This is the Declaration of Insurance paragraph:
DECLARATION OF INSURANCE
The Salesperson/Broker/Broker of Record ________________________________
(Name of Salesperson/Broker/Broker of Record)
hereby declares that he/she is insured as required by TRESA.
_________________________________________
(Signature(s) of Salesperson/Broker/Broker of Record)
Review
Set out below and marked in bold and italics are those words that are inserted by me to assist in the review. They are not set out in the clause itself. Let’s look at that paragraph in a little more detail:
Registrant
The Salesperson/Broker/Broker of Record
Declaration
hereby declares that he/she is insured as required by TRESA.
COMMENT
A registrant under the TRESA legislation must maintain insurance coverage. This is a statement that they have such insurance.
Now, the interesting issue here is that the agreement is between the Seller and the Brokerage, BUT, there is no such similar declaration that the Brokerage has insurance coverage. Obviously, there should be!
It would be wise for the Seller to check the Brokerage’s registration status on the RECO website.
Brian Madigan LL.B., Broker