An Alberta real estate associate notices that the brokerage's trust account appears to hold less money than the brokerage owes its clients and customers. Under the RECA Rules, what is the associate's most appropriate first step?
Correct Answer
C) Notify the broker, who is responsible for the trust account
Rule 53(h) of the RECA Rules requires an associate to notify the broker upon learning of a violation of the Act, Regulations, Rules or Bylaws, and the broker is responsible for the trust records and reviews the monthly reconciliation (Rules 51(1)(g), 86(3)). The brokerage must then fund any shortage with its own money (Rule 88), and the broker must notify the registrar in writing if the shortage cannot be determined or cannot be funded immediately (Rule 89).
Why This Is the Correct Answer
The associate's duty under Rule 53(h) is to notify the broker upon learning of a violation, and the broker is the person responsible for the trust account under Rules 51(1)(g) and 86(3). The broker then ensures the brokerage funds any shortage (Rule 88) and reports to the registrar where Rule 89 requires it.
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