The Financial and Consumer Services Commission of New Brunswick (FCNB) is warning New Brunswickers about several new “pop-up agencies” that are trading in real estate without a licence. To protect consumers, only those licensed with FCNB may trade in real estate in New Brunswick.
A recent trend of "pop-up agencies" claiming to purchase undervalued, off-market, or as-is properties has come to the attention of FCNB. These agencies enter into a purchase agreement with the seller but have no intention of buying the property themselves. Instead, they try to sell the agreement to someone else for a profit. FCNB considers this type of activity “trading in real estate” and it requires a license under the Real Estate Agents Act (REAA).
“We want to remind New Brunswickers who choose to work with a real estate professional, to only use licensed agents,” says Marissa Sollows, Director of Communications and Public Affairs for FCNB. “You can contact FCNB directly to check if the individual or company is properly licensed.”
The REAA requires that, with certain exemptions, an individual or company who trades in real estate for another person and gets paid for it must be licensed. Licensing helps protect consumers from fraudulent activity, unethical behavior, and other risks associated with buying or selling a property. Additionally, if a licensed agent violates the REAA or its regulations, they may face disciplinary action, including revocation of their license, which provides an additional layer of protection for consumers.
FCNB is committed to pursuing those individuals or agencies involved in this type of activity and will consider taking action against them. “The protection of consumers is FCNB’s top priority,” stresses Sollows. “We encourage anyone who suspects such activity to report it to us immediately.”
FCNB has the mandate to provide regulatory services that protect the public interest, enhance public confidence and promote understanding of the regulated sectors through educational programs. It is responsible for the administration and enforcement of provincial legislation regulating mortgage brokers, payday lenders, real estate, securities, insurance, pensions, credit unions, trust and loan companies, cooperatives, and a wide range of other consumer legislation. It is an independent Crown corporation funded by the regulatory fees and assessments paid by the regulated sectors. Online educational tools and resources are available at www.fcnb.ca.
Audio files of Marissa Sollows, Director of Communications and Public Affairs at FCNB
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FCNB has the mandate to provide regulatory services that protect the public interest, enhance public confidence and promote understanding of the regulated sectors through educational programs. It is responsible for the administration and enforcement of provincial legislation regulating mortgage brokers, payday lenders, real estate, securities, insurance, pensions, credit unions, trust and loan companies, cooperatives, and a wide range of other consumer legislation. It is an independent Crown corporation funded by the regulatory fees and assessments paid by the regulated sectors. Online educational tools and resources are available at www.fcnb.ca.