In June 2009 the Real Estate Foundation began a review of our financial savings institution reporting process. In order to help us monitor these reports for accuracy, we sent letters to every brokerage in BC requesting that they complete an authorization form for each (pooled) trust account. Here are the main questions brokers are asking us.
Q: I have already submitted an interest remittance authorization form. Why do I need to do it again?
A: The Foundation is updating its record of active accounts, and the form has been revised to incorporate changes in the financial institution’s interest remittance process.
Q: Why is this being sent to me?
A: An Interest Remittance Authorization Form was sent to every licensed brokerage in the province. The name and contact information of licensees was provided by the Real Estate Council of BC.
Q: I received the form, but I don’t have a pooled trust account. What should I do?
A: Complete the bottom portion of the form and write “no pooled trust account” at the top where it asks for the account information.
Q: My financial institution doesn’t pay interest on the account.
A: Section 29 of the Real Estate Services Act stipulates that a brokerage must maintain an interest bearing trust account. Failure to do so puts the brokerage in violation of the Act.
The Real Estate Foundation has negotiated compensation agreements with the chartered banks and credit unions throughout the province. By submitting the completed form to your financial institution, you are authorizing them to remit interest to the Foundation, as directed by the Act. Providing a copy of the authorization form to the Foundation allows us to update our records and follow up with the account provider to ensure it is operating as directed.
Q: Whom do I contact if I would like more information?
A: Contact Christian Hansen if you are unable to find the answers to your questions on this page or the Information for Real Estate Brokerages page (tel 604.688.6800 ext 107 / toll free 1.866.912.6800 ext 107 / Christian (at) refbc.com).
