REALTOR® NEWSREALTOR® NEWS
August 22, 2018
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Featured News

Keeping the Competition Act in mind

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As a REALTOR®, you’re always searching for innovative ways to distinguish yourself from your competition. In this search, however, it’s important to always keep the Competition Act in mind.

The Competition Act is federal legislation designed to promote fair competition in the marketplace. It applies to practically all business sectors. Violating the Act can result in severe penalties, including fines and jail time.

The relevant provisions of the Competition Act for Realtors can be simplified to three basic rules:

  1. Don’t collude. Make independent business decisions without discussion or consultation with competitors.
  2. Don’t discriminate against or refuse to do business with competitors or other persons because of their pricing policies.
  3. Don’t mislead the public in your advertising.

If you’re not familiar with the basic rules of the Competition Act, you could find yourself in violation of the law. Comments made in casual conversation may seem harmless, but could contravene the legislation.

To learn more, visit the Canadian Real Estate Association’s (CREA’s) Competition Compliance Centre and review its Real Estate Competition Guide. You should also review our Misleading Advertising Guide.

The Competition Compliance Centre features four videos covering key competition issues for Realtors.

The Real Estate Competition Guide warns about “loose language,” defined as any conversation or phrase that can be interpreted as anticompetitive by nature.

Investigations can be time-consuming and expensive. For this reason alone, you should ensure you comply with the Competition Act by avoiding conduct that creates the appearance of illegal activity as much as conduct that is actually illegal.

In interactions with clients and brokers, Realtors should explain and justify their pricing and other business policies in terms of the value their office provides. Promote your firm’s track record, detail your marketing or negotiating expertise, explain the functions and the value of the services you performed, and outline your qualifications.

Always remember: use the language of competition and take the time to review the Competition Act.

Fire insurance facts to know

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More than 500 wild fires are burning throughout BC, with evacuation orders and alerts affecting hundreds of people.

During this crisis, it’s important to understand what your clients should expect from their insurance.

First, existing insurance policies and renewals aren’t affected.

Second, while insurance underwriters follow their own companies’ guidelines, expect that where evacuation orders or alerts exist, it’s unlikely new insurance policies will be approved until the threat eases.

Some companies may also restrict new policies based on proximity to fires, even when no evacuation orders or alerts have been declared. Changes to existing insurance policies, such as requested increases to coverage limits, may also be declined.

Third, insurance for properties in unprotected fire districts is more expensive than in protected fire districts. An unprotected fire district is an area without fire hydrants and a fire department.

What can you do?

  • Encourage clients who are experiencing difficulty obtaining insurance to contact several insurance providers. Different providers may have different approaches and criteria.
  • Suggest that clients get legal advice in areas where they are unable to obtain insurance.
  • Protect clients using the “Subject to Fire/Property Insurance” clause developed by the Real Estate Council of BC:
    • This offer is subject to the Buyer obtaining approval for fire/property insurance, on terms and at rates, satisfactory to the Buyer, on or before (date). This condition is for the sole benefit of the Buyer.
  • Brokers may also contact their company’s solicitors for guidance on how to deal with the issue.

Resources

Register for Council’s required agency and disclosure course today!

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Did you know you can deepen your knowledge of the Real Estate Council of BC’s (Council’s) new rules and complete their mandatory education requirement at the same time?

Rule Changes: Agency and Disclosure is a self-paced online course that gives you the information you need to understand and comply with the rule changes that took effect June 15. You’ll learn:

  • when to use the new disclosure forms;
  • the reasons for the changes to agency and disclosure;
  • how you may need to adapt your day-to-day business practices; and
  • how to communicate effectively with consumers about the required disclosures and changes to agency.

Registration is open now so don’t hesitate!

Completion required to re-license

As of October 1, the letter you receive for completing this course will be required when you renew your license.

Course details

  • The course has five online modules. Each module contains a lesson and an assessment. You must score 70 per cent or higher to pass each assessment.
  • It should take approximately five to six hours to complete. You must complete the course within three days of registration.
  • The course costs $75 plus tax.

Click here for full details from Council’s website. If you have questions, email education@recbc.ca.

The Ethics Guy®: MLS® department staff are getting a headache

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This isn’t good. We all rely on our single biggest asset (in my opinion), the Multiple Listing Service® (MLS®). We use it to find suitable properties for buyers, to educate ourselves and our clients about market values, and to track down historical statistics. We also use our MLS® to create CMAs so sellers can sell their property at the best price.

But, as they say, “garbage in, garbage out”—meaning, if a property is put into the wrong category or its information is incorrect, a misleading CMA and/or information is generated. This is a risk-management issue for members and their clients and a reputational issue for the MLS® and Board members.

Here’s part of a message that an MLS® department colleague recently sent me.

Is there any chance you could write an article advising members that listing a property as Residential Attached because it’s strata is not just messing with the stats, it’s not marketing the property appropriately for their seller? Detached or attached townhouse, for example, should be listed based on the building. Whether a detached townhouse is strata or not is irrelevant. We have to delete so many listings and the brokerage has to re-enter them as the correct property type because members list a detached townhouse as attached, because it’s strata. Many buyers looking for detached townhouses are going to miss out on many listings available to them because some are listed incorrectly as attached. This also affects the history of the listing, REBGV stats, provincial stats, and on and on. I’m getting a headache.

A thank you

Thank you, members, for your valuable input on our recent series of videos, The Ethics Guy® interviews featuring Brian Taylor. If I can extract more funding out of my budget, we hope to do more videos in the fall.

Do you have a question about the new rules you’d like me to ask Brian Taylor? Please let me know and we’ll take the 10 most asked questions to him. Email me at kspencer@rebgv.org.

Top tip: Contingent listings

Section 3.19 of the Rules of Cooperation, concerning contingent listings, states:

Contingent listings will be processed by the MLS® when such contingency is stated in the listing contract and noted in the REALTOR® Remarks. The responsibility for submitting details of a contingency or unusual condition on any listing shall be the responsibility of the Listing Brokerage.

Since at least January 2016, all commission-related remarks have been required to be entered into the commission field instead of the REALTOR® Remarks. In the new MLS® listing contract, paragraph 5D(iii) requires the listing brokerage to state the entire amount of commission to be paid by the seller in the event there’s no cooperating brokerage. This is where the listing brokerage would document any promise to the seller to reduce the total commission payable in the event they were to double-end (buyer not represented). THIS IS A CONTINGENCY. It puts all potential buyers’ agents at a competitive disadvantage, because the seller will pay less commission, and therefore potentially receive a higher net price, on an offer written by their own agent. The fact that there’s a competitive advantage to the seller’s agent must therefore be disclosed to other members, and section 3.19 of the Rules of Cooperation requires that this be noted in the published Realtor-version listing. This is not a new requirement, and the Professional Conduct Committee has disciplined members for failing to publish such a disclosure as recently as May 2016 (C15-18) and again in March 2017 (C16-33).

In the future, all listings that include a contingency of reduced commission (pursuant to 5D(iii)) must include the following notation in the commission field:

Note: the total commission is reduced if there is no buyer’s agent.

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Local elections, growing communities, and more

Run REALTOR®

The next municipal election is on Saturday, October 20, 2018. Why not consider running for office? Realtors know their communities better than most other professions, understand the development process, and could ably represent the interests of property owners and their neighbourhoods.

Read more.

Financing growth – new fees and charges coming to Vancouver

Local councils are tasked with deciding how to manage and fund growth. A recent Vancouver council decision will see developers charged new levies to build a home. This brings total fees and taxes on a new condo to 26 per cent of the price – all passed onto the home buyer.

Read more.

Building a laneway home in Vancouver just got easier

Local councils also decide where growth will occur. After extensive consultation Vancouver council has approved bylaw changes to encourage “gentle density” by making it easier to build a laneway home.

Read more.

Thumbs up home owners! Mortgage defaults decline in Metro Vancouver

It might be safe to assume with home prices the highest in the country, local home owners would be delinquent in paying their mortgage. The reverse is true.

Read more.

Closing gift ideas for your clients

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Vancouver Fall Home Show tickets

Order deadline: 5 pm, Friday, October 5, 2018

Our discounted tickets are $12 ($16 value), and you only pay for the tickets your clients use.

Order your tickets here, while supplies last.

For every ticket sold through us, $3 goes to our REALTORS Care® Shelter Drive.

REALTORS Care® calendar

The REALTORS Care® calendar is full of vivid images across the region.

Your name will be top-of-mind with this year-long gift!

To order: call 1-888-983-5366 or email sales@teldon.com.

For every calendar sold, $3 goes to our REALTORS Care® Shelter Drive.

 

Other News

Make the REALTOR® voice heard — apply to Council

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The Real Estate Council of BC is looking for new directors. We're encouraging members to apply. For the best chance at getting a position, please apply by August 31.

Click here to learn how to apply.

New discipline decisions available

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Stay on top of the work your Board is doing 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 rulings (C17-23).

Our Arbitration Committee works to resolve disputes between members. Click here to read their latest decisions (Case #171).

New and updated WEBForms

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The Commercial Contract of Purchase and Sale (CPS) has been updated to correct a clause reference.

A new form, Disclosure of Referral Payment, will be released on August 30. This form refers to Section 3-3(f) of the rules which states that a licensee must disclose “all known material information respecting the real estate services” being provided.

If a licensee has agreed to pay a referral fee, this is a material fact that must be disclosed to the client. This is true whether the referral fee is to be paid to another licensee or to an unlicensed person.

Click here for more info on form changes.

Resources to help you with the new rules

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The new real estate rules took effect a little over two months ago. To increase your knowledge about these changes and better understand how to comply with them, here are several resources to help you:

Council’s website

All of Council’s resources for the new rules can be found in their Licensee Knowledge Base. You’ll find:

  • Downloadable versions of the new required forms and guides for when and how to use them;
  • A series of FAQs on the new rules;
  • An archive of Council’s Real Advice newsletter;
  • The Managing Broker Toolkit; and
  • Video resources.

REBGV resources

We’ve created two video series with Ethics Guy® Kim Spencer.

The first are Kim’s Top Tip videos that deal with client relationships under the new rules, including disclosures, dealing with clients at open houses, and protecting personal information. Access them here.

The second is a series of Q&A videos featuring Kim and our long-time legal counsel Brian Taylor. Together, they discuss some of your most common questions related to the new rules. Access them here.

REBGV members’ Facebook group

We started this group for you to share your experiences and feedback on the new rules. If you haven’t joined already, you can do it now, and follow along to see if others are encountering the same issues as you.

Public information

To help your clients better understand the new rules, share these resources:

  • We created this video that explains what the public can expect from REALTORS® under the new rules.
  • This resource page from Council’s website, including FAQs and more.

If you have feedback, please email us at feedback@rebgv.org and we’ll share it with Council. You can also contact Council directly at 604-683-9664 or info@recbc.ca.

Urban Development Institute launches #MoreHomes4BC campaign

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With Metro Vancouver’s rental vacancy rate at less than one per cent, soaring population growth, and a lack of new construction, a housing shortage is the key factor in the region’s affordability issues, according to the Urban Development Institute (UDI). 

That’s why UDI launched the #MoreHomes4BC campaign to raise awareness about housing shortages and affordability in BC. 

The goal of the campaign is to build support for removing barriers that delay construction and drive up the costs of home building.

To help spread the word, like UDI’s new MoreHomes4BC Facebook page and follow them on Instagram (@MoreHomes4BC). Share video(s) and other content with your networks.

Take two-level courses over two days

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We offer several professional development program (PDP) courses with two levels. For example, Strata Fundamentals—Part One and Strata Fundamentals—Part Two.

To help you plan your education more efficiently, we’re now offering some of these two-level courses in a new two-day format.

Our first two offerings in this new format will be Project Marketing Simplified and Strata Fundamentals—Parts One and Two. Click on the course title for full details and registration information.

Project Marketing Simplified will be offered October 9 and 10. Strata Fundamentals—Parts One and Two will be offered October 25 and 26.

By combining these courses into two-day sessions, we’re able to offer you a more convenient way to complete your education requirements. This format also allows you to better retain course information and concepts by giving you the opportunity to put them into practice by using case studies without long delays between classes.

These two-day courses also save you $15 off the cost of booking each course separately.

Questions? Email education@rebgv.org.

Obituary: Ken Leong

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Long-time REALTOR® Ken Leong passed away earlier this year. He was 81.

Ken was born in Victoria in 1936. His family moved to Vancouver when he was a child. He grew up with a sense of adventure that led him to many career stops – a waiter, a draftsman, and an architect – before becoming a Realtor.

He was first licensed with Pender Realty in 1960. In 1975, he opened Oceanridge Realty Ltd. with his brothers Wilfred and Bernard. He assumed the role of Managing Broker in 1989 and worked up until his passing.

Ken was a true people person who relished making new friends of his clients and keeping up with his old buddies from high school. He was also a foodie who loved everything from traditional Chinese cuisine to seafood to sweet treats like doughnuts.

For Ken, Christmas was the highlight of the year. During the holidays, he would meticulously place each ornament and light bulb on the Christmas tree.

Ken is predeceased by his wife Yvonne and brother Chun Chee. He’s survived by his children Lori, Patti, and Richard, brothers Wally (Terry), Wilf (Laura), and Bernie (Janice), sisters Faye, Gwen, and Joan (Leon), sister-in-law Lillian, and a multitude of nephews, nieces, grand-nephews and grand-nieces, friends and colleagues.

The family wishes to thank Dr. Sheilagh Phillips, Richmond Home Healthcare, the 11th floor nurses at Vancouver General Hospital (VGH), porters, care aides, and everyone at the VGH Kidney Dialysis unit.

Land Title and Survey Authority office moving to Anvil Centre

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As of August 20, the Land Title and Survey Authority (LTSA) office will be located at the Anvil Centre in New Westminster.

The new address is:

Land Title and Survey Authority of British Columbia
New Westminster Land Title Office
Anvil Centre
Suite 500–11 Eighth Street
New Westminster, BC
V3M 3N7

Visit www.ltsa.ca to learn more.

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