Check First
- Understand your investment opportunity. For example, is the purchase a security*? Is the company relying on an exemption?
- Know your risk tolerance.
- Read up on Real Estate Investment Seminars and an important ASC Investor Alert.
- Look up a company’s record with the ASC.
- Do a background check - visit Check First in the For Investors section.
- Contact the Real Estate Council of Alberta (RECA) by visiting their website at www.reca.ca or calling 1-888-425-2754.
If you are still unclear about the investment opportunity, consult a registered financial adviser or obtain legal advice before you make your decision.
* The definition of a security is very broad. Generally, an ordinary sale of real estate as an investment or personal occupation is not considered to be a sale of a security under the Securities Act (Alberta).
However, if the sale of real estate involves a scheme or arrangement where the purchaser may earn a return through the efforts of a third party, it may be considered to be a sale of an investment contract and therefore a security.
If a sale of security occurs it will be subject to the requirements of the Securities Act (Alberta), and as such must be conducted by or through a registrant under a prospectus or by way of an exemption from the registration and prospectus requirements.