New Regulations to Enhance Real Estate Environment in NL

Regulations to accompany amendments made to the Real Estate Trading Act in November 2019 comes into effect today.

The changes benefit both consumers and real estate professionals in the province and are more aligned with the current real estate environment.

In addition to the changes to the Act announced last fall that also come into effect September 1, the changes specific to the regulations are as follows:

• Provision of details on the mandatory carrying of errors and omissions liability insurance by a licensee;

• Direction on specific exams to be used to determine licensing under the Act;

• Facilitation of electronic deposits into a trust account;

• Addition of further regulatory details on trust accounts and their administration;

• Establishment of a regulatory framework for the Real Estate Recovery Fund introduced in the new Act;

• Provision of details on hearings as authorized under section 36 of the Act and for the adjudication of trust deposit disputes;

• Provision of details on the administrative penalties where a licensee contravenes the Act or regulations; and,

• Provision for the publication of superintendent orders.