Becoming A Real Estate Salesperson – Learning About The Real Estate Broker Bond
If you’ve been keeping up with the news, you’ll know that Canada’s real estate market is on the rise! Thousands of Canadians are in the market for a brand new home and they need assistance to ensure they make the right choice. This is where a real estate broker will enter the picture. In order to become a real estate broker within the country of Canada, you’ll need to become bonded and licensed. More details about these requirements will be provided below.
If you reside in Canada and plan on becoming a real estate agent, you will need to apply for a real estate brokers bond, before you can apply for your license. You must successfully complete educational courses that meet the regulatory requirements set aside by the province of employment. The education course requirement will vary from province to province, so be sure to check with the Real Estate Council in your area, before moving forward.
The real estate broker bond must accompany the license application or it will be rejected. You may also be required to supply the provincial licensing body with a copy of a job offer with a licensed brokerage company. Once you receive your license, you may be required to complete additional courses annually to maintain your license.
Surety Bond Amount
When attempting to acquire your license, you will need to acquire and submit proof of the necessary bond. In order to make this happen, you’ll need to guarantee that you’ve acquire a bond of the appropriate amount. Unfortunately, this is easier said than done, because the required amount actually varies depending on your province. For instance, those that wish to become a real estate broker in Prince Edward Island will need to acquire a bond of $5,000. If you operate within Newfoundland and Labrador, the price is somewhat higher. In this province, the Real Estate Trading Act requires that all brokers be bonded in the amount of $15,000.
Be sure to take the time to consult your province’s regulations, so you can figure out the precise bond amount needed.
Does The Real Estate Broker Bond Expire?
Once you’ve managed to acquire your bond and license, you will need to maintain both. Unfortunately, neither will last forever. In fact, both will expire within twelve months. This is true for the majority of provinces, within Canada. Usually, you will be notified of an upcoming expiration and will be given plenty of time to renew the bond. Just remember that you’ll need to renew the bond with the surety company, before renewing your license with your province.
Real Estate Broker Bond Cost
Above, you learned that the price bond amount would depend from province to province. This amount is not the precise amount that you will be required to pay. Instead, the majority of aspiring real estate brokers will work with a surety company, in order to keep the cost to a minimum. The surety will offer to pay a large quantity of the total, while you’ll only need to pay a small percentage. Just remember that this percentage will be based on several factors with your personal credit score being one of the most important.
With this in mind, it is pertinent to begin obtaining quotes from various sureties right away! By doing so, you’ll be able to move forward rapidly and will be able to acquire the required bond sooner rather than later!
Other types of license bonds that we offer:
- Alcohol Bond – Protects the government in the event tax and fees are not paid by businesses.
- Auctioneer Bond – Protects the customer against misrepresented auctioned items.
- Bailiff Bond – Required by a bailiff before employment begins and protects victims of misconduct.
- Collection Agency Bond – Guarantees ethical use of sensitive client information by agencies.
- Consumer Protection Bond – Protects clients from unauthorized use of their information.
- Direct Sellers Bond – Protects the customer that incurs damages as a result of a direct seller.
- Debt Repayment Bond – Protects customers from fraud or misconduct by debt repayment agencies
- Gas Bond – Required by gas installers or gas equipment installers before beginning work.
- Freight Broker Bond – Required by freight brokers before they can accept any orders.
- Home Inspector Bond – Required by home inspectors before conducting inspections.
- Insurance Adjuster Bond – Required by independent insurance adjusters before working.
- Immigration License Bond – Required by immigration consultants before beginning work.
- Livestock Dealer Bond – Required by dealers before buying, selling, and bidding on livestock.
- Mortgage Broker Bond – Ensurers that agents are compliant with provincial regulations and acts.
- Payday Lender Bond – Protects customers from fraud or wrong doings by payday lenders.
- Private Investigator Bond – Required by investigators & employees of the agency before working.
- Telemarketing Bond – Protects customers from frauds and misconduct by telemarketers.
- Travel Agency Bond – Required by travel agencies before working with the public.