Real Estate 101

Brokering means arranging or negotiating a deal on someone’s behalf—like buying or selling a home or helping secure a mortgage.

In Alberta, it’s not just the licensee you see in ads who’s licensed—it’s their brokerage (the company they work for) that’s legally responsible for brokering the deal. The brokerage is the one you’re officially hiring to represent your interests.

Consumer Tip:
Even if you’re working closely with one real estate professional, it’s their brokerage that holds the licence and is ultimately responsible for the services you receive. It can definitely be a bit confusing—but here’s the key takeaway:

You hire the brokerage, and the licensee represents that brokerage.

You’ve probably seen ads for real estate or mortgage companies like Re/Max, Royal LePage, Invis, or Dominion Lending Centres. These are franchises, not brokerages.

Here’s the key difference:
A franchise is a brand—many different companies can operate under the same brand name by paying a franchise fee. A brokerage is an individual company that is licensed by the RECA to legally provide real estate or mortgage services.

For example, REMAX 123 Realty and REMAX ABC Realty may look the same, but they are separate, independent brokerages. Each holds its own RECA licence and is responsible for its own clients.

You’re hiring the brokerage, not the franchise brand. The licensee you work with represents their specific brokerage—not the larger franchise.

And remember: RECA licenses and regulates brokerages and their licensees—not franchise companies.

When you hire someone to help buy or sell a home—or arrange a mortgage—you’re actually hiring their licensed brokerage. Here’s who might be involved:

• Brokerage – The licensed company that’s legally responsible for your transaction.
• Broker – The person who manages the brokerage. Every brokerage has one, and they oversee all activity.
• Associate – The licensee you work with directly, whether for real estate or mortgage services.
• Associate Broker – A real estate associate with broker-level training who helps with some management but doesn’t run the brokerage.

Tip: Just because someone uses the word “broker” in their title doesn’t mean they are the official broker in charge.

There are two main types of brokerages in Alberta real estate:

Common Law Brokerage

You hire the entire brokerage—which means every licensed professional in that office (including the broker) works for you.

• Anyone from the brokerage can step in to help without changing your agreement.
• It’s assumed that everyone in the brokerage shares information.

Designated Agency Brokerage

You hire the brokerage, but your agreement names specific agent(s) to work with you.

• Only your designated agent(s) will represent you.
• No one else from the brokerage can step in unless they’re added to your agreement.
• Your private information stays with your designated agent(s)—it’s not shared across the whole brokerage.

Tip: Ask your agent what type of brokerage they work for, so you know who has access to your information and who’s representing you.

When you work with a real estate or mortgage licensee (like an agent or broker), you’re actually hiring their brokerage—the company they work for.

Even though you may only speak with one person, the contract is between you and the brokerage, not just that licensee. This is true whether the brokerage uses a team approach or a designated agent.

Tip: Some ads might say, “You get the whole team for the price of one!” But in reality, when you sign an agreement, you’re already hiring the entire brokerage, not just one person or their team.

A client has signed an agreement with a real estate licensee, meaning the licensee must act in their best interests, provide advice, and support them throughout the transaction.

A customer receives limited services and general information but is not represented by the licensee. The licensee must be honest and provide competent service but doesn’t owe the same level of service as they would to a client.

Knowing your role helps you understand what to expect.

When you hire a licensed real estate or mortgage professional, they are there to work for you and protect your interests. They must:

• Act in your best interest
• Keep your information confidential
• Follow your lawful instructions

Real estate licensees may:

• Show you prospective properties
• Assist you with offers
• Host open houses
• Provide advice and negotiate deals

Mortgage licensees may:

• Help you apply for a mortgage
• Explain rates and options
• Offer advice and help you choose the best plan

They’re here to make the process easier, guide you through the details, and keep you informed at every step.

RECA: RECA protects consumers by setting and enforcing rules for real estate and mortgage licensees in the province. Every real estate or mortgage brokerage licensee in Alberta must hold a RECA licence and comply with its standards.

Industry Trade Associations: These organizations, like local real estate boards and provincial real estate associations, protect the interests of their members. Membership is voluntary and separate from RECA’s rules. These associations may have their own set of standards.

For example, REALTOR® is a trademark of the Canadian Real Estate Association (CREA), the national trade association for real estate professionals. Only CREA members can use the term REALTOR®. While all REALTORS® are licensed by RECA, not all licensed real estate professionals are members of CREA or use the REALTOR® title.