In August 1985 the British Columbia real estate industry, in cooperation with the Ministry of Consumer and Corporate Affairs, achieved legislation which established the Real Estate Foundation as a non-profit corporation. Under the legislation the Foundation receives interest from "unassigned" trust deposits held by real estate agents and uses the funds to provide grants for non-profit and activities related to real estate and land use.

From 1985 to 2004, the Foundation Governors approved $33.7 million in grants.

On January 1, 2005 the Real Estate Services Act came into force. The Foundation is continued under the new Act, with a legislated mandate to support real estate related education, research, law reform, and other real estate related activities intended for the public or professional good.

While there are parallel foundations across Canada in the legal field, the Real Estate Foundation of British Columbia and the Alberta Real Estate Foundation are the only two foundations of their kind in the country.