It can seem that the job of the managing broker is never-ending, as your brokerage requires your oversight and guidance 24/7, and the thought of taking some needed “me time” can seem like a far-off pipe dream. But for all of us, some time to relax and recharge is the key to good mental health. A managing broker needs to ensure they have picked a responsible broker delegate and have given them the tools they need to manage, supervise, and succeed in their absence.

As a disclaimer, this article summarizes and provides guidance based on BC Financial Services Authority (BCFSA) policies with respect to the interpretation of Rule 28 (active management, adequate level of supervision), and these policies are subject to change without notice.

Do You Need a Broker Delegate at All?

If you are connected electronically and can “exercise control” over the brokerage, you may be able to manage the brokerage remotely. However, this is similar to the “decentralized business model” that most of us experienced during COVID-19, which means you will generally be available by Zoom / Teams / and telephone to interact and discuss matters. This is not the preferred approach if you want that relaxing beach or ski holiday or are in a different time zone.

Are You Going to Be Away for More Than a Month?

A broker delegate can be used for short periods, no more than 30 days. If you will be absent for more than 30 days, BCFSA should be contacted as additional policies apply for any longer period of absence.

Who Do You Choose as Your Broker Delegate?

You must appoint a person who is already engaged by your brokerage, and the obvious choices are those who hold an associate broker licence. If one is not available, then it should be another experienced REALTOR® who is licensed for the services they are overseeing (rental, trading, and / or strata) and who is familiar with the Real Estate Services Act (RESA), the Real Estate Services Rules (the Rules), and your brokerage policies. They should be able to navigate the situations that you regularly face in your day-to-day, including the appropriate monitoring of your brokerage trust accounts (wherever your brokerage maintains these).

Provide the Broker Delegate With the Brokerage Rules and Emergency Numbers

Call a meeting with your broker delegate and review the applicable managing broker responsibilities and the brokerage policies and procedures manual. Be sure to cover the following key areas: 

1. operating in accordance with RESA and the Rules,
2. supervising REALTORS®,
3. duties to take reasonable steps with knowledge of improper conduct,
4. procedures for accounting and records management, and
5. providing notices to parties respecting deposits.

Give the broker delegate contact details for both BCFSA Practice Advisors and the brokerage’s legal counsel, who can assist with complex or unforeseen situations.

Inform BCFSA Who Is in Charge

For short-term absences (less than 30 days), inform the BCFSA licensing team by email of the broker delegate, including the following:

1. name of the brokerage,
2. dates of absence (from / to),
3. name of the broker delegate,
4. brokerage responsibilities to be delegated, and
5. details of the steps taken to ensure that adequate supervision and management of the brokerage will be in place during the absence (a summary of your meeting above).

Note: A copy of this email should also be provided to and acknowledged by your broker delegate for your records.

Debrief Your Broker Delegate on Your Return

After your time in the sun or on the slopes, have a fulsome discussion with your broker delegate and your REALTORS® about what worked and what didn’t during your time away, and keep notes in your file so that the next time you are away, you can have an even better plan in place. Finally, inform BCFSA that you have resumed your management duties inside your brokerage.

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