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RSNL1990 CHAPTER R - 2

REAL ESTATE TRADING ACT
[Sections 47 and 48 to be Proclaimed]

Amended:

1996 cR-10.1 s62; 1996 c35; 1998 c6 s23; 2004 c36 s36;
2005 cF-9.1 s16; 2006 c30; 2008 c34 s1; 2010 c25; 2013 c16 s25

CHAPTER R-2

AN ACT RESPECTING THE LICENSING OF REAL ESTATE AGENTS, THE REGULATION OF TRADING IN REAL ESTATE AND THE REAL ESTATE FOUNDATION

Analysis


       
1.   Short title

       
2.   Definitions

              PART I
REAL ESTATE REGULATION

       
3.   Superintendent

       
4.   Exceptions

       
5.   Issue of licences

       
6.   Application

       
7.   Representative

       
8.   Salesperson's licence

       
9.   Offices

     
10.   Branch offices

     
11.   Prohibition

     
12.   Rep. by 2005 cF-9.1 s16

     
13.   Further application

     
14.   Return of licences

     
15.   Address for service

     
16.   Additional information

     
17.   Changes

     
18.   Death of agent

     
19.   Bond

     
20.   Licence required

     
21.   Agent and salesperson

     
22.   Appeal

     
23.   Rep. by 2005 cF-9.1 s16

     
24.   Forfeiture

     
25.   Period of bond

     
26.   Disposition of proceeds of bond

     
27.   Action on bond

     
28.   Books and accounts

     
29.   Trust

     
30.   Search and seizure

     
31.   Certificate

     
32.   Action for commission

     
33.   Action

     
34.   Promises to resell prohibited

     
35.   Carrying on business as individual

     
36.   Prohibition

     
37.   Unregistered agents and salespersons

     
38.   Advertising

     
39.   Employment of unregistered persons

     
40.   Trading for other agents

     
41.   Purchase of listed real estate

     
42.   Breaking of contract

     
43.   Statements to be delivered

     
44.   Certain commission agreements prohibited

     
45.   Agreement to list real estate

     
46.   Agreements to sell, purchase, etc.

     
47.   Filing of prospectus

     
48.   Copy of prospectus

     
49.   Offence

     
50.   Limitation

     
51.   Regulations

              [Part II heading Rep. by 2006 c30 s2]

     
52.   Rep. by 2006 c30 s2

     
53.   Rep. by 2006 c30 s2

     
54.   Rep. by 2006 c30 s2

     
55.   Rep. by 2006 c30 s2

     
56.   Rep. by 2006 c30 s2

     
57.   Rep. by 2006 c30 s2

     
58.   Rep. by 2006 c30 s2

     
59.   Rep. by 2006 c30 s2

     
60.   Rep. by 2006 c30 s2

     
61.   Rep. by 2006 c30 s2

     
62.   Rep. by 2006 c30 s2

     
63.   Rep. by 2006 c30 s2

     
64.   Rep. by 2006 c30 s2

     
65.   Rep. by 2006 c30 s2

     
66.   Commencement


Short title

        1. This Act may be cited as the Real Estate Trading Act.

RSN1970 c326 s1

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Definitions

        2. In this Act

             (a)  "agent" means a person who by himself or herself or through 1 or more officials or salespersons trades or purports to trade in real estate on behalf of himself, herself or another;

             (b)  "business" means an undertaking carried on for gain or profit or an interest in that undertaking, and includes a boarding house, a hotel, a store, a tourist camp and a tourist home or an interest in either of them;

             (c)  "licence" means a licence issued under section 5;

             (d)  "licensed agent" means an agent who holds a valid agent's licence issued under section 5;

             (e)  "licensed salesperson" means a person who holds a valid salesperson's licence issued under section 5;

             (f)  "official" includes a president, a vice-president, a secretary, a treasurer, a managing director, a general manager, a department manager, a branch office manager and persons acting in a similar capacity whether so designated or not;

             (g)  "person", in addition to its meaning in the Interpretation Act, includes a partnership;

             (h)  "real estate" includes freehold and leasehold property and chattels real and a business, whether with or without the premises, fixtures, stock-in-trade, goods or chattels used in connection with the operation of the business;

              (i)  "superintendent" means the Superintendent of Real Estate Agents and Salespersons appointed under section 3;

              (j)  "salesperson" means a real estate salesperson and includes a person employed, appointed or authorized by an agent to trade in real estate; and

             (k)  "trade" or "trading" includes

                      (i)  a disposition or acquisition of or transaction in real estate by sale, purchase, agreement for sale, exchange, option, lease, rental or otherwise,

                     (ii)  an offer or attempt to list real estate for the purpose of a disposition, acquisition or transaction, and

                    (iii)  an act, advertisement, conduct or negotiation, directly or indirectly, in furtherance of a disposition, acquisition, transaction, offer or attempt.

                    (iv)  [Rep. by 2010 c25 s1]

RSN1970 c326 s2; 1973 No39 Sch C; 1975-76 No58 s4; 1977 c26 s1; 1996 c35 s53; 2010 c25 s1

PART I
REAL ESTATE REGULATION

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Superintendent

        3. (1) The Lieutenant-Governor in Council shall appoint a Superintendent of Real Estate Agents and Salespersons to administer and enforce this Act and the regulations.

             (2)  The Lieutenant-Governor in Council may appoint a Deputy Superintendent of Real Estate Agents and Salespersons who, in the absence or incapacity of the superintendent, shall perform the duties and exercise the powers of the superintendent.

             (3)  For the purpose of carrying out his or her powers and duties under this Act the superintendent has the powers, privileges and immunities that are or may be conferred on a commissioner under the Public Inquiries Act.

1977 c26 s3

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Exceptions

        4. This Act shall not apply to

             (a)  an assignee, custodian, liquidator, receiver, trustee or other person acting under a statute of Canada or of the province, a person acting under an order of a court, or an administrator of an estate or an executor or trustee selling under the terms of a will, marriage settlement or deed of trust;

             (b)  a bank, loan, trust or insurance company trading in real estate in the ordinary course of its business;

             (c)  a person who completes not more than 3 trades in a calendar year in real estate owned by him or her or in which that person has a substantial interest, or a person who rents property owned by that person, or in which that person has a substantial interest;

             (d)  a person who holds a valid certificate of the Law Society of Newfoundland entitling that person to practise as a solicitor in the province and who trades in real estate in the course of and as part of his or her practice;

         (d.1)  a person in the business of property management who arranges a lease or rental agreement; or

             (e)  a person or class of persons exempted from the application of this Act by the regulations.

RSN1970 c326 s4; 1977 c26 s4; 2010 c25 s2

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Issue of licences

        5. (1) The superintendent may issue to a person

             (a)  a licence to be known as an agent's licence, authorizing that person to trade in real estate as a licensed agent;

             (b)  a licence to be known as a salesperson's licence, authorizing that person to act as the salesperson of a licensed agent;

             (c)  without examination, a licence to be known as a restricted agent's licence, authorizing that person to trade in real estate on his or her own behalf; or

             (d)  without examination, a licence to be known as a restricted salesperson's licence, authorizing that person to act as the salesperson of a person who holds a restricted agent's licence.

             (2)  A person who holds a restricted agent's licence is considered to be an agent for the purpose of this Act and a person who holds a restricted salesperson's licence is considered to be a salesperson for the purpose of this Act.

             (3)  A licence remains in effect, subject to the filing of annual reports and payment of an annual fee as prescribed by the minister, until it is suspended or cancelled under this Act.

             (4)  The superintendent may suspend, revoke or cancel a licence, where in his or her opinion that action is in the public interest.

RSN1970 c326 s5; 1977 c26 s2; 1978 c65 s1; 1996 c35 s54

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Application

        6. An application for a licence shall be made to the superintendent before a date, in a form and accompanied by a fee that may be prescribed in the regulations in respect of that licence.

RSN1970 c326 s6; 1977 c26 s2

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Representative

        7. (1) A partnership or corporation applying for an agent's licence shall designate a natural person to act as its representative.

             (2)  The natural person designated under subsection (1) shall be a person who

             (a)  will be actively engaged in the partnership or corporation; and

             (b)  has met the qualifications and successfully completed the examinations prescribed by the regulations for a licensed agent.

             (3)  The name of the representative designated under subsection (1) shall be set out on the licence issued to a partnership or corporation.

1977 c26 s5

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Salesperson's licence

        8. (1) A salesperson may be licensed only as the salesperson of a licensed agent.

             (2)  The termination of the employment of a salesperson with a licensed agent shall operate as a suspension of the licence of that salesperson until written notice has been received by the superintendent from that or another licensed agent of his or her intention to re-employ or employ the salesperson and until the salesperson's licence has been restored or renewed and the salesperson has been notified in writing by the superintendent of the restoration or renewal.

             (3)  An associate, partner or employee of a natural person who is a licensed agent, or an officer, member or employee of a partnership or corporation which is a licensed agent may apply for a salesperson's licence.

             (4)  An application for a salesperson's licence shall be accompanied by a statement made by or on behalf of the licensed agent for whom the applicant proposes to act as salesperson,

             (a)  recommending the applicant as an appropriate person to receive a salesperson's licence; and

             (b)  declaring that, where the applicant is granted a licence, the applicant shall act as a salesperson employed by and representing the licensed agent by or on whose behalf the statement is made.

             (5)  A salesperson's licence shall have written on the licence the name of the licensed agent who is the principal of that salesperson.

RSN1970 c326 s8; 1977 c26 s2

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Offices

        9. (1) [Rep. by 2008 c34 s1]

             (2)  An office and branch office of a licensed agent shall be in a place of business satisfactory to the superintendent and clearly designated by the sign of the licensed agent.

             (3)  In this section "branch office" means a place other than the main office of an agent that is used by a salesperson as his or her principal place for conducting business.

             (4)  This section does not apply to the holder of a restricted agent's licence.

1977 c26 s6; 1978 c65 s2; 2008 c34 s1

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Branch offices

      10. (1) A licensed agent may not establish branch offices without the prior written authorization of the superintendent.

             (2)  A branch office established under subsection (1) shall be under the direct and continuous supervision of a licensed salesperson of at least 2 years' experience.

1977 c26 s7

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Prohibition

      11. Without the prior written consent of the superintendent,

             (a)  an agent's licence may not be issued under this Act to a person who is licensed as an agent or subagent under the Life and Accident Insurance Agents Licensing Act; and

             (b)  a person who holds an agent's licence issued under this Act may not hold a licence as agent or subagent under the Life and Accident Insurance Agents Licensing Act.

RSN1970 c326 s10; 1977 c26 s2

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Rep. by 2005 cF-9.1 s16

      12. [Rep. by 2005 cF-9.1 s16]

2005 cF-9.1 s16

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Further application

      13. Where a licence has been refused, a further application for it may be made by an agent or salesperson upon new or other material or where it is clear that material circumstances have changed.

RSN1970 c326 s12

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Return of licences

      14. Where a licence has been suspended or cancelled under this Act, the holder of the licence shall immediately return the licence to the superintendent.

RSN1970 c326 s13; 1977 c26 s2

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Address for service

      15. An applicant for a licence shall state in his or her application an address for service in the province, and a notice under this Act or the regulations shall be sufficiently served where delivered or sent by prepaid mail to the latest address for service so stated.

RSN1970 c326 s14; 1996 c35 s56

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Additional information

      16. The superintendent may require further information or material to be submitted, within a specified time, by an applicant or other person who holds a licence and may require, where he or she so wishes, verification by affidavit or otherwise of information or material then or previously submitted.

RSN1970 c326 s15; 1977 c26 s2

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Changes

      17. A licensed agent shall notify the superintendent in writing of

             (a)  a change in his or her address for service within 10 days of the change;

             (b)  where the agent is a partnership, a change in the partners; and

             (c)  the commencement and termination of employment of a salesperson employed by the licensed agent.

RSN1970 c326 s16; 1977 c26 s2; 1978 c65 s3

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Death of agent

      18. (1) Where a licensed agent who is a natural person dies, the superintendent may issue to the executor or administrator of that agent a temporary agent's licence for a term not longer than 6 months in respect of the business of the deceased licensed agent.

             (2)  Where a temporary agent's licence is issued under subsection (1), salespersons licensed as salespersons of the deceased licensed agent at the time of his or her death shall be considered to be licensed as salespersons of the person to whom the temporary licence was issued, for the term of that temporary licence.

RSN1970 c326 s17; 1977 c26 s2

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Bond

      19. (1) An application for an original licence shall be accompanied by a bond to the Crown in an amount and form that may be prescribed under this Act.

             (2)  [Rep. by 1996 c35 s57]

RSN1970 c326 s18; 1996 c35 s57

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Licence required

      20. A person shall not

             (a)  trade in real estate as an agent, unless that person holds a valid agent's licence issued under section 5;

             (b)  trade in real estate as a salesperson, unless that person holds a valid salesperson's licence issued under section 5;

             (c)  act as an official of or on behalf of a partnership or corporation in connection with a trade in real estate by a partnership or corporation unless that person or the partnership or corporation holds a valid agent's licence; or

             (d)  act as a salesperson of or on behalf of a partnership or corporation in connection with a trade in real estate by the partnership or corporation unless that person holds a valid salesperson's licence of that partnership or corporation and the partnership or corporation holds a valid agent's licence.

RSN1970 c326 s19

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Agent and salesperson

      21. A person shall neither act nor hold himself or herself out as

             (a)  a licensed agent, unless the person holds a valid agent's licence; or

             (b)  a licensed salesperson, unless the person holds a valid salesperson's licence.

RSN1970 c326 s20

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Appeal

      22. A person aggrieved by a decision of the superintendent respecting the issue, suspension, cancellation or reinstatement of a licence may, in accordance with the Financial Services Appeal Board Act , appeal that decision to the board established under that Act.

2005 cF-9.1 s16

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Rep. by 2005 cF-9.1 s16

      23. [Rep. by 2005 cF-9.1 s16]

2005 cF-9.1 s16

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Forfeiture

      24. A bond given under this Act shall be forfeited and the amount of the bond shall be recoverable from the person bound by it as a debt due the Crown, where

             (a)  a conviction of an offence, under this Act or of an offence involving fraud, theft, or conspiracy to commit an offence involving fraud or theft under the Criminal Code has been made by a court;

             (b)  a civil judgment arising out of a trade in real estate has been made;

             (c)  a winding-up or receiving order has been made under the Bankruptcy Act (Canada ) or the Winding Up Act (Canada ),

against the person in respect of whose conduct the bond was conditioned, or where that person is a partnership, a partner of that partnership, and that conviction, judgment or order has become final.

RSN1970 c326 s23; 1977 c26 s8

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Period of bond

      25. In respect of an act or omission occurring during the term of a licence, a bond shall continue in force for a period of 2 years after the licence or renewal of the licence to which it relates ends or is cancelled.

RSN1970 c326 s24

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Disposition of proceeds of bond

      26. (1) The superintendent shall assign the proceeds of a bond forfeited under section 24 to the Trial Division.

             (2)  The proceeds shall be distributed out of the Trial Division to a person who has become a judgment creditor of the agent or salesperson in respect of a claim arising out of a trade in real estate, or has otherwise proved his or her claim to the satisfaction of the court in respect of that claim.

2013 c16 s25

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Action on bond

      27. (1) Where the Crown becomes a creditor of a person under this Act, the debt may be recovered by action or other proceeding in a court as a debt due the Crown.

             (2)  Where a bond has been forfeited under section 24, the balance of the proceeds remaining, less the expenses of the Trial Division, shall be repaid out of the Trial Division to the bonding company at the end of 2 years following the payment to the Crown of the proceeds of the bond.

RSN1970 c326 s26; 1977 c26 s10; 2013 c16 s25

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Books and accounts

      28. (1) An agent shall keep proper books and accounts with respect to the agent's trades and shall enter in the books and accounts in respect of each trade

             (a)  the nature of the trade;

             (b)  a description of the real estate involved sufficient to identify it;

             (c)  the true consideration for the trade;

             (d)  the names of parties to the trade;

             (e)  the amount of deposit received and a record of the disbursement of it; and

             (f)  the amount of the commission or other remuneration and the name of the party paying it.

             (2)  An agent shall maintain on a daily basis a trust account record in which the agent shall enter the full details of the receipt and disbursement of the trust money.

RSN1970 c326 s27; 1977 c26 s11

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Trust

      29. (1) An agent shall maintain at least 1 interest-bearing trust account of a type approved by the superintendent in a financial institution that is authorized to receive money on deposit.

             (2)  An agent shall deposit in a trust account money received by the agent in trust for other persons in connection with real estate transactions and shall make deposits within 2 banking days of their receipt by the agent.

             (3)  An agent shall not disburse money from a trust account unless

             (a)  the offer of purchase has not been accepted by the vendor;

             (b)  the sale has been completed;

             (c)  written notice from the vendor and purchaser has been received by the agent authorizing the return of the deposit to the purchaser;

             (d)  a court has given a direction as to the disbursement of the proceeds; or

             (e)  the money has been deposited into the trust account in error.

             (4)  Interest earned on money deposited in a trust account referred to in subsection (1) shall be the property of the agent.

1977 c26 s12; 1986 c14 s2; 2006 c30 s1

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Search and seizure

      30. (1) The superintendent may authorize a person to, at reasonable times, where it is reasonably necessary to determine compliance with this Act,

             (a)  enter upon the business premises of an agent; and

             (b)  demand the production of and inspect the books of account, cash, bank accounts, vouchers, documents, correspondence and records of the agent that the authorized person believes on reasonable grounds are in respect of the person about whom the investigation is being made.

             (2)  Where the superintendent believes on reasonable grounds that a person has contravened this Act or the regulations, the person authorized by the superintendent may with a warrant issued under subsection (3) at a reasonable time enter upon the business premises of an agent and may investigate, inquire into and examine the affairs of the person in respect of whom the investigation is being made and into books of account, cash, bank accounts, vouchers, documents, correspondence and records in relation to that person.

             (3)  A Provincial Court judge who is satisfied by information upon oath or affirmation that there are reasonable grounds for believing that there is on a business premises anything that there are reasonable grounds to believe will give evidence with respect to an offence under this Act may issue a warrant authorizing a person authorized by the superintendent and named in the warrant to enter and search those premises and to make inquiries and copies of books of account, cash, bank accounts, vouchers, documents, correspondence and records that are considered necessary, subject to those conditions that may be specified in the warrant.

             (4)  The owner or person in charge of the premises referred to in this section and a person found there shall give the person authorized by the superintendent reasonable help to enable that person to carry out his or her duties and functions under this section and shall provide the information that that person may reasonably require.

1985 c11 s59; 2004 c36 s36

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Certificate

      31. An agent shall, when required by the superintendent, file a certificate satisfactory to the superintendent as to the agent's financial position signed by the agent or, where the agent is a partnership, by the partners, and by an accountant approved by the superintendent.

RSN1970 c326 s30; 1977 c26 s2

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Action for commission

      32. An action shall not be brought for commission or for remuneration for services in connection with a trade in real estate, unless at the time of rendering the services the person bringing the action was licensed or exempt from licensing, and, where an action is brought, the court may stay it at any stage.

RSN1970 c326 s31

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Action

      33. An action shall not be brought to charge a person for the payment of a commission or other remuneration for the sale, purchase, exchange or lease of real estate, unless

             (a)  the agreement upon which the action is brought is in writing and signed by the party to be charged or some person by him or her lawfully authorized;

             (b)  the agent or his or her salesperson has obtained a written offer that is accepted; or

             (c)  the agent having been authorized in writing to list the property

                      (i)  shows the property to the purchaser, or

                     (ii)  introduces the purchaser to the vendor for the purpose of discussing the proposed sale, purchase, exchange or lease.

RSN1970 c326 s32

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Promises to resell prohibited

      34. An agent or salesperson shall not, as an inducement to purchase, sell or exchange real estate, make a representation or promise that he or she or another person will

             (a)  resell or in any way guarantee or promise to resell real estate offered for sale by him or her;

             (b)  purchase or sell the purchaser's real estate;

             (c)  obtain a mortgage, extension of a mortgage, lease or extension of a lease; or

             (d)  purchase or sell a mortgage or obtain a loan,

unless the agent or salesperson making it delivers to the person to whom the representation or promise is made, when it is made, a statement signed by that agent or salesperson clearly setting out the details of that representation or promise.

RSN1970 c326 s33

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Carrying on business as individual

      35. (1) An agent who is a natural person and who is not associated in partnership with another person shall carry on business in his or her own name only and shall not use a description, words or device that would indicate that his or her business is being carried on by more than 1 person or by a corporation.

             (2)  Notwithstanding subsection (1), a surviving or remaining partner may carry on business in the name of the original partnership, where he or she publishes on letterheads and circulars used by the surviving or remaining partner in connection with his or her business the fact that the surviving or remaining partner is the sole proprietor of the business.

RSN1970 c326 s34

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Prohibition

      36. An agent or salesperson shall not trade in real estate until he or she is notified in writing by the superintendent that he or she is licensed under this Act.

RSN1970 c326 s35; 1977 c26 s2

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Unregistered agents and salespersons

      37. A person who is not licensed as an agent shall neither directly nor indirectly hold himself or herself out as being an agent and a person who is not registered as a salesperson shall neither directly nor indirectly hold himself or herself out as a salesperson.

RSN1970 c326 s36

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Advertising

      38. An agent shall, when advertising to purchase, sell, exchange or lease real estate, clearly indicate his or her own name as that of the party advertising and that he or she is an agent, and a reference to the name of a salesperson in the advertisement shall clearly indicate the agent as being the employer of the salesperson.

RSN1970 c326 s37

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Employment of unregistered persons

      39. An agent shall not employ, permit or engage the salesperson of another agent or a person who is not a licensed salesperson to trade in real estate, nor shall an agent pay commission or other remuneration to that salesperson or person.

RSN1970 c326 s38

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Trading for other agents

      40. A salesperson shall not trade in real estate on behalf of an agent other than the licensed agent who, according to the records of the superintendent, is his or her employer, and a salesperson is not entitled to or shall not accept a commission or other remuneration for trading in real estate from a person except the licensed agent who is registered as his or her employer.

RSN1970 c326 s39; 1977 c26 s2; 1982 c9 s11

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Purchase of listed real estate

      41. (1) An agent or salesperson shall not, either directly or indirectly

             (a)  purchase for himself or herself;

             (b)  make an offer to purchase for himself or herself; or

             (c)  acquire for himself or herself an interest in,

real estate listed with the agent or salesperson for sale, until the agent or salesperson has clearly disclosed in writing to the listing owner that

             (d)  he or she is purchasing the real estate or acquiring an interest in the real estate for himself or herself;

             (e)  he or she is about to negotiate, is negotiating or has negotiated for the resale or other disposition of the real estate giving full details of the negotiation; and

             (f)  it is his or her intention to resell the real estate for his or her own account, if he or she intends to do so.

             (2)  A vendor is not liable for the payment of a commission to an agent when disclosure is not made to the vendor in accordance with subsection (1).

RSN1970 c326 s40; 1977 c26 s14

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Breaking of contract

      42. (1) An agent or salesperson shall not induce a party to a contract for sale or rental of real estate to break the contract for the purpose of entering into another contract for its sale or rental.

             (2)  Unless agreed to in writing by the vendor, an agent is not entitled to claim commission from a vendor in respect of a trade in real estate, where the real estate is to the knowledge of that agent covered by an unexpired exclusive listing agreement with another licensed agent.

RSN1970 c326 s41

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Statements to be delivered

      43. (1) Where a trade in a business is negotiated by an agent or the agent's salesperson, the person negotiating the trade shall, before a binding agreement of purchase and sale is signed by the parties, deliver to the person acquiring the business,

             (a)  a profit and loss statement or a statement showing the revenue and expenditure of the business, during the preceding 12 months or since the acquisition of the business by the person disposing of it;

             (b)  a statement of the assets and liabilities of the business; and

             (c)  a statement containing a list of fixtures, goods, chattels, rights and other assets relating to or connected with the business that are not included in the trade,

and a statement shall be signed by the person disposing of the business or his or her agent lawfully authorized in that behalf.

             (2)  Where an agent or a licensed salesperson of that agent delivers to the person acquiring the business an affidavit of the person disposing of the business setting out

             (a)  the terms and conditions under which the person disposing of the business holds possession of the premises in which the business is being carried on;

             (b)  where the person disposing of the business has sublet a part of the premises in which the business is being carried on, the terms and conditions of the sublease;

             (c)  liabilities of the business; and

             (d)  that the person disposing of the business has made available those books of account of the business that the person possesses for inspection by the person acquiring the business, or that the person disposing of the business has no books of account of the business,

the person acquiring the business may waive compliance with paragraphs (1)(a) and (b) by signing and delivering to that agent or salesperson a statement that he or she has received and read the affidavit of the person disposing of the business.

             (3)  Unless the statement mentioned in paragraph (1)(c) is delivered under that subsection, fixtures, goods, chattels and rights and other assets relating to or connected with the business shall be considered to be included in the transaction.

RSN1970 c326 s42

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Certain commission agreements prohibited

      44. (1) An agent or salesperson shall not request or enter into an agreement for the payment to the agent or salesperson of commission or other remuneration based on the difference between the price at which real estate is listed for sale and the actual sale price of the real estate, and an agent or salesperson is not entitled to retain a commission or other remuneration so calculated.

             (2)  A commission or other remuneration payable to an agent in respect of a trade in real estate shall be upon an agreed amount or percentage of the sale price or rental and, where no agreement as to the amount of the commission has been entered into, the rate of commission or other basis or amount of remuneration shall be that generally prevailing in the community where the real estate is situated.

RSN1970 c326 s43; 1986 c33 s11; 1987 c41 s19

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Agreement to list real estate

      45. (1) An agent and salesperson shall, immediately after the execution of an agreement to list real estate for sale, exchange, lease or rent with the agent, deliver to the person who has signed the agreement a true copy of the agreement.

             (2)  An agreement with an agent to list real estate for sale, exchange, lease or rental is not valid, where

             (a)  it does not contain a provision that it will end on a certain date specified in the agreement;

             (b)  it contains a provision for more than 1 date on which it may end; or

             (c)  a true copy of it is not delivered by the agent or his or her salesperson to the other party immediately after its execution.

RSN1970 c326 s44

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Agreements to sell, purchase, etc.

      46. Where an agent or salesperson has secured an acceptance of an offer to sell, purchase, exchange, lease or rent real estate, the agent or salesperson shall require each of the parties to sign a sufficient number of copies of the agreement, and the agent or salesperson shall retain 1 signed copy and shall immediately deliver 1 signed copy to each of the parties.

RSN1970 c326 s45

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Filing of prospectus

      47. (1) An agent or salesperson who proposes to trade within this province in real estate, where the real estate is a lot or unit of land in a subdivision consisting of more than 3 lots located outside the province, shall file a prospectus, in the form prescribed by the regulations, with the superintendent and shall not begin the sale of that real estate until the superintendent has approved the prospectus.

             (2)  The superintendent may make those inquiries relating to the prospectus that the superintendent considers necessary.

             (3)  An approval granted under subsection (1) is not a certification by the superintendent of the prospectus, and the superintendent is not liable for damages in respect of that approval.

1977 c26 s15

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Copy of prospectus

      48. (1) An agent or salesperson shall provide a copy of the prospectus filed under section 47 to a prospective purchaser at least 7 days before the signing of an agreement of sale by the purchaser or a deposit or other payment made by him or her.

             (2)  Where subsection (1) is not complied with, the purchaser may rescind an agreement of sale or deed and shall have his or her deposit or purchase money returned by the agent or salesperson.

1977 c26 s15

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Offence

      49. A person who fails to comply with or otherwise contravenes this Act or the regulations, or makes a false statement in a form, return, account or statement made under this Act or the regulations, is guilty of an offence and liable on summary conviction to a fine of not more than $1,000 for a 1st offence and not more than $2,000 for a subsequent offence, and, for either a 1st or a subsequent offence, in default of payment of a fine or in addition to that fine, to imprisonment for a period not exceeding 6 months.

RSN1970 c326 s46

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Limitation

      50. (1) A prosecution under this Act or the regulations shall be started within 2 years from the date on which the offence is alleged to have been committed.

             (2)  A prosecution for an offence under this Act or the regulations shall not be started, except with the written consent of the Attorney General.

RSN1970 c326 s47

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Regulations

      51. The Lieutenant-Governor in Council may make regulations

             (a)  prescribing the amount and form of bonds to be provided under this Act;

             (b)  [Rep. by 1996 cR-10.1 s62]

             (c)  [Rep. by 1996 cR-10.1 s62]

             (d)  providing for the holding of inquiries into the operation of this Act and into a charge or complaint that an agent, salesperson or another person has contravened this Act or the regulations, or has made a false statement in a form, return, account or statement required to be completed or made under this Act or the regulations, or into another matter arising in the administration of this Act, and providing that the person holding the inquiry shall have any or all of the powers that are or may be conferred upon a commissioner under thePublic Inquiries Act, including the power to take evidence under oath or affirmation;

             (e)  prescribing the returns and statements to be made by licensees and other persons, the information to be given in those returns and statements, and by whom and in what manner they shall be made;

             (f)  providing for the qualifications and the examination of applicants for licences;

             (g)  providing for the regulation of trading by agents;

             (h)  prescribing the books, accounts and records to be kept and maintained by agents;

              (i)  fixing or limiting the commission or rates of commission that may be charged and collected by agents; and

              (j)  prescribing the form of the prospectus to be filed under section 47;

             (k)  prescribing the form of an offer to purchase and agreement of sale;

              (l)  respecting the advertising of real estate for sale by agents;

           (m)  exempting persons or classes of persons from the application of this Act;

             (n)  prescribing other matters or things required by this Act to be prescribed; and

             (o)  generally, to give effect to the purpose of this Act.

RSN1970 c326 s48; 1977 c26 s16; 1996 cR-10.1 s62

[Part II heading Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      52. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      53. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      54. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      55. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      56. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      57. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      58. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      59. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      60. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      61. [Rep. by 2006 c30 s2]

2006 c30 s2

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      62. [Rep. by 2006 c30 s2]

2006 c30 s2

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      63. [Rep. by 2006 c30 s2]

2006 c30 s2

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      64. [Rep. by 2006 c30 s2]

2006 c30 s2

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Rep. by 2006 c30 s2

      65. [Rep. by 2006 c30 s2]

2006 c30 s2

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Commencement

      66. Sections 47 and 48 come into force on a date to be proclaimed by the Lieutenant-Governor in Council.