News Release Archive
BUSINESS/CONSUMER SERVICES--REAL ESTATE TRADING ACT INTRODUCED ----------------------------------------------------------------- The Nova Scotia government is enabling the province's real estate industry to become self-regulating, a move which will benefit real estate buyers and sellers, taxpayers and the industry. The Real Estate Trading Act introduced today by Business and Consumer Services Minister Don Downe will empower the Nova Scotia real estate industry to regulate itself, including the licensing and setting of professional standards for its members. "Right now, the taxpayers of Nova Scotia are subsidizing the regulation of the real estate industry," Mr. Downe said. "The industry has been asking government for some time now to allow it to regulate itself, as is done in six other provinces." Real estate sales persons are licensed by the Consumer and Commercial Relations Division of Business and Consumer Services. Staff also investigate complaints and, if necessary, conduct hearings into disciplinary matters. These and other administrative matters will become the responsibility of the Nova Scotia Real Estate Commission, whose members will be appointed from government, the real estate association and licensed sales persons. The commission will also eliminate confusion and duplication by creating a single point of contact for the public for real estate issues, rather than the two that exist today - the Nova Scotia Real Estate Association and government. The industry has shown it is ready for this responsibility, Mr. Downe said "The current Real Estate Brokers Licensing Act has not kept pace with changes in the industry, and Nova Scotia's real estate professionals have made up for this by introducing their own measures to protect buyers and sellers ." For example, the Nova Scotia Real Estate Association has established a code of ethics for sales persons and brokers. Also, a potential buyer must sign a form indicating that he or she consents to a sales person acting on behalf of both the buyer and seller. Both these items are not covered by current legislation but are initiatives of Nova Scotia's real estate professionals. In 1994-95 the government held only five hearings involving the province's 1,350 agents and brokers. Also, licensing agents is a fairly routine matter once an applicant passes the examination. "With this in mind, our staff and financial resources could be put to better use protecting consumers where it is really needed," the minister said. "The public will still have representation on the new commission, just as the public is represented on the self-governing bodies of the legal and medical professions. "This is another example of government getting out of a business it shouldn't be in and focusing our resources where they are needed most," Mr. Downe said. It costs the province approximately $160,000 a year to administer the current process, but only takes in $50,000 in licensing fees. Speaking on behalf of the industry, Joan Malay, co-chair of the NSREA's co-regulation committee, said realtors support the legislation. "Our members strongly believe in the concept of self-regulation because it makes us directly accountable to the people we serve: the buyers and sellers of real estate in Nova Scotia," she said. "The Real Estate Trading Act will make the industry more responsive to our customers needs and concerns." Draft legislation had been circulated for public discussion since February, 1995. The bill introduced today reflects some of the results of this consultation. -30- Contact: David MacNeil 902-424-2933 trp May 14, 1996 - 1:25 p.m.