Changing Employers Responsibilities Old Employer

Obligations of a Condominium Manager to Their Current Brokerage

Under the Real Estate Act Rules, a condominium manager working under a brokerage has legal and ethical obligations when ending their employment. These obligations ensure the continuity of service for condominium corporations and compliance with licensing regulations.

Key Obligations Under the Real Estate Act Rules:

1. Notification of Termination

   • The condominium manager must inform their current brokerage in writing if they intend to resign.

   • The manager cannot continue providing condominium management services after leaving unless they are licensed under a new brokerage.

2. Transfer of Records and Files

   • All corporation records, financial documents, and contracts must remain with the brokerage.

   • The manager must not retain or withhold any documents belonging to condominium corporations.

3. Trust Fund and Financial Account Reconciliation

   • Any trust accounts or financial records managed by the departing condominium manager must be reconciled before leaving.

   • The brokerage remains responsible for trust funds, but the manager must ensure a proper handover.

4. No Unauthorized Client Solicitation

   • A departing manager cannot solicit clients (condominium corporations) from their current brokerage unless permitted by contract.

5. Compliance with Licensing Transfer Rules

   • The manager must be registered with a new brokerage before legally offering condominium management services.

Legislative Reference: A condominium manager who ceases to be registered with a brokerage must immediately stop providing condominium management services unless registered with another brokerage. Failure to comply with these obligations may result in disciplinary action from the Real Estate Council of Alberta (RECA), including fines or suspension of licensing.

Legal Process of Resigning from a Management Company

A condominium manager must follow a formal process to resign from a management company while complying with the Real Estate Act Rules and licensing requirements.

Step-by-Step Process for Resignation:

Step 1: Provide Written Notice to the Brokerage

• The resignation must be submitted in writing, specifying the effective date of departure.

• The notice period should comply with employment contracts and the brokerage’s internal policies.

  
  

Step 2: Ensure Proper Record and File Transfer

• The manager must return all corporation files, financial documents, and client information.

• Ensure ongoing work is documented so the brokerage can assign another manager.

  
  

Step 3: Reconcile Financial Responsibilities

• Complete any trust fund or financial account reconciliation before departure.

• Provide a final report on outstanding payments and owner account balances.

  
  

Step 4: Termination of Licensing Under the Current Brokerage

• The current brokerage must notify RECA that the manager is no longer employed.

• The manager must immediately stop offering services until they are registered with a new brokerage.

  
  

Step 5: Register with a New Brokerage (If Applicable)

• Before providing condominium management services elsewhere, the manager must:

  • Obtain written confirmation of employment from a new brokerage.

  • Submit a license transfer request to RECA.

    
    

Consequences of Improper Resignation:

• Unresolved financial matters may lead to legal liability.

• Failure to transfer records properly can disrupt condominium operations and result in complaints to RECA.

• Continuing to work without proper licensing violates RECA rules and can lead to penalties.

Key Takeaway:

The resignation process must be handled professionally, ensuring legal compliance and minimal disruption to condominium corporations.

Drafting a Resignation Letter for a Condominium Manager 

A resignation letter must be clear, professional, and compliant with licensing regulations. Below is a template to ensure the letter meets regulatory requirements.

[Sample Resignation Letter]

[Your Name]

[Your Address]

[City, Province, Postal Code]

[Your Email]

[Your Phone Number]

[Date]

[Brokerage Name]

[Brokerage Address]

[City, Province, Postal Code]

Subject: Notice of Resignation

Dear [Broker/Manager’s Name],

I am formally submitting my resignation from my position as a Condominium Manager with [Current Brokerage Name], effective [Last Working Day].

In compliance with the Real Estate Act Rules, I will ensure the following are completed before my departure:

• Transfer of all condominium corporation records, financial documents, and ongoing project files to ensure continuity of management services.

• Completion of trust account reconciliations and financial reporting where applicable.

• Final documentation of pending matters to assist in transitioning responsibilities to another manager.

  
  

Please confirm receipt of this notice and advise if any additional steps are required for a smooth transition. I appreciate the opportunity to have worked with [Current Brokerage Name] and remain committed to ensuring a seamless transition.

Sincerely,

[Your Name]

Application Exercise:

Draft a resignation letter tailored to your own experience. Ensure it includes a clear transition plan and compliance measures.

Ethical Considerations in Transitioning to a New Brokerage

A condominium manager must ensure their transition to a new brokerage is handled ethically and professionally to avoid disrupting condominium corporations.

Key Ethical Considerations:

1. Minimizing Disruption to Condominium Corporations

   • Ensure that ongoing projects are documented and handed over properly.

   • Do not withhold information or slow down the transition process out of frustration.

2. Respecting Confidentiality Agreements

   • Do not take proprietary client information or financial records that belong to the brokerage.

   • Avoid sharing sensitive data with a new brokerage without proper authorization.

3. Handling Client Relationships Ethically

   • Do not actively solicit condominium corporations from the former brokerage.

   • If clients choose to move, ensure all ethical and contractual obligations are met.

4. Complying with Licensing and Legal Requirements

   • Do not begin providing services at a new brokerage before being properly licensed.

   • If conflicts arise, escalate concerns through RECA’s dispute resolution process.

Unethical Transition & Its Consequences

A condominium manager resigns from Brokerage A but delays transferring records for a condominium corporation. They immediately start working at Brokerage B without transferring their license. The condominium corporation experiences:

• Delayed financial reporting, causing operational issues.

• Billing errors due to missing records.

• Confusion among owners, as they were not informed about the change.

Analysis Questions:

1. Which RECA rules were violated?

2. What ethical responsibilities were ignored?

3. How could the manager have ensured a smoother transition?

Key Takeaway:

A condominium manager’s transition must be ethical, professional, and legally compliant to prevent disruptions and regulatory penalties.