President's message: Show the public what the REALTOR® community stands for

In a video message from the new PNE prize home, Board president Phil Moore discusses Realtors’ long history of supporting the development of smarter, more sustainable communities, and he discusses the reputational challenges that confront our profession today.

Watch Phil’s message below.

Advocacy meetings update

We continue to work with your provincial association to engage our regulator and provincial government to advocate for a variety of changes on your behalf.

Here’s a summary of some of the latest developments.

Representatives from the BC Real Estate Association (BCREA) met with Real Estate Council of BC (Council) CEO Erin Seeley on July 10, Finance Minister Carole James on July 12 and Opposition MLAs on July 13.

Ahead of these meetings, we worked with BCREA to incorporate your feedback into a province-wide report that documents the challenges, consumer reactions, and solutions our profession has identified.

Meeting with Council

In the meeting with Council, BCREA advocated for more support for REALTORS® including quicker and more consistent responses to licensee questions, more guidance about what constitutes implied agency, and more direction on when to use the Disclosure of Representation in Trading Services form.

These recommendations largely reflect the views of REBGV members that we brought forward. BCREA also asked for revisions to forms to improve clarity, reduce redundancies, and remove language that implies consumers need protection from Realtors.

For more details about the requests and recommendations made to Council, read BCREA CEO Darlene Hyde’s email to Erin Seeley. We expect a response from the Council on these issues later this summer.

We’re cautiously optimistic about future opportunities for better collaboration with the Council. Since the July 10 meeting, the Council has agreed to consider working more closely with BCREA and invited BCREA representatives to attend regular Council meetings.

Key requests

In meeting with government, BCREA made four key requests to improve the regulatory environment governing our profession:

1. Create a Council-BCREA task force composed mainly of real estate practitioners with the mandate to smooth the transition of the recent rule changes.
2. Appoint more licensees to the Council from the real estate sector.
3. Make consumer education a priority when rules change significantly. We know the Council is working on a consumer education project and urge that future rule changes include more public education before implementation.
4. Inspire confidence in licensees. The Council’s current language emphasizing protection and complaints is doing the opposite. BCREA asked for language Realtors can use to explain why the new processes are in place to frame the changes accurately and positively.

The province’s regulatory review of our profession was another conversation topic. Earlier this spring, Minister James commissioned lawyer Dan Perrin to review the co-regulator structure in place for real estate in BC. As part of this review, BCREA provided a submission based on the feedback of nearly 1,000 Realtors in the province.

Minister James plans to announce a decision this fall about the findings of the regulatory review.

We’ll continue to provide updates as we carry on our work with BCREA and other stakeholders to advocate on your behalf.

Ethics Guy® Q & A videos with Brian Taylor

Ethics Guy® Kim Spencer recently sat down with real estate lawyer Brian Taylor to discuss some of your most common questions related to the new rules. From these conversations, we’ve created nine videos to help you adapt to these changes.

Watch them here.

Why can't I get a straight answer from Council?

How should I introduce representation and agency to consumers?

What do you do with someone who blurts out personal information?

How can I reasonably turn a former client into an unrepresented party?

Does presenting factual CMA information create agency?

Am I in conflict with my former and current clients?

How many colleagues should I refer to my conflicted client?

Is there a conflict representing multiple buyers in a pre-sale?

Why do consumers not need to sign the new forms?

Living dangerously

A member recently wrote to me to ask whether there’s a difference between a buyer being introduced to a property at an open house without that member being there, and a buyer being introduced to the property at a private showing.

The answer? Yes, there could be a difference. You’d be at risk of “living dangerously,” as my headline suggests, if you advise your buyers to visit open houses without you attending. If you can’t be there, it’s wise to call the seller’s REALTOR® to advise that your buyers would like to go through the open and to ask the host Realtor to acknowledge and respect your introduction. But the best—and safest—route is to attend the showing with your buyer.

Of course, we understand this isn’t always possible. We also all know that sometimes buyers go “AWOL” and visit open houses without sharing their plans. Even so, you should understand the risks of sending your buyers through someone else’s open house alone, especially, if you don’t have an exclusive buyers’ agency contract signed with those buyers.

However, many members appear comfortable sending their buyers to other members’ open houses unaccompanied, and that’s their choice to make. What are the risks? First, you could lose control of your buyers and/or end up in a commission dispute. Or, if the cooperating brokerage commission offering is contingent on a “first physical introduction,” the amount you’re paid could be affected. There’s also the risk that your buyers might say something or reveal personal information to the hosting Realtor, seller’s Realtor (or to the sellers, if they’re home) that could compromise their bargaining position if they choose to make an offer. (This last risk would be reduced if you have schooled your buyers beforehand.)

What about open house introductions? Are they the same as introductions made at private showings?

The answer isn’t always clear. Facts and context play a role. Were you there at the open house introduction? Did your buyers tell the Realtor hosting the open house they were working with you? The answers to those questions may make a difference if there’s a dispute.

I can’t point you to a rule or arbitration precedent guaranteeing what the outcome would be if there were a problem. I can tell you that in the past, the Arbitration Committee hasn’t always considered a buyer’s visit to an open house the same as a private showing of the property with the buyer’s Realtor being present (assuming the buyer advises the hosting agent that they’re working with a Realtor).

I can also offer these suggestions, which we’ve provided over the years to help agents avoid disputes:

1. Have the buyers sign an exclusive buyers’ agency contract, with commission payable. If there's no commission payable, there’s really no point in trying to enforce it.
2. Be sure that any commission agreement, if it differs from what’s specified in the listing contract, is made in writing and signed by both members.
3. Ask your buyers, from the start, to let you know if they plan to visit open houses without you present. With that knowledge in hand, you can contact the seller’s Realtor beforehand to discuss how your commission might be affected if you’re not accompanying the buyers. Follow up these conversations with listing agents in writing to create a paper trail.
4. If your buyers visit an open house without notifying you, contact the seller’s Realtor when you become aware of the situation. Some members may respect the buyer’s visit as if you’d been there. Others may not—especially if the buyers didn’t mention they were already working with you. If you reach an agreement with the seller’s Realtor, get it in writing.  

Always remember that as the buyer’s agent, you must keep their interests in mind. This means asking them what they’d like to do and who they’d like to work with (without criticizing any other members), consulting your managing broker, and following their instructions. If there’s a commission dispute between you and another member, you’re entitled to ask that it be arbitrated.

Confused? You probably aren’t alone. Just keep in mind that if a buyer is dealing with more than one Realtor for the same property, either by design or accident, there’s a good chance that a dispute will arise over the commission. In an arbitration of such a dispute, it’s the Arbitration Committee that decides who’s paid and what amount.

For more information, read a summary of what our arbitrators consider in such disputes. It would also be a good idea to read previous arbitration cases to see how these guidelines have been applied in the past.

Making room for affordable density in our region

Throughout Metro Vancouver, municipalities are planning for density. Will this create affordable market housing? Here’s what we can expect.

North Shore City Hall

On the North Shore, three municipalities – North Vancouver City, North Vancouver District and West Vancouver District – showcased their plans for accommodating density to more than 250 REALTORS® at our North Shore City Hall event.

Read more.

Making room in Vancouver

In Vancouver, Mayor Robertson is proposing the Making Room Housing Program that’ll forever change single family neighbourhoods by permitting “missing middle housing” – duplexes, fourplexes, townhouses, and three-to-four storey apartments.

Read more.

What’s driving home prices? Perception versus reality

While the goal of adding density is to create more affordable homes, the perception of some residents is that much of the new supply will end up in the hands of foreign buyers. Is this correct? We find out by looking at Stats Canada data.

Read more.

Investigation into money laundering in real estate begins

Some residents also think organized crime from offshore is driving up prices. Peter German, who authored the recent provincial report into money laundering in casinos, is about to begin his investigation into money laundering in real estate.

Read more.

How much did you and your office donate to charity in 2017?