Alberta’s real estate industry includes three types of licenses:
- Real Estate – Licensees assist consumers with buying and selling property and are often referred to as real estate agents. Property Management is included as a sector of real estate, along with residential, commercial and rural.
- Mortgage Brokerage – Licensees connect lenders and borrowers.
- Condominium Management – Licensees oversee the day-to-day operations of condominium corporations.
Each licence type has its own education and licensing requirements, reflecting the different roles and responsibilities within the industry.
This page explores each licence type (real estate, mortgage and condominium management), and sectors to help you understand the differences and decide which profession— you may wish to become licensed in.
Eligible individuals may hold licenses in multiple professions. For example, you could hold both a mortgage and real estate licence, but this would require two different license types.
Anyone who trades in real estate on behalf of others for compensation, or represents themselves as a real estate agent, must hold a real estate licence issued by RECA, unless an exemption applies under the legislation.
You do not need a licence to buy or sell your own property.
Four Sectors of Real Estate
Alberta’s real estate industry has four sectors:
- Residential
- Commercial
- Rural
- Property Management
Each sector requires its own pre-licensing education.
You can be licensed in multiple sectors, but you must complete the required education for each one before obtaining a licence in that sector.
This ensures you have the knowledge and skills to provide competent service in every area you practice.
What is Trading in Real Estate?
In simple terms, trading in real estate means buying or selling real estate on behalf of someone else for compensation. It also includes activities such as property management when performed for another person.
You must hold a licence to trade in real estate on behalf of another person.
You do not need a licence when buying or selling your own property, provided you own 25% or more of the property.
A property management licence is required for activities such as:
- Leasing or offering to lease real estate
- Negotiating, approving, or offering to negotiate or approve leases or rentals
- Holding money received in connection with a lease or rental
- Advertising or conducting activities that further leasing or rental transactions
When done on behalf of someone else, trading in real estate includes:
- Purchasing or selling real estate
- Offering to purchase or sell real estate
- Advertising or listing real estate for sale
- Showing real estate to potential buyers
- Holding yourself out as someone who can trade in real estate
- Soliciting, negotiating, or obtaining contracts related to a real estate transaction
- Any actions taken to advance a real estate transaction
- Property management services
Some common activities do not require a licence, including:
- Providing information, forms, or signage
- Designing or maintaining a website for a brokerage
- Publishing property listings without providing representation or advice
Certain individuals and entities are exempt from licensing requirements under the legislation, including:
- Court-appointed representatives (such as trustees, receivers, or executors)
- Financial institutions trading in real estate they own or administer
- Individuals buying or selling their own property
- Condominium corporations managing their own affairs
- Lawyers acting in the course of legal practice
- Individuals licensed under other applicable legislation
- An on-site manager who resides in the residential property
- Non-profit organizations, including their employees or officials, when managing subsidized residential premises
Example 1
An individual designs and maintains a brokerage website displaying listings and services.
A licence is not required.
Example 2
An unlicensed assistant hosts an open house on behalf of an owner.
A licence is required.
Example 3
A for-sale-by-owner website provides signs and blank forms but does not offer advice or representation.
A licence is not required.
Example 4
An owner with less than a 25% ownership interest offers to sell a property on behalf of all owners for compensation.
A licence is required.
Licensing Examples for Property Management
Managing Property for Others
A property owner manages their own property. A friend asks them to manage another property.
A property management licence and brokerage registration are required.
Leasing vs. Managing
A residential real estate licensee is asked to find a tenant for a client’s property.
Leasing may be permitted, but ongoing management requires a property management licence and brokerage authorization.
Leasing Under Contract
A property management brokerage advertises space for lease in a managed property. A prospective tenant asks about another building.
You may only lease properties covered by your management contract. Other transactions require the appropriate licence.
Asset Management Limitations
A property manager is asked for advice about selling or valuing commercial properties.
Activities such as market evaluations require a commercial real estate licence.
Brokerage Restrictions
Some individuals hold multiple licences, but their brokerage may not permit property management activities.
Licensees may only provide services authorized by their registered brokerage.
Anyone who deals in mortgages on behalf of another person for compensation, or represents themselves as a mortgage broker, must hold a mortgage broker licence issued by RECA, unless an exemption applies under the legislation.
You do not need a licence when dealing in mortgages on your own behalf or lending your own money.
What is a Mortgage?
A mortgage is a loan secured by real estate.
A licence is required for activities such as:
- Soliciting borrowers or lenders for mortgage financing
- Negotiating mortgage transactions
- Collecting mortgage payments
- Administering mortgages
- Buying, selling, or exchanging mortgages
- Holding oneself out as a mortgage broker
Certain individuals and entities are exempt from licensing requirements, including:
- Banks, credit unions, treasury branches, loan corporations, trust corporations, and insurance companies (subject to regulations)
- Employees or agents acting on behalf of an exempt entity
- Employees acting on behalf of a lawful mortgage principal within their regular duties
- Members of The Law Society of Alberta acting in the practice of law
Example 1
An individual designs and maintains a mortgage brokerage website displaying rates and services.
A licence is not required.
Example 2
A corporation finances housing for its employees through an internal program.
A licence is not required.
Example 3
An unlicensed assistant collects borrower information and provides mortgage qualification advice.
A licence is required.
Example 4
A real estate licensee negotiates mortgage rates or terms on behalf of a borrower.
A mortgage broker licence is required.
Example 5
An individual lends their own money secured by a mortgage.
A licence is not required.
Example 6
A real estate associate refers a client directly to a financial institution for a mortgage in exchange for a referral fee.
A licence is required.
Referring a client to a licensed mortgage broker who works with multiple lenders does not require a mortgage broker licence.
RECA began regulating condominium managers on December 1, 2021. Individuals and companies providing condominium management services must hold a RECA licence.
What Are Condominium Management Services?
Condominium management services involve exercising the powers or performing the duties of a condominium corporation on its behalf. These duties commonly include:
- Collecting, holding, or disbursing funds levied by the condominium corporation (for example, condominium fees)
- Enforcing the condominium corporation’s bylaws or rules
- Negotiating and entering into contracts on behalf of the condominium corporation
- Supervising employees or contractors engaged by the condominium corporation
For more information on condominium management duties, refer to the Condominium Property Act.
The Real Estate Act Exemption Regulation identifies individuals and entities that are exempt from licensing requirements.
As of December 1, 2021, exemptions include:
- Condominium corporations that self-manage
- Bona fide employees of condominium corporations acting on behalf of their employer
New entrants may participate in RECA’s Graduated Licensing Program, which allows individuals to perform certain restricted activities while completing required education and examinations.
Required courses include:
- Fundamentals of Condominium Management
- Practice of Condominium Management
Individuals seeking to become a Condominium Manager Broker must:
- Have at least two years of condominium management experience within the last five years
- Complete the Condominium Manager Broker Program and examination
Each licensing level includes defined activity restrictions. Some activities are prohibited, some require broker supervision, and others are unrestricted.
Level 1 Licence
Issued to individuals who have not yet completed the required condominium management courses.
Level 2 Licence
Granted automatically to Level 1 licensees upon completion of the Fundamentals of Condominium Management course.