BILL NO. 56
(as introduced)
3rd Session, 61st General Assembly
Nova Scotia
60 Elizabeth II, 2011
Real Estate Trading Act
(amended)
The Honourable John MacDonell
Minister of Service Nova Scotia and Municipal Relations
First Reading: May 5, 2011
Second Reading: May 6, 2011
Third Reading: May 12, 2011 (LINK TO BILL AS PASSED)
Explanatory Notes
(a) changes the name of the Nova Scotia Real Estate Association to the Nova Scotia Association of Realtors;
(b) changes the name of the Department; and
(c) updates several definitions to reflect terminology used by the members.
Clause 2 amends the restriction on who may trade in real estate to allow for corporations permitted in accordance with the Act and by-laws to do so and makes consequential amendments required as a result of clause 1.
Clause 3 adds a commercial-sector representative to the Nova Scotia Real Estate Commission and provides for the Chair or acting Chair to vote only in the case of a tie.
Clause 4 enables the Commission to make by-laws
(a) prescribing the process for the appointment of a commercial-sector representative to the Commission;
(b) allowing corporations to trade in real estate;
(c) prescribing the methods of calculation of remuneration payable to a brokerage; and
(d) concerning stale trust funds.
Clause 5 makes a consequential amendment required as a result of clause 1.
Clause 6 provides for the appointment of the Complaints Review Committee referred to in Sections 17 and 20 of the Act.
Clause 7 amends the investigation provisions to specify the authority of the Commission while investigating and clarify that a person who is the subject of an investigation cannot destroy required information.
Clause 8 enables the Commission to apply to the Supreme Court of Nova Scotia to extend the maximum 90-day licence-suspension period and permits the Registrar to suspend the licence of a licensed person who refuses to co-operate with an investigation until such time as the person co-operates.
Clause 9 provides that appeals from Discipline Committee orders are to made to the Nova Scotia Court of Appeal, within a 25-day appeal period and pursuant to the new Civil Procedure Rules.
Clause 10 requires full and written disclosure of any remuneration agreed to be paid to a brokerage and requires that the remuneration be calculated as specified in the by-laws.
Clause 11 makes a consequential amendment required as a result of clause 1.
Clause 12 amends the procedure for dealing with stale trust funds and provides that
(a) stale funds are to be transferred to the Commission and held by the Commission in trust;
(b) where there is a dispute as to entitlement to funds, a brokerage shall follow procedure set out in the by-laws;
(c) the Commission may order a brokerage to transfer to it unclaimed funds held in a trust account for two or more years; and
(d) the Commission shall use funds transferred to it for such public or charitable purpose, including the education of licensed persons, as the Commission specifies.
Clause 13 gives the Commission authority to freeze a trust account or direct funds to be paid into court during an investigation or criminal or civil proceedings.
Clause 14 makes a consequential amendment required as a result of clause 1.
Clause 15 amends the Act to enable the incorporation of the practice of real estate.
Clause 16 makes a consequential amendment required as a result of clause 1.
An Act to Amend Chapter 28
of the Acts of 1996,
the Real Estate Trading Act
1 Section 2 of Chapter 28 of the Acts of 1996, the Real Estate Trading Act, as amended by Chapter 50 of the Acts of 2001, is further amended by
(a) striking out "Real Estate Association" in the first and second lines of clause (a) and substituting "Association of Realtors";
(b) striking out "manager" in the first and in the second lines of clause (n) and substituting "managing associate broker";
(c) striking out "Business and Consumer Services" in the first and second lines of clause (o) and substituting "Service Nova Scotia and Municipal Relations"; and
(d) striking out "lease, rental" in the third and fourth lines of clause (y) and substituting "commercial lease or rental";
2 (1) Subsection 4(1) of Chapter 28 is repealed and the following subsection substituted:
(2) Subsection 4(2) of Chapter 28 is amended by striking out "manager" in the second line and substituting "managing associate broker".
(3) Subsection 4(5) of Chapter 28 is amended by striking out "manager" in the third line and substituting "managing associate broker".
3 (1) Subsection 7(1) of Chapter 28 is amended by adding immediately after clause (b) the following clause:(2) Section 7 of Chapter 28, as amended by Chapter 50 of the Acts of 2001, is further amended by adding immediately after subsection (10) the following subsection:
(a) adding immediately after clause (a) the following clause:
(d) striking out "manager" in the second and in the third lines of clause (aa) and substituting in each case "managing associate broker"; and
(e) adding immediately after clause (ad) the following clause:
6 Chapter 28 is further amended by adding immediately after Section 16 the following Section:
(2) The Commission shall designate a member of the Commission as Chair of the Complaints Review Committee.
(3) The Complaints Review Committee shall perform such duties and have such powers as are conferred on it by this Act, the regulations and the by-laws.
7 (1) Section 17 of Chapter 28 is amended by adding immediately after subsection (3) the following subsection:
(a) enter the business premises of any licensed person and inspect and copy any records located there pertaining to a licensed person or formerly licensed person or any transaction in which the licensed person or formerly licensed person is or was involved;
(b) require any licensed person or formerly licensed person to answer questions relating to the investigation or meet with the investigator about the investigation;
(c) require any licensed person or formerly licensed person to produce for examination by the investigator any information, records or other things in the possession or control of the licensed person or formerly licensed person.
8 Section 21 of Chapter 28 is amended by adding immediately after subsection (2) the following subsections:
(a) the time to complete the investigation and decision of the Discipline Committee will exceed the ninety-day period referred to in subsection (2); and
(b) the licensed person should be suspended pending the outcome of the investigation or decision of the Discipline Committee.
(4) Upon written notice, the Registrar may suspend the licence of a licensed person who refuses to co-operate with an investigation until such time as the licensed person has co-operated with the investigation.
(a) striking out "Supreme Court of Nova Scotia" in the second and third lines and substituting "Nova Scotia Court of Appeal"; and
(b) striking out "thirty days" in the third line and substituting "twenty-five days, calculated in accordance with the Nova Scotia Civil Procedure Rules,".
(2) Section 24 of Chapter 28 is further amended by adding immediately after subsection (2) the following subsection:
10 Section 27 of Chapter 28 is repealed and the following Section substituted:
(2) Remuneration may be calculated by any method specified in the by-laws.
12 Subsection 32(4) to (6) of Chapter 28 are repealed and the following subsections substituted:
(5) Where a seller has met the terms of the agreement and the buyer has not, and the seller has requested the forfeiture of the deposit and the buyer has refused to release the deposit, the brokerage shall follow the procedures set out in the by-laws.
(6) Where a dispute between a buyer and a seller over trust money is not resolved at the closing or upon termination, the brokerage shall continue to hold the money in trust until the parties agree to its disposition or there is an order by a court of competent jurisdiction.
(6A) Where unclaimed money remains in a brokerage trust account for a period of two or more years after the closing or the termination of the agreement and the broker is unable to locate the parties or settle the matter pursuant to subsection (4) or (5), the Commission may order the brokerage to transfer the unclaimed money to the Commission which shall hold the money in trust pursuant to subsection (6B).
(6B) The Commission shall use the funds transferred to the Commission for such public or charitable purpose, including the education of licensed persons, as the Commission specifies.
(a) the Registrar is conducting or has concluded an investigation pursuant to Section 17;
(b) criminal proceedings or proceedings in respect of non-compliance with this Act, the regulations or the by-laws are about to be or have been instituted against any licensed person and, in the opinion of the Registrar, are connected with or arise out of a transaction in the business of the licensed person; or
(c) the Registrar has reason to believe that the trust funds in a licensed person's trust account are less than the amount for which the licensed person is accountable,
the Registrar may on written notice
(d) direct any person having on deposit or under that person's control or for safekeeping any funds or securities of the licensed person to
(ii) pay those funds or securities into or deposit those funds or securities with a prothonotary of the Supreme Court of Nova Scotia; or
(2) Where funds are subject to a direction under subclause (d)(i) or clause (e),
(a) the funds may not be released until the Registrar in writing revokes the direction or consents to release any particular fund or security from the direction; and
(b) the Registrar may send a notice to those persons whom the Registrar is readily able to identify as having an interest in those funds or securities stating that the funds or securities are being held.
(3) Where funds are subject to a direction under subclause (d)(ii), the Registrar shall send to those persons whom the Registrar is readily able to identify as having an interest in those funds or securities a notice stating that
(a) the funds or securities have been paid into or deposited with a prothonotary of the Supreme Court of Nova Scotia; and
(b) a person may apply to the Supreme Court of Nova Scotia for an order directing payment or distribution of all or part of the funds or securities to one or more persons.
(4) An application under clause (3)(b) must be served on the licensed person in accordance with the Nova Scotia Civil Procedure Rules.
(5) The Registrar may publish in a form and manner that the Registrar considers appropriate information about the subject-matter of an investigation under clause (1)(a).
15 Chapter 28 is further amended by adding immediately after Section 37 the following Sections:
(2) A majority of the voting shares of a corporation engaged in the trading of real estate must be beneficially owned by one or more licensed individuals.
(3) The majority of directors and officers of a corporation engaged in the trading of real estate must be licensed individuals.
37B (1) The relationship of a licensed individual to a corporation that is engaged in the trading of real estate, whether as a shareholder, director, officer or employee, does not affect, modify or diminish the application to the licensed individual of the provisions of this Act, the regulations and the by-laws.
(2) The liability of an individual arising from that individual or any other individual engaging in the trading of real estate is not affected by reason only that the services are provided by a corporation.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2011 Crown in right of Nova Scotia. Created May 5, 2011. Send comments to legc.office@novascotia.ca.
