Skip to main content
The Real Estate Brokers Amendment Act (2)

S.M. 1989-90, c. 22

Bill 76, 2nd Session, 34th Legislature

The Real Estate Brokers Amendment Act (2)

(Assented to December 22, 1989)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. R20 amended

1           The Real Estate Brokers Act is amended by this Act.

Section 1 amended

2           Section 1 is amended by adding the following definitions in their appropriate alphabetical positions within the section:

"fund" means the Real Estate Reimbursement Fund established under section 39.1; («fonds»)

"association" means The Manitoba Real Estate Association Inc., a corporate body duly incorporated under the laws of Manitoba; («association»).

Subsection 4(1) repealed and substituted

3           Subsection 4(1) is repealed and the following is substituted:

Broker registration requirements

4(1)        Subject to subsection (2), no registration shall be granted to a person as a broker, unless that person has filed with the registrar

(a) a surety bond of indefinite duration in the amount and form prescribed by the regulations; or

(b) subject to section 39.1, a valid certificate of membership in The Manitoba Real Estate Association Inc., issued by the association, in a form and containing information prescribed by the commission.

Section 39.1 added

4           The following section is added to Part III:

Establishment of Reimbursement Fund

39.1(1)     The Manitoba Real Estate Association Inc. may establish a fund to be known as the Real Estate Reimbursement Fund.

Payment out of fund — fraud or conviction

39.1(2)     Where, in connection with a trade or transaction in real estate, a broker registered on the basis of membership in the association, or an authorized official, employee or salesperson of such a broker,

(a) is found, upon investigation by the commission or the commission's representative, to have committed a fraudulent act; or

(b) is a party to civil proceedings in a court resulting in final judgment, based upon a finding of fraud, being given against the broker, authorized official, employee or salesperson; or

(c) is convicted of an offence under the Criminal Code (Canada) or this Act;

the commission may order the association to pay out of the fund such amount to such person or the commission as the order may require, and the association shall comply with the order forthwith.

Payment out of fund — bankruptcy

39.1(3)     Where a broker registered on the basis of membership in the association, or an authorized official, employee or salesperson of such a broker,

(a) has become a bankrupt as defined in the Bankruptcy Act (Canada), or has made a proposal under that Act; or

(b) in the case of a corporation, has had a winding-up order made against it;

the commission may order the association to pay out of the fund such amount to such person or the commission as the order may require, and the association shall comply with the order forthwith.

Association is subrogated

39.1(4)     The association is subrogated to the rights and remedies to which any person or the commission receiving payment out of the fund under subsection (2) or (3) would have been entitled as against the affected broker, authorized official, employee or salesperson, and the association may pursue those rights and remedies in its own name, and any amount so recovered by the association shall be credited to the fund.

Section 49 amended

5           Section 49 is amended by striking out "and" at the end of clause (h) and by adding the following clause:

(j) respecting the establishment and maintenance of, the payment of claims from, and administrative guidelines for, the fund.

Coming into force of Act

6           This Act comes into force on a day fixed by proclamation.