The Alberta Real Estate Association (AREA) has taken a significant step to combat bad behaviour within its ranks by passing new bylaws that allow the association to expel members involved in serious criminal conduct.

The move, approved with a 92 per cent vote at the association’s Annual General Meeting in January, aims to strengthen professional standards and address concerns over enforcement delays by provincial regulatory bodies.

AREA’s CEO Brad Mitchell emphasizes the importance of upholding professionalism in the industry, citing a recent case where it took four years for a regulatory body to remove the licence of an agent accused of sexual assault.

“I think we’re the first in Canada, and we’re proud to be the first in Canada to do it. I think the associations need to start to take the professionalism of their memberships seriously, and we’re certainly doing that,” said Mitchell.

Closing the gap in enforcement

Mitchell explained that while the vast majority of Realtors maintain high standards, a small number of bad actors pose a risk to the profession’s reputation. AREA’s new bylaws give its board of directors the authority to warn, fine, suspend or expel

Brad Mitchell, CEO, Alberta Real Estate Association (AREA)

members convicted of a criminal offence, such as sexual assault or other serious offences. 

“By ‘bad actors,’ we’re talking about people committing criminal behaviour. We’re not talking about someone posting something nasty online—we’re talking about serious criminal behaviour.

“We were just strengthening the bylaw. It wasn’t explicitly clear before. We changed some of the wording and took inspiration from the law society’s process and incorporated that into our bylaws.”

Board can also suspend members pending a hearing

The board also has the discretion to suspend members pending a hearing if charges have been laid “that reflects negatively on the integrity and character of the Member or that brings disrepute to the Association,”

The bylaw also introduces an explicit duty for members to self-report criminal charges under certain conditions, including offences punishable by a fine of at least $25,000 or imprisonment of two years or more. 

This proactive measure addresses a gap in the enforcement capabilities of provincial regulators, who, according to Mitchell, often lack the agility to act swiftly on such matters. He insists the change reflects a growing need for professional associations to play a more active role in maintaining industry standards.

AREA’s growing membership

Mitchell says AREA’s membership has grown by 50 per cent in the past decade—from 10,000 to 15,000 Realtors. 

“The way licences are issued, the government and regulators are limited in what they can do, and sometimes they have to issue a licence when they probably shouldn’t.” explains the CEO. “I wouldn’t say it’s a huge problem, but 99 per cent or more of our members are doing a great job for the public. However, there have been a few instances over the last few years that have made us think about who is really responsible for maintaining professional standards. We believe that’s the provincial association.”

Membership strongly supports the change

According to AREA’s annual report, 96 per cent of Realtors surveyed agree that bad actors hurt the overall reputation, and 82 per cent believe the association has a responsibility to prevent bad actors from operating within the realtor community.

“Our provincial regulatory bodies are responsible for maintaining minimum standards and licensing, but they aren’t really well-equipped to enforce professional standards because they don’t have a membership. They just have licensees. It’s important to agents because, if we don’t take professionalism seriously, will the public take us seriously?

“In the last two weeks, there have been a couple of cases at the regulator where they removed the licences of some industry practitioners, but it took four years. Four years in the case of somebody sexually assaulting a client, and the regulator took four years to remove his licence, even though it was admitted conduct,” explains Mitchell.

Impact on licensing and membership

“There’s a real problem with enforcement at our regulatory body. We believe the association can act quicker and more efficiently, and in cases where things are very obvious, why would you allow someone behaving like that to remain a member of our association?”

In Alberta, the Real Estate Council of Alberta is responsible for licensing, but AREA enforces membership within the province. That includes access to MLS, forms, benefits and other services that come with being a member of organized real estate. 

“It doesn’t prevent people from being licensed, but it does prevent bad actors from claiming to be Realtors. And it makes it difficult for them to practice as a typical agent would.”

Mitchell finishes, “There’s a real problem with enforcement at our regulatory body. We believe the association can act quicker and more efficiently, and in cases where things are very obvious, why would you allow someone behaving like that to remain a member of our association?”

Mario Toneguzzi

Mario Toneguzzi is a contributing writer for REM. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He now works on his own as a freelance writer for several national publications and consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list.