News Bulletin - May 30, 2016
Policy Revision: Adding a Second Buyer to an Agreement of Purchase and Sale
CPE Reminder
FAQs
- I cannot complete my CPE on time, can keep my licence active?
- I am a broker, what do I need to know about advertising during renewals?
Policy Revision: Adding a Second Buyer to an Agreement of Purchase and Sale
We published an article in January 2016 clarifying the procedure to add new buyers to an accepted Agreement of Purchase and Sale (APS). As noted in the article, the procedures were initially developed using a legal opinion provided to the Commission. We recently discovered that this subject was being covered in the 2015/16 mandatory course “20 Timely Topics for Salespeople” using slightly different variations of the policy by the respective course instructors. As a result, compliance staff met with the instructors to re-examine the policy to ensure consistency between the course instructors and the Commission.
We determined that the policy was still in need of a minor revision. We work hard to ensure such procedures are thoroughly analysed and correct to keep such revisions to an absolute minimum and appreciate licensees' cooperation and understanding in getting this right. Please note that the Commission’s inspectors and investigator view the previously published and updated policy correct in transaction files for this time period.
The most significant revision is that the final step is now optional. While it is not contractually required, it is a recommended risk management practice.
STEP ONE: If not already obtained, any additional documents required for buyers such as: Working with the Real Estate Industry form, Buyer (Designated) Brokerage Agreement, Customer Status Acknowledgements, etc. would need to be completed with the new buyer.
STEP TWO: Complete an amendment to the APS, adding the new buyer. The following clauses for the amendment clearly outline the addition of the new buyer (insert the individual’s name where the clauses reference [new party]):
“a. [New party] is entering into the amendment to become a party to the agreement of purchase and sale (“the Agreement”) dated* the [date] day of [month] between [name of originally listed buyer] as buyer and [name(s) of seller(s)] as seller. The Agreement and the existing parties to the Agreement are entering into this amendment to accept the [new party] being added to the Agreement as buyer; and”
“b. [New party] confirms their acceptance of all of the terms of the Agreement.
*Date refers to the date of acceptance.
STEP THREE: The added buyer and all of the original parties must all sign the amendment to the APS consenting to the additional buyer being added.
STEP FOUR: (Optional) Have the added buyer initial and date the bottom of each page of a copy of the original APS, the PDS, the Schedule of Leased/ Rented Equipment and any other relevant real estate documents, as evidence that the new buyer clearly read and understood all terms.
CPE Reminder
CPE requirements must be completed by June 30th, 2016, to process your renewal.
See Continuing Professional Education requirements for 2015/16
Failing to complete CPE prior to the deadline will result in your licence being terminated.
Licensees may terminate their licence prior to the renewal date. Termination forms may be post-dated for any date up to and including June 30th.
Upon termination, for any reason, all advertising (including all online advertising) must be immediately removed or you and your broker may be subject to disciplinary action.
FAQs
Q: I cannot complete my CPE on time, can keep my licence active?
A: You may apply to the Commission for a licence extension which will keep your licence active for 30 days until July 31st, 2016, at which time your remaining required CPE courses must be completed.
At the end of the 30 days, if your CPE is not completed your licence will not be renewed and you must immediately stop all trading activities and advertising until such time as your CPE is complete and you reapply.
To apply for a licence extension, submit a completed Licence Extension Form with the corresponding extension fee by no later than noon on June 30th. The form is available here and at the Commission office.
Q: I am a broker, what do I need to know about advertising during renewals?
A: As the broker is ultimately responsible for your brokerage’s advertising and that of your licensees, it is important that you ensure all advertising for licensees who have not renewed their licences is removed prior to July 1st. Failing to do so may result in disciplinary action.
The Commission will review the advertising activity of newly expired licence holders, including online advertising and social media sites, to ensure compliance with the Real Estate Trading Act and Commission Bylaw. Be aware that some sites require several days for changes to be made, therefore be mindful and allow yourself sufficient time to process the request. Should you encounter issues removing advertising in time, including for reasons out of your control, please notify the Commission’s compliance team immediately.
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