Broker Information
According to the Real Estate Act, all licensed brokers are required to maintain a general trust account to hold deposits on behalf of their client(s).
Section 25(1)(b) requires general trust accounts to be interest bearing and section 69(2) directs any interest earned on these trust accounts to be paid to the Foundation.
Compensation Agreements
The Foundation has compensation agreements in place with various financial institutions concerning the calculation and payment of interest on these accounts. To the extent that interest has accrued during the quarter, transaction fees will be deducted before payment is made to the Foundation. The Alberta Real Estate Foundation is not responsible for bank charges where the transaction fees exceed the interest accrued or for other fees such as certified cheques, statement preparation or audit confirmation.
Alberta Real Estate Foundation Compensation Arrangements with Banks
Remittance forms
Brokers must notify their financial institution to direct the interest to the Foundation.
- Review the instructions to financial institution from industry member form.
Instructions to Financial Institution from Industry Member - Add your banking information where indicated and take them to your bank for execution. Your bank may keep the “Bank Copy.”
- Fax or mail a copy, signed by a banking representative, to the Alberta Real Estate Foundation's office.
Important: The Alberta Real Estate Foundation recommends that brokers keep a copy of the remittance forms, acknowledged by the bank, for their records. The Foundation will monitor the remittances received from the bank to ensure we are receiving the funds as directed.
Brokers and their trust accounts
Section 69(4) states interest is not required to be remitted to the Foundation where trust funds are deposited in a separate account for a client. In this case, however, it must be noted on the contract at the time of signing.
Further Information
More information on the brokerage trust accounts, including unclaimed deposits, may be found in this document.
Frequently asked questions about trust accounts and deposits
If you have any questions about the remittance process, please contact Barbara Fleet for more information.