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“Point in Time” Act Content

MORTGAGE BROKERS ACT

[RSBC 1996] CHAPTER 313

NOTE: Links below go to act content as it was prior to the changes made on the effective date. (PIT covers changes made from September 6, 2000 to present)
SECTIONEFFECTIVE DATE
1June 1, 2004
 June 1, 2004
 January 1, 2005
 January 1, 2005
 June 4, 2019
 June 4, 2019
1.1June 4, 2019
3December 1, 2007
7March 27, 2020
8June 1, 2004
 June 1, 2004
 January 1, 2005
 October 29, 2009
 October 29, 2009
 October 29, 2009
 October 29, 2009
 December 6, 2010
 December 6, 2010
 December 6, 2010
8.1October 29, 2009
9June 1, 2004
 October 29, 2009
9.1January 1, 2005
 October 31, 2018
10June 1, 2004
12January 1, 2001
Part 2, Division 1 hdgJuly 1, 2006
15July 1, 2006
15.01July 1, 2006
15.2July 1, 2006
Part 2, Division 2 hdgJuly 1, 2006
16July 1, 2006
17July 1, 2006
20December 1, 2007
 November 1, 2019
22July 1, 2006
 July 1, 2006
23December 2, 2003
 December 2, 2003
 July 1, 2006
 July 1, 2006

  Section 1 (1) definition of "commission" BEFORE repealed by 2003-51-36(a), effective June 1, 2004 (BC Reg 222/2004).

"commission" means the commission established under the Commercial Appeals Commission Act;

  Section 1 (1) definition of "tribunal" was added by 2003-51-36(b), effective June 1, 2004 (BC Reg 222/2004).

  Section 1 (1) definition of "mortgage" BEFORE amended by 2004-42-145(a), effective January 1, 2005 (BC Reg 507/2004).

"mortgage" includes every instrument by which land in British Columbia or, for the purposes only of paragraph (c) of the definition of "mortgage broker", sections 14.1 and 17.4 and Division 3 of Part 2, land, whether or not in British Columbia, is, in any manner, conveyed, assigned, pledged or charged as security for the payment of money or money's worth to be reconveyed, reassigned or released on satisfaction of the debt, but does not include an agreement for sale of or a right to purchase land or an interest in land;

  Section 1 (1) definition of "mortgage broker" paragraph (f) was added by 2004-42-145(b), effective January 1, 2005 (BC Reg 507/2004).

  Section 1 definition of "Authority" was added by 2019-14-52(a), effective June 4, 2019 (BC Reg 116/2019).

  Section 1 definition of "registrar" BEFORE amended by 2019-14-52(b), effective June 4, 2019 (BC Reg 116/2019).

"registrar" means a person appointed by the Lieutenant Governor in Council to act as registrar or a person authorized by the registrar to perform the registrar's duties under this Act;

  Section 1.1 was enacted by 2019-14-53, effective June 4, 2019 (BC Reg 116/2019).

  Section 3 (4) BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007).

(4)  Except as otherwise provided in this Act, all notices under this Act or the regulations are sufficiently served for all purposes if delivered or sent by mail to the latest address for service as stated in the application.

  Section 7 (8) BEFORE amended by 2019-38-100 [conseq], effective March 27, 2020 (BC Reg 45/2020).

(8) In any of the circumstances mentioned in subsection (1) (a), (b) or (c), the registrar may apply to the court for the appointment of a receiver, or a receiver and manager, or a trustee of the property of the person, and in such cases section 152 of the Securities Act applies.

  Section 8 (3) BEFORE amended by 2003-51-37(a), effective June 1, 2004 (BC Reg 222/2004).

(3)  If under subsection (2) the registrar suspends registration without giving the person an opportunity to be heard, the registrar must promptly send written notification of the suspension to the person and to the commission.

  Section 8 (4) BEFORE repealed by 2003-51-37(b), effective June 1, 2004 (BC Reg 222/2004).

(4)  An appeal to the commission from an order under subsection (2) does not operate as a stay and no order may be made under section 12 (2) of the Commercial Appeals Commission Act.

  Section 8 (1) (f) was added by 2004-2-219, effective January 1, 2005 (BC Reg 520/2004).

  Section 8 (1) BEFORE amended by 2009-15-12(a), effective October 29, 2009 (Royal Assent).

(1)  After giving a person registered under this Act an opportunity to be heard, the registrar may suspend or cancel the person's registration if, in the opinion of the registrar, any of the following paragraphs apply:

(a) the person would be disentitled to registration if the person were an applicant under section 4;

(b) the person is in breach of this Act, the regulations or a condition of registration;

(c) the person is a party to a mortgage transaction which is harsh and unconscionable or otherwise inequitable;

(d) the person has made a statement in a record filed or provided under this Act that, at the time and in the light of the circumstances under which the statement was made, was false or misleading with respect to a material fact or that omitted to state a material fact, the omission of which made the statement false or misleading;

(e) the person has conducted or is conducting business in a manner that is otherwise prejudicial to the public interest;

(f) the person is in breach of a provision of Part 2 or 5 of the Business Practices and Consumer Protection Act prescribed under section 9.1 (2).

  Section 8 (1.1) BEFORE amended by 2009-15-12(b), effective October 29, 2009 (Royal Assent).

(1.1)  After giving a person registered under this Act an opportunity to be heard, the registrar may order the person to pay an administrative penalty of not more than $50 000 if, in the opinion of the registrar any of paragraphs (b) to (e) of subsection (1) apply.

  Section 8 (1.2) to (1.4) were added by 2009-15-12(c), effective October 29, 2009 (Royal Assent).

  Section 8 (2) and (3) BEFORE amended by 2009-15-12(d), effective October 29, 2009 (Royal Assent).

(2)  If the length of time that would be required to give the person an opportunity to be heard under subsection (1) would, in the registrar's opinion, be prejudicial to the public interest, the registrar may suspend registration without giving the person an opportunity to be heard.

(3)  If under subsection (2) the registrar suspends registration without giving the person an opportunity to be heard, the registrar must promptly send written notification of the suspension to the person and to the tribunal.

  Section 8 (1) (d) and (1.3) (d) BEFORE amended by BC Reg 357/2010 under RS1996-440-12, effective December 6, 2010 (BC Reg 357/2010).

(d) order the person to carry out specified actions that the registrar considers necessary to remedy the situation;

(d) order the person to carry out specified actions that the registrar considers necessary to remedy the situation;

  Section 8 (1.2) (b) BEFORE amended by BC Reg 357/2010 under RS1996-440-12, effective December 6, 2010 (BC Reg 357/2010).

(b) order the person to pay an administrative penalty of not more than $50 000;

  Section 8 (1.4) (c) BEFORE amended by BC Reg 357/2010 under RS1996-440-12, effective December 6, 2010 (BC Reg 357/2010).

(c) order the person to pay an administrative penalty of not more than $50 000;

  Section 8.1 (1) and (2) BEFORE amended by 2009-15-13, effective October 29, 2009 (Royal Assent).

(1)  The registrar may file in a Supreme Court registry an order under section 8 (1), imposing an administrative penalty, by filing in the registry a copy of the order certified as a true copy by the registrar.

(2)  An order of the registrar filed under subsection (1) imposing an administrative penalty has the same force and effect, and all proceedings may be taken on the order, as if it were a judgment of the Supreme Court.

  Section 9 BEFORE re-enacted by 2003-51-38, effective June 1, 2004 (BC Reg 222/2004).

 Appeal to commission

9  A person aggrieved by a direction, decision or order under this Act by the registrar may appeal it to the commission.

  Section 9 (3) BEFORE amended by 2009-15-14, effective October 29, 2009 (Royal Assent).

(3)  In respect of an appeal taken from a suspension of registration made under section 8 (2), the following provisions do not apply:

  Section 9.1 was enacted by 2004-2-220, effective January 1, 2005 (BC Reg 520/2004).

  Section 9.1 (3) (a) BEFORE amended by 2018-39-16, effective October 31, 2018 (Royal Assent).

(a) identify certain rights and powers, including rights and powers in relation to inspections, inquiries and enforcement, and rights and powers to impose enforcement remedies and penalties, that the registrar or director may exercise under one or more of this Act and Part 10 of the Business Practices and Consumer Protection Act,

  Section 10 BEFORE amended by 2003-51-39, effective June 1, 2004 (BC Reg 222/2004).

10  A certificate purporting to be signed by the registrar and certifying as to any matter of record in the office of the registrar or the date on which facts first came to the registrar's knowledge for the purposes of section 22 (7), is admissible in evidence in an action or proceeding in any court, or in a matter before any board, commission or other body, as proof of the matter certified in it, without proof of the office or signature of the registrar.

  Section 12 BEFORE repealed by 1998-7-5, effective January 1, 2001 (BC Reg 192/2000).

 Deemed registration

12  (1)  Subject to subsection (3), a person who holds a valid and subsisting licence under the Real Estate Act or registration under the Securities Act is deemed registered under this Act as a mortgage broker or submortgage broker.

(2)  A person who is deemed a mortgage broker or submortgage broker under subsection (1) must, at the request of the registrar, file with the registrar information the registrar requires under this Act.

(3)  The registrar may order, with respect to any person, that subsection (1) does not apply.

  Part 2, Division 1 heading BEFORE re-enacted by 2004-2-221, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

Division 1 — Application and Interpretation

  Section 15 BEFORE repealed by 2004-2-222, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

 Application

15  (1)  In this Part, "additional amount", in relation to a mortgage or mortgage transaction, means an amount by way of bonus, commission, discount, finder's fee, brokerage fee or amount of a similar kind, by whatever name called, required to be paid by the borrower, in addition to interest and reasonable appraisal, survey and legal fees and other prescribed costs, as part of the cost of obtaining the amount paid to the borrower or on the borrower's account.

(2)  Division 2 applies only to a mortgage or mortgage transaction in which the borrower is to pay an additional amount.

  Section 15.01 was enacted by 2004-2-223, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

  Section 15.2 (a) BEFORE amended by 2004-2-224, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

(a) a failure to provide a disclosure statement under section 16, 17.3 or 17.4 or an information statement under section 17.1, or

  Part 2 Division 2, heading BEFORE repealed by 2004-2-225, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

Division 2 — Disclosure to Borrowers

  Section 16 BEFORE repealed by 2004-2-226, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

 Prior disclosure

16  (1)  A person lending money on a mortgage to which this Part applies must provide to the borrower at or before the time the person signs the mortgage a separate statement in writing, designated as a disclosure statement, in the prescribed form, completed and signed by the lender, or the lender's authorized agent.

(2)  The disclosure statement need not be incorporated in, or attached to, the mortgage.

(3)  If the lender provides a disclosure statement required by subsection (1), the borrower may, but not later than 48 hours after the borrower signed the mortgage or received the disclosure statement, whichever first occurs, rescind the mortgage by delivering or posting by prepaid mail to the lender and to the registrar of titles, in whose office the land comprised in the mortgage is registered, a notice in the form set out in the disclosure statement.

(4)  For subsection (3), Saturday, Sunday or a holiday is not to be included in the calculation of time.

(5)  A notice under subsection (3), if sent by mail, is deemed to be given at the time of mailing.

(6)  The delivery of a notice under subsection (3) to the appropriate land title office has the same effect as a caveat lodged under section 283 of the Land Title Act.

(7)  If a borrower gives notice under subsection (3), the borrower must

(a) promptly repay to the lender the full amount, if any, actually advanced on the mortgage, and

(b) within 10 days of receipt of a statement of expenses reasonably and necessarily incurred by the lender, if any, pay those expenses.

(8)  If a borrower complies with subsection (7), the lender must execute and provide to the borrower a discharge of the mortgage.

(9)  If there is a dispute respecting compliance with subsection (7) or (8) or the expenses incurred by the lender, the lender or the borrower may apply to the court by originating notice, on 2 clear days' notice to the other party, for an order that that party comply with subsection (7) or (8) within a time and on terms, including payment of interest, as the court considers just.

(10)  If a mortgage to which this Part applies is assigned by a lender, the rights and obligations of subsections (3), (7), (8) and (9) and of section 17 apply as between the borrower and assignee.

  Section 17 BEFORE repealed by 2004-2-226, effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

 Redemption order on nondisclosure

17  (1)  In addition to a right of action that the borrower may have at law or in equity, on application by originating notice within one month after signing a mortgage, the court may, if it finds that the lender has omitted to provide a disclosure statement as required by section 16, or that the borrower has been deliberately misled by anything contained in a disclosure statement provided by the lender under section 16, by order,

(a) permit the borrower to redeem the mortgaged land on payment into court of the principal money advanced under the mortgage, together with interest on it at the rate specified in the mortgage on the amount actually advanced, together with all expenses reasonably and necessarily incurred by the lender in respect of the mortgage, and

(b) provide that, on payment into court, the mortgage is to be discharged.

(2)  On presentation of a copy of an order made under this section certified by the registrar of the court and on production of a certificate of the registrar of the court all payments required by the order have been made, the registrar of titles, in whose office the mortgage is registered, must cancel the registration of the mortgage.

  Section 20 BEFORE amended by 2007-14-215,Sch, effective December 1, 2007 (BC Reg 354/2007).

 Liability of registrar, commission, etc.

20  An action may not be brought or continued against the registrar or a person acting under the authority of the registrar for anything done by the registrar or the person in the performance of duties under this Act or the regulations or in pursuance or intended or supposed pursuance of this Act or the regulations, unless it was done in bad faith.

  Section 20 BEFORE re-enacted by 2019-14-54, effective November 1, 2019 (BC Reg 197/2019).

Liability of registrar, commission, etc.

20   An action may not be brought or continued against the registrar or a person acting under the authority of the registrar for anything done by the registrar or the person in the performance of duties under this Act or in pursuance or intended or supposed pursuance of this Act or the regulations, unless it was done in bad faith.

  Section 22 (1) (a) BEFORE amended by 2004-2-227(a), effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

(a) contravenes section 6 (7.5), 14 (1) or (2), 16 (1), 17.1 (1) or (2), 17.3 (1), 17.4 (1) or 21 (1) (a) or (d),

  Section 22 (1) (b) BEFORE amended by 2004-2-227(b), effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

(b) contravenes section 15.1 (2) or (3), 16 (3.2), 16.1, 17.2, 17.5 or 21 (1) (b) or (c) or (2),

  Section 23 (2) (b) BEFORE amended by 2003-96-53, effective December 2, 2003 (Royal Assent).

(b) prescribing the fees payable, in each category, for registration and renewal of registration;

  Section 23 (2) (b.1), (b.2), (b.3) and (b.4) were added by 2003-96-53, effective December 2, 2003 (Royal Assent).

  Section 23 (2) (h) BEFORE amended by 2004-2-228(a), effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

(h) prescribing the form and content of disclosure statements under sections 16, 17.3 and 17.4, notices under section 16, and information statements under section 17.1;

  Section 23 (2) (h.1) BEFORE amended by 2004-2-228(b), effective July 1, 2006 (BC Reg 274/2004 as amended by BC Regs 520/2004 and 349/2005).

(h.1) prescribing the time within which disclosure statements under sections 16, 17.3 and 17.4 must be provided;