Chapter 2: The Real Estate Services Act

The Real Estate Services Act (RESA) sets the regulatory framework for real estate professionals in British Columbia. In this episode of The Real Estate Debrief, host Celine Li and Devin Kanhai, Executive Director of the UBC Sauder Real Estate Division, break down Chapter 2 and explain how RESA protects the public and maintains confidence in the real estate industry.

The discussion covers the different categories of real estate services, licensing levels, and supervision responsibilities. The episode also explains discipline and enforcement by BC Financial Services Authority (BCFSA), including professional misconduct and conduct unbecoming, and introduces REDMA to highlight additional consumer protections in development and presale transactions.

Transcript

SPEAKER_00 0:07

Welcome to the Real Estate Debrief, a podcast where we break down the real estate trading services licensing course in British Columbia, help you master key concepts in the course, and apply your knowledge in real-world practice as a licensee. I'm your host, Celine Lee, and in this episode, we're diving into Chapter 2, the Real Estate Services Act. Before we begin, I'd like to note that this podcast is for general educational purposes only, and is not intended to provide and does not constitute legal, accounting, or other professional advice. I'm joined today by our subject matter expert and executive director of the UBC Solder Real Estate Division, Devin Canhai. Before joining UBC to lead the real estate division's licensing programs in BC, Saskatchewan, and Alberta, Devin practiced corporate law. Currently, he also teaches law within the BC licensing programs and in the accounting program at UBC SODR. Thanks for being here, Devin.

SPEAKER_01 0:58

You're welcome, Celine. I'm super excited to be here today to chat with you about all things RESA.

SPEAKER_00 1:03

Starting with the big picture, Devin, tell us a little bit about the Real Estate Services Act, or RISA, and why is it so important?

SPEAKER_01 1:11

Okay, so to start, let's just zoom way out and think about real estate transactions generally. These are high-stakes transactions. They involve a lot of time, money, stress, and complexity. And there are pretty big consequences and impacts if things don't go right. Remember also that they're pretty infrequent in people's lives. Some people only buy or sell real estate a few times in their life. So there's complexity, but there's also a lot of unfamiliarity, which makes these transactions pretty scary for the average consumer. And because of all of this, whether they're selling or buying, consumers will seek the assistance of a professional to guide them. They'll put a lot of trust in these professionals who will learn a lot about their clients and have the ability to influence them in some pretty substantial ways. Now, the need to regulate real estate professionals stems from this reality. And it's RISA that primarily regulates real estate professionals.

SPEAKER_00 2:06

That's a great overview. Now, can you zoom in and talk about RESA specifically?

SPEAKER_01 2:11

Well, under RESA, the real estate services regulation and the real estate services rules, let's just call all of this regulation RESA for short. The general purpose is simple but also powerful. It protects the public by ensuring that anyone providing real estate services is competent, ethical, and properly supervised.

SPEAKER_00 2:33

So how does it ensure that the real estate professionals are competent?

SPEAKER_01 2:38

RESA ensures they're competent in three basic ways. First, it sets out minimum requirements for those seeking to be licensed. Anyone licensed under RESA is called a licensee. Second, it sets out standards of conduct for licensees. And finally, it appoints a regulator to enforce all of these requirements and standards.

SPEAKER_00 2:59

Speaking of the regulator, the regulator is BC Financial Services Authority, or BCFSA for short.

SPEAKER_01 3:06

Yeah, that's right. And within BCFSA is a superintendent of real estate who is empowered under RESA to perform many key powers and duties.

SPEAKER_00 3:16

That is a big job considering there are tens of thousands of real estate licensees in BC.

SPEAKER_01 3:21

It certainly is. And BCFSA, though, is not only responsible for regulating real estate licensees. They regulate BC's financial services sector, and this includes credit unions, trust companies, insurance companies, mortgage brokers, and pension plans. So regulating the sector is a pretty big job for the few hundred employees of BCFSA.

SPEAKER_00 3:44

Thanks. Let's pivot a bit and talk about licensing. When is a license under RESA required?

SPEAKER_01 3:50

A license is required whenever a person provides real estate services to or on behalf of another, for or an expectation of remuneration, unless an exemption exists.

SPEAKER_00 4:01

We'll get to the exemptions later, but first, what are real estate services?

SPEAKER_01 4:06

Well, RESA defines three categories of real estate services. There's trading, there's rental property management, and finally strata management. RESA defines each service by including a list of activities that fall within it. In a nutshell, trading services is mostly about helping people buy and sell real estate. Activities include finding real estate for a person to buy, showing real estate, negotiating for the real estate, advising on the appropriate price, and handling deposit money, plus more. Trading services also include renting, but not managing, real estate, and dealing with assignments of real estate contracts. Rental property management is the next real estate service, and it involves managing rental properties on behalf of an owner landlord. It can include things like finding tenants, negotiating leases, collecting rents, managing contractors on the property, and more. And finally, we have strata management. That involves serving a strata corporation by doing things like collecting strata fees, enforcing bylaws and rules, helping to manage contractors on the property, and advising the strata council.

SPEAKER_00 5:15

Does each type of real estate service have a unique license?

SPEAKER_01 5:18

Yes, it does. Each real estate service requires someone to take the unique and corresponding licensing course. There are disciplinary issues when someone who is licensed for trading services performs other real estate services without properly being licensed to do so. So, for example, there are a number of disciplinary cases that involve a trading services licensee managing rental properties without a rental property management license.

SPEAKER_00 5:45

Right. And our listeners should note that the chapter has a graphic showing which services can be performed with a trading services license versus a rental property management license.

SPEAKER_01 5:55

Yeah, that's right. Good point.

SPEAKER_00 5:57

Now you said before that a license is only required if you provide real estate services to or on behalf of others in exchange for remuneration.

SPEAKER_01 6:06

Right. If you're just a property owner and you just want to list your own house for sale, or you want to manage your own rental properties, a license isn't required.

SPEAKER_00 6:16

Okay, that's great. Let's circle back to exemptions. Can you expand on exemptions and share some examples of situations where someone might be exempt from the requirement to be licensed?

SPEAKER_01 6:27

Sure. There are some exemptions found in RESA directly. Some are found in the regulation, and some are found in the rules. There are a number of cases where a person is exempt if they are in another profession or role, and real estate services are not really a main part of their duties. I'll give you an example. We have lawyers, accountants, and notaries. They may help their clients in real estate matters as part of their practice, but it's not a main part of their duties as lawyers, accountants, and notaries. There's also trustees who deal with real estate as part of handling a bankruptcy, executors who are dealing with real estate as part of the estate of a deceased person, and individuals involved in certain mining and oil and gas activities. Now, there's also some exemptions for governments, government employees and corporations, and employees who provide real estate services to their employer, such as employees of a real estate development company.

SPEAKER_00 7:28

Great, let's move on. The chapter makes a connection between the licensing system and agency law, is that right?

SPEAKER_01 7:34

Right. In many cases, real estate licensees serve consumers in agency relationships. And even though a later chapter in the course goes into a lot of detail about agency, I think it's important for listeners to have agency in their minds right at the beginning of their studies and within this chapter. It's woven into almost everything a licensee does.

SPEAKER_00 7:55

I think the important point here is that agency involves acting on behalf of another. And that most agency relationships are fiduciary relationships.

SPEAKER_01 8:04

Yes, you've got it. And from the fiduciary relationships flow fiduciary duties, and they ultimately require the agent to always act in the client's best interests.

SPEAKER_00 8:15

We'll leave agency for now. Next, we're going to do a quick rapid fire exercise with Devin. The chapter introduces listeners to a number of real estate organizations. We've already spoken about BC FSA, for example. For this rapid fire, I am going to name an organization, and Devin will give us a one-sentence description of that organization. Devin, are you ready?

SPEAKER_01 8:38

Sure, let's do it.

SPEAKER_00 8:39

All right. The first is the Real Estate Foundation of BC.

SPEAKER_01 8:42

Okay. The foundation carries out a number of activities like education, law reform, research, and funding of real estate projects for the good of the public and the profession. And their funding comes from the interest that is generated from pooled trust accounts of real estate brokerages.

SPEAKER_00 9:01

Excellent. The next one is the Real Estate Errors and Omissions Insurance Corporation.

SPEAKER_01 9:06

So the EO Insurance Corporation is responsible for administering the mandatory errors and omissions insurance program, which is called the Indemnity Plan that covers all real estate licensees in the province.

SPEAKER_00 9:19

Great. Last one, the Real Estate Compensation Fund Corporation.

SPEAKER_01 9:23

The Compensation Fund provides compensation to consumers involved in a real estate transaction where their funds were either lost or stolen by a licensee.

SPEAKER_00 9:32

Fantastic. Is it fair to say that all of these organizations were created to ensure that the public has trust in real estate licensees and believes in the integrity of the industry overall?

SPEAKER_01 9:44

Yeah, that's a great point. And it's a good way of looking at the overall purpose of all of these organizations.

SPEAKER_00 9:49

And I should note that there are other organizations that are briefly touched on within the chapter, like the Canadian Real Estate Association, the BC Real Estate Association, the real estate boards, associations, and institutes. These are member-based organizations that are much more focused on serving their membership rather than consumer protection. Now let's move along and talk about the levels of licenses. RESA sets out four levels of licenses. Devin, what are they?

SPEAKER_01 10:18

They're the brokerage, the managing broker, the associate broker, and the representative license.

SPEAKER_00 10:24

And if we think of these licenses forming a pyramid of sorts with brokerage at the top, then as a new trading services licensee, do you start at the very bottom of the pyramid as a representative?

SPEAKER_01 10:37

Yeah, you do. A representative is a licensee who provides real estate services, but under the supervision of the managing broker of their brokerage.

SPEAKER_00 10:48

So representatives have to be licensed in relation to a single brokerage, right?

SPEAKER_01 10:52

They do. And the brokerage itself also has to have a license, and every brokerage must have at least one managing broker.

SPEAKER_00 11:00

Great. You mentioned that managing brokers are responsible for supervising the representatives of the brokerage. Do managing brokers have other responsibilities too?

SPEAKER_01 11:10

Yes, they absolutely do. Managing brokers are responsible to exercise the rights and perform the duties of the brokerage. They control the business of the brokerage, which involves supervision of everyone licensed within the brokerage. They have to supervise, deal with misconduct within their brokerage, keep adequate accounts and records, and really so much more. It's not a perfect analogy, but I think of managing brokers as the CEOs of the brokerage.

SPEAKER_00 11:39

Wow, that's a lot for one person.

SPEAKER_01 11:41

Yes, it certainly is. It's a big obligation. And to be a managing broker, a licensee must have at least two years of licensed experience, and they must have taken an additional licensing course.

SPEAKER_00 11:53

Now let's zoom in on the role of the representative, as our listeners will hopefully soon be one. What does Risa say about their role?

SPEAKER_01 12:01

Well, their duties really fall into five major buckets. They must provide their brokerage with all the records they created on behalf of their brokerage. And this would include things like service agreements, disclosures, and accounting statements. Second, they must keep their managing broker informed about their work on behalf of the brokerage. Remember, Celine, that the service provider is the brokerage itself. It's not the individual licensee. So everything a licensee does is really done on behalf of the brokerage. Next, they must respond to their managing broker promptly. Remember, the managing broker has the responsibility of overseeing and supervising the business of the brokerage. Fourth, representatives must ensure that they adequately supervise any employee or other person that performs duties on behalf of their brokerage. This could be like an unlicensed assistant of the person. And finally, representatives must promptly notify their managing broker of improper conduct by others within their brokerage.

SPEAKER_00 13:01

That's a great summary. And licensees also need to think about how they want to run their business. They can run it through a personal real estate corporation, or they might decide to join a real estate team. They may be engaged by their brokerage as an employee or an independent contractor. Now we don't have time to talk about all of the rules and regulations around these topics, but I want to flag them as important practical considerations for new licensees.

SPEAKER_01 13:28

You're absolutely right. All of the things that you mentioned touch on tax planning, pooling resources and expertise with other licensees, and employment standards, and all of them should be considered by a licensee before selecting a brokerage.

SPEAKER_00 13:42

The chapter is pretty descriptive and talks about the process for obtaining a license. I think it's pretty self-explanatory, but I did want to focus on one point, which is this good reputation requirement for becoming licensed. Can you expand on that a bit more, Devin, for our listeners?

SPEAKER_01 14:00

This is a really good time to circle back to how we began this episode, which was highlighting the fact that real estate transactions are high-stakes transactions, high stress, value, complexity, and time. Your work as a licensee will have a profound impact on people's lives, and mistakes can have catastrophic consequences. So in recognition of that, RISA requires licensees to have a good reputation.

SPEAKER_00 14:25

How do they actually measure or determine whether someone has a good reputation?

SPEAKER_01 14:29

Well, it's not an easy analysis, but uh BCFSA does two major things to try to get a picture of the applicant's overall reputation. First, applicants must submit a criminal record check to BCFSA. And second, the application for licensing does contain a list of questions about things like criminal charges, bankruptcies, court orders, and rejected licensing applications in similar industries or other provinces.

SPEAKER_00 14:55

Okay, so it sounds like reputation is a key factor in BCFSA's evaluation of an application.

SPEAKER_01 15:01

Yeah, it certainly is, but reputation and and good reputation is not just evaluated at the time of initial licensing. Licensees have ongoing duties to report certain things to BCFSA, at which time BCFSA may determine that a licensee is no longer suitable to continue being licensed.

SPEAKER_00 15:19

That's a great point. I can see why reputation is so important for real estate licensees, particularly because they often handle transactions involving tens and hundreds of thousands of dollars for clients.

SPEAKER_01 15:30

Yes, and RESA has some pretty strict rules around handling money for clients, also known as trust money. This chapter has a section on the obligation for brokerages to have trust accounts and for licensees to promptly deposit all monies received or held on behalf of a client into a brokerage trust account. Now, there are only a few situations where money can be withdrawn from a trust account. For example, money cannot be withdrawn to pay for things like brokerage bills or salaries.

SPEAKER_00 16:01

I've heard of situations where licensees get disciplined for not handling trust money correctly.

SPEAKER_01 16:06

Aaron Powell They absolutely do. And BCFSA can be quite strict in penalizing this type of misconduct. When you think of it, it really harms the reputation of the overall industry and the confidence that consumers have in real estate licensees when they're mishandling trust money.

SPEAKER_00 16:23

This is a great segue into our conversation on discipline and enforcement. Can you tell listeners about the two categories of improper conduct that can lead to discipline by BCFSA?

SPEAKER_01 16:34

Sure. RESA states that BCFSA can take disciplinary action against the licensee if they believe that the licensee has committed professional misconduct or conduct unbecoming a licensee.

SPEAKER_00 16:48

What is the difference between the two?

SPEAKER_01 16:50

Well, professional misconduct occurs when you breach a specific duty or a specific rule in RISA. For example, you don't make a required disclosure to a client, you breach one of your fiduciary duties to a client, or you don't promptly deposit money received from a client into a brokerage trust account. Most discipline flows from professional misconduct. The second category is conduct unbecoming, which is defined as conduct that is contrary to the best interest of the public, that undermines the public confidence in the real estate industry, or that brings the real estate industry into disrepute.

SPEAKER_00 17:26

Can you break down conduct unbecoming in more simple language?

SPEAKER_01 17:30

Yeah, there are a lot of words there. I think of conduct unbecoming as conduct that's inappropriate, unethical, or inconsistent with the standards expected of a licensee, and which has a negative impact on the industry's reputation. It can apply to conduct done on the job, but it also extends to conduct off the job, something that may be done, for example, on a licensee's personal time.

SPEAKER_00 17:56

What is an example of conduct unbecoming?

SPEAKER_01 17:58

Well, imagine that a licensee attends a community event and, after drinking some alcohol, begins making racially offensive comments to another attendee. Now, the incident is reported and uh circulates on social media. In this case, the situation shows a lack of integrity and respect. It has the potential to harm the overall reputation of and confidence in the industry. So BCFSA might determine that is conduct on becoming a licensee.

SPEAKER_00 18:26

That's a really interesting concept. It demonstrates that you really don't leave your status as a real estate licensee when you leave the brokerage or even if you go on vacation.

SPEAKER_01 18:36

That's right. And I should point out that many professions have a similar concept in their respective regulations, from lawyers to accountants to doctors. And overall, I think this is a good thing for the industry. When a real estate agent does something bad and it ends up circulating like in the media, it impacts all real estate agents. So this concept of conduct unbecoming, it helps BCFSA deal with the bad apples, so to speak.

SPEAKER_00 19:02

Agreed. It reminds me of the saying that it can take a long time to build a reputation, but only seconds to ruin it. So if BCFSA believes you've committed professional misconduct or conduct unbecoming, what are the next steps?

SPEAKER_01 19:15

BCFSA has some pretty wide investigatory powers. They can do things like compel the production of documents and go into the brokerage and retrieve records. But there are a few ways that things can end for the licensee, and it's really very much dependent on the breach that has occurred.

SPEAKER_00 19:33

Can you elaborate?

SPEAKER_01 19:34

Sure. Well, some less serious conduct can attract an administrative penalty. Other conduct can proceed right through to a disciplinary hearing. And sanctions include reprimands, license suspensions, license cancellations, an order to forfeit your commission in the transaction where the conduct occurred, discipline penalties of up to $250,000 per offense, and in order to complete further education or training. There are a lot of tools at BCFSA's disposal to address the severity of the misconduct. And licensees have a general right to a hearing to defend themselves, where it can almost be like a mini court case with lawyers from each side advocating for their respective clients. Disciplined licensees also have rights to appeal decisions of BCFSA. But once again, I'll bring it back to the fact that real estate transactions are high stakes. And because of this, RESA gives BCFSA a lot of discipline and enforcement power to ensure that licensees are deterred from acting improperly and are penalized accordingly.

SPEAKER_00 20:39

I'm seeing the thread here that it's a privilege to be a licensee, not an automatic right. And licensees need to treat this privilege very seriously.

SPEAKER_01 20:49

Exactly.

SPEAKER_00 20:50

Okay. The last topic I want to address is the Real Estate Development Marketing Act, or REDMA for short, which is a very different statute than RESA.

SPEAKER_01 20:59

Well, I'll start things off by noting that REDMA is focused on regulating developers rather than licensees, and specifically in their marketing activities of new developments to the public. So REDMA, like RESA, is focused on consumer protection, but the focus is different. It's on regulating a different group of people.

SPEAKER_00 21:17

Great. I know we've all seen sales centers for new developments in our communities. Sometimes the building is built, other times there may just be a giant hole in the ground. Redma applies to sales like this, right?

SPEAKER_01 21:30

Absolutely. Redma applies to what the industry calls pre-sales, which often refers to the fact that the units are being sold before they're actually fully constructed. More technically, though, Redma applies to development properties. And in the vast majority of cases, these are developments with five or more units. It doesn't apply to a developer who buys a lot with an old home, tears it down, and builds a new one. It wouldn't apply to duplexes either.

SPEAKER_00 21:56

Thanks for clarifying. So how does REDMA regulate developers? In the marketing of their developments?

SPEAKER_01 22:02

Well, there are a number of things that are required of the developer under Redma, but I'll focus most squarely on two big requirements for strata developments, which are by far the most common types of developments. First, developers can only start to market their developments if they are a certain way through the development process. The big idea here is that the government doesn't want developers starting to market their properties and taking consumers' money for deposits, if the development is very far from completion, or there's no real certainty that the building's actually going to get built.

SPEAKER_00 22:36

That actually makes a lot of sense, especially through the consumer protection lens. What is the second major requirement?

SPEAKER_01 22:43

Secondly, developers cannot enter into an agreement to sell a unit to a buyer unless they have one, given a buyer a disclosure statement, two, the buyer has had an opportunity to read that disclosure statement. And three, the buyer has signed an acknowledgement confirming that they have been given the opportunity to read that disclosure statement.

SPEAKER_00 23:04

Let me stop you right there. What is a disclosure statement?

SPEAKER_01 23:07

A disclosure statement is a document. It's often tens of pages long, sometimes even more than a hundred pages in length, and it provides all of the material facts about the development property. It must be filed with BCFSA before being given to buyers.

SPEAKER_00 23:21

Can you give the listeners some examples of the material facts that might be in a disclosure statement?

SPEAKER_01 23:27

You're going to find information about who the developer is, the construction and completion schedule of the building, if there are any environmental issues being dealt with on the land, the amenities of the building, how many units will be in the building, how parking and storage lockers will be handled, the expected monthly fees for owners, the bylaws of the strata, how their deposit will be held prior to completion, and really so much more.

SPEAKER_00 23:52

Okay, I can certainly see why a buyer will find this information useful when making a decision on whether to buy a unit.

SPEAKER_01 24:06

So this is not like a five-year-old or a 50-year-old home where the buyer can walk through, they can touch it, smell it, check the views out from it, and so on. While pre-sale centers often have these beautiful renderings and these 3D models and maybe even a show suite, your contract to buy a unit will be for what is described in the disclosure statement, not any of the other marketing materials that are provided by the developer.

SPEAKER_00 24:29

I think that really drives home the role of the licensee working for the buyer. They've got to make sure buyers understand the importance of this document. Otherwise, as in common in human nature, they'll simply gloss the document over without really reading it.

SPEAKER_01 24:43

Yes, you've made a great point there. I would say that some buyers get caught up in the excitement of a pre-sale development. The sales center looks beautiful. There's vibrant marketing materials, and it's filled with a lot of friendly salespeople and potential buyers. So some buyers make a decision to buy quicker than they might otherwise, and they don't actually fully read that disclosure statement.

SPEAKER_00 25:05

Exactly, which is understandable, but also I guess it's buyers beware and they have to accept that risk, right?

SPEAKER_01 25:11

Well, yes and no, REDMA provides a very valuable cancellation right for buyers. It's called a rescision right. Recision is just a fancy legal word for cancellation. Redma states that buyers basically have seven days after they sign a purchase contract to reconsider their purchase. So if they decide to cancel or rescind their contract, they're entitled to all deposits that they've paid to the developer, no questions asked. So practically speaking, some buyers jump into a purchase of a development unit, and then they use that seven-day period to really read and study the disclosure statement. And their licensees can help them throughout this process if they come across something that they don't quite understand.

SPEAKER_00 25:57

And this precision right is different and separate from the home buyer rescission period, which allows a buyer of residential real estate to cancel their contract within three business days of entering into the contract.

SPEAKER_01 26:08

Yes, you're right. And they're very different from one another. And luckily, they will never apply to the same property at the same time. The HBRP is discussed in much more detail in a later chapter of this course.

SPEAKER_00 26:21

Okay. And once again, I see the consumer protection goal coming through here in REDMA with this precision right.

SPEAKER_01 26:27

Yeah, that's right. And um there are some additional rescission rights in REDMA that pop up if the developer hasn't given a disclosure statement to a buyer, or they haven't given an amendment to a disclosure statement to a buyer. But overall, these are much less common.

SPEAKER_00 26:42

You mentioned amendments to a disclosure statement. Can you briefly elaborate?

SPEAKER_01 26:46

Well, a disclosure statement must continually be updated so that it remains accurate. If major things with the development change prior to completion, let's say the developer is unable to finish the development on time, the developer is responsible for delivering an amendment to the disclosure statement to all of the buyers. And if the disclosure statement contains a misrepresentation, the buyer may have a right to sue the developer for damages.

SPEAKER_00 27:11

All right, so that's Redma. Very different than Visa, but both focused on protecting consumers. This has been great. I think that's all I wanted to cover with you, Devin. Any final words?

SPEAKER_01 27:22

Well, the only other thing I'll say about Redma is that people often think that they can make a lot of money when buying into these developments. They lock up a unit at today's price, and they think that by the time it's finished, it's just automatically going to be worth so much more. Now, this can and has happened, but there's also a lot of risks too.

SPEAKER_00 27:41

Like what?

SPEAKER_01 27:42

Well, project delays are common, so you might not actually get the unit when you think you will. Even more seriously, developers can run into financing issues, which may impact their ability to finish the project altogether. And then we look at the buyer. Their personal situation can change drastically over the course of a few years. They may get married, divorced, lose their job, have their job transferred, or unfortunately run into some health issues. All of these things may cause them to regret their purchase, but unfortunately, they're contractually bound to complete it. I think once again, this is important for licensees to understand so that they can educate their buyer clients before they commit to buy.

SPEAKER_00 28:22

That's a great point. I often hear about people making money off of these developments, but not so much about the things that can go wrong. Anything else to add?

SPEAKER_01 28:31

No, I think this has been a really great conversation, and I hope listeners feel the same.

SPEAKER_00 28:35

I'm sure they do. So through our discussion, it has hopefully become clear how much of a foundation RESA plays in the role of the licensee. It sets the rules of the game, who can get in, and how they must act. It informs everything that they do, including how they treat clients and other licensees. I want to wrap up with some key takeaways for our listeners. Ahead of this conversation, I asked Devin to come up with his top three takeaways. So, Devin, what did you come up with?

SPEAKER_01 29:04

Okay, so first, RESA is the cornerstone of real estate regulation in BC. It protects the public and ensures industry integrity. I know I've said this a few times before already, but real estate transactions are high-stakes transactions. So strong regulation, in addition to licensee accountability, is needed to ensure that the public is protected when they engage in real estate transactions with the assistance of real estate licensees. Second, RESA, along with the real estate services regulation and the real estate services rules, set out things such as entry and license requirements, levels of licenses, standards of business practice, including how to act in an agency relationship, and discipline and enforcement. BCFSA has wide investigatory powers and many different enforcement tools to ensure that real estate licensees adhere to their obligations and serve in the public interest. And finally, REDMA. REDMA empowers consumers. It regulates developers in their marketing activities of their developments to consumers. The disclosure statement contains all of the material facts about the development. And a key right in REDMA is the right of rescission, which allows a buyer to cancel their purchase contract with a developer within seven days of entering into the contract.

SPEAKER_00 30:24

Thank you, Devin, for breaking down chapter two with such clarity. For our listeners, remember, RESA isn't just something to memorize for the exam. It's the framework that will guide your entire career. In our next episode, we'll explore another chapter and continue building your foundation in real estate trading services. Until then, good luck everyone as you make your way through the course.