Status: Bill 15 received royal assent on October 30, 2019
Ministry responsible: Service Alberta
Bill 15: The Real Estate Amendment Act 2019 has passed to address concerns about the performance of the Real Estate Council of Alberta (RECA).
A third party review, completed in late spring 2019, found significant concerns with council performance and identified the need for urgent governance reform.
This is the first time a formal review of the RECA has been conducted under the authority of the Real Estate Act since it was established in 1996. The amendments are supported by the recommendations of the review.
Bill 15 allows measures to stabilize RECA governance, including:
- dismissing the current council members
- enabling the Minister of Service Alberta to appoint an official administrator to provide direction and oversee RECA’s affairs and continue its critical functions such as hearing and appeals processes
- enabling transition to a new council
An interim administrator will be appointed to continue RECA’s critical governance functions and ensure continuation of day-to-day activities such as licensing, education and evaluation of professional conduct.
No service disruptions are expected. Industry professionals or consumers will be able to continue processes with RECA as normal.
Key industry stakeholders will be engaged to help create a more effective governance structure.
A preliminary assessment was conducted by an independent consultant following significant complaints about RECA’s leadership to the Minister of Service Alberta.
The consultant recommended a full review as authorized by the Real Estate Act.
- A full review of RECA’s governance and operations was started by KPMG.
- The Governance Review found the council was not governing effectively, affecting its regulatory role and the confidence of industry.
- To reform governance of RECA, the review recommended:
- dismissing the current council as its issues were not expected to be resolved without changing the current roster of council members
- considering amendments to the Real Estate Act that would improve governance, such as potentially increasing public representation on the council
- Ending real estate regulator dysfunction (October 9, 2019)