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An Act to amend The Real Estate Brokers Act

R.S.M. 1987 Supp., c. 27

An Act to amend The Real Estate Brokers Act

Subsecs. 26(1.1) to (1.9) added.

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Section 26 of The Real Estate Brokers Act, being chapter R20 of the Re-enacted Statutes of Manitoba, 1987, is amended by adding thereto, immediately after subsection (1) thereof, the following subsections:

Interest on trust money.

26(1.1)

Subject to subsection (1.4), all trust moneys received by a broker from or for any person in respect of a transaction or trade in real estate shall be deposited in an interest-bearing bank account kept by the broker.

Broker as trustee to remit to commission.

26(1.2)

A broker making a deposit pursuant to subsection (1.1) is deemed to hold any interest earnings resulting therefrom as trustee for the commission and the broker shall direct the bank to remit such earnings, less charges pertaining directly to the calculation and remittance of the interest, to the commission at such times and in such manner as the commission may direct.

Broker need not account.

26(1.3)

A broker is not required to account to any person other than the commission for interest remitted to the commission under subsection (1.2).

Exemption.

26(1.4)

Notwithstanding subsection (1.1), trust money received by a broker from or for any person in respect of a transaction or trade in real estate may be deposited in an interest-bearing account separate from any other account kept by the broker or be invested in a term plan or a guaranteed term plan of a bank, where the broker has written instructions to do so from all persons having an interest in the money at the time of the deposit or the investment.

Broker as trustee.

26(1.5)

A broker acting under subsection (1.4) is deemed to hold the money and the interest earned thereon as trustee for the persons on whose behalf the money is held and the broker shall account to such persons.

Standard of Care.

26(1.6)

A broker acting under subsection (1.4) shall exercise the judgment and care that a person of prudence, discretion and intelligence would exercise in administering the property of others and receipt of the written instructions mentioned in subsection (1.4) does not relieve the broker of the duty to exercise such judgment and care.

Use of interest.

26(1.7)

Interest received by the commission pursuant to subsection (1.2) shall be held by the commission in an interest-bearing account and may be used in such proportions as the commission may determine to meet the costs of commissioning or undertaking educational programs relating to the real estate industry and the objectives of the Act and such other programs as the commission may authorize in furtherance of the objectives of the Act.

Consolidated Revenue Fund.

26(1.8)

The balance, if any, remaining in the account established by the commission pursuant to subsection (1.7), after the expenditures made pursuant to the subsection, shall be paid into the Consolidated Revenue Fund on March 31 each year.

Existing programs.

26(1.9)

For the purposes of subsection (1.8), the commission may withhold the balance in the account, or a portion thereof, as may be required to meet the future costs of existing programs commissioned or undertaken under subsection (1.7) as of March 31 each year.

Subsec. 27(3) rep.

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Subsection 27(3) of the Act is repealed.

Sec. 49 am.

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Section 49 of the Act is amended by deleting "and" at the end of clause (f) and by adding after clause (g) the following clauses:

(h) respecting the remittance of interest earnings; and

(i) respecting the establishment of an advisory body authorized to make recommendations to the commission on the disposition of the interest earnings received pursuant to subsection 27(2).