Delegation by Brokers
Under the Real Estate Act Rules, condominium manager brokers are permitted to delegate certain tasks to condominium managers, provided that such delegation is in compliance with the legislation and does not undermine the broker's accountability.
WHAT YOU'LL LEARN
Responsibilities a Condominium Manager Broker May Delegate to a Condominium Manager
Duties of Condominium Management Brokers, Associate Brokers, and Associates
Real-World Scenario
Knowledge Check Activities
Responsibilities a Condominium Manager Broker May Delegate to a Condominium Manager
Delegation by Brokers
Under the Real Estate Act Rules, condominium manager brokers are permitted to delegate certain tasks to condominium managers, provided that such delegation is in compliance with the legislation and does not undermine the broker's accountability.
Delegated Responsibilities:
Condominium manager brokers may assign routine management tasks to licensed condominium managers. These may include:
Day-to-day administration of condominium corporation affairs.
Collection and disbursement of condominium fees.
Coordinating building maintenance and repairs.
Maintaining records and accounts related to condominium corporations.
The Real Estate Act Rules specifies: “The broker is responsible for the control and conduct of the brokerage’s business.”
Broker Accountability:
Even when tasks are delegated, the broker retains ultimate responsibility for:
Ensuring compliance with the Real Estate Act and the Rules.
Overseeing all activities conducted by associates or condominium managers under their supervision.
Verifying the accuracy of financial transactions and reporting.
Prohibited Delegations:
Tasks involving the broker's direct responsibilities, such as signing trust account reconciliation reports, cannot be delegated to condominium managers or associates.
Duties Condominium Management Brokers, Associate Brokers, and Associates Owe to a Condominium Corporation
Under Exemption Regulation
The Exemption Regulation outlines specific duties that brokers, associate brokers, and associates must fulfill when providing condominium management services.
Fiduciary Duty:
The Exemption Regulation requires licensees to act in the best interests of the condominium corporation they serve.
Licensees must:
Exercise loyalty, care, and full disclosure.
Avoid conflicts of interest.
Ensure all actions align with the condominium corporation's objectives.
Trust Account Management:
Under the Exemption Regulation, brokers are required to ensure proper handling of trust funds, including:
Safeguarding funds collected on behalf of condominium corporations.
Maintaining accurate records of deposits and disbursements.
Ensuring funds are used strictly for their designated purposes.
Duties Specific to Roles:
Brokers:
Maintain oversight and control of all delegated responsibilities.
Ensure compliance with financial and reporting obligations.
Provide supervision to associate brokers and condominium managers.
Associate Brokers:
Support the broker in managing the condominium corporation's affairs.
Provide advice and assistance to associates and condominium managers.
Associates:
Perform assigned duties such as collecting fees, coordinating maintenance, and communicating with owners, as directed by the broker.
Compliance with Condominium Management Agreements:
All actions must align with the terms of the service agreement established with the condominium corporation, as required by the Condominium Property Regulation.
Scenario-Based Exercise
A brokerage is responsible for managing a large condominium corporation with 150 units. The broker delegates certain responsibilities to a condominium manager and an associate to ensure efficient operations. Here's how compliance is maintained:
Delegation Example:
The broker delegates the following tasks to the condominium manager:
Coordinating maintenance requests from unit owners.
Preparing monthly financial statements for review by the condominium board.
Collecting condominium fees and depositing them into the trust account.
The associate is tasked with:
Responding to owner inquiries.
Overseeing daily operations such as scheduling building inspections.
Broker Oversight:
The broker retains responsibility for:
Approving the final monthly financial statements before submission to the condominium board.
Ensuring that trust account reconciliations are conducted accurately and on time.
Verifying that the condominium manager and associate adhere to all legislative requirements.
Compliance with the Real Estate Act Rules:
The broker ensures compliance by:
Conducting regular performance reviews of the condominium manager and associate.
Providing clear written instructions outlining the delegated tasks.
Maintaining documentation of all delegated responsibilities: “The broker must ensure that all persons representing the brokerage are adequately trained and supervised.”
Outcome:
By maintaining oversight and adhering to legislative requirements, the brokerage ensures that all delegated tasks are completed efficiently and in compliance with the Real Estate Act Rules.
Activities
Knowledge Check:
Question: What tasks can a broker delegate to a condominium manager under the Real Estate Act Rules?
Scenario-Based Activity:
Task: Outline the specific duties brokers, associate brokers, and associates owe to a condominium corporation when acting under the Exemption Regulation.
Practical Exercise:
Task: Using a sample service agreement, demonstrate how a broker can delegate responsibilities to a condominium manager while maintaining compliance with Rule 70.
Case Study:
Case: A broker fails to supervise a condominium manager who misappropriates trust funds.
Task: Assess how improper delegation and lack of oversight violate the Real Estate Act Rules and affect the brokerage's accountability.
Creative Task:
Task: Draft a delegation agreement template that complies with the Real Estate Act Rules, including:
Clearly defined tasks for the condominium manager.
Reporting requirements for the broker.
Provisions for monitoring and evaluating performance.
