Land Agent Licensing Bulletin 2016/04 Standards of Conduct and Annual Compensation Reviews Disclaimer: This general information is provided as a courtesy only. If you need specific or legal advice, consult legislation or seek legal counsel. All Land Agents are informed that the Farmers’ Advocate Office has issued a Bulletin regarding Annual Compensation Reviews. Please follow the link to the Bulletin. Link: http://www1.agric.gov.ab.ca/$Department/deptdocs.n sf/all/ofa15888 As a professional Land Agent, you may be involved in this type of activity. It is important to be aware of current issues, practices and emerging trends in your industry sector and the impact these have on your profession. Annual Compensation Review Land Agents are reminded that the Surface Rights Act has a number of requirements in regard to Annual Compensation Review. Under Section 27 of the Surface Rights Act, parties to a surface lease or right of entry order that provide for compensation on an annual or other periodic basis are entitled to a review of the compensation every five years. The operator is responsible for giving notice that a five year anniversary is approaching, but the review can be requested by either party. Subsequent notices must be given every five years thereafter. If either party indicates that it wishes to have the rate of compensation reviewed or fixed, the parties shall enter into negotiations in good faith. Failure to negotiate in good faith can have negative consequences on the parties’ applications for costs before the Board following a Section 27 hearing. Alberta Labour Land Agent Licensing 9th Floor 108 Street Building 9942 108 Street Edmonton, AB t5K 2J5 Ph.: 780-415-4600 Toll Free: 310-0000 (Alberta Only) Email:[email protected] Link: http://work.alberta.ca/labour/land-agents-licensing.html Notice Requirements Subsection 27(4) of the Surface Rights Act sets out that within 30 days after the fourth (4th) anniversary of the date the right of entry order was made or the term of the surface lease began, the operator shall give notice to the lessor or respondent to inform them they have the right to have the rate of annual compensation reviewed. This notice must state either (a) that the operator wishes to have the rate reviewed, (b) that the landowner or occupant has a right to have the rate reviewed, or (c) when no rate has been fixed and the surface lease or right of entry order relates to a power transmission line structure, that the landowner or occupant has a right to have one fixed (subsection 27(5) of the Act). If, by the end of the fourth anniversary year, the parties are unable to agree on a rate of compensation, the party desiring to have the rate of compensation reviewed or the compensation fixed may apply to the Board. Generally, parties are able to come to an agreement on their own. Once they have done so, they cannot apply to the Board for review until the next review period. If the operator forgets or fails to give notice to the lessor that the compensation is reviewable, the lessor may, within a reasonable time, give notice to the operator that they wish to have the compensation reviewed. Where an operator forgets or fails to give notice, interest may, at the Board’s discretion, be awarded to the lessor. Page 1 of 2 Land Agent Licensing Bulletin 2016/04 Standards of Conduct and Annual Compensation Reviews Disclaimer: This general information is provided as a courtesy only. If you need specific or legal advice, consult legislation or seek legal counsel. More information in regard to Annual Compensation Reviews can be found on Surface Rights Board website: The Standards of Conduct are: Fulfillment of this role requires an understanding and appreciation by Land Agents of their relationship to industry, landowners and the legal system. 1. A Land Agent must uphold the standards and reputation of the profession. 2. A Land Agent must be professional and courteous at all times and treat all parties with dignity and respect. 3. A Land Agent shall undertake only work that person is competent to perform by virtue of their training and experience as a Land Agent. 4. A Land Agent must carry out all duties with honesty and integrity. 5. A Land Agent must act in good faith. 6. A Land Agent must act in the client’s best interests, subject to any limitations imposed by law or professional ethics. 7. A Land Agent must follow all applicable Statutes and Regulations. 8. A Land Agent must not enter into a situation where a conflict of interest may exist or arise. 9. Unless required by law or authorized by the client, a Land Agent must keep confidential all information acquired in the course of the professional relationship. A Land Agent should observe the highest standards of conduct on both a personal and professional level so as to retain the trust, respect and confidence of industry, landowners and the public. The Registrar of Land Agents has the authority to cancel or suspend a Land Agent licence for a contravention of the legislation or if it is in the public interest to do so. Land Agents are reminded that: Section 10 of the Land Agents Licensing Regulation sets out the fundamental principle that Land Agents must conduct themselves in a professional and ethical manner. It also provides for the Registrar to establish Standards of Conduct that must be adhered to by Land Agents when engaging in legislated activities. More information in regard to the Land Agent Standards of Conduct can be found at: http://work.alberta.ca/labour/standards-ofconduct.html http://surfacerights.alberta.ca/ApplicationTypes/Comp ensationReview.aspx http://surfacerights.alberta.ca/ApplicationTypes/Comp ensationReview/OverviewoftheProcess.aspx http://surfacerights.alberta.ca/Portals/0/Documents/G uide_to_Review_of_Annual_Compensation_Aug_201 2.pdf Land Agent Standards of Conduct Land Agents play a vital role in the negotiation for or acquiring an interest in land, that in the absence of an agreement, may be acquired by right of entry order or expropriation. Alberta Labour Land Agent Licensing 9th Floor 108 Street Building 9942 108 Street Edmonton, AB t5K 2J5 Ph.: 780-415-4600 Toll Free: 310-0000 (Alberta Only) Email:[email protected] Link: http://work.alberta.ca/labour/land-agents-licensing.html Gosia Cichy-Weclaw Registrar of Land Agents Page 2 of 2
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