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Advisory

Advisory

Changes to Licensing Assessments Coming Into Effect on April 1, 2023
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Date
6 March 2023
Advisory Number
23-009 ​
Distribution
Real Estate Professionals

Purpose

BC Financial Services Authority (“BCFSA”) is issuing this Advisory to notify real estate licensees of upcoming changes to assessments collected by BCFSA on behalf of the Real Estate Compensation Fund Corporation (“RECFC”) and the Real Estate Errors and Omissions Insurance Corporation (“E&O”).

Assessment Fee Changes Explained

Real Estate Compensation Fund Corporation

The RECFC Board of Directors has decided to suspend assessment fees for new licences for a period of two years. The Board is implementing this temporary suspension of fees due to the fund being in a strong position, as a result of good stewardship and low claims. This change means that the total fees and assessments collected by BCFSA for a licence application by an individual or a brokerage will decrease by $300 and $500 respectively, for licences issued on or after April 1, 2023.

Real Estate Errors and Omissions Insurance Corporation

The E&O Board of Directors has decided to reduce assessments for mandatory licensee indemnity plan coverage by 10 per cent, for licences issued or renewed on or after April 1, 2023. The reduction in E&O assessments reflects prudent handling of claims and loss prevention, effective risk management, and a new tax status as a non-profit organization. In practice, all licensees will see their annual E&O assessment fee reduced from $350 per year to $315. Also, effective April 1, 2023, licensees with a Personal Real Estate Corporation (“PREC”) licence will no longer be required to pay indemnity plan fees for their PREC.

Below is a breakdown of the changes to initial licensing fees and assessments for new licences for the two-year licensing period:
  • fees table 1

Below is a breakdown of the changes to bi-annual renewal licensing fees and assessments:
  • fees table 2
Further changes to licensing fees, for licences issued or renewed on or after April 1, 2023, are outlined below:
  • Total licensing fees and assessment payable for a new brokerage licence are changing from $2200 to $1630; and
  • PREC E&O indemnity plan fees are changing from $700 to $0.

Additional Information

To learn more about licensing fees and how they are used, please refer to the following webpages: