Helping Albertans Recover Losses

The Consumer Protection Fund helps recover financial losses caused by a licensee’s fraud, breach of trust, or failure to manage trust money properly.

Where the Money Comes From

Licensees pay a fee when they enter the industry, and investment income from the Fund is reinvested to keep it growing.

Who Can Claim

You may qualify if a licensed real estate or mortgage professional has:

  • Committed fraud (requires a court judgment)
  • Breached trust (requires a court judgment)
  • Failed to handle trust money properly (no court judgment needed)

Who Cannot Claim

Banks, financial institutions, and anyone involved in fraud, as well as any corporation or entity carrying on business or activities specified or described in the Real Estate Act Exemption Regulations, cannot make a claim.

Compensation Limits

  • Real estate: Up to $35,000 per person, max $350,000 per licensee per event
  • Mortgage brokerage: Up to $25,000 per person, max $100,000 per licensee per event

Time Limits to Apply

  • Fraud or breach of trust: Apply within 1 year of a court judgment
  • Trust money issues: Apply within 1 year of the financial loss

How to Apply

A lawyer can help, but you may also apply on your own. Visit the Alberta Justice website for guidance on civil claims.

For more details or to start a claim, contact RECA:
(403) 228-2954 | info@reca.ca (Subject: “Consumer Protection Fund”)

Claim Process

Making a Claim Based on Fraud or Breach of Trust

To make a claim based on fraud or breach of trust, you must provide a Court Judgement showing the licensee was found guilty. Here’s what you need to submit:

  1. A true copy of the Court Judgement confirming fraud or breach of trust (a default judgement is not enough).
  2. A copy of the Statement of Claim or other document that started the case.
  3. Proof that the judgement is final, such as a Certificate of No Appeal.
  4. An Irrevocable Assignment of the Judgement from you to RECA (RECA provides the form).
  5. A Statutory Declaration stating you were not involved in or unaware of the fraud or breach (RECA provides this form).
  6. Any other documents required by the Real Estate Act Ministerial Regulations.
  7. You should also explain any efforts made to collect the judgement.

Filing a Lawsuit

If you want to make a claim, you must:

  • Notify RECA immediately once you’ve started a lawsuit. Not notifying RECA could bar your claim.
  • Notify RECA before noting anyone in default (a step you take when the defendant doesn’t respond in time). RECA must have a chance to intervene before you proceed.
  • Default judgements are not enough. You need a court finding that fraud or breach of trust occurred.

Where to File Your Lawsuit

You can file in either Provincial Court or the Court of Queen’s Bench. Provincial Court is faster and cheaper, but the amount you can recover may differ. Contact the courts or a lawyer to help decide which court is best for your case.

Time Limits for Filing a Lawsuit

There are time limits for filing a claim, and failing to meet them may result in RECA barring your claim (See Limitations Act). Check the Alberta Courts for more details.

Making a Claim for Failure to Disburse or Account for Trust Money

You do not need a court judgement for claims about money held in trust. If a licensee fails to account for or disburse trust money as required by law, you can make a claim without going to court.

To make a claim, you need to provide:

A Statutory Declaration with:

  • Details of your claim.
  • A statement that you weren’t involved in or unaware of the industry professional’s actions.

Any other documents required by the Real Estate Act Ministerial Regulations.

RECA can provide a Statutory Declaration form.