Offices in Ottawa and Perth
(613) 722-1500

CONTACT US (613) 722-1500

Incorporation of Realtors May Be a Possibility in the Near Future

Incorporation of Realtors May Be a Possibility in the Near Future

Mann Lawyers

Posted July 23, 2015

Bill 69, Tax Fairness for Realtors Act, 2015 was introduced and was carried after its first reading in the Ontario Legislative Assembly in Feb 2015. If passed, Bill 69 will amend both the Real Estate and Business Brokers Act, 2002 (the “REBA”) and the Business Corporations Act (Ontario) (the “OBCA”) by allowing for the incorporation of “personal real estate corporations” that can act as salespersons and brokers in accordance with the requirements set by REBA and the Real Estate Council of Ontario.

If Bill 69 becomes law, REBA will be amended as follows:

  • The definitions of “broker” and “salesperson” will be broadened to include personal real estate corporations where the owner of the equity (common) shares must have the qualifications to be registered as a broker under REBA and the corporation must be employed by a brokerage to trade in real estate;
  • Limits will be placed on the structure and operation of “personal real estate corporations”, which include the following:
    • All equity (common) shares must be held by individual persons how are qualified to be registered as brokers;
    • Shares cannot be held by corporations;
    • All non-equity (preference) shares must be held either by the individual who holds the common shares or by individuals in their immediate family;The corporation’s name must include “personal real estate corporation” or its French equivalent; and,
    • The corporation can only carry on the profession of trading real estate.
  • These corporations must meet the qualifications of “professional corporations” as set forth in the OBCA.

Accordingly, these changes will affect the OBCA which will be amended accordingly. The following OBCA conditions will apply to professional real estate corporations:

  • All officers and directors must be shareholders in the corporation;
  • The corporation cannot use a number name; and,
  • The articles must specifically set out the restrictions on what business the corporation can provide – e.g., solely trading in real estate.

We will follow Bill 69 as it works its way through the legislature and if it becomes law, we are ready to assist realtors with incorporation and ensuring they meet all of the legislated requirements.

This blog post was written by Lacey Miller,  a member of the Business Law team. She can be reached at 613-369-0375 or at lacey.miller@mannlawyers.com.

More Resources

Blog |
Employment, Labour, and Human Rights, Commercial Litigation

By: 

Posted May 23, 2023

Both in my commercial and employment litigation practice, I encounter Ontario business owners faced with serious charges laid against them under the Provincial Offences Act[...]
Blog |
Family Law

By: 

Posted May 18, 2023

The recent Supreme Court of Canada decision in Anderson v. Anderson, 2023 SCC 13, provides guidance on domestic contracts and the enforceability of an informal[...]
Blog |
Environmental Law

By: 

Posted May 16, 2023

When many people think of contaminated sites, they think of the usual suspects such as industrial properties and gas stations.  They may not think of[...]
Blog |
Business Law

By: 

Posted May 9, 2023

Often business owners reach a point where they are considering the sale of their business either through the sale of shares or the sale of[...]
Blog |
Family Law

By: 

Posted May 2, 2023

Overview of Tort Claims in Family Matters Tort claims can be made in family law matters, so as to prevent a multiplicity of proceedings and[...]
Blog |
Employment, Labour, and Human Rights

By: 

Posted April 25, 2023

In a case that recently was decided from the Court of Appeal of Ontario called Celestini v Shoplogix Inc., 2023 ONCA 131, the Court had[...]

Subscribe to Our Newsletter

"*" indicates required fields

Name*
Consent*
This field is for validation purposes and should be left unchanged.