Register today for one of our remaining breakfast meetings

If you couldn’t make it to one of our member breakfast meetings this week, you’ve got two more chances next week in Vancouver and Coquitlam. Here are the details:

• Tuesday, October 23 – Italian Cultural Centre, 3075 Slocan Street, Vancouver
• Friday, October 26 – Executive Plaza Hotel, 405 North Road, Coquitlam

Each meeting starts at approximately 8 a.m. with registration and breakfast. Presentations begin at 9 a.m. and end at approximately 11 a.m.

The meetings begin with presentations by Board president Phil Moore and representatives from the marketing firm we’ve hired to help develop our new REALTOR® public image campaign.

Next, Phil discusses the recent Supreme Court of Canada’s decision in favour of the Competition Bureau against the Toronto Real Estate Board. His presentation outlines the details of the case and what the implications of the decision are for members, the Board, and the public.

Click on a date above to register online. You can also register with Member Services at 604-730-3090 or memberservices@rebgv.org.

The Ethics Guy®: Rules of Cooperation changes - what you need to know (Part II)

The more things change, the more they stay the same. New Rules of Cooperation will take effect on November 1. Some rules have been tweaked. Some have been changed substantially. Others are untouched. Now that all three boards subscribing to the Rules of Cooperation (Vancouver, Fraser Valley, and Chilliwack) have approved the rule changes, so we can now make you aware of them.

Let’s begin by reviewing what the Rules of Cooperation are. Formerly known as the MLS® Rules and Regulations, they’re the rules of engagement governing members’ conduct and obligations to each other in their day-to-day business. They‘re not restricted to MLS® transactions unless the context requires that. (Note that our other set of rules, the REALTOR® Code, details what the public ought to be able to expect from us.)

Even though the Rules of Cooperation have changed, the rationale for having them remains the same. They’re intended to generally detail the kind of behaviour we should be able to expect from our colleagues. We compete for business, and we represent our clients’ interests in negotiations. While things don’t have to become adversarial, they sometimes do—often because someone wasn’t aware of what should've been done to ease the way along the journey to a showing, offer presentation, or successful contract negotiation. The rules help show us the way.

Read on for my best effort at summarizing the rule changes in plain language. I cover Sections 4 through 9 in this column (Part I, which covers Sections 1 and 3, is also available for review here). Also, you may find it helpful to review a side-by-side comparison of the existing and amended version of the rules, as some existing rule numbers have been reordered.

Please note that where the Rules refer to the ‘listing brokerage’, this can, depending on the rule's context, include the ‘designated agent acting for the listing brokerage’ at the managing broker’s discretion.

Section 4 – Offers

4.02 Presentation of Offers: Most parts of this rule remain the same: offers must be presented through the listing brokerage to the seller without delay; cooperating brokerages have a right to be present when their offer is presented; the listing brokerage continues to be obligated to make the seller’s decision on offers known to cooperating brokerages and, if so requested, to provide them with that decision in writing.

Significant additions to this rule have also been made. Previously, sellers wanting to give instructions about delayed offer presentations could opt out of the rule’s standard requirements by giving those instructions on the listing’s Schedule A, with the listing brokerage being required to also note them in the Realtor remarks (and to make them available to those cooperating brokerages wanting to see a copy).  

Under the new wording, a seller’s instructions regarding offer presentations (if different than the standard requirements) must be noted on a new form, the Direction Regarding Presentation of Offers. This form must be signed by the seller and be made available to cooperating brokerages for inspection. The seller’s instructions must also be noted in Realtor remarks. Note: If the form is posted to the MLS® system’s Associated Documents tab, the listing brokerage’s obligation to provide a copy of the instruction to other members is considered satisfied.

If the seller later decides to look at an offer earlier than the published presentation date, the listing brokerage must have the seller sign a new Direction Regarding Presentation of Offers, describing what's now to occur; must note the change in Realtor remarks; and must upload the form to the Associated Documents tab and notify any cooperating brokerages who've given a written request that they be kept informed prior to presenting an offer. Note: Listing brokerages must now keep a record of all cooperating brokerages who've asked in writing to be kept informed about offer activity on a listing.

Allied with this, if the seller wants to consider an offer received earlier than the published presentation date, listing brokerages must advise cooperating brokerages who've asked in writing to be kept informed about offer activity on that listing. They’re also expected to give cooperating brokerages a reasonable chance to present their offer at the same time. Remember, sellers must be made aware that there are other interested buyers, some of whom have asked to be notified if an earlier offer comes in.

Finally, listing brokerages must now keep a copy of all offers presented on file in accordance with any legal requirements, but in any event, for not less than one year after presentation.

Rationale: This rule was updated, for the most part, to reflect the existing interpretation (and basis for already-published member discipline). The new wording is now explicitly laid out in the Presentation of Offers section instead of the Delayed Showings section. A significant number of members have been found wanting under the previous wording. It was felt that requiring sellers to sign a form detailing how they wanted offers dealt with and when they wanted to see them (if different than the standard practice required by the rule) would help to prevent misunderstandings and problems before they occur; as well as creating an evidence trail should there be a complaint. The requirement to keep a list of buyer agents wanting to be kept informed about offers or changes to the date and time offers are to be presented addresses a significant number of complaints heard from buyer agents that they “weren’t informed about a new offer presentation time,” and from seller’s agents “that they'd received calls from buyer agents, but couldn’t keep track of them and had missed calling one back to advise of a new presentation time.”

Section 5 – Sales

5.01 Reporting Sales: While not a new requirement, this rule now says that “sale prices must be reported exclusive of taxes.” And, consistent with Rule 3.11, the Privacy Notice and Consent brochure must be provided to every buyer with a signed receipt being retained on file at the brokerage in the same way that the Working with a Realtor brochure was dealt with.

Rationale: The Board’s Sales Report form notes that sale prices are to be reported exclusive of taxes, but the rule did not specifically refer to this requirement. The new wording closes this gap. The Working with a Realtor brochure was retired when the superintendent’s office introduced its new disclosure forms. However, the new forms didn't address the Personal Information Protection Act requirement that Realtors must give consumers information on why their personal information is being collected and how it'll be treated. The new Privacy Notice and Consent brochure is necessary to satisfy this requirement.

Section 6 – Offers

6.02 Appointments: Cooperating brokerages must continue to deal with listing brokerages and not the seller directly unless specified in the listing. An additional requirement has been added to this rule requiring cooperating brokerages to ensure that buyers are accompanied and supervised by a licensee throughout the showing appointment.

Rationale: Unless agreed to by the seller in advance, allowing buyers to view properties alone without a licensee present is not consistent with professional practice and good risk management. (See Rule 9.0, Lockboxes and Access Cards, below).

6.03 Title Searches: A listing brokerage’s obligation (unless otherwise instructed by the seller in writing) to provide a copy of the basic title search to cooperating brokerages if they request it has been amended to note that a basic title search, when posted to the MLS® system, will “satisfy the listing brokerage’s obligation under this rule.”

Rationale: This amendment reflects that, for the most part, members no longer receive a title search from the Board, and in the case of the Fraser Valley Real Estate Board, there's no longer a title search library that cooperating brokerages can search. Rather, the listing brokerage’s obligation to provide a copy of the title search can be satisfied by posting a copy of the search to the Associated Documents tab on Paragon. Note: Under the new Section 3.12 discussed in my last column, listing brokerages are required to post the basic title search within 24 hours of the listing becoming active on MLS®.

6.06 Privacy-Protected Listings: This rule remains the same except that a reference to the new Privacy Notice and Consent brochure has now been made to link to the document and the rule.

Section 7 – Commission

7.02 Reference to Commission in Remarks: All references to commission must now be made in the commission field, not the Realtor, Public or Internet Remarks fields.

Rationale: Previously, the commission field had insufficient space. The Realtor remarks field, however, was significantly larger, so commission references were to be written there. Now that the commission field has been enlarged, there's no need to put commission references in the Realtor remarks. This change reinforces that commission is listing contract information that cannot be changed without a listing amendment signed by the seller or amended simply by changing the Realtor remarks.

7.03 Disclosure of Reduced Commission: The obligation of listing brokerages to notify all cooperating brokerages with offers that the listing brokerage intends to reduce its commission on its own offer when there's more than one offer to present remains the same. However, the rule has been changed to also require that any such disclosure of a reduction in commission must be made in writing. Note that the disclosure must give a dollar amount and details of the reduced commission.

Rationale: Making an important disclosure verbally can lead to misunderstandings and possibly an audit if a complaint is made. The obligation to make this disclosure in writing closes that gap.

7.06 Assignment to Cooperating Brokerage: The phrase “pursuant to an accepted unconditional contract of purchase and sale” has been added to this rule.

Rationale: This addition clarifies the existing interpretation that “complete as agreed” means that an unconditional contract between the seller and a buyer must exist, and that the obligation on a listing brokerage to assign its rights to a cooperating brokerage cannot be invoked on an offer that was not accepted by the seller or on a contract of purchase and sale that never became unconditional.

Section 8 – Advertising

8.01 Advertising – General: Members continue to be obligated to not “advertise in any manner that's false or misleading, prohibited by law or restricted by the seller.” An additional requirement has been added, namely, “members must ensure that any signage is in compliance with all local government signage regulations.”

Rationale: Members placing signs (and the number of signs placed) on public property has been an irritant and an issue of reputation for all members. This new wording underlines members’ continuing obligation to respect local sign bylaws.

Section 9 – Lockboxes and Access Cards

9.01 – Terms of Use: Changes to this rule include new wording to acknowledge that we use lockboxes, not “key boxes.” The term “associated technology” has been added to ensure that “electronic access cards” (e.g., online apps) are covered under the rules. This rule states that access cards and associated technology are linked to an individual member who is entirely responsible for how they're used, and that access codes and associated technology are “NOT TO BE LOANED/SHARED under any circumstances.” (It isn’t often that these Rules of Cooperation use all caps, so their use here is meant to emphasize this requirement.)

Three other requirements have also been added to the rule:

• Access card holders must obtain written permission from clients before placing a lockbox on the property (keep this permission in the listing file).
• One-day codes must not be given to “any individual, firm, or corporation under any circumstance, other than to a licensed member in good standing with any BC real estate board or association, unless written permission is first received from the seller” (keep this on file too).
• One-day showing codes must not be given out “unless the recipient is personally known to the member or their identity can be verified though their office or the Board’s member communications system.”

Rationale: It'll come as no surprise to most members that this rule needed updating to reflect current practices and address concerns. Access to and members’ use of the lockbox system is a privilege. It should be understood that owners have a right to expect their home and property will be treated in a secure manner. This is also reinforced by new Rule 6.02, which requires cooperating brokerages to ensure that buyers are accompanied and supervised by a licensee throughout the showing appointment, including when the property isn't being accessed by lockbox.

New videos to help you prepare for the Rules of Cooperation changes

Changes to the Rules of Cooperation will take effect on November 1. The changes range from minor modifications to new rules and a new form.

The Rules of Cooperation govern members’ conduct and obligations to each other in their day-to-day business.

These changes are in response to member feedback and requests we’ve received over the past several years.

What’s changing?

The most significant changes are in Section 3 — Listings and Section 4 — Offers. A new form, the Direction Regarding Presentation of Offers form, will be required if the seller has instructions to delay offer presentations and/or to specify whether a buyer’s agent can attend the offer presentation.  

Other changes to the Rules deal with attachments to listings like documents and photos, contingent listings, showings, title searches, and manufactured/modular homes. There are also changes in other sections affecting offers and presentations, sales reporting, open houses and showings, signage, and lockboxes. 

Resources to help you learn these changes

New videos

Ethics Guy® Kim Spencer is creating a series of new ‘Top Tip’ videos to explain the changes in simple language. Watch the first three below.

Rule 8.01 Advertising — General

Rule 4.02 Presentation of Offers

Rule 3.26 Title Searches and Rule 3.12 Consent to Post Documents

Documents and articles

We’ve also prepared a thorough comparison guide displaying the old and new Rules side-by-side so you can see what’s changed. You can also download a copy of the new Direction Regarding Presentation of Offers form here.

Finally, Kim Spencer is writing about these changes in a series of in-depth columns. You can read the first installment here, and the second installment here. These columns contain an overview of the Rule changes and rule-by-rule breakdowns and rationales for changes.

Please review these resources ahead of the new Rules taking effect November 1. We’ll share more resources as they’re available.

Sold data on REALTOR.ca

The Canadian Real Estate Association sent the following message on October 3 about a decision by its Board of Directors regarding the display of sale prices on www.REALTOR.ca:

Sold data on REALTOR.ca

In order to meet consumer demand and at the request of REALTORS® and boards, CREA’s Board of Directors approved the following resolution at their most recent meeting:

That CREA add sold and historical data to the property description without a login, where allowed, and keep sold listings on REALTOR.ca for a period of time.

In addition to responding to requests from members, this will ensure we continue to offer leading edge services on the best real estate website in Canada, REALTOR.ca.

As we move to implement this policy we will consult boards before adding this information to REALTOR.ca and will ensure compliance with all relevant laws and regulations.

We’re reaching out to CREA to learn more about this decision. We’ll also discuss this topic at our upcoming member breakfast meetings this week and next week. The remaining meeting dates and locations are:

• Tuesday, October 23 – Italian Cultural Centre, 3075 Slocan Street, Vancouver
• Friday, October 26 – Executive Plaza Hotel, 405 North Road, Coquitlam

Meeting time: Each meeting will start at approximately 8 a.m. with registration and breakfast. Presentations will begin at 9 am and end at approximately 11 a.m.

Registration: Register today with Member Services by calling 604-730-3090 or emailing memberservices@rebgv.org.

Make sure you've completed Council's mandatory agency course

The next time you renew your real estate license with the Real Estate Council of BC (Council), you’ll need to show that you’ve completed their new mandatory course, Rule Changes: Agency and Disclosure.

This is a new requirement for all BC REALTORS®, introduced with the June 15 rule changes. You need to complete this course in addition to meeting the Relicensing Education Program requirements (Council’s Legal Update course) and Professional Development Program (courses offered by the Board) requirements to renew your licence.

Rule Changes: Agency and Disclosure is a self-paced online course. 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.

You can register online for this course through the Council.

Course details

• There are five online modules, each of which contains a lesson and an assessment. You must score 70 per cent or higher to pass each assessment.
• The course should take approximately five to six hours to complete. You must complete it within three days of registration.
• The cost of the course is $75 plus tax.

You can review the full details on Council’s website.

Questions? Contact education@recbc.ca. 

How MLS® data gets shared

In recent weeks, we’ve received questions about how and to whom we send MLS® data to. Here’s an overview to help you understand the different ways that MLS® information is shared.

Brokers, your Board, and CREA each send data to third-parties that provide services, such as websites and other technology tools, to our REALTOR® and Broker communities.

The information is shared through different well-established processes that are explained below:

Direct from Member/Office

Third-parties may receive data directly from office or franchisor back-office systems for data that originates with them. This would not include information that is sourced from MLS® Systems. Brokers and franchisors would have their own mechanisms for protecting their data.

REBGV Real Estate Transaction Standard (RETS) Feed

REBGV distributes data through what’s called a ”RETS feed”. RETS is a server attached to Paragon that allows us to control what data is sent to whom. It also allows us to define profiles that specify the data fields, statuses, etc. that authorized third-parties receive. Anyone who receives data through RETS would be bound by a Third-Party Data Access agreement.

REBGV/Fraser Valley/Chilliwack member offices participate in the MLS® Reciprocity program. The default is for offices to be opted into the Reciprocity pool. An office can opt-out. More than 95 per cent of MLS® listings opt into Reciprocity.

Third-parties/brokerages/individuals can apply for RETS data feeds but must sign agreements. Members sign the same agreements if they receive data through a RETS feed.

The most common reason for receiving data is to populate MLS® information on member websites.

There are other allowable cases as well.

Common use cases include:

• Member/Brokerage Information Data Exchange (IDX) website or Virtual Office Website (VOW). An IDX site is any site that displays listing information from the MLS®.
• Member/Brokerage MLS® search app.
• Back-end office tools advertising websites like rew.ca. Such sites only receive data for offices that direct REBGV to include them in the feed. This happens by way of a one-page authorization letter completed by the Broker. Opting-in is at the Broker level. It’s not possible for individual members to choose where to send their listings.

Because data originates directly from the MLS® system, it’s more complete and timelier than what would be received through CREA’s DDF (see below for an explanation of “DDF“). These “feeds” only include information from Vancouver, Fraser Valley, Chilliwack, and BC Northern.

Non-compliance with our rules of use are dealt with through agreements or Rules and Regulations.

CREA DDF

CREA distributes MLS® data through its Data Distribution Facility (DDF).

Listings from across Canada are available through the DDF. CREA also uses a RETS Server to distribute the data.

By default, offices are not opted into the DDF pool. Each office can, through a dashboard, opt their listing into the various DDF pools.

Brokerages/Individuals can choose whether their listings are included in the various listing pools:

• National Shared Pool (member websites)
• National Franchisor Pool (franchise websites, e.g. Remax.ca)
• Franchisor Direct Feed (your own franchisor website if applicable)
• Real Estate Advertising Websites (Point2Homes, Homefinder, etc.)

Vendors can apply as technology providers (offer products and services to members) or destination websites (advertising websites).

CREA's partner site is:

• TD Mortgage Affordability Calculator

CREA’s approved advertising destination websites are:

• Beyond Map 
• Cottage Marketer 
• Hausway 
• Homefinder 
• Homicity.com 
• Kijiji 
• Listnet.ca 
• Mortgage Group 
• Open House Tour 
• Ovlix 
• Point2Homes 
• Propy 
• RE3d 
• Realopedia.com 
• Rentals.ca and Torontorentals.com - Coming Soon 
• The Real Estate Book 

Anyone receiving data from the DDF must sign an agreement. Given the data originates from a diverse group of MLS® systems from across the country, it’s less timely and complete. Data also gets transformed as it goes through a standardization process for display on Realtor.ca, resulting in some differences between the data as it exists on the MLS® system.

CREA’s DDF only has active listing data. It doesn't have off-market data and cannot provide information for VOWs for example.

If you have questions about these data sharing options, call our Helpdesk at 604-730-3020.