Real Estate Council of British Columbia

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Licensees providing strata management services are required to comply with RESA and the Council Rules. As part of an ongoing education program for licensees providing strata management services, the Real Estate Council recently presented a program to licensees to explain how the requirements of RESA apply to strata corporations with sections. As a result of the education program, licensees providing strata management services to a strata corporation and sections may now be aware that the manner in which strata management services have been provided, may need to be modified.

Sections 9-1 , 9-2 , and 9-3 of the Council Rules allow licensees to provide certain real estate services without the legislation applying to them in respect to those services. These include providing rental property management services with respect to rental property that the licensee owns, or that is owned by the licensee’s family, and providing strata management services with respect to a strata corporation in which the licensee is an owner of a strata lot.

A personal real estate corporation must ensure that its licensee name is clearly indicated in the course of providing real estate services, including all forms of advertising. A personal real estate corporation’s licensee name is its legal name. A personal real estate corporation must use its licensee name in all business documents including listing contracts and other service agreements, contracts of purchase and sale, etc.

Accordingly, a Personal Real Estate Corporation is restricted to providing real estate services and those services which are subordinate to, and exist to support, real estate services. A Personal Real Estate Corporation cannot provide services whose primary purpose is not to facilitate or further the provision of real estate services. To put it another way, a Personal Real Estate Corporation may not conduct a business which can be conducted on a standalone basis.

If a licensee decides that the Personal Real Estate Corporation model works for their particular situation, then the manner in which remuneration is paid changes. Under the Personal Real Estate Corporation model, the remuneration for providing real estate services flows from the brokerage to the Personal Real Estate Corporation, not the controlling individual (licensee). Remuneration may then be paid to the controlling individual from the Personal Real Estate Corporation if all of the requirements of section 10.6 of the Real Estate Services Regulation are met.

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