Council Highlights – August 2019

Council Highlights – July 17, 2019 Meeting

  1. Council approved RECA’s 2019-2020 Budget
    This budget includes a $50 increase to the licence fee for all industry professionals. This is the first licence fee increase in six years, and the first licence fee change in five years, when the fee actually lowered $50.

    The decision to increase the licence fee was not made lightly, but was necessary given the economic situation in Alberta, and the subsequent trend in reduced enrollments in pre-licensing education, and fewer new licences seen in the last fiscal year.

    In order to keep the fee increase to a minimum, RECA has made significant budget cuts to operations, though core regulatory functions (licensing, education, investigations, hearings, etc.) will not be affected.

  2. Council approved consultation on proposed changes to the Residential Measurement Standard (RMS)

    The ad hoc committee on the Residential Measurement Standard recommended proposed changes to the RMS to Council based on feedback from previous consultations. The proposed changes call for exterior measurements on all types of properties except for apartment-style, stacked condominiums.

    Read more about this consultation and how you can provide your feedback in the RMS consultation article in this Regulator.

  3. Council defeated a motion to amend the clarified definition of ‘clearly indicated’ in brokerage advertising first approved at the October 2018 Council meeting.

    The proposed amendment was recommended by the Residential Real Estate Advisory Committee.

  4. Council approved consultation on proposed changes to the Real Estate Act Rules concerning mortgage broker standards of practice

    The Mortgage Broker Advisory Committee (MBAC) recommended proposed Rules and mandatory form content to Council based on feedback from consultations in 2018. The proposed changes deal with material risk and product suitability disclosures, representation relationships, identity verification, and private lending.
    Read more about this consultation and how you can provide your feedback in the mortgage rule change consultation article in this Regulator.

  5. Council held in-camera discussions with a representative from Service Alberta regarding the KPMG Governance Review Report that was made public on
    July 5, 2019.

    Council will work collaboratively with the Minister of Service Alberta and government staff on any steps or actions the Minister deems necessary in light of the report.

  6. Council approved appointments to the Hearing Panel Roster made by the Hearings Committee.

    New Hearing Panel Roster members include two real estate appraisers and two property managers.

5 thoughts on “Council Highlights – August 2019

  1. I have to question a fee increase in light of the mansion built by RECA at a time when they could have easily renegotiated the existing space at a much lesser lease rate, an historically lesser rate in fact. We pay the piper and RECA has no consequences for their actions.

    • Thank you for your comment, Bill. As RECA stated when Council announced the new offices, the move is a long term investment for Council that will realize significant savings moving forward. Council, with 10 of the 12 members being your industry peers, made the decision to approve the move after reviewing many options, including negotiating a new lease at the old office space. Their ultimate decision was made for sound financial and operational reasons. Building costs did not factor into the fee increase in any way.

      • Respectfully I will disagree. There’s no question that the old space could have been renegotiated at a huge discount and for a long term. The fact that 10 of my peers were involved is a red herring, they certainly weren’t the ones who initiated the strategy, that came from elsewhere. The building you’ve ended up with is not a good long term solution in my opinion. All costs associated with the operation of RECA be they administrative wages or building costs are reflected in the budget that ultimately is reflected in our fee increase to say they’re not is misleading since RECA has only two sources of income fees and education.

  2. Bill…I have not seen the new building..yet now I am curious, as to why you believe this building is not a good long term solution? I totally agree with your comments about the money train and what our monies are used for….all costs associated with any building RECA inhabits is paid for by us whether it be a lease or a buy.

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