February 10, 2015

Top 5 Questions by Brokers

Where do I find this form?

You will find this form on the Alberta Real Estate Foundation website www.aref.ab.ca. Click on the Brokers heading and you fill find the form on this page under Step 1: Download Broker Form.

Why do I have to fill this form out?

In accordance to the Real Estate Act, 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 Alberta Real Estate Foundation.

Who signs the bottom of the form?

Your bank contact will sign the bottom of the page highlighted in blue and will also fill out the top section with the banking information.

What do I do with an unclaimed security deposits?

Unclaimed deposits, or unclaimed interest on deposits, must be remitted to the Foundation after:

a) at least two (2) years have passed since your client was entitled to receive the funds back.

b) reasonable efforts have been made to locate the beneficial owner of the funds.

There must be some type of letter or memo as to why these funds are being sent.

What if I am only a rental property brokerage?

If you are a rental property you do not remit interest to the Alberta Real Estate Foundation. The interest collected on security deposits should be given back to the tenants upon termination of their lease agreement.

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