Information on residential offices

Introduction

Licensees providing mortgage services have specific duties that are set out in the Mortgage Services Act (MSA), Mortgage Services Regulation (Regulation), and Mortgage Services Rules (Rules). Under the MSA, there are certain requirements respecting residential and other personal offices.

Brokerage Offices vs. Personal Offices

Residential Mortgage Brokerage Offices

Under the Rules, a mortgage brokerage is permitted to establish a residential office as its head office or as a branch office, provided two conditions are met:

• The office must be situated within the residence of a related principal broker, and  
• The local government bylaws governing the residence must allow the operation of a mortgage brokerage business from the residential property. 

In addition to the above conditions, the principal broker must meet certain conditions. Specifically,

• The principal broker must be the sole proprietor in the case of a mortgage brokerage that is a sole proprietorship, or a partner in the case of a mortgage brokerage that is a partnership.  
• In the case of a mortgage brokerage that is a corporation, the principal broker must be either  
• A controlling shareholder of the corporation, or  
• one of only 2 shareholders of the corporation, the other of whom is the spouse of the principal broker. 
• In the case of a mortgage brokerage that is not a sole proprietorship, partnership, or corporation, the principal broker must be an individual who directly or indirectly controls the mortgage brokerage.  

Subject to any further restrictions or conditions outlined in local government bylaws regulating residential business activities, only two licensees are allowed to be licensed in relation to a residential head office or residential branch office.

Personal Offices

Under the Rules, a “personal office” is distinct from a licensed residential mortgage brokerage office.

Personal offices are not licensed and could be any office outside of the head or branch office where a licensee provides mortgage services (e.g. a home office or rented commercial space). If a licensee maintains a personal office, it’s important to establish clear boundaries between personal and professional spaces. To maintain compliance, no signage should suggest that mortgage services are offered from the personal office, whether outside the building or visible from the exterior. When answering the phone in a personal office, a licensee must not use the name of their related mortgage brokerage, and the personal office address should not appear in any mortgage service advertisements or related records.

Mailing Address

The mailing address for delivery to a licensee is generally the address of their related mortgage brokerage office. If a licensee provides the Superintendent with a different mailing address for delivery, they must promptly notify the superintendent in writing of any changes to that address to ensure communications are delivered accurately and on time.

Displaying Signs and Licences

Displaying Licences

A mortgage brokerage is required to prominently display its mortgage brokerage licence in its head office. This requirement also applies if the brokerage head office is a residential head office. If the brokerage has a branch office, the branch’s licence should be prominently displayed at the branch. Additionally, the licence of each related licensee must be kept available for public inspection at the mortgage brokerage office.

Business Signs

A mortgage brokerage must display a business sign, on or near the door of its head office and any branch offices, that clearly shows the mortgage brokerage’s licensed name. This requirement applies if the brokerage head office is a residential office. Additionally, the mortgage brokerage’s licensed name must be listed in the building directory, if any, for the locations where the offices are located.

Record Keeping in Personal Offices

Under the MSA, a brokerage must retain copies of brokerage records at the brokerage address on file with BCFSA. That means that even if a licensee primarily works out of their personal office, all brokerage records must be provided in a timely manner to their brokerage to ensure that the brokerage has all applicable records. Brokerage records can be kept electronically if they can be easily accessed and printed. BCFSA must be able to review, inspect, and audit all brokerage records and may require electronic records to be printed or vice versa. More information on record keeping requirements can be found on BCFSA’s Mortgage Services Knowledge Base.

Applicable Section of Mortgage Services Act, its Regulations, or the Mortgage Services Rules

MSA Rules

s. 6 [Residential mortgage brokerage offices] 
s. 50 [Display and keeping of licences] 
s. 51 [Business signs required] 
s. 52 [Restrictions relating to home and other personal offices]