Does a business broker need a licence in Alberta?

Alberta’s Real Estate Act does not mention business sales by name. It says no person shall trade in real estate as a real estate broker without the appropriate licence, so whether a business broker needs one depends on whether the sale involves real estate as the Act defines it. The Real Estate Council of Alberta (RECA) is Alberta’s real estate regulator. This page covers Alberta only.

What section 17 prohibits

Section 17 says no person shall trade in real estate as a real estate broker, or advertise or hold themselves out as one, unless they hold the appropriate licence issued by the Industry Council for that industry. The Act defines a real estate broker as a person who, for another and for consideration or other compensation, trades in real estate, or who holds out as doing so. “Trade” includes a disposition or acquisition of, or transaction in, real estate by purchase or sale; an offer to purchase or sell; an offering, advertisement, listing or showing for purchase or sale; holding oneself out as trading; soliciting, negotiating or obtaining a contract or arrangement for those activities; and any conduct or act in furtherance or attempted furtherance of them. Under section 1(2), providing information, forms and signs, creating a web page to market properties, and publishing a list of properties for disposition or acquisition do not constitute an offering, advertisement, listing or showing.

Is a business “real estate” under the Act?

Section 1 defines “real estate” as real property, leasehold property, or a portable dwelling of a kind the definition describes. It does not list a business. If a business sale includes owned premises or a lease, ask RECA whether that part of the deal is a trade in real estate. If it includes neither, ask whether the Act reaches the sale at all. The Act does not address business sales in so many words, so this page cannot say that a licence is, or is not, required for your sale.

Exemptions and what a missing licence can cost

Section 2(1) says the Act, as it relates to trading in real estate, does not apply to several groups. They include a person who disposes of real estate owned by that person or in which that person has a substantial interest, and a member in good standing of the Law Society of Alberta acting in the course of and as part of the practice of law. The regulations may exempt others. Separately, section 21.1 says no person shall charge or collect a commission or other remuneration for services rendered in connection with a transaction in the business of a licensee unless they held the appropriate licence when rendering the service or were exempt. A person who paid in that situation may bring an action to recover the amount.

What to ask before you sign

• Does the sale include owned premises or a lease, and has RECA been asked whether the broker’s role in that part needs a licence?
• Is the broker licensed, and does the licence show on RECA’s “ProCheck (Find a Licensee)” tool?
• Is anyone involved relying on an exemption in section 2(1), and which one?

For what a business broker does in the first place, see What does a business broker do?.