Member Update December 23, 2020

December 23, 2020

Interim report on money laundering released

The Cullen Commission inquiring into money laundering in BC issued its interim report earlier this month.

The report summarizes the evidence and testimony that’s surfaced so far.

Much of the commission’s work in 2020 focused on the casino sector.

The commission will focus more on real estate starting in February. BCREA has intervenor status on behalf of the profession and will address the commission in February.

The interim report expresses concern about the lack of cooperation from FINTRAC and the federal government. In response, the federal Public Safety Minister Bill Blair announced that the federal government will fund nearly $100 million for new anti-money laundering investigative units in B.C., Alberta, Ontario, and Quebec, which should be in place by March 2021.

We’ll continue to follow the progress of the inquiry in 2021 and  share the latest developments with you as they occur.

BC Strata insurers to end ‘best terms pricing’

When news of skyrocketing insurance premiums for strata developments emerged at the beginning of the year the province tasked the BC Financial Services Authority (BCFSA) to investigate in search of solutions. The BCFSA is the agency responsible for regulating the private insurance sector in the province.

In June, BCFSA issued an interim report, which found that a practice known as ‘best terms pricing’ had contributed to premiums increasing an average of 50 per cent in Metro Vancouver. A subsequent report found that 94 per cent of sample properties had been negatively affected by best terms pricing. 

This practice refers to a process where insurance brokers collect quotes from multiple insurers. When each insurer quotes on a strata property, it sets out the amount of risk it’s prepared to accept and a rate charge. 

The quotes are conditional quotes, based on all the insurers receiving the same terms. Instead of the premium being set by the quote of each insurer, or by an average of all quotes, under best terms pricing the final price is set by the highest rate quoted by any of the insurers on the policy.

Changes as of November 1, 2020

As a result of the investigation, , the BC legislature passed Bill 14 – 2020: Municipal Affairs and Housing Statutes Amendment Act (No. 2), 2020, which received royal assent in August 2020. 

The bill amends insurance-related provisions of the Strata Property Act (SPA) and the Financial Institutions Act introducing regulatory changes, effective November 1, 2020 that address rising strata insurance costs and best terms pricing.  

Best terms pricing

Renew or not renew

  • Insurers or insurance agents are now required to provide a 30-day advance notice, directly to strata corporations, of their intention to not renew an insurance policy, or of any material changes to the policy. This change ensures that strata corporations will be warned in advance of any cost increases and have time to select other insurance options.

Commission disclosure

  • Insurance agents are now required to disclose their commission amount, or a reasonable estimate, to strata corporations. Penalties for non-disclosure include a fine up to $25,000 for an individual, or $50,000 for a corporation.

Referral fees

  • Referral fees to strata property managers from strata insurance transactions are prohibited.

These changes are intended to give strata corporations the information needed to make informed decisions about their insurance needs.

Read the government press release.

If you have questions, contact Harriet Permut, manager of government relations at hpermut@rebgv.org.

Revised small business grant eligibility

The provincial government recently introduced new eligibility criteria for the Small and Medium Sized Business Recovery Grant that makes it easier for businesses to qualify. If your business has been impacted by the pandemic, you may be eligible for an up to $30,000 grant.

If you applied for the grant before December 18, you’ll be assessed under the new eligibility requirements. If you’ve already been approved for a grant, you may be eligible for additional funds.

For more information on the grant, including the new eligibility requirements, click here.

 

REBGV seeks candidates to lead our MLS® business

We’re looking for a highly qualified person to lead our Multiple Listing Service® (MLS®) business function. This position will be responsible for creating a roadmap, strategy, and vision for the MLS®.

The successful candidate will be responsible for planning, product development, direction, and management of all activities related to marketing, promotion, and expansion of the MLS®.

Through market and consumer research, and member and industry knowledge, you’ll help the Real Estate Board of Greater Vancouver determine the demand for new and enhanced MLS® products and services and identify growth opportunities for MLS® market share.

In our highly collaborative work environment, you’ll work with cross-functional teams to establish new product design, communication plans and marketing strategies.

Candidates should have a deep understanding of how the real estate market operates and the changing needs of REALTORS® and their clients, as well as an associated educational background and experience as described in the job description.

Click here to read the full job description.

If you think you have the experience, skills, and character to thrive in this position, apply today by sending a cover letter and resume to wmarch@rebgv.org.

The application deadline is Friday, January 8, 2021 at 5 pm.

 

Have your say on Council's licensing fee changes

The Real Estate Council of BC wants to hear from you on proposed changes to its licensing fees. Don’t miss your opportunity to participate.  

1. Read the consultation paper, Licensing Fee Changes: Supporting Efficient, Effective Real Estate Regulation.

2. Provide your feedback to the Real Estate Council through this online survey by January 10, 2021.

3. Questions? Email info@recbc.ca.


Proposed changes to licensing fees would take effect April 1, 2021.

REBGV holiday hours

Our holiday hours schedule is below:

  • Thursday, December 24 – closing at 1 pm
  • Friday, December 25 – closed
  • Monday, December 28 – closed
  • Thursday, December 31 – closing at 1 pm
  • Friday, January 1, 2021 – closed

On behalf of all REBGV staff and your Board of Directors, have a safe and happy holiday season!