Under the Trust in Real Estate Services Act, the Brokerage must place any money which they receive “in trust” into their trust account within five (5) business days of receipt.
This is the section:
Deposit within five business days
17. (1) If an amount of money comes into a brokerage’s hands in trust for another person in connection with the brokerage’s business, the brokerage shall deposit the amount in the trust account maintained under section 27 of the Act within five business days. O. Reg. 567/05, s. 17 (1).
(2) In subsection (1),
“business day” means a day that is not,
(a) Saturday, or
(b) a holiday within the meaning of section 87 of the Legislation Act, 2006.
So what’s a holiday under the Legislation Act, 2006:
Holidays
“88 (1) This section applies for the purposes of the definition of “holiday” in section 87.
Same
(2) The following days are holidays:
1. Sunday.
2. New Year’s Day.
2.1 Family Day.
3. Good Friday.
4. Easter Monday.
5. Victoria Day.
6. Canada Day.
7. Labour Day.
8. Thanksgiving Day.
9. Remembrance Day.
10. Christmas Day.
11. Boxing Day.
12. Any day fixed as a holiday by proclamation of the Governor General or Lieutenant Governor.
Same
(3) When New Year’s Day falls on a Sunday, the following Monday is also a holiday.
Same
(4) In accordance with the Holidays Act (Canada), when July 1 is a Sunday, Canada Day falls on July 2.
Same
(5) When Christmas Day falls on a Saturday, the following Monday is also a holiday, and when it falls on a Sunday, the following Tuesday is also a holiday. “
Placement of Deposit Funds
Once the Brokerage receives the funds it has 5 business days to place the funds in the trust account.
It receives the funds, on the initial Day, but that’s the Day of Receipt, or effectively Day 0
Day 0 receipt of the deposit cheque
Day 1
Day 2
Day 3
Day 4
Day 5 last Day for placement of the funds in the Trust Account
The wording is “within”, so that means that the deadline is on Day 5.
Since we are looking at “business days”, that means any day other than a Saturday, Sunday, or Statutory Holiday.
The definition of “business days” applies to legislation, including TRESA. It doesn’t apply to contracts as between individuals. As a result, it would always be best to include a specific definition of a business day in a contract, so that matter is clear as between the parties.
Brian Madigan LL.B., Broker