Claims Process
The Superintendent of Real Estate at the BC Financial Services Authority (“BCFSA”) is responsible for administering the Compensation Fund claim process. Members of the public who believe they may have suffered a compensable loss should immediately contact the Superintendent of Real Estate at the BC Financial Services Authority (“BCFSA”) at:
Telephone: 604.660.3555
Toll-free: 866.206.3030
email: info@bcfsa.ca
Claimants are encouraged to fully review sections 60-72 of the Real Estate Services Act and to seek legal advice.
Claims Review
If a claim is made, the Superintendent of Real Estate must consider the claim and may do one of three things:
- conduct a hearing to determine whether a member of the public has suffered a compensable loss and, if applicable, assess the amount of that loss;
- decline to make either a determination or assessment, or both, on the basis that it considers the matter would more effectively be dealt with by a court proceeding; or,
- postpone conducting a hearing pending the conclusion of a discipline hearing or court proceeding.
If the Superintendent finds there has been a compensable loss, they will assess the amount of the loss and issue a certificate specifying the amount of the compensable loss. The RECFC is obligated to pay out once a certificate of compensable loss has been issued by the Superintendent.
Payment is limited to a maximum of $200,000 for a single claimant. In the case of a single brokerage, payments are limited to a maximum of $1,000,000 in total regardless of the number of claimants. Payments are adjusted for amounts already recovered from other sources.
Deference to Court
If the Superintendent defers to the court or if a claimant seeks redress through the court process for compensable loss, written notice of the court proceeding must be provided to the BCFSA and, as the RECFC has the option of being a party to any such court proceeding, to the RECFC as well. If the court makes a finding on the evidence of compensable loss and assesses an amount, that finding is binding on the Superintendent and the RECFC in the same manner as a finding of compensable loss by the Superintendent.
Limitations on Recovery
Limitations include:
- Compensable losses must arise from the provision of real estate services as defined in the Real Estate Services Act. There is no recovery from the Compensation Fund if the loss arises from conduct that occurred prior to 2005.
- The time limit for making a claim is two years after the earlier of the date on which the compensable loss occurred or, if the licence of the responsible brokerage was cancelled at any time after the conduct that caused the compensable loss, two years after the date of that cancellation.
- A finding of compensable loss must be a decision arising from a hearing on evidence — it cannot arise from a consent order process or from a judgment in default.
Further Information
Should anyone have concerns about Compensation Fund claims they are welcome to contact the BCFSA at:
Telephone: 604.660.3555
Toll-free: 866.206.3030
email: info@bcfsa.ca
Or contact us.