New CREA WEBForms coming next week – make sure you’re prepared

On July 31, you’ll be able to access the new CREA WEBForms. After this date, when you log in to WEBForms, you’ll have the option to switch to the new system.

The version of WEBForms that you use today will be available to you until the end of the year.

The new WEBForms features a new home screen layout and has a different design and workflow. Take the time to familiarize yourself with the new system. We’re working to provide materials for you to help translate your existing workflows into the new system.  

We recommend you begin learning and using the new WEBForms as soon as it’s available on July 31.

What’s changing?

The home screen for the new WEBForms is different than the current version. Instead of a list of your current transaction kits, you’ll see a menu of icons on the left side of the page and widgets for transactions, forms, and documents. The icons aren’t labeled but will display a label if you hover over one.

The new WEBForms also features a transaction wizard that you’ll access via the ‘Transactions’ widget. If you complete the fields in the wizard, the new system will use that information to auto-populate any additional forms you bring into the transaction.

The best way for veteran WEBForms users to follow a workflow they’re more used to is to start a new transaction using the ‘Forms’ widget. Newer users should begin transactions in the ‘Transactions’ widget.

Key date: July 31 data transfer

CREA will do a one-time transfer of your data from the old WEBForms to the new WEBForms on July 31. Your templates will be transferred over, but the clauses you’ve built into them will be transferred over separately. You’ll need to re-insert these clauses into your templates in the new WEBForms.

Old contracts and other paperwork (also referred to as transaction kits) will not transfer to the new WEBForms. You’ll have the ability to manually transfer these kits until the end of the year. Note that these kits will transfer over as flattened PDFs and cannot be edited so you’ll need to finish any open transactions in the existing WEBForms.

Resources

We’ve highlighted six things you need to know about the transition to the new WEBForms. We’re also developing our own training resources based on feedback we received from members about the new WEBForms. We’ll share them when they’re ready.

CREA has developed a resource page with videos, guides, and more to help you learn how to use the new system. Click here to access these resources.

Questions? Call the Help Desk at 604-730-3020.

New FINTRAC form coming September 12

The BC Real Estate Association (BCREA) will release a new Client Identification Form for FINTRAC compliance on September 12. The Canadian Real Estate Association (CREA) developed this form. You’ll find it, along with an education guide for how and when to use the form, on WEBForms.

This new form is a simplified version of the previous form and is intended for use when meeting with clients face-to-face. CREA and FINTRAC have vetted it to ensure compliance with applicable legislation.

BCREA will provide more information about the new form in the coming weeks. If you have questions, email Angela Polymenakos at apolymenakos@bcrea.bc.ca.

100 years of memories: Building a home for REBGV

As part of our celebration of 100 years in business, we’ve been looking back at our history. One of the enduring legacies of the last 100 years is the REBGV office built at 2433 Spruce Street. Here’s a look at how this building, now in its 25th year of existence, came to be. 

The Ethics Guy®: “Underwater” sellers; what’s the big deal?

This isn’t another climate change article. Rather, it’s about an aspect of our new market reality that has caused more than a few buyers and sellers to ask us questions that we haven’t been asked for a long time.

One of those questions comes from sellers who want to know what their options are if their property is encumbered by mortgages or lines of credit that cumulatively exceed its current market value. Our response is always the same. First, we recommend they talk to you and/or your managing broker. Second, we recommend they talk to their lawyer. We then provide them with any information we can on what they can expect in this situation, often again suggesting that they speak with you or their lawyer.

So what are those sellers facing when they owe more than their property is worth? Let’s look at an example.

Let’s say a potential seller bought a home in the spring of 2017, before the B20 Stress Test that applies to all mortgage financing took effect on January 1, 2018 (see Top tip, below).

The seller financed 85 per cent of the purchase price, leaving about 15 per cent equity at closing. Today the property’s value has dropped by at least 20 per cent, leaving the seller about 5 per cent “under water.” Actually, they may be in even deeper than that because in addition to repaying their mortgage or line of credit, they may have to pay an interest penalty to get the property released early from the bank’s clutches. There may also be a property tax adjustment owing, outstanding utility bills, and the real estate fee.

How is all this going to be paid?

If the seller is this far under water, they probably have to pay to sell their home. If they don’t have the money to pay, they can’t close.

What a mess this would be. Some sellers in this situation may be able to close courtesy of their savings, the good graces of their extended family, or maybe, a lucky windfall. But there will be others who simply don’t have the resources. So what do they do? They phone you, asking you to list the place for sale. Enthusiastic person that you are, you jump at the chance to get a new listing.

But is there a risk in working for underwater sellers?

Let’s just say Canadian financial institutions, banks and credit unions, didn’t get big by not looking after their interests. They’re secured creditors, meaning they’re almost at the front of the creditor line, after, of course, government taxes and utilities have been paid. Everyone else, including entities to which our sellers also owe money, are unsecured creditors, meaning they get paid after with whatever property equity is left. This is the nub of it. What if the well is dry? In the dismal 2008/09 U.S. real estate market, these were called “short sales.” Sadly, back then, many REALTORS® were never paid for their services. It helps to understand this before you take on one of these listings.

Not that I’m suggesting it, but unless you’ve secured your commission by way of a charge on title or based on some other security (what an interesting listing presentation this would make), you’re an unsecured creditor.

If there is enough money to pay everyone, you’ve nothing to be concerned about. But in the scenario presented here, there’s certainly a concern, namely collecting your fee.

If there’s no money left in the pot after the property’s been sold, what are your options? Pleading would be one. Writing off the commission as a bad debt would be another. Suing the seller in Small Claims Court (or Supreme Court if the amount being claimed is $35,000 or more), would be another. It would take about 18 months before you would know whether you’ve won, giving you a court-enforced right to collect the commission. If you do, however, it'll likely be a case of trying to collect blood out of a stone.

It could get worse. If you’d listed the property on the MLS®, you’d still be obligated to pay the successful buyer agent the entire cooperating brokerage commission as specified. Under Rules of Cooperation 7.04, the cooperating brokerage commission must be paid if the deal completes unless you and the other brokerage have agreed to vary the amount of cooperating commission to be paid. This leaves the unpleasant possibility of not being paid by the seller for the sale you’ve just made, leaving you exposed to a buyer agent demanding the cooperating commission. And you’d have to pay it, probably from your own pocket. Talk about adding insult to injury.

Think about this before you consider listing a property where the sellers may be under water. Diplomacy will be required, with a big side order of empathy. Talk to your managing broker too. Maybe you’ll decide not to take the listing. Or perhaps you’ll decide to offer a small buyer agent commission to limit your exposure, assuming you’re willing to write off your side of the commission and your seller client agrees with the plan. Or perhaps you could ask the seller for a retainer upfront. Or maybe you could take on the listing and hope for the best. Whatever you decide, look before you leap.

Mortgages for self-employed, federal election coming, shared equity mortgages

Your clients can get a mortgage if they’re self-employed

Fifteen per cent of our workforce is now self-employed and when it comes time to get a mortgage, your clients will have a better chance if they’re prepared. Here’s how.

Read more.

Federal Election, October 2019

In just three months Canadians will head to the polls to vote for federal MPs. The Canadian Real Estate Association asked political parties how they'd support home ownership. Here are their responses.

Read more.

The pros and cons of shared equity mortgages

Both the federal government and private companies now offer shared equity mortgages to help first-time home buyers lower their borrowing costs. We’ve summarized the benefits and the downsides.

Read more.

The Ethics Guy® Top Tip Video: Preparing for absences

REBGV’s summer of softball 2019

More than 285 members participated in this year's softball tournament season. The Board hosted three slo-pitch softball tournaments over the last two months.

Here are our winning teams!

Ridge Meadows tournament — June 14

RE/MAX Lifestyles Realty

Vancouver tournament—June 26

Oakwyn Realty

Port Coquitlam tournament—July 11

Royal LePage West R.E.S.

Thanks to all the teams and participants for a great tournament season. Special thanks to our member volunteers: Jan Hickman, Terri Smith, Logan Eskesen, Connie McGinley, Doug Dang, Lynn Dequanne, Bruce Kagetsu, Shane Goutsis, and Brandon Larson.

Extra special thanks to our event sponsors:

• Dominion Lending Centres—Marc Lalonde
• Staged Vancouver
• Nicole MacDonald Notary
• Wolfpack Home Inspections

Find photos from these tournaments on our website. We’re now accepting team applications and volunteer applications for the 2020 softball tournament season. Email hostedevents@rebgv.org to learn more.