CEO's message: WEBForms update

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

In a communication last week, 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 to the end of February.

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

Last Tuesday, we 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.

2020 REBGV election results

Thanks to all members who voted in our 2020 Board of Directors election. The voting period ran between January 15 and February 2. 

Out of 14,076 eligible voters, a record 3,104 members voted this year. This represents a 22.1 per cent voter turnout.

Here are the results:

1. Daniel John, Sutton Group Seafair Realty — 1,308 votes — elected to a two-year term


2. Jason Wood, Pacific Evergreen Realty — 1,236 votes — elected to a two-year term


3. Doug Dang, Amex Broadway West — 1,060 votes — elected to a two-year term


4. Michael Mitsiadis, Royal Pacific Realty Corp — 991 votes — elected to a two-year term


5. Danielle Roy, Five Sails Realty — 967 votes — elected to a one-year term


6. Chris Lee, Royal Pacific Realty — 949 votes


7. Adam Pospischil, Pospischil Realty Group — 827 votes


8. Rahim Jivraj, RE/MAX Crest Realty — 438 votes


9. Harvey Gill, RE/MAX City Realty — 342 votes


10. Stephan Sun, Saba Realty — 234 votes

Rules of Cooperation changes to take effect March 1

Changes are coming to our Rules of Cooperation in March.

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

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 has also written about the coming changes. Click here to read his article and watch for his next series of Top Tip videos that’ll cover these changes in more detail.

These changes are the result of feedback from members, staff, and our Professional Conduct Committee. We bring this feedback into meetings with our partner boards (Fraser Valley and Chilliwack), where refinements are made and later approved by each board’s Board of Directors.

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

When it comes to change, especially changes to rules, everyone seems to have an opinion.

“If you have rules, you let creativity sleep,” said Italian fashion designer, Alessandro Michele. (Heaven forbid any of us should look for a way around the rules).

“You are remembered for the rules you break,” said five-star US army general, Douglas MacArthur. (So sad, a career of good work obliterated by a published disciplinary case).

And then there’s “What’s dangerous, is not to evolve,” said Amazon owner, Jeff Bezos.

Imagine if we didn’t regularly update our standards. Fortunately, that’s not the case.

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 the next, as well as some Top Tip videos now in production, to explaining rule changes on the way.

Before delving into the changes described below, I couldn’t resist finishing with more quotations I found when researching this column:

• “One change always leaves the way open for the establishment of others,” said Italian writer, historian and politician, Niccolò Machiavelli (Apropos, since I doubt these will be the last changes ever made to the Rules of Cooperation);
• “Integrity has no need of rules,” said French philosopher and writer, Albert Camus (Maybe, one day); and
• “Rules are not necessarily sacred, principles are,” said US President, Franklin D. Roosevelt (Speaks for itself.)

Here are proposed changes in bold.

6.09 Restrictions on Handling Payments in Real Estate Transactions (NEW)

(a) Prohibition on Accepting Cash Deposits

(i) “Cash” means legal tender of Canada or another jurisdiction (i.e. bills and coins) and does not include cheques, electronic fund transfers or money orders.

(ii) A Member must not accept a deposit of any amount from or on behalf of any party to a real estate trading services transaction, excluding deposits paid in respect of the rental or leasing of real estate, if the deposit (or any portion thereof) is paid in cash.

(iii) Every Member is responsible to be aware of, and ensure full compliance with applicable obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated Regulations, in accordance with guidelines provided by FINTRAC.

(b) Prohibition on Use of Cryptocurrency

A Member must not accept cryptocurrency as a form of payment in any real estate transaction.

At the prompting of REBGV last year, BCREA asked the boards to adopt a “no cash deposits” policy. REBGV also suggested to our partner boards CADREB and FVREB, that the Rules of Cooperation would be a good place to put this policy.

Agreement was not reached so REBGV adopted, effective September 2019, a no cash policy as new Regulation 6.9.

In a subsequent discussion of the boards regarding adopting a new rule to prohibit the use of cryptocurrency, it was decided that the Rules of Cooperation was, indeed, an appropriate place for a rule to prohibit both cash deposits 6.09(a) and cryptocurrency 6.09(b). 

This rule has now been approved.

To eliminate having duplicate rules within the Rules of Cooperation and the Board’s Regulations, the Board of Directors proposes to delete the existing Regulation 6.9.

3.06 Accuracy of Listing Information

It is the responsibility of every Member to provide to other Members clear, accurate and factual information concerning any listing by such Member.

Without limiting the generality of the foregoing:

(a) Members are not permitted to copy from a previous listing of another Member; and

(b) Members shall declare within the REALTOR® Remarks the source of measurements referenced in the listing.

It shall be the responsibility of the listing brokerage to check all listings and amendments of listings after they have been published by the MLS® System and to ensure their complete accuracy, including commission payable to a cooperating brokerage.

This rule supports a major value proposition of ours, namely the MLS® System. The MLS® only has value if it contains accurate and complete information, hence the longstanding requirement that members must provide accurate listing information to the Board.

As of March 1, 2020, the source of all measurements must now be stated in REALTOR® Remarks. For example, “Floor area taken from strata plan”, or “XYZ Measuring Company is the source of floor area and room measurements.

Quoting the source should improve our liability risk to clients/unrepresented parties, the courts and the regulator.

Now, even though it should have been understood before, it will be a breach of the rule to copy from a previous listing. Doing so risks perpetuating previous errors and inflicting them on the current members, buyers, and sellers – something, this new requirement is intended to prevent.

I can hear members cheering now about the requirement for the source of measurements to be noted in Realtor Remarks. I think our E & O lawyers are also cheering about the edict not to copy from old listings, since at least 60 per cent of legal actions cite misrepresentation by the Realtors involved.

3.11 Listing Documentation

Documentation required by the Board for listings for data entry by the MLS® Department shall include the standard form MLS® Listing Contract, including Schedule “A” describing the real estate services to be provided, any Direction Regarding Presentation of Offers form and the data input form.

In general, for all Listing Brokerage loaded listings, documentation including but not limited to the listing contract and data input forms must be submitted to the Board by the Listing Brokerage within one (1) business day after entry or the listing will be deleted from the MLS® System.

For the Fraser Valley Real Estate Board and Real Estate Board of Greater Vancouver, documentation will not be required for Listing Brokerage loaded listings; however, listings selected at random will be required to provide documentation.

The Privacy Notice and Consent form shall be provided to every seller and a signed receipt retained on file in the office of the Listing Brokerage, as evidence of the Listing Brokerage’s efforts to comply with the Personal Information Protection Act. Where the seller refuses to sign, a notation to that effect, including the date the form was provided to the seller and by whom, shall be retained on file in the office of the Listing Brokerage. The Listing Brokerage shall produce any such documentation upon request by the Board. (See also 6.06 Privacy-Protected Listings)

The previous standard was five days. Now it’s one business day after entry.

Note, this change will not affect REBGV members unless they’re broker loading a listing within CADREB’s geographical boundaries (in this case, CADREB still requires that documentation be submitted for broker-loaded listings).

Housekeeping changes have also been made, changing the word “brochure” to “form” on the Privacy Notice and Consent form. The rule now also cross-references Rule 6.06, Privacy-Protected Listings, which deals with members’ obligations to respect listings that have been privacy protected; a designation dealt with by the form.

3.12 Consent to Post Documents to the MLS® System

All Members are responsible for ensuring that prior to posting any documents to the MLS® System, they have secured all the necessary consents to that information being posted.

Without limiting the generality of the foregoing:

(a) unless otherwise instructed by the seller in writing, a copy of the basic title search must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. A copy of the seller’s written direction must be provided to the Board upon request. -- see also 3.26 Title Searches; and

(b) unless otherwise instructed by the seller in writing, a copy of the registered strata plan must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System. A copy of the seller’s written direction must be provided to the Board upon request. -- see also 6.04 Strata Properties

Introduced in 2018, this rule is intended to protect the MLS® System, our most valuable asset, and improve our risk management by requiring members to get whatever consent is required before posting information to the MLS® System.

Members must also post a basic title search in their listing’s Associated Documents tab so other members have easy access to it. Since sellers can opt out of this requirement in writing, sellers’ brokerages must now keep sellers’ instructions on file for Board auditing purposes. Also, the rule now cross-references an allied rule, 3.26, Title Searches.

Another new requirement in support of better risk management requires us to post a copy of the registered strata plan in the Associated Documents tab so other members can easily find it, unless our seller instructs otherwise in writing.

Hooray – a very good change, in my opinion. Similar to title search requirements, a seller’s written opt-out instruction must be kept on file and a copy sent to the Board upon request.

Lastly, the rule now cross-references another allied rule, 6.04, Strata Properties.

3.26 Title Searches

In order to confirm registered ownership of the property, except where the title search is provided by the Board, the Member must conduct a basic title search prior to, or at the time of taking a listing.  A search must be conducted on all listings of property for sale submitted to the MLS® System except business-without-land listings, manufactured home listings and except where title to land consists of shares of a co-operative or time share.

Unless otherwise instructed by the seller in writing, a copy of the basic title search must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System.  A copy of the seller’s written direction must be provided to the Board upon request. -- see also 3.12 Consent to Post Documents to the MLS® System

I think it indefensible if a member were to take a listing and not do a title search. This is a huge risk.

Since late 2018, we’ve been required to post a copy of the title search as an Associated Document to our listings, unless otherwise instructed in writing by the seller.

Consistent with other rule changes, a seller’s written instruction not to post a title search to the Associated Documents tab must be kept and provided at the request of the Board for auditing purposes.

As an aside, why a seller would instruct their Realtor to do this when title search information can easily be obtained by anyone from the public registry with a mouse, a finger, and a credit card, is beyond me.

All three boards have experienced a lower uptake on this requirement than they would have liked, possibly because only one of of the two rules dealing with title searches, (3.12 and 3.26) stated this requirement.

The changes now better align and cross-reference both rules to highlight the requirement.

6.04 Strata Properties

(a) Unless otherwise instructed by the seller in writing, for each strata MLS® listing, the Listing Brokerage shall at the time of taking the listing obtain current relevant strata corporation documents including but not limited to two (2) years of strata council minutes and strata corporation minutes, registered strata corporation by-laws, financial statements, registered strata plans, and information concerning special assessments, either proposed or levied.

(i) A copy of the Request for Strata Corporation Records and Documents shall be retained on file in the office of the Listing Brokerage.  The Listing Brokerage shall produce any such documentation upon request by the Board.

(ii) Unless otherwise instructed by the seller in writing, a copy of the registered strata plan must be posted by the Member to the MLS® System as an associated document within 24 hours of the listing becoming active on the MLS® System.  A copy of the seller’s written direction must be provided to the Board upon request. -- see also 3.12 Consent to Post Documents to the MLS® System.

This is another good change, in my opinion. More property information is better. Buyers’ Realtors will be pleased with the new requirement that listing members must now post a copy of the registered strata plan in the listing’s Associated Documents tab within 24 hours of the listing going active on the MLS® System.  For consistency, similar wording has been added to 3.12.

In addition, when listing strata properties, members must now provide their brokerage with a copy of the Request for Strata Corporation Records and Documents. This new rule was requested by one of REBGV’s most respected Managing Brokers to help Managing Brokers ensure that strata documents have, in fact, been ordered at the time of taking the listing.

Note, while this rule requires members to obtain these documents “at the time of taking the listing”, it doesn’t expect members to incur “rush” fees to comply with the rule. Hence, the requirement is that a copy of the Request for Strata Corporation Records and Documents must be kept on file to show that the documents were, at least, ordered at the time of taking the listing.

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

Help your clients understand increasing strata insurance rates and deductibles

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.

Remember that insurance doesn’t cover claims under the deductible amount. So, for example, if a plumbing incident were to cause $75,000 in water damage to a strata owner’s unit, and the strata’s deductible was $100,000, then insurance wouldn’t cover the claim. In such a scenario, the owner could have to pay for the damages out of pocket, depending on the strata’s bylaws.

Why are rates increasing?

Strata building insurance premiums are increasing for a variety of reasons, according to the insurance industry. These include an increase in the number of claims, in the cost of repairs and rebuilding, and in the growing number of strata developments. Many strata buildings date back to the 1970s and ’80s and strata owners may be reluctant to undertake major system upgrades until problems occur.

What REALTORS® can do

Given these rising rates, strata owners should ask their strata corporation or manager for a copy of the corporation’s certificate of insurance. This document details current deductible amounts.

REALTORS® should advise strata owners to show the certificate of insurance to their insurance provider and understand what their liability would be in the strata, if the insurance doesn’t cover the deductible.

Strata property owners should also:

• have a unit owner’s insurance policy;
• have a policy that covers the higher deductible (insurance deductible insurance) to cover a loss in their unit; and
• understand the risk of not having enough coverage.

Realtors should also include a “Subject to insurance confirmation clause” in contracts.

The Strata Property Act Part 9 requires strata buildings to be insured for full replacement value of all common property, common assets, and fixtures.

Government intervention in Alberta

In Alberta, January 2020 changes to the Condominium Property Regulations (Section 62.4) limit condominium corporations seeking to recover the deductible portion of the corporation’s insurance claim to $50,000 from a condo owner for any damage originating in a suite or private area.

REBGV’s response

We’re 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 also asked BCREA to approach the BC government 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.

Learn more about this issue

• Condo insurance crisis: what you need to know (Fraser Valley Real Estate Board)
• How do strata corporations and owners manage the dramatic increase in insurance rates? (Condominium Home Owners Association of BC)
• Strata insurance rates are rising (Insurance Brokers of BC)

Clarifying self-directed learning

Self-directed learning opportunities became part of the new Professional Development Program (PDP) on January 1. This kind of learning opportunity hasn’t been accredited by boards or the BC Real Estate Association (BCREA), but you can still earn PDP hours for them.

As of January 28, 359 members have had self-directed hours applied.

Examples: courses, conferences and panels on communications, real estate investing, cyber security, building and construction, strategic planning, marketing, and more. And of course, brokerage training.

Remember, self-directed learning is optional. You can choose to complete all your 18 PDP hours by taking PDP accredited courses.

How do I know if an event or course qualifies for self-directed PDP hours?

If you aren’t sure whether a course you have signed up for qualifies for self-directed PDP hours, ask yourself these questions:

• Does the event or course include learning activities like lectures, panels, or case studies?
• Will at least one hour of the event or course be spent on learning activities.
• Are the topics relevant to my real estate career? Do they make me more competent and knowledgeable, or do they help improve the service I provide to my clients?
• Do the organizers provide proof that I participated in the event?
• Is the event or course occurring or completing after January 1, 2020?

If you answered YES to all of these questions, please complete the self-directed form and attach proof of completion. Note: You do not need to submit hours for any Accredited or Self-directed courses taken through REBGV.

Some activities that won’t be considered for self-directed hours are:

• volunteering,
• office sales meetings,
• watching videos; YouTube, etc.,
• mandatory licensing education,
• courses taken for disciplinary purposes, either as a result of a disciplinary sanctions imposed by a member board or the Real Estate Council of BC (RECBC), and
• duplicate courses taken within a learner’s licensing cycle.

Training programs for coaching, mentoring, or governance are applicable, but the out-of-class time spent doing these activities is not.

Note: Education required by the Real Estate Council of BC (Council) for licence renewal does NOT count toward your PDP hours. Learn more about Council’s continuing education requirements here.

Questions? Visit PDP Requirements on www.rebgv.ca or email us at education@rebgv.org.

BCREA’s PDP accredited online courses have moved

BCREA’s PDP accredited online courses have officially moved to the Hub, the Canadian Real Estate Association’s online learning platform. All BCREA courses previously available on UBC Sauder’s online learning platform have now been integrated into the Hub. After January 31, you’ll no longer be able to register for these courses through UBC Sauder.

Note: If you registered for BCREA online courses through UBC Sauder on or before January 31, 2020, you’ll have access to complete these courses on UBC’s platform until January 31, 2021. Remember, your PDP hours will be awarded in the cycle that the course is completed in.

Save the date! REBGV’s 2020 annual general meeting is March 19

Our 2020 annual general meeting is Thursday, March 19 at the Delta Burnaby Hotel and Conference Centre by Marriott, 4331 Dominion Street in Burnaby. 

We’ll share more information about the meeting schedule, how you can register, the three resolutions you’ll be voting on, and the exciting guest speaker that we’ve confirmed, in our next newsletter.