REALTOR® NEWSREALTOR® NEWS
February 20, 2020
Watch the news you need to know in 90 seconds.



Featured News

President's message: Attend our March 19 Annual General Meeting!

image

Our Annual General Meeting (AGM) is less than a month away. I hope you can take the time to attend.

The AGM is your Board’s signature business meeting of the year. It’s a chance to hear the latest on what we’re working on, what challenges we’re facing, and to hopefully leave with some fresh insights into your profession.

This year’s meeting is on Thursday, March 19, at the Delta Hotels by Marriott Conference Centre, 4331 Dominion Street in Burnaby.

At the event, you’ll hear updates from CEO Brad Scott and me about projects and strategic initiatives that REBGV is focused on. You’ll also vote on three special resolutions that the Board of Directors has proposed for your approval.

We’ll conclude the day with a keynote address from Rob Hahn, a deeply insightful and often provocative real estate commentator from the United States.

Rob writes the well-known real estate blog Notorious R.O.B., is a prolific speaker at real estate events across North America, and has been named to the Inman 100 Most Influential People in Real Estate list.

Special resolutions

The three special resolutions that members will vote on at this year’s meeting are aimed at improving administrative efficiency and clarity.

Here’s a summary:

  1. The first resolution would give Board staff the autonomy to update different administrative forms, like membership forms, without requiring approval from the Board of Directors.
  2. The second resolution would clarify some wording in our professional conduct appeal procedures that may be considered ambiguous.
  3. The third resolution would change the title of the REBGV president to “chair.” This change is in line with governance best practices and is consistent with changes happening at different real estate boards around the country and throughout the not-for-profit sector.

We’ll provide more information on these resolutions in the notice of AGM package that we’ll send to you early next week.

Who can attend?

All REBGV members can attend. You’ll need to present your membership ID at the door for admission. Registration is at 8:30 am and the meeting will start at 9:30 am. A continental breakfast will be provided.

To help us prepare, please confirm your attendance with Member Services by calling 604-730-3090 or emailing memberservices@rebgv.org. You can also register online (login required) or on the day of the meeting.

I hope to see you all there!

Sincerely,

Ashley Smith
President
Real Estate Board of Greater Vancouver

ICYMI: CEO's message: WEBForms update

image

The Canadian Real Estate Association (CREA) recently committed more resources to enhance the new WEBForms at a faster pace.

In a recent communication, they outlined plans to address page numbering and font size issues within forms, the ability to download editable forms to use offline, an overhaul of the clause manager tool and other issues.

CREA also extended read-only access of the old WEBForms into March.

These are encouraging signals, but there’s more work to be done.

We recently wrote a letter urging CREA and Lonewolf to follow a more controlled and systematic process for fixing and improving the platform.

In response, CREA agreed to provide advance notice of the release cycle to implement fixes and detailed notes explaining what’s changing and why. You'll find this information on their new WEBForms Status Hub.

CREA also agreed to employ a more robust and collaborative testing process. This will help keep unexpected changes from altering basic workflows and creating new glitches on the platform.

We’ve also explored whether other viable options are available in the marketplace. We haven’t discovered an optimal WEBForms alternative to date, but we’ll continue to investigate.

Our focus today remains on getting you through the transition successfully.

For now, please stay engaged with our communications and continue to learn the new WEBForms as soon as possible.

We’ve created a library of resources you can access to help you with this change.

Technical support

Our Help Desk is available during regular business hours to help you with any WEBForms issues you encounter: 604-730-3020 or support@rebgv.org.

CREA’s Help Desk is available:

  • weekdays from 5 a.m. until 9 p.m., and
  • weekends from 5 a.m. until 7 p.m.

Contact them at 1-888-237-7945 or email support@crea.ca.

Resources to help you with the March 1 Rules of Cooperation changes

image

Changes are coming to the Rules of Cooperation on March 1.

The changes address a variety of topics that include new standards for listings and listing information, including posting and removing supporting documents and photos, privacy protection, new anti-money laundering rules, and more.

These changes are the result of feedback from members, staff, and our Professional Conduct Committee in recent years. 

We’ve created a resource that shows the old and updated version of the Rules of Cooperation side-by-side so you can understand what’s changing. Click here to view this document.

Our Ethics Guy® Kim Spencer's also created 10 Top Tip videos that cover these changes in more detail. Watch the playlist below:

Click on the list icon in the top right corner of the video to select a different video.

The Ethics Guy®: Closing gaps – new changes to the Rules of Cooperation coming March 1

image

Recent changes to the Rules of Cooperation were made in 2018, adding new requirements including the Direction Regarding Presentation of Offers form.

These rules were again changed in January 2019 to accommodate the Competition Bureau’s ruling regarding Virtual Office Websites.

Since then, more suggestions about the rules have been made by members, the Professional Conduct Committee, and staff. These have accumulated, creating the need for meetings between REBGV and partner boards, FVREB, and CADREB.

The result: a list of rule refinements, with directors from all three boards approving these refinements for implementation on March 1, 2020. Click here for a side-by-side comparison of what's changing. 

I’m devoting this column and a new series of Top Tip videos to explaining these rule changes. 

Here are the changes in bold.

3.16 Changes to Listing Information

(a) Any change in the MLS® listing information on the listing contract must be on the appropriate form of the MLS® System and delivered to the Board or where permitted, Listing Brokerage loaded within two (2) calendar days after the Listing Brokerage has received the change in writing, signed by the seller(s).

(i) An extension of the MLS® Listing Contract must be on the appropriate form, signed by the seller(s) prior to the expiry date of the listing and delivered to the Board not later than two (2) calendar days after the expiry date shown on the listing.

(ii) Changes to the information on the data input form may be communicated to the MLS® Department in writing, at the discretion of the MLS® Department.

(b) Any changes to MLS® listing information must be communicated in writing by the Listing Brokerage to any Cooperating Brokerage or potential buyer that shows interest in the property, from the time the change was made and until such change has been published on the MLS® System and such period of time thereafter as is reasonable in the circumstances.

(c) Members are not permitted to delete information from the listing for the sole purpose of making such information not available in the MLS® System for future reference.  This includes, but is not limited to, photos, brochures, remarks, measurements, and data.

Another rule change has been made to deal with a big member concern at all three boards. Namely the growing practice by some members of removing listing information (for example, measurements, remarks, and photos) from their listings just before reporting them as being sold.

Referred to as “hollowing out” listings, I discussed this in my December 2019 column, “Someone’s sitting in the shade.”  

In my opinion, the practice devalues the utility and value of the MLS® database and therefore damages the reputation of the MLS®. Rule 3.16 now prohibits this practice.

3.25 Photographs, pictures and sketches

Images that are provided to the Board in respect of an MLS® listing shall become the property of the Board and may be used by the Board at its discretion.  Only MLS® Department-approved watermarks may appear on images.  The display of a child’s image on an MLS® listing is prohibited.  The Board reserves the right to remove images which in the opinion of the Board are inappropriate.

A minimum of one photo related to the property must be provided for each listing within 24 hours of the listing becoming active on the MLS® System.

Other than the front exterior photo, additional listing photos shall not be used in future listings without the consent of the originating Brokerage. Images that contain information that is considered to be promotion of a Member will not be permitted.  ‘For Sale’ and ‘Sold’ signs are not permitted in photos. Images are to relate only to the real property for sale.  No comments or additional information will be permitted to be placed on the image.

The period of time to provide at least one photo for a new listing is being reduced from “within five (5) days of the effective date” to “within 24 hours of the listing becoming active on the MLS® System.

This is to be consistent with advancements in technology.

In other words, with all the electronic gizmos and systems to which we have access, members shouldn’t have to wait five days for listing pictures to be posted.

3.40 Owner-built and custom-built homes (NEW)

Listing contracts covering owner-built or custom-built homes may be subject to the Homeowner Protection Act and shall be acceptable for listing on the MLS® System in accordance with the requirements of that Act and on the following basis:

(a) where the home is an owner-built home subject to the HPA, the Listing Brokerage has obtained a copy of the Owner Builder Disclosure Notice; or

(b) where the home is a custom-built home subject to the HPA and the warranty has not been activated, the Listing Brokerage has obtained a copy of the residential builder’s licence obtained by the owner under the HPA; or 

(c) the Listing Brokerage has obtained written approval under the HPA that the property can legally be listed for sale.

What’s the point of posting a listing on the MLS® System if it can’t be sold?

I would say none. I hope you agree.

This new rule is intended to deal with a conflict between the Homeowner Protection Act (HPA) and the interpretation by regulators of its requirements.

The HPA does not allow newly-built homes to be sold if required HPA documentation is incomplete. However, the HPA sale prohibition doesn’t appear to include “listing” a newly-built home for sale on the MLS® System.

To avoid confusion and member frustration, this new rule says newly-built homes, whether owner-built or custom-built for an owner by a builder (“residential builder” as defined in the Homeowner Protection Act), can’t be listed on the MLS® System unless and until the listing brokerage has obtained documentation showing that the owner is legally able, under the HPA, to entertain offers. 

The new rule deals with (a) owner-built homes, (b) custom-built homes, and (c) homes that technically don’t meet the requirements under (a) or (b) but have received in writing from BC Housing a “hardship” allowance. I’d like to give a shout-out to one of our Managing Brokers, formerly with Council, who helped us understand this.

5.01 Reporting Sales

(a) The Listing Brokerage is responsible and accountable for the accuracy of sales information submitted to the Board for inclusion in the Board’s MLS® System. It shall be the responsibility of the listing brokerage to check all sales after they have been published on the MLS® System and to ensure their complete accuracy.

(b) Sale prices must be reported exclusive of taxes.

(c) An important part of the inherent value of the MLS® System is the transaction data accumulated for sales of listed properties.  It is the responsibility of all Members to ensure, regardless of their business model, that property sales information for properties listed on the MLS® System be reported to the Board.  In general, sales shall be reported to the MLS® Department by the Listing Brokerage, on the Sales Report Form together with a legible copy of the Contract of Purchase and Sale within five (5) calendar days of the contract becoming unconditional. Members are not permitted to avoid these reporting responsibilities by, for example, cancelling a listing between receipt (or anticipated receipt) and acceptance of an offer, or encouraging a seller to do so.

(d) A Sales Report Form signed by the Managing Broker or designate of the Listing Brokerage is required for the reporting of sales.  A legible copy of the Contract of Purchase and Sale, including all Addendums and Amendments, must be submitted along with the Sales Report Form.

Since March 1, 2019, all three boards have been requiring, as policy, a copy of the Contract of Purchase and Sale to be submitted along with the Sales Report Form. This amendment now codifies that requirement.

6.06 Privacy-Protected Listings

No Member shall use MLS® listing information for the purpose of communicating with a seller of an MLS® listing to determine whether the seller requires additional real estate services when that seller has expressly opted-out of their personal information being used for this purpose.

Where the seller has opted-out of this purpose, a copy of the Privacy Notice and Consent form indicating such opt-out must be submitted to the Board without delay.

A requirement is being added to require members to submit to the Board a copy of the seller’s opt-out (of optional 2(c)) on the Privacy Notice and Consent Form, so the listing can be flagged as “Privacy Protected.” This will maintain the integrity of the Board’s privacy compliance program with respect to such listings.

9.06 Requirements for Providing a Registrant with Access to an MLS® VOW

An MLS® VOW Participant must not provide a Registrant with access to MLS® VOW Data through the MLS® VOW Participant’s MLS® VOW unless and until:

(a) the MLS® VOW Participant establishes a lawful REALTOR®/ consumer or REALTOR®/client relationship with that Registrant, including, where necessary, completion of any applicable agency, non-agency, and other disclosure obligations, and execution of any required agreements;

(b) the Registrant has provided the MLS® VOW Participant, through the MLS® VOW, with the Registrant’s name, telephone number, valid e-mail address and, at the option of the MLS® VOW Participant, other information;

(c) the MLS® VOW Participant has displayed the Terms of Use to the Registrant on the MLS® VOW;

(d) the Registrant has affirmatively and expressly agreed to the Terms of Use where at a minimum, the Registrant has been required to open and review the agreement and agree to the agreement by “mouse-clicking” an acknowledgement of agreement displayed on the MLS® VOW;

(e) the Registrant has supplied the MLS® VOW Participant with a user name and a password, both of which must be unique to the Registrant, (the user name and password may be established by the Registrant or may be supplied by the MLS® VOW Participant at the option of the MLS® VOW Participant).  The Registrant’s password and access to MLS® VOW Data must expire on a date not later than 30 days after being issued.  Passwords may not be automatically renewed upon expiration;

(f) the MLS® VOW Participant has sent an e-mail to the Registrant at the e-mail address described in (b) above confirming the user name and password and the Registrant has acknowledged receipt of the e-mail by mouse-clicking an acknowledgment of receipt displayed in the e-mail; and

(g) upon expiration of their password the Registrant must provide the MLS® VOW Participant with a new password to regain access to the MLS® VOW Data.  The MLS® VOW Participant shall not permit the Registrant to regain access to the MLS® VOW Data until the MLS® VOW Participant has sent an e-mail to the Registrant at the e-mail address described in (b) above confirming the new password and the Registrant has acknowledged receipt of the e-mail by mouse-clicking an acknowledgement of receipt displayed in the e-mail.

A minor change noted in bold strikethrough has been made to (b) above– the requirement for a Registrant to provide a telephone number (to the MLS® VOW Participant) has been removed. (A victory, if you’re in favour of fewer regulations!)

9.12 Visibility of Brokerage Name

An MLS® VOW must prominently display on every page the MLS® VOW Participant’s corresponding brokerage’s name.

Formerly, there was no requirement to prominently display the brokerage’s name on every page of the VOW. Now, the brokerage’s name must be prominently displayed on every page. A rationale for this is to ensure persons visiting a member’s VOW clearly understand the name of brokerage at which he/she is engaged.

Thank you!

Read the Ethics Guy® Kim Spencer’s full analysis of all the Rules of Cooperation changes on our website.

How mortgage stress test changes affects home buyers

image

The benchmark rate used to determine the minimum qualifying rate for insured mortgages, known as the “stress test” is changing.

Currently, a home buyer getting an insured mortgage must prove they can afford a payment based on the benchmark five-year posted rate. The Bank of Canada calculates this rate using an average of chartered banks rates, which is currently 5.19 per cent.

As of April 6, the benchmark rate will be based on the weekly median five-year fixed insured-mortgage rate from insurance application, plus two per cent.

If this rate were in effect today, it would be about 4.89 per cent, or 30 basis points, less than the current 5.19 stress-test rate.

This adjustment will allow the stress test to better represent mortgage rates offered by lenders and will be more responsive to market conditions.

At the same time, this new rate will ensure home buyers are able to afford their homes even if:

  • interest rates rise;
  • incomes change; or
  • home buyers are faced with unforeseen expenses.

The decision to adjust the stress test follows a recent review by federal financial agencies.

The minimum qualifying rate for insured mortgages will now be the higher of:

  • the borrower’s contract rate, which is the mortgage interest rate agreed to by the lending institution and the borrower plus two per cent; or
  • the new benchmark rate.

For the last year, the Bank of Canada's benchmark posted rate has been much higher than two per cent over contract rates and has not been responsive to mortgage market conditions.

Here’s how the new stress test works

When a borrower has less than a 20 per cent down payment, the borrower is required to obtain government-backed mortgage insurance.

Here’s what this means to the buyer of a benchmark price condominium in Greater Vancouver:

Buying a Greater Vancouver condominium

Impact of stress test change

image

*January 2020 benchmark price for a condominium in Greater Vancouver Note: Mortgage rate shown is before and after the new changes to the B-20 Stress test come about April 6, 2020. PTT calculated at 1% on first $200,000; 2% on remainder


Buying a Greater Vancouver townhome

Impact of stress test change

image

*January 2020 benchmark price for a condominium in Greater Vancouver Note: Mortgage rate shown is before and after the new changes to the B-20 Stress test come about April 6, 2020. PTT calculated at 1% on first $200,000; 2% on remainder


Buying a Greater Vancouver single family detached home

Impact of stress test change

image

*January 2020 benchmark price for a single family detached home in Greater Vancouver Note: Mortgage rate shown is before and after the new changes to the B-20 Stress test come about April 6, 2020. PTT calculated at 1% on first $200,000; 2% on remainder

Advocating for REALTORS® recommendations

The Office of the Superintendent of Financial Institutions (OSFI) has announced that it’s considering the same new benchmark rate to determine the minimum qualifying rate for uninsured mortgages.

OSFI is seeking input from interested stakeholders on this proposal before March 17, 2020.

Your Board is working with the Canadian Real Estate Association to make recommendations to OFSI to review the stress test to ensure local markets are taken in to consideration, and to remove the test from mortgage renewals.

Read more.

BCREA introduces new clause to help clients in wake of rising insurance rates

image

Strata insurance rates are rapidly increasing across BC, affecting owners of strata properties, and potential buyers.

To help REALTORS® protect their buyer clients, the BC Real Estate Association (BCREA) and the Standard Forms Committee developed a new strata insurance clause to use.

This clause ensures a home buyer is able to receive and review copies of strata corporation’s insurance policy.

The clause also gives the buyer an opportunity to approve these documents before entering into an unconditional offer.

You’ll find this new clause on WEBForms in the clauses section. Call Help Desk at 604-730-3020 if you need help with clauses on WEBForms.

BCREA also developed a guide to help you understand when and how to use this new clause. Click here to access this resource.

What’s going on with insurance rates?

Strata owners in BC are facing insurance rate increases of between 50 and 300 per cent this year, according to the Condominium Home Owners Association of BC.

Deductibles to cover claims are also rising. In some cases, we’ve heard of deductibles increasing as much as $500,000.

Why are rates increasing so much?

There are many factors contributing to these increases, including rising property values, global catastrophes, increasing claims cost, frequency of claims, and lack of competition in the industry.

Unfortunately, buyers and sellers are caught in the extreme conditions of the insurance market at this time, with serious consequences for the real estate market as well as the personal liability of strata property owners and buyers across British Columbia,” said Tony Gioventu, executive director, Condominium Home Owners Association.

What are we doing about this?

Your Board is working with the BC Real Estate Association (BCREA) and the Canadian Real Estate Association to explore ways to mitigate problems related to this issue.

We’ve asked BCREA to approach the province to amend the Strata Property Act Form B Information Certificate to require that insurance policies for the strata be attached. This would ensure that your clients know about deductible and policy costs up front.

We also know that the Insurance Bureau of Canada and the federal government are discussing regulations for condominium insurance. We’ll continue to follow this and report back to you.

More information

Other News

New discipline decisions available

image

Stay on top of the work your Board does to uphold and enforce professional standards within the profession and resolve disputes between members.

Our Professional Conduct Committee (PCC) investigates alleged member breaches of the REALTOR® Code and our Rules of Cooperation. Click here to review the PCC’s latest ruling (C19-10).

BC Budget, managing brokers’ role, and sign bylaws

image

BC Budget 2020 stalls on tackling housing affordability

Despite the theme of “A stronger BC for everyone,” BC Budget 2020 contained no new initiatives, incentives, or programs to tackle Metro Vancouver’s ongoing lack of affordable market housing.

Read more.

Managing brokers – experts on reframing their role

Last year, the Office of the Superintendent of Real Estate began reviewing the role of managing brokers. In response, your Board established a managing broker consultation group. Here’s what they told us.

Read more.

Municipal sign bylaws and policies

Twenty-two local governments and two regional districts either have a sign bylaw or deal with signs under zoning or land use bylaws. We’ve summarized what REALTORS® need to know in this handy bylaw matrix.

Read more.

Paragon’s listing maintenance has a new design

image

Paragon’s latest update includes an improved listing entry and maintenance design.

It’s slightly different from what you’re used to, but we’ve created a step-by-step resource to help you understand what’s changed. Find this resource on the Help Guides page on www.rebgv.ca.

Members with broker- or agent-load access can use Paragon’s Input Maintenance page to post new listings or modify existing ones on the MLS® system. Click here to learn more about broker and agent load. 

Understanding Council’s education requirements

image

The Real Estate Council of BC (Council) requires all real estate licensees in BC to complete three mandatory continuing education courses within their two-year licensing cycle. Council has renamed these courses from the  "Relicensing Education Program" to "continuing education."

Council's education requirements are in addition to the 18 hours of education you need to accumulate every two years through our Professional Development Program (PDP).  

Here's an overview. 

Council’s three required courses are:

1. Legal Update

This course provides the latest updates on legal and regulatory changes and best practices. Legal Update covers recent notable Council discipline cases, legal developments, Errors and Omissions reports, and more.

2. Rule Changes: Agency and Disclosure

This online course gives you information you need to understand and comply with rule changes that took effect in June 2018, including how and when to use disclosure forms and how to communicate with clients.

3. Anti-Money Laundering in Real Estate

This course gives you the tools and knowledge you need to help prevent illicit funds from entering the real estate market. By staying current and informed on anti-money laundering requirements and best practices, you can ensure your clients are well-protected.

How to register

Council handles all registrations for these courses. Find details about each course, what to expect, and registration instructions here.

Note: Education required by Council for licence renewal does NOT count toward your PDP hours. Learn more about Council’s continuing education requirements here.

Our arbitration and professional conduct committees need volunteers

image

Do you value ethics and professionalism? Do you take an interest in the REALTOR® Code and the Rules of Cooperation?

If you answered yes, please consider volunteering for our Arbitration Committee or Professional Conduct Committee. Both committees are seeking members who are licensed as managing brokers.

The current committee terms end in May, and new volunteers are needed for June. This could be your opportunity to put your years of experience to use while helping promote and strengthen our profession.

The Arbitration Committee oversees and, when necessary, adjudicates all arbitration disputes between members. The Professional Conduct Committee upholds and enforces the Board’s bylaws, regulations, Realtor Code, and Rules of Cooperation.

If you’d like to be considered for either of these committees, or for other volunteer opportunities, please visit our volunteer website and sign up.

Not well enough to attend your PDP course? Here’s what to do

image

Flu season is in full swing. Here are a few things to keep in mind if you’re not feeling well and you’ve got a course coming up.

You can receive a full refund if you cancel or withdraw from your course with our standard notice of two business days.

If you’re too ill to attend on the day of your course, but haven’t already canceled or withdrawn, we’ll work with you to transfer you to the next available course date or to a different course of the same cost. 

Questions? Call us at 604-730-3087 or email education@rebgv.org.

New search feature on Realtylink.org

image

We continue to add features and functionality to our Realytlink.org public listings website.

Our latest improvements include a redesigned search function that makes it easier for home buyers to find the homes they want.

Potential home buyers can now narrow their searches by price from the home page. Once they input their search, they can add advanced filters without having to navigate to an “advanced search” page.

After clicking on the home they’re interested in, the listing information page has been overhauled to make home features more prominent and easier to read.

We also upgraded the Find our REALTOR® page. Searching for a specific Realtor will now bring up their contact information and any listings they have available on the site.

Check out Realtylink today!

Reminder: Paragon no longer supports Internet Explorer

Paragon ended support for Internet Explorer (IE) on August 1, 2019. Since then, many basic functions in Paragon no longer work when using this browser. If you’re still using IE, we recommend upgrading to one of the following supported browsers:

  • Chrome
  • Firefox
  • Microsoft Edge
  • Safari
  • Questions? Contact the Help Desk at 604-730-3020 or email support@rebgv.org.

Courses and Events