Lois et politiques

Registration Policy

"Private Sales Agents"

The Real Estate Brokers Act (the "Act") seeks to protect home owners or home buyers who engage the services of another person to facilitate their sale or purchase, by requiring such persons (agents) to be registered under the Act. Applicants for registration must be persons of integrity and must pass a qualifying exam. The requirement to be registered reduces the possibility that a home owner or buyer could be victimized by unscrupulous or incompetent operators, fraudulent or misleading advertising, or advance fee schemes.

Some individuals offer services which assist a homeowner in selling their house privately, usually by providing a "For Sale" sign and instructional material pertaining to advertising and showing the house to potential buyers. Sometimes the services also include advertising the house in a magazine published by the promoter. The fees usually range from approximately $500 to $700, depending on the services provided. For purposes of this Policy, such individual or entity is referred to as a Private Sales Agent ("PSA").

Although the activities of a PSA usually are restricted to assisting the home owner to conduct a private sale, these activities nevertheless may fall within the definition of "broker" or "transaction" within the meaning of The Real Estate Brokers Act (the "Act") with the result the PSA must be registered under the Act. This Policy sets out the registration requirements approved by The Manitoba Securities Commission (the "Commission") for PSA's who must be registered under the Act by virtue of their activities and the services they provide.

The following portions of the Act are relevant in considering whether a PSA must be registered.

Registration
40(1) Except where permitted by this Act, no person shall act as a broker or salesman or otherwise engage in any transaction in real estate unless such person is duly registered under this Act.

Additional penalty
40(2) No person who is required to be, and is not, registered as a broker, authorized official, or salesman under this Act shall collect, or attempt or be entitled to collect, commission, compensation, or other remuneration, for any act or expenditure in respect of a transaction in real estate.

Advertising real estate by unregistered person prohibited
44(1) Except as otherwise permitted by this Act no person shall, through any medium, directly or indirectly, advertise or cause to be advertised, in any manner, in Manitoba, any real estate for sale, lease or other disposition, unless that person is duly registered under this Act or the advertisement has first been approved by the registrar.

Definitions

1 In this Act,
"advertise" includes to place an advertisement in a newspaper or other publication or medium of communication to the public, but does not include the publication or dissemination of an advertisement so placed by the publisher or owner of the newspaper, publication or medium, unless it is a publication whose primary purpose is the advertising of real estate;

"broker" means a person, other than an authorized official or registered real estate salesman, who, in Manitoba,

(a) for a reward, or hope or promise thereof, negotiates, or attempts or offers to negotiate, for another or others, any trade in real estate wherever situated, or
(b) for a reward, or hope or promise thereof, advertises the real estate of others for sale, lease or other disposition by any method of advertising, or
(e) holds himself out as doing any of the things mentioned in clauses (a) to (d);

" transaction", "transaction in real estate or "real estate transaction" means

(a) the negotiation for another or others of any trade in real estate wherever situated, or
(c) the showing of real estate or sale or lease to potential purchasers or tenants, or (e) the solicitation or obtaining of a listing agreement,

and includes any conduct, act or negotiation, directly or indirectly, in the furtherance or attempted furtherance of any one or more of the things mentioned in this clause;

The services offered by a PSA to a homeowner could include some or all of the following:

  • Instructions on preparing advertisements
  • Assist in preparation of advertisements and taking photographs
  • Arrange placement of advertisements
  • Publish a newspaper for circulating the advertisements
  • Refer the homeowner to an appraiser for a market evaluation
  • Instructions on preparing the home for showing
  • Instructions on showing the property
  • Instructions on how to negotiate with buyers
  • A "For Sale" sign with the homeowner's telephone number
  • An information telephone line
  • An Internet Web-site featuring the home

Interested persons who may be operating or are considering operating as a PSA are encouraged to contact the Real Estate Section of the Commission (945-2562) regarding registration. Commission staff will assist in determining whether registration is required, and will guide applicants through the registration process. The exam study material and application forms are also available from the Real Estate Section.

Because of the restricted nature of the activities of a PSA, the Commission has approved special arrangements whereby a PSA may qualify for registration by way of an "in-house" examination.

Certificates of registration issued by the Registrar to a PSA will include conditions restricting the manner in which the PSA will be permitted to operate, including a statement that:

  • the PSA must be described in all stationery, business cards and advertising material as a "Private Sales Agent" or "Broker Restricted to Providing the Services of a Private Sales Agent"; and
  • if the PSA refers clients to other brokers and proposes to receive a fee for making the referral, the PSA must disclose to clients the amount of any referral fee that may be received from the other broker for the referral.

Broker Applicants

The broker/authorized official applicant will be required to:

1. Write and pass the Commission's exam for PSA's;
2. Obtain an exemption under section 47 of the Act from the provisions of section 4 and subsection 26(1) of the Act, and sections 14 and 15 of Manitoba Regulation 57/88; and
3. Apply for registration as a broker on forms provided by the Registrar.

The certificate of registration will include the following conditions:

(a) All advertising including For Sale" signs provided by the PSA shall clearly indicate that the offering is a private sale by the use of the words "Private Sale" or words to that effect, and must give the telephone number of the homeowner and not of the office or residence of the PSA. If the PSA is the publisher of a magazine, the telephone number of the office of the magazine may be shown on signs or in advertisements provided (i) the sign or advertisement clearly indicates that the telephone number is that of the magazine, and (ii) the telephone number is used strictly for promotional purposes;

(b) In all stationery, business cards and advertising material, the PSA must be described as a Private Sales Agent or a Broker Restricted to Providing the Services of a Private Sales Agent.

(c) The PSA is not permitted to:

  • show real estate owned by another person to potential purchasers or tenants;
  • assist other persons in preparing an offer to purchase, sell or lease real estate;
  • engage in negotiations on behalf of other persons for the sale, purchase or lease of real estate; --receive or hold trust money as defined in the Act in connection with the sale, purchase or lease of real estate;
  • perform real estate appraisals or market evaluations;
  • request or receive a fee for referring clients to other brokers unless the amount of any such fee that may be received from the other broker for the referral is disclosed to the client at the time the referral is made.

(d) The PSA must file with the application for renewal of registration pursuant to subsection 12(1) of the Act an affidavit confirming compliance with the conditions of registration.

Salesperson Applicants

The applicant must apply for registration on forms provided by the Registrar (no exam required). 

Fees

The fees are:

  • $50 for the broker/authorized official to write the examination;
  • $350 for registration as a broker;
  • $250 for renewal of registration as a broker;
  • $175 for each authorized official to be named in the certificate of registration of a broker;
  • $125 for each authorized official to be named in the certificate of registration of a broker after the renewal of the broker's registration;
  • $175 for registration as a salesperson;
  • $125 for renewal of registration as a salesperson;
  • $150 for the exemption under section 47 of the Act.

This Policy replaces the Private Sale Agents' Policy approved by the Commission in March 2000.

October 1, 2004