A real estate brokerage in Alberta has been operating with an expired license for 45 days while waiting for renewal approval. During this period, they completed three transactions. What are the potential regulatory consequences?
Correct Answer
D) Potential disciplinary action, fines, and requirement to return commissions earned while unlicensed
Operating without a valid license is a serious regulatory violation that can result in disciplinary action, significant fines, and the requirement to return commissions earned during the unlicensed period. Real estate professionals must maintain continuous licensing to legally provide services, and any lapse can have severe consequences regardless of pending renewal applications.
Why This Is the Correct Answer
Operating without a valid license, even for a brief period, constitutes unlawful practice of real estate in Alberta. The Real Estate Act requires continuous licensing to provide services. During the 45-day unlicensed period, the brokerage illegally earned commissions from three transactions. Regulatory authorities can impose disciplinary action, substantial fines, and mandate return of all commissions earned while operating without proper authorization, regardless of pending renewal applications.
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During its monthly reconciliation, an Alberta brokerage finds trust funds that cannot be accounted for, and it has not yet determined how large the shortage is. Under Rule 89(1) of the RECA Rules, what must the broker do?
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A real estate brokerage in Canada discovers that two separate cash deposits of $6,000 and $5,000 were received from the same client on the same day for different properties. What FINTRAC reporting obligation applies?