BILL NO. 56

(as introduced)

3rd Session, 61st General Assembly
Nova Scotia
60 Elizabeth II, 2011



Government Bill



Real Estate Trading Act
(amended)



The Honourable John MacDonell
Minister of Service Nova Scotia and Municipal Relations



First Reading: May 5, 2011

(Explanatory Notes)

Second Reading: May 6, 2011

Third Reading: May 12, 2011 (LINK TO BILL AS PASSED)

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Explanatory Notes

Clause 1

(a) changes the name of the Nova Scotia Real Estate Association to the Nova Scotia Association of Realtors;

(b) changes the name of the Department; and

(c) updates several definitions to reflect terminology used by the members.

Clause 2 amends the restriction on who may trade in real estate to allow for corporations permitted in accordance with the Act and by-laws to do so and makes consequential amendments required as a result of clause 1.

Clause 3 adds a commercial-sector representative to the Nova Scotia Real Estate Commission and provides for the Chair or acting Chair to vote only in the case of a tie.

Clause 4 enables the Commission to make by-laws

(a) prescribing the process for the appointment of a commercial-sector representative to the Commission;

(b) allowing corporations to trade in real estate;

(c) prescribing the methods of calculation of remuneration payable to a brokerage; and

(d) concerning stale trust funds.

Clause 5 makes a consequential amendment required as a result of clause 1.

Clause 6 provides for the appointment of the Complaints Review Committee referred to in Sections 17 and 20 of the Act.

Clause 7 amends the investigation provisions to specify the authority of the Commission while investigating and clarify that a person who is the subject of an investigation cannot destroy required information.

Clause 8 enables the Commission to apply to the Supreme Court of Nova Scotia to extend the maximum 90-day licence-suspension period and permits the Registrar to suspend the licence of a licensed person who refuses to co-operate with an investigation until such time as the person co-operates.

Clause 9 provides that appeals from Discipline Committee orders are to made to the Nova Scotia Court of Appeal, within a 25-day appeal period and pursuant to the new Civil Procedure Rules.

Clause 10 requires full and written disclosure of any remuneration agreed to be paid to a brokerage and requires that the remuneration be calculated as specified in the by-laws.

Clause 11 makes a consequential amendment required as a result of clause 1.

Clause 12 amends the procedure for dealing with stale trust funds and provides that

(a) stale funds are to be transferred to the Commission and held by the Commission in trust;

(b) where there is a dispute as to entitlement to funds, a brokerage shall follow procedure set out in the by-laws;

(c) the Commission may order a brokerage to transfer to it unclaimed funds held in a trust account for two or more years; and

(d) the Commission shall use funds transferred to it for such public or charitable purpose, including the education of licensed persons, as the Commission specifies.

Clause 13 gives the Commission authority to freeze a trust account or direct funds to be paid into court during an investigation or criminal or civil proceedings.

Clause 14 makes a consequential amendment required as a result of clause 1.

Clause 15 amends the Act to enable the incorporation of the practice of real estate.

Clause 16 makes a consequential amendment required as a result of clause 1.

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An Act to Amend Chapter 28
of the Acts of 1996,
the Real Estate Trading Act

Be it enacted by the Governor and Assembly as follows:

1 Section 2 of Chapter 28 of the Acts of 1996, the Real Estate Trading Act, as amended by Chapter 50 of the Acts of 2001, is further amended by

(a) striking out "Real Estate Association" in the first and second lines of clause (a) and substituting "Association of Realtors";

(b) striking out "manager" in the first and in the second lines of clause (n) and substituting "managing associate broker";

(c) striking out "Business and Consumer Services" in the first and second lines of clause (o) and substituting "Service Nova Scotia and Municipal Relations"; and

(d) striking out "lease, rental" in the third and fourth lines of clause (y) and substituting "commercial lease or rental";

2 (1) Subsection 4(1) of Chapter 28 is repealed and the following subsection substituted:

(2) Subsection 4(2) of Chapter 28 is amended by striking out "manager" in the second line and substituting "managing associate broker".

(3) Subsection 4(5) of Chapter 28 is amended by striking out "manager" in the third line and substituting "managing associate broker".

3 (1) Subsection 7(1) of Chapter 28 is amended by adding immediately after clause (b) the following clause:

(2) Section 7 of Chapter 28, as amended by Chapter 50 of the Acts of 2001, is further amended by adding immediately after subsection (10) the following subsection:

4 Subsection 8(1) of Chapter 28, as amended by Chapter 50 of the Acts of 2001, is further amended by

(a) adding immediately after clause (a) the following clause:

(b) adding immediately after clause (h) the following clause:

(c) adding immediately after clause (p) the following clause:

(d) striking out "manager" in the second and in the third lines of clause (aa) and substituting in each case "managing associate broker"; and

(e) adding immediately after clause (ad) the following clause:

5 Clause 10(2) (c) of Chapter 28 is amended by striking out "manager" in the second line and substituting "managing associate broker".

6 Chapter 28 is further amended by adding immediately after Section 16 the following Section:

7 (1) Section 17 of Chapter 28 is amended by adding immediately after subsection (3) the following subsection:

(2) Subsection 17(4) of Chapter 28 is amended by adding "and must not withhold, destroy, conceal or refuse to provide any information or thing reasonably required for the purpose of an investigation under this Section" immediately after "investigation" in the third line.

8 Section 21 of Chapter 28 is amended by adding immediately after subsection (2) the following subsections:

9 (1) Subsection 24(1) of Chapter 28 is amended by

(a) striking out "Supreme Court of Nova Scotia" in the second and third lines and substituting "Nova Scotia Court of Appeal"; and

(b) striking out "thirty days" in the third line and substituting "twenty-five days, calculated in accordance with the Nova Scotia Civil Procedure Rules,".

(2) Section 24 of Chapter 28 is further amended by adding immediately after subsection (2) the following subsection:

10 Section 27 of Chapter 28 is repealed and the following Section substituted:

11 Subsection 28(2) of Chapter 28 is amended by striking out "manager" in the first and in the last lines and substituting in each case "managing associate broker".

12 Subsection 32(4) to (6) of Chapter 28 are repealed and the following subsections substituted:

13 Chapter 28 is further amended by adding immediately after Section 32 the following Section:

14 Subsection 35(1) of Chapter 28 is amended by striking out "manager" in the second last line and substituting "managing associate broker".

15 Chapter 28 is further amended by adding immediately after Section 37 the following Sections:

16 Clause 38(1)(c) of Chapter 28 is amended by striking out "manager" in the first line and substituting "managing associate broker".

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