RECO / TRESA · Business & conduct
The articles expressly permit the corporation to hold client money or property
What the rule requires
Deposits and trust money stay inside brokerage trust procedures; the corporation must not receive, hold or control them.
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, which O. Reg. 536/20, s. 3 para 7 forbids. Deposits and trust money belong inside the brokerage's own trust procedures.
What good looks like
The articles contain a provision to this effect.
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