Acts and Regulations

2011, c.215 - Real Estate Agents Act

Section 38
Disposition versions

Full text
Disclosure by agent or associate of intention to acquire real estate or an interest in real estate
38(1)In this section, “associate” means (associé)
(a) a salesperson of the agent,
(b) a manager or official of the agent,
(c) a sub-agent or salesperson, manager or official of a sub-agent,
(d) if the agent or a person included in paragraphs (a) to (c) is a corporation, a director, officer or nominee of the corporation or a person who has a material interest in the corporation,
(e) if the agent is a partnership, a partner,
(f) the spouse of the agent or of an individual included in paragraphs (a) to (e), or
(g) a corporation, firm, partnership, association, syndicate or other unincorporated organization in which the agent or a person included in paragraphs (a) to (f) has a material interest.
38(2)For the purposes of this section, a person has a material interest
(a) in a corporation if the person holds 5% or more of any class of its issued shares, and
(b) in a firm, partnership, association, syndicate or other unincorporated organization, if the person holds 5% or more of its capital or is entitled to receive 5% or more of its profits.
38(3)Except if subsection (4) applies, if an agent or an associate of an agent intends to acquire real estate or an interest in real estate, before either directly or indirectly acquiring or attempting to acquire an interest in the real estate, the agent or the associate shall disclose to the owner that the agent or the associate is an agent or an associate of an agent, as the case may be.
38(4)If an agent or an associate of the agent intends to acquire real estate or an interest in real estate and the owner has listed the real estate with the agent, or has discussed with the agent or the associate the listing of the real estate with the agent, before either directly or indirectly acquiring or attempting to acquire an interest in the real estate, that agent or that associate shall inform the owner that the owner is advised to obtain independent advice regarding the real estate and shall disclose to the owner
(a) whether that agent or that associate intends to sell or dispose of an interest that that agent or that associate acquires in the real estate and, if so, the details of all negotiations to that end,
(b) any information within that agent’s or that associate’s special knowledge that could materially affect the value of the real estate, and
(c) any other information within that agent’s or that associate’s special knowledge that could reasonably affect the owner in making a decision in relation to the real estate.
38(5)If an agent or an associate of an agent owns real estate or an interest in real estate, before selling an interest in the real estate, the agent or the associate shall disclose to the prospective purchaser
(a) that the agent or the associate owns the real estate or an interest in the real estate, and
(b) that the agent or the associate is an agent or an associate of an agent, as the case may be.
38(6)The disclosure required by subsections (3) and (5) shall be made in a separate written statement the receipt of which is acknowledged in writing by the owner or prospective purchaser, as the case may be.
38(7)The disclosure required by subsection (4) shall be made
(a) in a separate written statement the receipt of which is acknowledged in writing by the owner, and
(b) not less than 24 hours before the agent or the associate, as the case may be, acquires an interest in the real estate.
38(8)If an agent or an associate is in breach of this section, the agent or the associate, as the case may be, is liable for any reasonably foreseeable loss that was caused by the breach.
R.S.1973, c.R-1, s.23; 1975, c.51, s.3; 1983, c.75, s.25
Disclosure by agent or associate of intention to acquire real estate or an interest in real estate
38(1)In this section, “associate” means (associé)
(a) a salesperson of the agent,
(b) a manager or official of the agent,
(c) a sub-agent or salesperson, manager or official of a sub-agent,
(d) if the agent or a person included in paragraphs (a) to (c) is a corporation, a director, officer or nominee of the corporation or a person who has a material interest in the corporation,
(e) if the agent is a partnership, a partner,
(f) the spouse of the agent or of an individual included in paragraphs (a) to (e), or
(g) a corporation, firm, partnership, association, syndicate or other unincorporated organization in which the agent or a person included in paragraphs (a) to (f) has a material interest.
38(2)For the purposes of this section, a person has a material interest
(a) in a corporation if the person holds 5% or more of any class of its issued shares, and
(b) in a firm, partnership, association, syndicate or other unincorporated organization, if the person holds 5% or more of its capital or is entitled to receive 5% or more of its profits.
38(3)Except if subsection (4) applies, if an agent or an associate of an agent intends to acquire real estate or an interest in real estate, before either directly or indirectly acquiring or attempting to acquire an interest in the real estate, the agent or the associate shall disclose to the owner that the agent or the associate is an agent or an associate of an agent, as the case may be.
38(4)If an agent or an associate of the agent intends to acquire real estate or an interest in real estate and the owner has listed the real estate with the agent, or has discussed with the agent or the associate the listing of the real estate with the agent, before either directly or indirectly acquiring or attempting to acquire an interest in the real estate, that agent or that associate shall inform the owner that the owner is advised to obtain independent advice regarding the real estate and shall disclose to the owner
(a) whether that agent or that associate intends to sell or dispose of an interest that that agent or that associate acquires in the real estate and, if so, the details of all negotiations to that end,
(b) any information within that agent’s or that associate’s special knowledge that could materially affect the value of the real estate, and
(c) any other information within that agent’s or that associate’s special knowledge that could reasonably affect the owner in making a decision in relation to the real estate.
38(5)If an agent or an associate of an agent owns real estate or an interest in real estate, before selling an interest in the real estate, the agent or the associate shall disclose to the prospective purchaser
(a) that the agent or the associate owns the real estate or an interest in the real estate, and
(b) that the agent or the associate is an agent or an associate of an agent, as the case may be.
38(6)The disclosure required by subsections (3) and (5) shall be made in a separate written statement the receipt of which is acknowledged in writing by the owner or prospective purchaser, as the case may be.
38(7)The disclosure required by subsection (4) shall be made
(a) in a separate written statement the receipt of which is acknowledged in writing by the owner, and
(b) not less than 24 hours before the agent or the associate, as the case may be, acquires an interest in the real estate.
38(8)If an agent or an associate is in breach of this section, the agent or the associate, as the case may be, is liable for any reasonably foreseeable loss that was caused by the breach.
R.S.1973, c.R-1, s.23; 1975, c.51, s.3; 1983, c.75, s.25