RECO / TRESA · Business & conduct
The articles expressly permit the corporation to hold client money or property
What the check looks for
Deposits and trust money stay inside the brokerage's trust procedures. The corporation must not, on behalf of the brokerage, hold money or other property of a client, self-represented party or other person in connection with trading in real estate.
Authority: O. Reg. 536/20, s. 3 ¶7 (client money)
What goes wrong
The articles do not keep client money out of the corporation. They expressly permit it to receive, hold or control money or other property of a client in connection with a trade in real estate. That appears to conflict with O. Reg. 536/20, s. 3 para 7, under which the corporation must not, on behalf of the brokerage, hold money or other property of a client, self-represented party or other person in connection with trading in real estate. Deposits and trust money belong inside the brokerage's own trust procedures.
What good looks like
The articles contain a provision to this effect.
Check your own articles, free
The PREC Articles Health Check reads your articles of incorporation in your own browser and rates them Red, Yellow or Green against this criterion and 29 others. The check does not upload your document to us.
It reads how the articles are drafted; it does not advise on your circumstances, and Capital Toolkit does not file articles with the Province.
Capital Toolkit is an automated service. It provides general information, not legal, tax or accounting advice, and it does not replace your own lawyer or accountant. Have a qualified professional review any document before you rely on it, sign it or file it.