Featured News
President's message: What your Board is doing to help
We continue to adapt as a profession to the new real estate rules and forms.
Like you, I’m still learning when to supply the disclosure of representation and remuneration forms. I’m also searching for the right words to use in conversations with the public about the new rules and forms.
As we adapt to these changes in our regular interactions with clients, our Board is working every day to create educational resources, advocate for improvements with our regulator and government, and to inform the public.
Here are some of the latest actions we’ve taken.
Communicating with you
We launched a member Facebook group to more easily engage with you on the new rules, share information, and hear your feedback. More than 2,200 of you have joined. Click here to become a part of the conversation.
We’re creating and posting regular videos with Ethics Guy® Kim Spencer to help you with the most common issues you’re encountering. Click here to view the latest video.
We’re also working with our long-time legal counsel Brian Taylor to develop other educational videos to help you deal with some of the frustrations you’ve been experiencing in the field since June 15.
Advocating for you
Our focus isn’t just member education. We’re having regular conversations with the regulator and government to ensure they’re aware of the issues these rules are causing and to propose solutions.
Our CEO Brad Scott recently met with the Real Estate Council of BC’s (Council) CEO Erin Seeley to communicate some of your most pressing questions and concerns. She expressed a willingness to give our members more opportunity to have input on new rules before final decisions are made. This would be an improvement.
We’ve also worked with the BC Real Estate Association (BCREA) to convert your feedback into a province-wide report that documents the challenges, consumer reactions, and solutions our profession has identified. BCREA met with Council on July 10 to discuss these issues and will meet with Finance Minister Carole James today (July 12). We’ll update you on these meetings as we learn more.
Broker engagement
We’re also engaging our Broker community to assess the impact of the new rules and prepare for future changes coming from Council and BC’s Superintendent of Real Estate (OSRE). We, together with the Fraser Valley Real Estate Board, have established a Broker Advisory Group. The group includes 16 Brokers from around the region. We held our first meeting two weeks ago and we’ll meet again later this month. Superintendent Micheal Noseworthy, BCREA CEO Darlene Hyde and Council CEO Erin Seeley will all attend. We'll share further updates as this work progresses.
PDP credit
We know many of you would like to see Council’s new mandatory agency course be PDP accredited.
We’re exploring this issue. BCREA accredits courses for the province-wide PDP program and we work with them to get our courses accredited. The BC boards and BCREA met this week to discuss this issue.
Council has indicated that they’re planning more mandatory education. We need to better understand what they’re contemplating so we can assess and chart the future of our PDP program. Remember, PDP exists to raise the professionalism and competence of the people in our profession. Do we achieve this by simply requiring members to take courses mandated by the regulator, or do we strive to raise the bar beyond minimum government standards?
These are the questions we need to consider. We’ll have an update on these issues later this summer.
Public education
We’re publishing regular communications on our public websites and social media platforms to educate consumers on the new rules.
Earlier this week, we released this video for the public. Feel free to share it as well.
One June 15, we issued this news release to our media contacts and on our public website and social media feeds. I also did television interviews with Global BC, Breakfast TV, Omni TV, and other media outlets. Click here to watch my Global BC interview.
Here’s another article we drafted that helps explain what the public can expect when interacting with a REALTOR® in the new regulatory environment.
Realtor public image
Finally, it’s important that you’re aware that we’re developing a Realtor public image campaign that we plan to launch this fall.
We’ve hired an advertising and marketing firm to take a strategic look at the unique challenges we face when it comes to our public reputation. This company has a proven track record with clients across numerous industries. They’re experts in TV, social media and print advertising as well as brand development.
We want the public to understand the value of working with a Realtor. This means articulating what we stand for and what we believe in.
I’ll continue to provide updates on all of this work in future communications. Until then, please stay engaged with us on our member Facebook group and keep an eye on Board communications.
Sincerely,
Phil Moore
President, Real Estate Board of Greater Vancouver
"What's Happening in Real Estate" video for July 2018
Watch this video that looks at the latest news affecting real estate in Metro Vancouver, with a focus on the new real estate rules that took effect in June.
Resources to help you understand and comply with the new rules
Build your knowledge and understanding of the new rules using these resources:
Council’s Licensee Knowledge Base and Managing Broker Toolkit
All of Council’s resources are available online, including the latest forms, guides, FAQs, and videos. If you’re a Broker, you’ll find the Managing Broker Toolkit an invaluable resource.
REBGV members’ Facebook group
We started this group for members to share their 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.
“Rule Changes: Agency and Disclosure” course
This is Council’s new required course. Read the course description and find a link to register here.
New Forms app
The Forms App allows you to electronically complete the Disclosure of Representation in Trading Services and the Disclosure of Risks to Unrepresented Parties forms with your clients.
All of Council’s new forms are available in six languages.
Info you can share with consumers
Council has developed an FAQ page for consumers with resources to help them understand the new rules.
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.
An open house who's who
Ethics Guy® Top Tip video — Open houses under the new rules. Feel free to share this video with your clients. |
My last column (“What am I to You,” June 22, 2018) seemed to strike a chord, so for an encore, here I offer my thoughts about holding open houses, and when you’re holding an open house, who you may or may not be to the seller.
My first deal came from an open house. The buyer didn’t buy the place I was holding open; she bought another property I showed her a few weeks later. In that transaction, I never gave my first open house seller a second thought. I’d camped in the seller’s house for a couple of hours so the seller’s REALTOR® could have the Sunday afternoon off. There was no arrangement for me to receive any direct payment for my services, but it was understood that I’d be able to write an offer for any interested buyer who walked in. I could also use the open house to troll for other buyers, preferably those who already owned a property they’d need to sell in order to buy something.
Back then we acted as agents or sub-agents for sellers with buyers who weren’t represented – at least on paper. Buyers probably didn’t understand this and, frankly, neither did we. We routinely drove buyers around for weeks learning their secrets along the way. But those ancient listing contracts said we were all working for the seller. Oops: by allowing buyers to think we were acting for them, we often became unintended dual agents. That’s why we all moved to assumed buyer agency in the 1990s and then to designated agency in 2012.
Looking back to what I and my colleagues said and did back then, I marvel there were so few problems. Ignorance really was bliss. While we understand agency representation better now, there have been teething problems along the way. In the current environment we should reexamine practices we’ve never given a second thought to over the decades. Maybe we’ll have some more collective “aha” moments as a result.
This is all a long way of getting around to the managing broker who recently wrote to me asking about open houses and agency representation. He wrote:
Open houses are hosted all the time by Realtors in our firm other than by the listing Realtor. There is no clear direction as to what the role of the Realtor-host will be under the new rules. How much can they say? Are they deemed the designated agent of the seller by virtue of the listing being with our brokerage? Can they become an agent of a potential buyer coming through the open house?
Excellent questions, and maybe they’re ones we haven’t given much thought to over the years. Putting ourselves in our sellers’ minds, we should think about what assumptions those sellers have been making about who open house Realtor hosts are to them? Are they assuming these Realtors are their agents? Are they assuming they are just there to troll for buyers? Or, have they not considered it at all because the issue hasn’t been discussed? Is it time to tune up our script for when we talk to sellers about open houses being held by someone other than us? I think, yes.
If the seller’s agent is holding the open house (or any one of the team members), he or she, and team members, are the seller’s designated agents. If another Realtor from the same brokerage is holding the open house who, exactly, is he or she representing? That relationship should be specified in advance and the sellers must consent to it.
There are two choices:
- The Realtor is a designated agent for the sellers (and from then on, in that transaction, always acting as a designated agent for the sellers).
- The Realtor is acting as “no-agent” for the seller. The open house Realtor is hoping to either represent a buyer who wants to buy the place or, at least to troll for other buyers. In this scenario, the Realtor isn’t representing the seller by hosting the open house, and the seller’s designated agent should be careful not to reveal confidential information about the seller to that Realtor. It’s also a good idea to educate the seller about what should and shouldn’t be said to the Realtor hosting the open house. “Nice weather today. Make sure you lock up after the open,” is probably about it.
Now that June 15 has come and gone, and the Office of the Superintendent of Real Estate’s new forms have come into play, consider having your sellers sign the Disclosure of Representation in Trading Services form in advance of an open house being hosted by someone other than the seller’s designated agent. This form will make it clear that the sellers understand who the open house Realtor is to them, while giving us written confirmation of the seller’s informed consent to the arrangement.
If you’re a Managing Broker, you may want to consider adding some words about this in your brokerage policy manual. Sellers should understand and consent to open house agent relationships in advance. As noted, the Disclosure of Representation in Trading Services form is a good tool for this purpose.
The brokerage policy manual could also suggest that sellers’ Realtors add appropriate language about open houses to Schedule A in their listings. Here’s one example:
The seller acknowledges that the sellers’ designated agent has arranged, and will continue to arrange, for the other Realtors to host open houses as appropriate and understands that other Realtors hosting open houses may not be the sellers’ designated agents. The sellers understand these potential relationships will be confirmed in advance of open houses being held, using the Disclosure of Representation in Trading Services form.
Note: I’m obliged to point out this isn’t legal advice. We’re not the regulator, and Brokers should consult their lawyers.
Practicing real estate in a time of growth and change
Richmond City Hall, 2018
Richmond, like most Metro Vancouver municipalities, has seen a spike in population in the past decade and expects even more newcomers – about 75,000 by 2041. Richmond city planners recently revealed their strategies for dealing with this change, from affordable housing, to emergency preparedness, to regulating cannabis.
Rental-only developments coming to a neighbourhood near you
Municipalities concerned about housing newcomers who are renters asked the province for help. Now, new provincial rules will help municipalities facilitate more rental housing development.
The perils of pre-sale contracts
If your clients are able to buy and they decide on a pre-sale, consider sharing this cautionary article by lawyer Matthew Nied. He advises buyers to beware: they may not end up getting what they think they’re getting.
Complying with the National Do Not Call List
With all these newcomers arriving in Metro Vancouver, you may be tempted to contact a potential client you’ve never had business dealings with. Don’t. You and your broker could be investigated and fined for violating Canada’s Do-Not-Call List (DNCL). Here’s how to protect yourself.
Thanks for helping us set a record!
You helped us raise a record $51,453 for housing-related charities last year as part of our REALTORS Care® Shelter Drive program!
We created the REALTORS Care® Shelter Drive in 2009 as a way for members to help those in need of safe and basic shelter.
“The funds raised for these charities will make a real difference in the lives of Metro Vancouver residents who are struggling,” said Phil Moore, Board president. “We should all be proud of this work.”
The REALTORS Care® Shelter Drive has raised more than $303,000 since it began nine years ago.
The three charities receiving funds from the Shelter Drive this year are:
Richmond Society for Community Living
Richmond Society for Community Living (RSCL) provides programs and services to infants with special needs, and to children and adults with developmental disabilities including residential care for adults, care for infants and children, and life-skills training. Shelter Drive funds will help RSCL purchase apartment units that allow adults with disabilities to live in stable, affordable housing.
“This donation will help individuals who are moving into new, affordable housing this summer to purchase the necessary furnishings to live on their own, including cookware, household linens, kitchen items, and furniture,” said Janice Barr, executive director of RSCL. “Your contribution will truly make a difference in the lives of people living with a developmental disability.”
Tri-City Transitions
Tri-City Transitions provides emergency shelter and social support for women and children fleeing family violence and abuse in the Tri-City communities. Transitions has developed a unique response to support those victimized by domestic violence, and offers women and children a safe, secure place to rebuild their lives. Shelter Drive funds will help them enhance and expand a program at Joy’s Place Transition House that helps its residents recover from traumas in their lives.
“Your open-heartedness and commitment to making a difference in women’s lives is humbling. You made my heart sing,” said Carol Metz-Murray, executive director of Tri-City Transitions.
YWCA Munroe House
Munroe House provides housing for women and children who have left abusive relationships. It offers programs, therapy, and counselling to help women and children recover from abusive experiences and lead more positive lives. Munroe House has 10 units that accommodate about 22 residents a year. Shelter Drive funds will help with repair and maintenance costs.
“Your donations allow YWCA Munroe House to house and support women who have experienced abuse in their intimate relationship and their children,” said Kathy Lilyholm, associate director, YMCA Vancouver. “Through your support, women are able to rebuild their lives and their children are able to access art and play therapy.”
Other News
Stay on top of the latest disciplinary decisions
Our Arbitration Committee works to resolve disputes between members.
Stay on top of our efforts to uphold and enforce professional standards. The latest decision from our Arbitration Committee (Case #170) are available here (login required).
Come to the open house for our Schoolhouse Training Facility
You’re invited to an open house event for our new education facility at 228 Schoolhouse Street in Coquitlam. This event will be an opportunity to check out the location along with the surrounding area.
The open house will run from 1:30 p.m. to 4 p.m. on July 26. The ribbon-cutting ceremony with Board president Phil Moore and other Directors will be at 2 p.m.
At the event, we’ll also have a draw for a free PDP course, so don’t forget your business card!
If you’re interested in attending this free event, please register online. Alternatively, you can email us at memberservices@rebgv.org or call 604-730-3090.
Proposed amendments to Board Regulations
The Board of Directors proposes to amend Regulation 3.2 – Elections, Officers of the Board, to clarify the procedure for the election of Officers. The amendment clarifies that a Director who is participating in the meeting by Electronic Means has the right to vote in the President-Elect and Vice-President elections and, since that vote is to be by secret ballot, how that vote may be cast.
Regulation 3 – elections
3.2 OFFICERS OF THE BOARD
8. Directors unable to be physically in attendance at the location of the Directors’ meeting may attend the meeting by Electronic Means (as defined in the By-laws) and may vote in the election of Officers. Votes of any Director attending by Electronic Means are to be sent by text message or e-mail to the Chief Executive Officer, or designate where the Chief Executive Officer is not present at the meeting, and will be shown to the appointed scrutineers and counted with other votes cast by those Directors present. If text message and e-mail are not possible, the remotely-participating Director may verbally communicate his or her votes by phone or similar voice-technology to the Chief Executive Officer (or designate) and the scrutineers in a place where the communication will not be heard by Directors or others.
8.9. [unchanged]
The Board of Directors will vote to adopt this proposed Regulation change in September. If you have comments or questions regarding the proposed amendment, email Arnelle Starnaman at astar@rebgv.org or call 604-730-3008, by July 26.
REALTORS® support cancer research in the Ride2Survive
Many fundraisers for cancer research have to set aside administrative costs for the promotion of their events.
Not the Ride2Survive.
The Ride2Survive is the largest independent fundraiser for cancer research for the Canadian Cancer Society. It’s a grueling 400 km bike ride from Kelowna to Delta, with participants and volunteers paying their own way to ride and support the event. Every penny raised goes directly to doctors, hospitals, and programs on the cutting edge of cancer research.
Two REALTORS® from the Lower Mainland – Royal LePage Wolstencroft’s Tom Devlin and Dexter Associates Realty’s Dave Peerless – were involved in this year’s ride. Their team has raised an incredible $712,000 so far!
“For me, it’s personal,” explains Peerless. “I’ve lost six of my team to this damned disease, and I have five fighting it right now. Everyone has been touched by cancer in some way, and the Ride2Survive is a unique program that’s really close to my heart.”
Since the Ride2Survive began in 2005, over $7 million has been raised.
“Our donations are ‘designated’ to a particular research purpose through the Canadian Cancer Society as chosen by our riders and crew,” according to the Ride2Survive website. “By designating the funds raised, 100 per cent of those dollars goes to that area of research.”
This year’s ride took place in late June. Peerless, Devlin, and over 100 other riders left Kelowna around 3:30 am and endured an exceptionally windy ride. The riders made the full trip in approximately 20 hours, pulling into Delta around 11:30 pm after cycling 400 km that included 12,000 feet of climbing.
You don’t need to wait until next year to support Dave and Tom on their rides. The Ride2Survive website accepts donations 365 days a year. Click here to learn more.
New listings to appear on REALTOR.ca the same day they’re entered
To help service your clients better, your new listings will begin appearing on REALTOR.ca the same day they’ve been entered on Paragon. This change will take effect at the end of July.
New listings currently appear on the site the day after they’re added to Paragon.
“We’ve seen a lot of competition to REALTOR.ca crop up recently and we need to make sure our strongest online marketing tool remains competitive,” said Board CEO Brad Scott. “It makes sense to get the most out of the website we collectively own.”
In June, we started sending new listing data to REALTOR.ca more frequently so that this information would appear on the site within a day of being entered.
The Canadian Real Estate Association (CREA) administers REALTOR.ca and has long requested that boards send listing information as soon as it becomes available on the local MLS®.
Shortly after CREA launched REALTOR.ca in the 1990s, we, along with other boards, decided to delay sending information to the site to give members and their clients time to review the listing before it became public. Many boards around the country have ended this practice to ensure timeliness.
If you have questions about this change, please contact support@rebgv.org.
Ethics Guy® video series
Ethics Guy® Kim Spencer is creating a video series to help you adapt to the new rules. Here are his first two videos:
Personal information and privacy
What am I to you?
Has a colleague gone out of his or her way to help a transaction along? Have they helped you in other ways? Let me know and I’ll send your colleague a bouquet in a future column. Email kspencer@rebgv.org.
REALTOR.ca member tools gets a refresh
The Canadian Real Estate Association (CREA) is refreshing the member tools section on REALTOR.ca. Access it at member.REALTOR.ca.
The refreshed dashboard will feature a Quick Stats section that highlights real-time listing statistics for your listings. You’ll find your inventory of active listings, average listing views on the site, and more. It’s great information to share with your clients.
If you’re a Broker, you’ll have a Quick Stats section that breaks down the activity for your brokerage.
Questions? Contact boardsupport@crea.ca.
Home seller supply grows as demand declines
In case you missed it, here's our summary of market conditions in June:
With home sale activity dipping below long-term historical averages, the supply of homes for sale in Metro Vancouver* reached a three-year high in June.
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,425 in June 2018, a 37.7 per cent decline from the 3,893 sales recorded in June 2017, and a 14.4 per cent decrease compared to May 2018 when 2,833 homes sold.
Last month’s sales were 28.7 per cent below the 10-year June sales average.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
Listings
There were 5,279 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2018. This represents a 7.7 per cent decrease compared to the 5,721 homes listed in June 2017 and a 17.2 per cent decrease compared to May 2018 when 6,375 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,947, a 40.3 per cent increase compared to June 2017 (8,515) and a 5.8 per cent increase compared to May 2018 (11,292). This is the highest this total has been since June 2015.
“With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating.”
Sales-to-active listings ratio
For all property types, the sales-to-active listings ratio for June 2018 is 20.3 per cent. By property type, the ratio is 11.7 per cent for detached homes, 24.9 per cent for townhomes, and 33.4 per cent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
HPI benchmark price
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,093,600. This represents a 9.5 per cent increase over June 2017 and is virtually unchanged from May 2018.
Sales of detached homes in June 2018 reached 766, a 42 per cent decrease from the 1,320 detached sales recorded in June 2017. The benchmark price for a detached home is $1,598,200. This represents a 0.7 per cent increase from June 2017 and a 0.6 per cent decrease compared to May 2018.
Sales of apartment homes reached 1,240 in June 2018, a 34.9 per cent decrease compared to the 1,905 sales in June 2017. The benchmark price for an apartment is $704,200. This represents a 17.2 per cent increase from June 2017 and a 0.4 per cent increase compared to May 2018.
Attached home sales in June 2018 totalled 419, a 37.3 per cent decrease compared to the 668 sales in June 2017. The benchmark price of an attached home is $859,800. This represents a 15.3 per cent increase from June 2017 and is virtually unchanged from May 2018.
Vancouver real estate: Supply of homes for sale hits three-year high
BC government says goal of budget taxes is a housing price drop