Introducing the Real Estate Services Act
The Real Estate Services Act provides a new regulatory framework for Manitoba’s real estate industry. This new Act reflects the changing face of Manitoba’s real estate landscape, and effectively meets the requirements of today’s industry and consumers.
Working closely with the Manitoba Real Estate Association and other groups, the Manitoba Securities Commission, Real Estate Division, drafted this newly revised and updated legislation to better service the important and rapidly changing needs of real estate brokers, salespeople, property managers, and consumers.
RESA and Real Estate Services Regulation will replace the Real Estate Brokers Act (REBA), originally passed into law in 1947, and four regulations (Real Estate Brokers Trust Accounts Regulation, Real Estate Brokers Regulation, Real Estate Reimbursement Fund Regulation, and Real Estate Advisory Committee Regulation). The new legislation will provide enhanced consumer protections while modernizing and streamlining the regulatory regime governing the real estate industry in Manitoba.
Bill 70 of the 40th Legislature (2013-2014) introduced the new Real Estate Services Act, which will come into effect on Saturday, Jan. 1, 2022.
Understanding RESA
The new Act and accompanying regulation will:
- modernize the regulatory regime - allows for e-signatures/e-storage of documents;
- improve industry standards and accountability - introduces service agreements so the public is clear on what services they will be receiving from a registrant (speaks to client accountability);
- enhance consumer protections - allows Commission to assess monetary penalties, allows Commission to take action against unregistered persons.
Key Elements
1. Requires registration of real estate salespeople and brokers, property management, private sales and restricted brokerages.
2. Governs the conduct of registrants, including the requirement to:
- maintain trust accounts;
- keep books and records;
- maintain a surety bond or participate in the Manitoba Real Estate Association’s reimbursement fund;
- use appropriate advertising;
- use mandated forms for residential and condominium property purchases.
3. Requires the Registrar to:
- assess and, if appropriate, investigate complaints;
- discipline registrants;
- investigate misconduct and, if warranted, initiate appropriate action including Initiating disciplinary action against a registrant before the Commission.
4. Gives the power to the Commission to:
- freeze the assets of a registrant;
- apply to Court for a receiver for a registrant;
- apply to Court for an injunction;
- adopt regulations under the Act, provided that any regulation dealing with fees requires approval of the Lieutenant Governor in Council;
- regulate the offering of subdivision lots located outside the province;
- provide for a right of appeal from decisions of the Registrar to the Commission.
RESA also includes enhanced public protection elements for consumers, including the ability for the Registrar to assess monetary penalties up to $500,000 against registrants for misconduct, and other new powers to take action against persons carrying on unregistered activity.
To learn more about the Act and Regulations, visit the official Manitoba Law pages:
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