News Bulletin - May 14, 2025 #2

Message from the Chair — Incentives

There is some misunderstanding/misinterpretation around the change to the NSREC by-law regarding incentives. For clarity, I wanted to send out some additional information.   
 
The full by-law regarding the rules around incentives and the background behind the change was sent out to all licensees in the NSREC News on March 4, 2025, and again on May 8, 2025. It is important to note that the rules for incentives has NOT yet changed. This does not come into effect until July 1, 2025 so any information, stats, or personal experience has not been determined or affected by this rule change.  
 
Incentives have always been permitted subject to rules around disclosure, transparency, broker approval, fulfilling incentives, etc. None of that has changed!  The ONLY change made to the incentives by-law is that now an individual licensee can, with approval of their broker, promote/offer an incentive while still being compliant under the applicable rules re: advertising, etc. 
 
The reason behind the change is that it was felt that under the previous rules, it was too restrictive. If you wanted to promote/offer an incentive it had to be brokerage wide, which meant an HRM licensee couldn't promote/offer the services of an HRM moving/staging company unless the broker and all licensees in that brokerage provincially also promoted/offered it.  
 
The reason for the removal of this requirement was to allow licensees the option to grow their own business without the restrictions of brokerage wide approval and provide the consumer with more options when choosing a licensee as it gives brokers and licensees more options when it comes to promotions etc. ALL other requirements stay the same.

Aaron Millen, Chair
Nova Scotia Real Estate Commission

Relevant Sections of the By-law

(By-law versions effective July 1, 2025)

145
INCENTIVE means anything that is advertised, communicated or offered by a brokerage or a licensee to the public or a person for the purpose of attracting business to the brokerage or the licensee and includes a promise, good, service, game of chance or anything else of value in exchange for doing business with the brokerage or the licensee.

147        
INDUCEMENT means anything that is offered or provided by a licensee to a party to a real estate transaction and is intended to either assist or cause that party to complete a real estate transaction. 

Incentives, inducements, and remuneration sharing
771
(a)    An incentive or an inducement may be in the form of a remuneration rebate, provided the rebate is being made to a party to the transaction. 

(b)    An associate broker or salesperson must not, directly or indirectly, provide an incentive or inducement unless the details of the incentive or inducement are provided in writing and the broker or managing associate broker has provided written approval.

(c)    An incentive that is directly or indirectly advertised, communicated, or offered to any person must include the details of the incentive and any terms or conditions to which it is subject. The details, terms, and conditions of the incentive must be provided in writing prior to the signing of any contract, acknowledgement, or agreement.

(d)    A licensee may give a gift to a client, an unrepresented party, or any other person provided the gift is not an incentive, an inducement, a referral fee or remuneration sharing.