REALTOR® NEWSREALTOR® NEWS
January 25, 2018
Watch the news you need to know in 90 seconds.

Featured News

Government advocacy is our focus

image

I know many of you are concerned and frustrated with how the government is preparing to implement the ban on limited dual agency (LDA) and the new Legal Update course. As a REALTOR®, I share those concerns and appreciate the implications that these decisions may have.

Your Board is working to demonstrate to government how a more flexible approach would benefit the public. This is a challenge in today’s climate.

Our profession is entering a period of significant government intervention.

The Office of the Superintendent of Real Estate (OSRE) is creating new rules for all real estate licensees in BC and the Real Estate Council of BC (Council) is responsible for interpreting and enforcing these rules. These changes are central to the provincial government’s efforts to implement the Independent Advisory Group’s (IAG) high-profile 2016 report.

We all remember 2016. Stories about rising home prices and greed and deceit in real estate dominated the headlines. With a looming provincial election, politicians were quick to introduce new taxes and policy remedies.

Your Board was on the front lines of this crisis, doing over 500 media interviews, meeting and writing government, organizing letter writing campaigns, and more. Our goal then was to stand up for our Realtor community and bring balance to the public conversation.

Our goal hasn’t changed. We’re still immersed in this work.

Together with the BC Real Estate Association (BCREA), we’re having regular conversations with Council and the OSRE. We share with them that Realtors have their clients’ best interests in mind every day.

As professionals, Realtors support regulatory changes that are in the public interest but oppose changes that could negatively impact them.

Banning LDA is the first significant rule change that will take effect this year.

Our Board of Directors met in person with the Superintendent of Real Estate, Micheal Noseworthy, last spring to provide our recommendations on this topic.

When his office announced the LDA ban last November, they targeted January for implementation.

With BCREA, we helped convince government to move implementation to March 15. We explained how members needed more direction, training, and interpretation of the rules in order to comply.

Council has begun publishing information that explains how the new rules will apply in different scenarios.

Some of the answers are concerning.

One answer, for example, lays out a scenario where, under the new rules, a Realtor has a contract to sell a client’s home and an exclusive buyer’s agency agreement with a buyer who wants to make an offer on the seller’s home.

In this scenario, Council says that the Realtor should stop acting for both clients and refer both the buyer and seller to other real estate licensees.

We believe this is an ill-advised interpretation that is not in the best interest of the public. It could have the effect of forcing members to abandon their clients while they’re in the middle of the most significant financial transaction of their lives.

We’ve urged both Council and the OSRE to modify this interpretation in the interest of home buyers and sellers in BC.

BCREA has hired legal analysts to examine these interpretations and propose workable solutions.

Our education team has been advocating for Council to change their approach to implementing the new Legal Update course. Council has been unbending in response to our concerns. It’s been a frustrating process.

We know how important these issues are and we’re doing everything we can to make sure government is aware of the potential impacts.

We’re working hard to lobby and advocate for you.

We’re talking with public and government relations experts to help us develop other political action strategies to ensure Realtors’ voices are heard.

We’ll share more in the weeks ahead.

In the meantime, I urge you to give Council your feedback on these developments by clicking here.

If you have comments or questions, please email us at feedback@rebgv.org.

Sincerely,

Jill Oudil
President
Real Estate Board of Greater Vancouver

One week to go — vote in our Board of Directors election today!

image

Don’t let the opportunity pass you by! Vote today in our Board of Directors election! Voting closes next Sunday, February 4. Click here to vote — it only takes a couple of minutes.

Twelve candidates are running to fill four director positions this year.

Your vote is your voice

Directors guide the Board’s strategic direction. Don’t be silent — have your say in who governs your professional association!

image

Mortgage rates, taxes, landlords, and FINTRAC

The Bank of Canada raised interest rates last week, leading to an increase in mortgage rates. How will this affect homebuyers’ monthly payments?

Learn more.

A reminder that the City of Vancouver Empty Homes Tax requires all home owners to submit a property status declaration by February 2, 2018.

Here’s what you need to know.

Provincial legislation protecting renters against large rent increases at the end of a fixed-term lease is now in effect. Learn why this legislation came about and what it means for landlords.

Read here.

Federally, Finance Minister Bill Morneau has brought in tax changes which could affect your business, including new rules about income sprinkling and passive investments in a private corporation.

Learn more.

Finally, the Financial Transaction and Reports Analysis Centre (FINTRAC) has replaced Guideline 4: Implementation of a Compliance Regime with the new Compliance program requirements. We summarize what brokerages need to do on the road to compliance.

Read here.

I talk to myself — because there are times when I need expert advice

image

If you’re like me, you probably have conversations with yourself throughout the day, perhaps often asking yourself “should I/should I not do this?” For me, when the answer doesn’t present itself easily, I consult others, often my colleagues. That’s perfectly natural — except when talking to others doesn’t result in the right answer or information.

REALTORS® are mostly wonderful folks. Most are usually happy to tell you what they think — even if it’s incorrect! After all, they’re professional salespeople, so they're good at making what they say sound very credible. Yet, they could be right or they could be wrong.

I’m not saying you shouldn’t talk to your colleagues, but I am saying you shouldn’t rely on them as your only resource. Remember, wrong advice can have consequences.

Of the many calls we receive, some come from members who don’t know where to find information about the rules or professional standards. We’re happy to help, but we're surprised when a member doesn’t know the difference between the Council and the Board, the Code of Ethics and the Real Estate Services Act, or the Rules of Cooperation and the Independent Contractor Agreement. But then, I have to remember that I inhabit a very rule-based world, and it’s easy for me to know where to look for an answer, or at least to know of a person or entity who may help. I sometimes forget that others spend their time showing properties and putting deals together, not combing through rules or websites to find answers.

So, at this start of this new year, I thought the following information would be useful to you.

Managing broker

Your managing broker is responsible for everything you do in your capacity as a licensed real estate representative. Compliance, strategy, advice, and advising on how to get things done are all within your managing broker’s domain. He or she should be your first call if you need to know something or when you have a problem. Since your managing broker is accountable to the Council, the Board and, ultimately, the courts, it’s only fair that you consult him or her before you take action to deal with something you’re unsure about. Your broker will appreciate being in on a problem at the beginning rather than when it may be too late to fix.

Lawyers

Your brokerage may have a lawyer on retainer, but I doubt that person is available for everyone at brokerage to call for advice at any time. Instead, if you have a risk-management issue, complaint, or a legal conundrum, notify your managing broker and leave the decision to him or her to whether to contact the lawyer.

Some members think the Board has a lawyer on staff to help with legal questions. We don't. Trust me, you wouldn’t like your dues if we did. I think a client's lawyer should field most questions directed to brokers and the Board. A client who has a legal question should contact their own lawyer and then give you instructions. Your scripting could be this: “Kelly, that’s a question for your lawyer. I’d like to suggest that you talk to your lawyer, decide what you want to do, and then give me your instructions.”

Real Estate Council of BC

The Council is your licensing regulator and the protector and advocate of property buyers and sellers. Its mandate is to protect the public in its dealings with real estate licensees. It can’t provide legal advice, but it can explain the licensing and regulatory requirements to you. Recently, the 11 BC Boards received a letter from Council asking that we not interpret or advise licensees on Council regulations and requirements. This is understandable, as the Council wants to be seen as the definitive resource for information about the Real Estate Services Act, Council rules, and educational and licensing requirements.

To stay informed, visit the Council’s website often. Bookmark it on all your devices. This will keep you up-to-date on various subjects (including whether the person you’re dealing with has a real estate license). The website also gives you access to information contained in Council's Professional Standards Manual (with its great search engine), Council-approved clauses for your use, disciplinary decisions (with all their gory details), general licensee FAQs, more specific FAQs about new rules coming our way on March 15, 2018, courtesy of the Superintendent of Real Estate, and the latest news.

Real Estate Board of Greater Vancouver

Your Board advances and promotes the interests of those engaged in the business of real estate. This includes providing members with the tools and education they need to give their clients the best possible service. The Board represents the concerns of members, property buyers, owners, and sellers on issues involving legislation, regulations, and rules at all levels of government. The Board operates the MLS® Service, Paragon's Help Desk, provides professional development, lockboxes, communication and public relations services, government relations, arbitrations, and a member-to-member professional conduct disciplinary system. The links and information below are useful resources. Bookmark these websites and visit them often. They're intended to help you in your business. 

Public website — www.rebgv.org

Consumer information — information ranges from new mortgage rules to tree bylaws in municipalities
President's Podcasts
REBGV Tweets
News Releases
Statistics

Member only website — www.rebgv.ca (login required)

REALTOR® News
President’s Messages
REBGV Stats Package
Legally Speaking (BCREA)
Medallion Club
My Listings
Guidelines, Rules and Legislation

Realtor® Code of Ethics
Rules of Cooperation
Government Legislation, Bylaws and Rules

Ethics Guy®
Professional Conduct Process
Professional Conduct Cases
Arbitration Rules and Guidelines
Arbitration Cases
Education and IT Support
Education FAQs
My Education

Bouquets anyone?

Let’s get the new year off to a good start by celebrating the behaviour we all want to see more of. Has a colleague gone above and beyond for you or your client? Let us know — we’d love to publish a positive story! Send them to me at kspencer@rebgv.org

Breaking news: Council alters transition rules for new Legal Update course

image

The Real Estate Council of BC (Council) is launching a redesigned version of its Legal Update course this month. To complete the new course, you’ll be required to first complete an online component, including an assessment, then complete a five-hour classroom component.

The 2017, online-only, Legal Update course is still available, but we’ve recently learned that, effective immediately, Council will only recognize the 2017 online course for people whose license expires before July 1. If your license expires on or after July 1, you’ll have to complete the new Legal Update in the new blended format before you can relicense with Council.

Legal Update is Council’s required course for its Relicensing Education Program that you must complete every two years before you can renew your license.

What we know about the new course

  • It’s a two-part course with an online component and a classroom component. The online portion will likely take around five hours to complete.
  • The online component must be successfully completed prior to scheduling and attending the classroom session.  You’ll have two weeks from the time of registration to complete it. 
  • There are five sections, each with 10 assessment questions.
  • A score of at least 70 per cent is required to move to the next section.
  • Licensees must complete both components 30 days prior to their license renewal date.
  • While owned by Council, the Boards will host the classroom portion.
  • Members will register for both components of the new course through BCREA.
  • It will cost $275.
  • Council strongly recommends you register for the course at least eight weeks before your licence expires.

We've been advocating for Council to change their approach to implementing this new course. We’ll keep you informed as we learn more.

In the meantime, the Council created an FAQ page for the new course here. Please note, the registration links don’t work as of yet.

For further Legal Update questions, you can email BCREA at rep@bcrea.bc.ca or call them at 604-683-7702. Press three for the re-licensing information extension.

Watch our "What's Happening in Real Estate" video for January 2018

 

Our Areas raised over $60,000 for charity in 2017

Thanks to your participation, our Areas raised $60,145.69 for charity at their meetings and networking events in 2017. On the map below, click each Area to see how much they raised.

Thank you for your generosity!

Other News

Obituary: John B. Erickson

image

Former Real Estate Board of Greater Vancouver (REBGV) President John B. Erickson passed away earlier this month. He was 85.

John was born in Campbell River. He met the love of his life, Helen, as a teenager and moved with her to California to work in the insurance business. His professional calling was real estate and, after a year in California, they moved back to BC and John took a job with Rivers Realty.

He eventually became a managing broker at Rivers Realty. He held the same title at Eastern and Chartered Trust Company, and later at the Canada Permanent Trust Company. He was also an associate broker with Harbour Pacific Realty Company. John retired from real estate as a Senior Vice-President at TD Canada Trust, heading the Canadian real estate division.

John’s contributions to organized real estate in BC are substantial. He served REBGV as a director in 1970, vice-president in 1972, and president in 1973. He was responsible for the Board’s historic agreement with the Westminster County Real Estate Board (WESCOREB, now the Fraser Valley Real Estate Board). The agreement set jurisdictional boundaries for the two organizations as they exist today, and common standards for members of both boards to share listings.

During his time as president, John led the Board’s advocacy efforts as the Land Commission Act and the Agricultural Land Reserve came into effect. John was instrumental in creating a report that contained nine recommendations to protect the rights of property owners and ensure local municipalities had a say in planning. Five recommendations from the report were ultimately reflected in amendments to the legislation.

Outside of real estate, John was a dedicated family man with many passions and interests. He loved boating, fishing, skiing, playing cards, and travelling. He was a member of the Royal Vancouver Yacht Club, where he served as staff captain and the Mayor of Tugboat Island. He was also a founding member of the Hollyburn Country Club.

His friends and family remember him as a compassionate man who loved people and treasured his relationships. He was active with his church and generous with his time. He threw legendary Christmas parties, complete with a Santa photo shoot. He also sponsored many foster children in countries around the world.

John is predeceased by his wife Helen, son Brian, and son-in-law Barry. He’s survived by his children Helaine (Curt), Lori, and Michael, daughter-in-law Tass (James), and granddaughters (who he referred to as his ‘princesses’) Kerstin (Pete), Taylor, Kate, and Nicole.

In lieu of flowers, please consider a donation to the BC Heart and Stroke Foundation in John’s memory. 

Ensure your profile information is up-to-date

image

In February, information from your profile page on www.rebgv.ca will begin to appear on your profile page on REALTOR.ca. We’re encouraging all members to review your information here and contact us if there’s something you want to add or change.

This is the information you provided us when you applied for Board membership. It includes your geographic area of practice, specialties (i.e. residential, commercial, etc), languages, and social media links.

Questions? Call us at 604-730-3090.

Can I use cryptocurrency for my real estate transactions?

image

Bitcoin is currently the most traded cryptocurrency available. Every day there are over 360,000 Bitcoin transactions worldwide. Should your client’s next real estate transaction be one of them?

The short answer is no. Bitcoin’s nature — and the nature of all cryptocurrencies — makes it impossible for REALTORS® to fulfill their FINTRAC requirements for a real estate transaction.

What’s a cryptocurrency?

A cryptocurrency is a payment system traded in a digital space that's based on solving a complex math problem. Each time someone finds a solution to this problem, they create a Bitcoin. This is called “mining.” As more coins are “mined,” it becomes harder to solve the problem, which creates scarcity.

Once mined or traded, a cryptocurrency like Bitcoin is then held in a digital “wallet” that acts like a bank account. It can be transferred between wallets through publicly verified transactions. Verification is published in a digital ledger linked to the solution to the math problem called a “blockchain.”

What are the benefits?

First, cryptocurrency is secure. It’s virtually impossible to fake a transaction. There are no chargebacks or bounced payments.

Second, Bitcoin is anonymous. You can see every transaction made through Bitcoin, but the sender and receiver remain anonymous.

Finally, capital gains through all cryptocurrencies are taxable in Canada.

Why can’t Realtors use it?

To fulfill their FINTRAC requirements, Realtors must be able to identify the source of the funds used in the real estate transaction they facilitate. Because of Bitcoin’s anonymous nature, this is nearly impossible to do.

Transparency and protection are part of the value that Realtors bring to their clients, and that value is lost in the world of cryptocurrency. Consequently, Realtors shouldn’t accept a client instruction to use cryptocurrency, including Bitcoin, in a transaction. 

Underground parking targeted by vandals

image

Our underground parking area was recently targeted by vandals. We have security camera footage of the culprits and are working with the police.

As a safety measure, we’re closing the gate to the underground parking more often during the day. If you’re coming to the Board for a class or any other business and the gate is closed, you can open it using the following code:

* 6 1 3 1 5

If you have questions, contact Sandy Morris at smorris@rebgv.org

Is your child graduating from high school this year?

image

If you have a child in grade 12 this year, he or she should consider applying for one of our annual entrance scholarships!

Each year we award five $1,500 entrance scholarships to our members’ children entering post secondary.

Our scholarships recognize well-rounded individuals, based on their performance in academics, athletics, fine arts, and community service. The recipients are chosen by a team of independent adjudicators.

Applications for 2018 are due by August 24. Adjudication will take place in September, and successful applicants will be notified in October.

Your child is eligible to apply if:

  • you, as their parent or legal guardian, are an active member of the Real Estate Board of Greater Vancouver,
  • they’re currently in grade 12; and
  • they’ll be enrolled in full-time studies in fall 2018 in a program of at least two years’ duration leading to a recognized degree, diploma, or certificate at a university, college, or institute recognized by Universities Canada.

Key Information:

  • Download our annual entrance scholarship application package. The deadline for submissions is August 24, 2018.
  • Applicants will be asked to submit a certified copy of their final transcript (including all grade 11 and 12 marks along with provincial exam results). The applicant’s transcript will be mailed to them by the provincial government. The student’s graduating secondary school may also certify copies.
  • Applicants are advised to begin collecting required documents early as some references may not be available to them during the summer months.

Questions? Contact education@rebgv.org

image

Courses and Events