RECO / TRESA · Business & conduct
Three-party agreement before receiving remuneration
What the rule requires
A written agreement among the corporation, the controlling shareholder and the brokerage is a condition of the exemption. The articles should make entering it a constitutional duty.
Authority: O. Reg. 536/20, s. 3 ¶¶8-11 (three-party agreement)
What goes wrong
The articles do not address this. PREC status would rest on conduct alone, with nothing in the constitution to prevent the breach.
What good looks like
The articles contain a provision to this effect.
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