. (1) Any notice or order under this Act is sufficiently given or served if delivered personally or sent by registered mail.

Deemed service

(2) Where service is made by registered mail, the service shall be deemed to be made on the third day after the day of mailing unless the person on whom service is being made establishes that the person did not, acting in good faith, through absence, accident, illness or other cause beyond the person's control, receive the notice or order until a later date.

Exception

(3) Despite subsections (1) and (2), the Tribunal may order any other method of service in respect of any matter before it.

Fees

45. (1) The Minister may by order establish fees that are payable under this Act in respect of registration, renewal of registration, late filings and other administrative matters.

Exception

(2) Subsection (1) does not apply if an administrative authority has been designated under the Safety and Consumer Statutes Administration Act, 1996 in respect of the administration of this Act.

Certificate as evidence

46. For all purposes in any proceeding, a statement purporting to be certified by the director is, without proof of the office or signature of the director, admissible in evidence as proof in the absence of evidence to the contrary, of the facts stated therein in relation to,

(a) the registration or non-registration of any person;

(b) the filing or non-filing of any document or material required or permitted to be filed with the registrar;

(c) the time when the facts upon which the proceedings are based first came to the knowledge of the director; or

(d) any other matter pertaining to registration or non-registration of persons or to filing or non-filing of information.

List of registered persons

47. The registrar shall, in the prescribed form and manner and with the prescribed contents prepare, publish and circulate a list of all persons registered under this Act.

Transition

48. (1) Despite the repeal of the Real Estate and Business Brokers Act, any person who was registered as a broker or salesperson under that Act immediately before this Act is proclaimed into force shall be deemed to be registered as a broker or salesperson, as the case may be, under this Act until the person is required to renew their registration under this Act.

Same

(2) If a person was registered as a broker under the Real Estate and Business Brokers Act immediately before this Act is proclaimed into force and the person would be required to be registered as a brokerage under this Act, the person shall be deemed to be registered as a brokerage under this Act until the person is required to renew their registration under this Act.

Minister's regulations

49. (1) The Minister may make regulations,

(a) establishing a code of ethics for the purposes of subsection 21 (1);

(b) governing the jurisdiction and procedures of any committee established under this Act;

(c) in such areas relating to trading in real estate as may be prescribed by the Lieutenant Governor in Council.

Delegation

(2) Despite subsection 3 (4) of the Safety and Consumer Statutes Administration Act, 1996, the Minister may, in writing, delegate to the board of the designated administrative authority the power to make some or all of the regulations under this section, subject to the approval of the Minister.

Approval

(3) The Minister may approve or refuse to approve the regulations but approval shall not be given unless, in his or her opinion, they have been made in accordance with the consultation process and criteria set out in the administrative agreement described in subsection 4 (1) of the Safety and Consumer Statutes Administration Act, 1996.

Revocation, transition

(4) The Minister may, in writing, revoke the delegation under this section but the revocation does not result in the revocation of the regulations, which remain valid and may be amended or revoked by the Minister.

Conflicts

(5) If there is a conflict between a regulation made under this section and a regulation made by the Lieutenant Governor in Council under section 50, the latter prevails.

General or particular

(6) A regulation under this section may be general or particular in its application and may treat different classes of brokerages, brokers, salespersons or trades differently.

Lieutenant Governor in Council regulations

50. (1) The Lieutenant Governor in Council may make regulations,

(a) exempting any person or class of persons or class of trades from any provision of this Act or the regulations and attaching conditions to such exemptions;

(b) respecting applications for registration or renewal of registration and prescribing conditions of registration;

(c) prescribing educational requirements for registration and renewals of registration, establishing areas of specialization and prescribing different educational requirements for each area and establishing a certification process in respect of an area of specialization;

(d) governing specialization in respect of brokerages that are corporations;

(e) designating any entity as the authority to develop educational requirements and accredit institutions or programs to provide specialist certification;

(f) respecting financial security requirements for brokerages, brokers and salespersons, including requiring them to be bonded or insured or have collateral security, and prescribing the forfeiture of bonds, the disposition of proceeds and other terms related to the financial security requirements;

(g) where there is a requirement that brokerages, brokers or salespersons be insured, prescribing the minimum amount of insurance for which they must be insured and prescribing the insurers with which they must be insured;

(h) governing the documents, records and trust accounts that must be kept by brokerages, including the manner and location in which they are kept;

(i) prescribing the responsibilities of brokers of record, brokerages, brokers or salespersons;

(j) prescribing procedures and other matters related to complaints under section 19;

(k) respecting inspections under section 20 and investigations under section 22;

(l) governing the composition and manner of appointment of members of the discipline committee and appeals committee;

(m) respecting the manner in which and the frequency with which decisions of the discipline committee and appeals committee are made available to the public;

(n) varying the manner in which a notice under subsection 23 (7) or 42 (3) is registered as a result of technological or electronic changes in the filing of documents in the land registry office;

(o) prescribing information that must be provided to the registrar;

(p) requiring that any specified information be verified by affidavit;

(q) prescribing the form, manner and contents of the list of registrants that the registrar prepares and governing its distribution;

(r) governing the activities of registrants including,

(i) prescribing matters that must be disclosed and when they must be disclosed in the course of a trade in real estate, including matters related to any holdings in brokerages other than the brokerage by which they are employed, in the case of salespersons and brokers, or in other brokerages, in the case of brokerages and the conditions under which such disclosures may be required,

(ii) setting out the manner in which trust accounts are wound down when a brokerage's registration ends,

(iii) regulating advertising and representations or promises intended to induce the purchase, sale or exchange of real estate,

(iv) regulating listing agreements, representation agreements and specific types of representation agreements,

(v) prescribing conditions that must be met before commissions or other remuneration may be charged or collected,

(vi) prescribing statements that are to be provided in respect of any trade in real estate, the content of the statement, the manner in which the statement is to be provided, the circumstances under which a statement is not required and the consequences of failing to provide a statement,

(vii) setting out obligations of a brokerage, broker and salesperson that follow the acceptance of an offer to sell, purchase, exchange, lease or rent real estate;

(s) prescribing requirements that must be met for a salesperson, broker or brokerage to represent more than one party in a trade;

(t) prescribing subject areas in respect of which the Minister may make regulations under section 49;

(u) requiring that any information required under this Act be in a form approved by the director, the registrar or the Minister, as specified in the regulation;

(v) prescribing matters that must be disclosed by brokers and salespersons to the brokerages by which they are employed and to brokerages that are prospective employers and the conditions under which such disclosures are required;

(w) providing for any transitional matter necessary for the effective implementation of this Act or the regulations;

(x) prescribing anything in this Act that is referred to as being prescribed.

General or particular

(2) A regulation under this section may be general or particular in its application and may treat different classes of brokerages, brokers, salespersons or trades differently.

Repeal and Amendments to Other Statutes

51. The Real Estate and Business Brokers Act, as amended, is repealed.

52. Section 10 of the Business Practices Act is repealed.

53. (1) Clause 2 (d) of the Collection Agencies Act is amended by striking out "Real Estate and Business Brokers Act" and substituting "Real Estate and Business Brokers Act, 2001".

(2) Section 15 of the Act is repealed.

54. Section 17 of the Consumer Reporting Act is repealed.

55. Section 11 of the Licence Appeal Tribunal Act, 1999 is amended by striking out "Real Estate and Business Brokers Act" and substituting "Real Estate and Business Brokers Act, 2001".

56. The Ministry of Consumer and Business Services Act is amended by adding the following section:

Investigations

5.1 (1) The Minister may by order appoint a person to make an investigation into any matter that relates to an Act that has been assigned to him or her and is prescribed by regulation.

Powers, duties

(2) The person appointed shall report the result of the investigation to the Minister and, for the purposes of the investigation, that person has the powers of a commission under Part II of the Public Inquiries Act, which Part applies to the investigation as if it were an inquiry under that Act.

Experts

(3) The Minister may appoint an expert,

(a) to examine valuables, documents, records or other things obtained under this section; or

(b) to provide assistance in producing a document or record in readable form from any data storage, processing or retrieval device or system.

Regulations

(4) The Lieutenant Governor in Council may make regulations prescribing Acts for the purpose of subsection (1).

57. (1) Clause 2 (b) of the Mortgage Brokers Act is amended by striking out "Real Estate and Business Brokers Act" and substituting "Real Estate and Business Brokers Act, 2001".

(2) Subsection 4 (4) of the Act is amended by striking out "Real Estate and Business Brokers Act" and substituting "Real Estate and Business Brokers Act, 2001".

58. Section 12 of the Motor Vehicle Dealers Act is repealed.

59. The Schedule to the Safety and Consumer Statutes Administration Act, 1996, as amended by the Statutes of Ontario, 1998, chapter 15, Schedule E, section 46 and 2000, chapter 16, section 46, is further amended by striking out "Real Estate and Business Brokers Act" and substituting "Real Estate and Business Brokers Act, 2001".

60. Paragraph 3 of subsection 14 (2) of the Toronto Islands Residential Community Stewardship Act, 1993 is repealed and the following substituted:

3. Real Estate and Business Brokers Act, 2001.

61. Section 18 of the Travel Industry Act is repealed.

Commencement and Short Title

Commencement

62. This Act comes into force on a day to be named by proclamation of the Lieutenant Governor.

Short title

63. The short title of this Act is the Real Estate and Business Brokers Act, 2001.

.EXPLANATORY NOTE

The Bill revises and replaces the Real Estate and Business Brokers Act. Several references to the former Act are replaced with references to the Bill.

The Bill continues the offices of the registrar and director and permits them to be appointed by an administrative authority designated under the Safety and Consumer Statutes Administration Act, 1996 or by the Minister where no administrative authority is designated.

The Bill requires that persons trading in real estate be registered as brokerages, brokers or salespersons, subject to certain specified exemptions. The Bill creates the new category of "brokerage" for registration. A brokerage is a business that trades in real estate on behalf of others.

There are provisions in the Bill that permit the registrar to deal with complaints made about registrants and the powers to both inspect and investigate are continued from the Act. In addition, a discipline committee and an appeal committee are established and registrants who have been found to have breached their code of ethics before a committee may be fined up to $25,000 or a lesser prescribed amount. The director may also freeze the assets of registrants and former registrants where it is advisable for the protection of the clients of the registrant or former registrant.

Brokerages are required to ensure that the salespersons and brokers they employ carry out their duties in compliance with the statute and brokers and salespersons must inform their brokerage or the registrar if they have reason to believe that the brokerage that employs them or that any other person from the same brokerage is failing or has failed to comply with the statute.

Brokerages are required to maintain trust accounts and unclaimed funds are passed on to the designated administrative authority and in certain circumstances to the Minister of Finance. The rights of persons who may claim entitlement to such funds are maintained.

There are provisions that are intended to prevent conflicts of interest and unethical behaviour, including restrictions against employing unregistered persons, against salespersons or brokers acting for any brokerage other than the one that employs them and against inducing any party to certain real estate agreements to break the agreement for the purpose of entering another agreement. Providing false information and false advertising are also prohibited.

The Bill contains general provisions dealing with such matters as the preservation of secrecy, service of documents and the setting of fees by the Minister. The Minister may make regulations establishing a code of ethics, governing the jurisdiction of committees and in areas prescribed by the Lieutenant Governor in Council. The Lieutenant Governor in Council may make regulations dealing with a broad range of matters to regulate the industry.

The Bill also amends the Ministry of Consumer and Business Services Act by adding a section that permits the Minister to appoint a person to conduct an investigation into any matter relating to an Act assigned to the Minister. Specific ministerial investigation sections under the Motor Vehicle Dealers Act and the Travel Industry Act are repealed.