Brokers

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The Real Estate Act states that all licensed brokers are required to maintain a general trust account to hold deposits on behalf of their client(s).

Section 25(1)(b) requires general trust accounts to be interest bearing and section 69(2) directs any interest earned on these trust accounts to be paid to the AREF.

We have compensation agreements with financial institutions concerning the calculation and payment of interest on these accounts. If interest has accrued during the quarter, transaction fees will be deducted before payment is made to us. AREF is not responsible for bank charges where the transaction fees exceed the interest accrued or for other fees such as certified cheques, statement preparation or audit confirmation.

Here’s how to notify your financial institution to direct the interest to AREF.

Step 1: Download Broker Form

Review the instructions for financial institutions from licensee Instructions to Financial Institution from Licensee Form.

Step 2: Visit Your Bank

Add your banking information where indicated and take the Broker form to your bank for execution. Your bank should keep a copy on record.

Step 3: Send us a Copy

Email a copy to brokers@aref.ab.ca or mail a copy, signed by a banking representative, to AREF

Keep a copy of the remittance forms, acknowledged by the bank, for your records. We will monitor the remittances received from the bank to ensure we’re receiving the funds as directed.

Section 69(4) says you don’t have to remit interest to AREF where trust funds are deposited in a separate account for a client. In this case it must be noted on the contract at the time of signing.

If you have any questions about the remittance process, please contact us.

Real Estate Act

The following sections of the Alberta Real Estate Act pertain to the mandate and governance of the Alberta Real Estate Foundation. Click here to view the Alberta Real Estate Act in its entirety.

Alberta Real Estate Act

Section 25: Trust Accounts
Section 64: Foundation’s mandate
Section 69: Payment of trust account interest

Real Estate (Ministerial) Regulation 113/96

Information about the Foundation’s Board of Governors including:

Section 2: Board Composition
Section 3: Term of Office
Section 4: Vacancies
Section 5: Chair
Section 6: Quorum
Section 7: Fiscal Year
Section 8: Trust Account interest

Alberta Real Estate Act

Section 25: Trust Accounts

A licensee who is required by the rules to keep and operate a trust
account shall

1. keep complete and accurate financial records in which the licensee shall maintain a separate record for each person on whose behalf the industry member is acting of all
  1. money received in trust,
  2. money held in trust,
  3. interest earned on money held in trust, and
  4. disbursements made from money received or held in trust, in respect of a dealing or trade for that person,
2. deposit money received in trust in respect of a dealing or trade in the business of the licensee within the time prescribed by the regulations, or within any period agreed to in writing by the parties to the dealing or trade, in an interest-bearing account that is
  1. maintained in a bank, loan corporation, trust corporation, credit union, or treasury branch, and
  2. kept in the name of the licensee and designated as a trust account,

Where a licensee of a class specified in the regulations holds money in trust for more than 2 years after the date on which the person for whom it is held becomes entitled to receive payment of it and, using reasonable efforts, is unable to locate the person, the licensee shall
1. pay the money to the Foundation, and
2. provide the Foundation in writing with
  1. the name of the person for whom the money was being held,
  2. the circumstances resulting in the money being unclaimed, and
  3. if the money represents more than one unclaimed amount, a breakdown of the each amount.
If at any time a person establishes entitlement to any money paid to the Foundation pursuant to subsection (5), the Foundation shall pay the money to that person.
A licensee is not liable to any person referred to in subsection (6) for money paid to the Foundation under subsection (5).

Section 64: Foundation’s Mandate

The Alberta Real Estate Foundation, created under the Real Estate Agents’ Licensing Act, RSA, 1980 cR-5, is continued as a corporation.
The Foundation shall be administered by a board of governors appointed in accordance with the regulations.
The purposes of the Foundation are to promote and undertake
1. the education of related professionals and the public in respect of the real estate industry,
2. law reform and research in respect of the real estate industry, and
3. other projects and activities to advance and improve the real estate industry.

Section 69: Payment of trust account interest

A licensee who
1. maintains a trust account under section 25,
2. is credited with interest on money in the account by the bank, loan corporation, trust corporation, credit union or treasury branch in which the account is maintained, and
3. is a licensee of a class specified in the regulations for the purposes of this section, holds the interest in trust for the Foundation.
A licensee referred to in subsection (1) shall, in accordance with the regulations, instruct the bank, loan corporation, trust corporation, credit union or treasury branch to pay the interest credited to the account to the Foundation.
A bank, loan corporation, trust corporation, credit union or treasury branch that receives an instruction under subsection (2) shall pay the interest to the Foundation in accordance with the regulations.
This section does not apply to
1. money deposited in a separate account for a party in respect of a dealing or trade, or
2. a security deposit that is given under a tenancy that is subject to the Residential Tenancies Act or the Mobile Home Site Tenancies Act.

Real Estate (Ministerial) Regulation 113/96

Section 2: Board Composition

Subject to subsection (2), the board of governors of the Alberta Real Estate Foundation shall consist of the following members:
1. 2 persons who are appointed by the Alberta Real Estate Association;
2. 2 persons who are appointed by the Real Estate Council of Alberta;
3. one person, who is not in the industry, who is appointed by the current members of the board then in office and is, in the opinion of those members, representative of the interests of real estate consumers;
4. one person, who is not in the industry, who is appointed by the current members of the board then in office and is, in the opinion of those members, representative of Alberta businesses;
5. one person, who is not in the industry, who is appointed by the current members of the board then in office and who, in the opinion of those members, possesses special skills or experience to assist the board in carrying out the Foundation’s purposes.
The members of the board of governors referred to in subsection (1) may appoint as an additional member the immediate past chair of the board, for one term only of not more than 2 years.

Section 3: Term of office

A member of the board of governors referred to in section 2(1) may be appointed for a term of not more than 3 years.
A person may not be appointed as a member of the board of governors under section 2(1) for more than 2 consecutive terms.
Notwithstanding that the term of office of a member has expired, the member remains in office until a successor is appointed.

Section 4: Vacancies

Where a vacancy occurs on the board of governors, a person may be appointed to fill the vacancy for the balance of the term of office, in the same manner as the member whose office became vacant was appointed.
No vacancy on the board of governors impairs the right of the remaining members to act while the vacancy exists.

Section 5: Chair

The Board of Governors shall select a person as chair from among its members.
A person may not serve as chair for more than two consecutive years.

Section 6: Quorum

A majority of the persons appointed as members of the board of governors is a quorum at a meeting of the board.

Section 7: Fiscal year

The fiscal year of the Foundation is from November 1 to October 31.

Section 8: Trust account interest

Sections 25(5) and 69 of the Act apply only in respect of industry members who are industry members of the brokerage class referred to in section 1(2)(a)(i) and (b)(i).
A licensee referred to in subsection (1) who maintains a trust account referred to in section 69 of the Act and is credited with interest on money in the account by a bank, trust company, credit union or treasury branch shall instruct the bank, trust company, credit union or treasury branch in writing to pay to the Foundation at least quarterly the interest less allowable service charges.
A bank, trust company, credit union or treasury branch that pays interest to the Foundation pursuant to this Regulation shall ensure that
1. each payment is accompanied by a statement that sets out the interest and service charge calculations and is in a form acceptable to the Foundation, and
2. a copy of the statement is sent to the industry member to whom the trust account relates on the request of the licensee.
A licensee who deposits money in an account as required by section 25(1)(c) of the Act is not required to account to any person other than the Foundation for interest earned on the account.

Brokers

Making an impact with every transaction

Step 1: Download Broker Form

Step 2: Visit Your Bank

Step 3: Send us a Copy

Real Estate Act

Alberta Real Estate Act

Real Estate (Ministerial) Regulation 113/96

Alberta Real Estate Act

Section 25: Trust Accounts

Section 64: Foundation’s Mandate

Section 69: Payment of trust account interest

Real Estate (Ministerial) Regulation 113/96

Section 2: Board Composition

Section 3: Term of office

Section 4: Vacancies

Section 5: Chair

Section 6: Quorum

Section 7: Fiscal year

Section 8: Trust account interest

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