An Alberta real estate associate discovers that their brokerage's broker has been using trust account funds for personal expenses. What are the associate's obligations?
Correct Answer
B) The associate has an obligation to report the misuse to RECA, as they cannot knowingly participate in or ignore conduct that violates the Real Estate Act
Under the Real Estate Act and RECA Code of Conduct, all industry professionals have an obligation to report conduct that they believe violates the Act or regulations. Misuse of trust funds is a serious offence. An associate who becomes aware of trust fund misappropriation must report it to RECA. Failure to report could make the associate complicit in the violation.
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