Introducing the Real Estate Services Act
As of January 1, 2022, the Real Estate Services Act (RESA) and Real Estate Services Regulation (RESR) provide a new regulatory framework for Manitoba’s real estate industry. (The RESA and RESR replace the Real Estate Brokers Act.)
What you need to know
Key Elements of the Real Estate Services Act (RESA):
1. Requires agents and their clients to sign a service agreement
2. Allows for e-signatures in signing real estate documents.
Why do I need to sign a Service Agreement?
As of January 1, 2022, the new regulations require a registrant (Realtor®) to complete a written service agreement before providing real estate services.
What is a Service Agreement?
Written service agreements are intended to provide clarity as to what real estate services a person can expect to receive.
The types of trading services that require a service agreement include:
finding, showing, advising, and negotiating of real estate, presenting offers, or other services prescribed in the act.
How long is a Service Agreement valid for?
Written service agreements can be for as short or long a period as is desired.
What is in a Service Agreement?
RESA and the Regulation require that any service agreement used must contain the following minimum criteria:
• the identification of the parties
• a description of the services to be provided
• the dates of commencement and expiry of the agreement
• any early termination rights of either party before the expiration of the agreement
• any terms of payment or compensation to the brokerage
• each service agreement must be signed by a representative of the brokerage (Realtor®) and by the person to receive the services
• both the person who signed the agreement and the brokerage should have a copy of the signed agreement
Understanding the Real Estate Service Act (RESA)
The new Act and accompanying regulation was designed to:
- modernize the regulatory regime, allowing for e-signatures/e-storage of documents
- improve industry standards and accountability by using service agreements so the public is clear on what services they will be receiving from a registrant
- enhance consumer protections, allows the Commission to assess monetary penalties, and take action against unregistered persons
RESA also includes enhanced public protection elements for consumers, including the ability for the Registrar to assess penalties against registrants for misconduct, and other new powers to take action against persons carrying on unregistered activity.
See more about the RESA at www.promisesonpaper.ca produced by the Manitoba Real Estate Association.To learn more about the Act and Regulations, visit the official Manitoba Law pages:
If you have questions on the new Act and regulations contact:
The Manitoba Securities Commission Real Estate Division
500-400 St. Mary Ave.
Winnipeg, MB R3C 4K5
Call (204) 945-2562
Email realestate@gov.mb.ca
Website https://mbrealestate.ca/resa-2022