THE REAL ESTATE BROKERS ACT ) Order
No. 2816
)
Section 47 ) May 31, 2021
An Order Exempting certain New Home Builders
and their salespeople from registration requirements of
The Real Estate Brokers Act
Background
Section 40(1) of The Real Estate Brokers Act ("The Act") requires that no person
shall act as a broker or salesman or otherwise engage in any transaction in real
estate unless such person is registered under the Act.
Builders of new homes in Manitoba are conducting a transaction in real estate as
defined in the Act when negotiating and completing a contract of the purchase and
sale of a new home and land.
The exemptions from registration contained in section 41 (1) do not apply to the
builders of new homes and their employees conducting a
transaction in real estate.
WHEREAS:
The Manitoba Home Builders' Association (MHBA), on its own behalf and on behalf
of Builder Members of the MHBA have represented to the
Commission that:
A. The MHBA is a non-profit association that was originally established in 1937 and
presently has approximately 270 members.
B. MHBA members include new homebuilders ("Builder Members") who conduct
transactions in real estate in Manitoba through the construction of new homes for
sale to the public.
C. MHBA provides information and education to the public on purchasing a new
home and requires its Builder Members to deal honestly and fairly with members
of the public.
D. The MHBA provides education to Builder Members, and salespeople employed
by Builder Members, including information on best practices for dealing with a
member of the public on the purchase of a new home.
E. Builder Members are required to comply with all municipal and provincial building
code requirements and the requirements of The Builders Liens Act when
constructing and selling new homes in Manitoba.
F. Purchasers of new homes have access to new home warranty programs to
protect the purchaser from damages through defective or deficient construction
of a new home.
G. Builder Members employ salespeople to sell new homes who receive training on
how to deal with the public in a fair and honest manner.
H. Registration of Builder Members and their employees under the Act to conduct
sale of new homes is not required to protect the public.
Order and Conditions
1. The Commission orders that, pursuant to Section 47 of the Act, a Builder
Member of MHBA, and each salesperson employed by the Builder Member,
conducting a transaction in real estate of a home constructed by the Builder
Member is exempt from the requirements to be registered as a broker or
salesperson under the Act, subject
to the following conditions:
A. The Builder Member is a member in good standing with the MHBA.
B. All new home sales persons employed by the Builder Member must
have taken the MHBA new home sales course and have successfully
completed the new home sales exam administered by the MHBA.
C. Only the Builder Member and/or a qualified new home sales person
employed by the Builder Member is permitted to negotiate the
contract to purchase a new home (the "contract").
D. The new home that is the subject of the contract must have been
constructed by the Builder Member.
E. The contract must contain a clause for the purchaser to have the
opportunity to seek independent legal advice.
F. The initial deposit received by the Builder Member shall not exceed
$10,000.00 and shall be held by the Builder Member in trust or the
Builder Member's solicitor in trust in accordance with the terms of the
contract.
G. The contract must provide new home warranty coverage to the
purchaser from a new home warranty provider that is acceptable to
Canada Mortgage and Housing Corporation or Genworth Financial
Capital.
H. The sales of condominium projects by the builder do not form part of
this exemption order.
I. The Builder Member and its employees will provide to the
Commission all books and records relating to any transaction in real
estate conducted in reliance on this order when requested by the
Commission and its staff.
J. The MHBA will provide to the Commission and its staff upon request
any information in their possession involving the builder member that
pertains to any transaction in real estate conducted by the builder
member.
2. This order will expire on May 31, 2022
3. The fee for this Order is $150.00.
BY ORDER OF THE COMMISSION
________________________
Director