May 4, 2016 | CREA/OREA/RECO News |
OREA’s newest standard forms tutorial is now available online. The tutorial is a step-by-step video guide about how to complete Form 127, Condition(s) In Offer – Acknowledgement.
The purpose of Form 127 is to confirm that a buyer understands the risks and ramifications of not inserting certain conditions and/or of waiving certain conditions from an offer. The Form 127 tutorial walks you through the form section-by-section, explaining what and where information is required.
OREA’s standard forms tutorials are a new resource created to help you avoid common mistakes and costly errors when you are working with standard forms. Like forms explained documents, the tutorials are a short, practical resource you can use to help them fill out some of the most common forms. If you prefer more hands-on, concrete guidance, you will likely find the tutorials a welcome addition to the forms explained documents.
Apr 7, 2016 | CREA/OREA/RECO News |
Are you interested in learning more about property rights, especially as they relate to two upcoming provincial Bills?
A special event has been scheduled to provide information about property rights, the Municipal Act, the Conservation Act, Bill 100 and Bill 118.
Saturday, April 23, 2016
3 p.m. – 7 p.m.
Kings Court Banquet Centre
1159 King Rd, Burlington
$25.00
(roast beef buffet) – cash bar
Speakers will include Elizabeth Marshall, Tom Black and Jeff Bogaerts
For more information, contact Don Johnson (Right at Home Realty Inc.), 905.637.1700.
Apr 6, 2016 | CREA/OREA/RECO News |
The Atlantic Real Estate Association is hosting the Atlantic Connection conference in Charlottetown, Prince Edward Island from July 26 to 29, 2016.
The conference will feature three learning tracks covering risk management, technology and health and wellness. Those attending can also expect networking events and can connect with industry service providers at the trade show.
The slogan for the Atlantic Connection is “Come early, stay late” and the organizers are encouraging REALTORS® to stay after the conference and enjoy some fun in the sun.
For more information and to register, visit the Atlantic Connection website at www.atlanticconnection.ca.
Apr 6, 2016 | CREA/OREA/RECO News |
The Canadian Radio-television and Telecommunications Commission (CRTC) continues to actively monitor and enforce the National Do Not Call List (DNCL). The DNCL is a list of consumer telephone numbers who have chosen to reduce the number of marketing calls they receive. Subject to limited exceptions, marketers are prohibited from contacting numbers on this National list.
CREA has been informed by the CRTC it is increasing enforcement oversight of the National DNCL as it relates to the real estate sector. Members should be aware that non-compliance can result in significant financial penalties – so it is important to be sure you understand your responsibilities.
As a reminder:
- A brokerage that conducts telemarketing must (subject to limited exemptions) purchase a subscription for the area codes it intends to call (fees will be based on the subscription model you select). It is the responsibility of the brokerage to ensure its office has access to the most up-to-date version of the National DNCL and that those numbers are removed from their calling list.
- The brokerage must also maintain an internal do-not-call list. If a consumer asks not to be contacted, the brokerage must add their name and number to its own internal do not call list.
We urge brokerages to exercise caution when hiring a third party service provider to assist the brokerage in managing their telemarketing operations. The CRTC issued an administrative monetary penalty of $260,000 to one such provider, Telelisting, in January 2015. Telelisting obtained and disclosed contents of the National DNCL to their clients, a violation of CRTC’s Telecommunications Rules. An investigation by the CRTC could also result in monetary penalties to brokerages who were clients of Telelisting. It is important to remember that brokerages who conduct marketing and hire third party service providers still need to register with the DNCL Operator and subscribe to the National DNCL.
For more information about the DNCL and members’ obligations, consult CREA’s FAQs.
Apr 6, 2016 | CREA/OREA/RECO News |
Congratulations to Sean Morrison (Royal LePage State Realty) on being acclaimed as OREA provincial director! Sean will represent Southern Ontario on the OREA board of directors for a two-year term.
Sean served on the RAHB Board of Directors from 2012-15, and as Vice-President for two years. He also served on numerous committees at RAHB. Sean currently sit as a member on OREA’s Government Relations committee.
Apr 6, 2016 | CREA/OREA/RECO News |
There continues to be some misunderstandings about how to use OREA Form 801 – Offer Summary Document.
This form was created by OREA to give members a document to assist them to comply with Bill 55, which requires that a listing brokerage retain copies of all written offers to purchase or copies of a “prescribed document” (Form 801) for each of those offers.
Here are three things you should know about the completion of Form 801:
- In practice, the buyer’s representative can choose whether to provide the summary document and is not obligated to do so. The listing brokerage may have to complete Form 801 if that’s the document they intend to keep (instead of the offer).
- The listing brokerage must present all offers, regardless of whether a cooperating brokerage has provided an offer summary document or not. Form 801 is not part of the offer, so it is not required before an offer can be presented.
- An email or fax from the cooperating brokerage that there is an offer to present is sufficient for a listing broker to arrange for the offer presentation.
You can find this, and much more, information on RECO’s Q & A Fact Sheet . Check it out!
Apr 6, 2016 | CREA/OREA/RECO News |
CREA has made a series of changes to the rules governing the use of the REALTOR® trademarks. The changes are intended to make using the marks easier, which should increase proper use and reduce improper use. The changes also reflect the reality of how CREA’s trademarks are used on the Internet.
To summarize:
- CREA’s previous rules required REALTOR® to be in all capital letters, followed by the ® registration mark. The new policy only requires that form for the first use in any publication. In all subsequent uses, the word can be spelled with only the ‘R’ capitalized, (i.e. Realtor) and omitting the ®.
- Up until this point, members have been required to add the trademark statement “The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA”. The new policy allows members to choose one of five acceptable trademark ownership statements:
- Not every real estate agent is a REALTOR®. Only REALTORS® are members of CREA.
- I’m more than a real estate agent. I’m a REALTOR®.
- What’s the difference between a real estate agent and a REALTOR®?
Visit crea.ca/why to find out.
- REALTOR®. Member of The Canadian Real Estate Association and more.
- The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.
- CREA’s previous rules prohibited the use of modifiers with the REALTOR® The new policy allows it, provided that REALTOR® appears in all capital letters (e.g., Professional REALTOR®, Toronto REALTOR®).
- CREA’s previous rules prohibited REALTOR® or REALTORS® being used as part of a firm name (e.g., Smith REALTORS®). The new policy allows that use, provided the following three conditions are met.
- The proposed name is approved by CREA;
- The member enters into a license agreement with CREA before using the name;
- REALTOR® must appear in all capital letters whenever it is used in the name.
- CREA’s previous rules were silent on the use of REALTOR® or REALTORS® in a team name (e.g., REALTOR® Team Smith Jones). The new policy permits such use, subject to the same three conditions set out above.
- CREA’s previous rules prohibited the use of REALTOR® or REALTORS® in corporate branding. The new policy permits such use (e.g., use of REALTOR® in slogans), but the prohibition on use of REALTOR® and REALTORS® in product names will remain.
- CREA’s previous rules prohibited use of our marks in metatags. The new policy permits such use for both REALTOR® and MLS®.
- CREA’s previous policy provided that members may only use REALTOR® or REALTORS® in a domain name in association with their name or firm name. The new policy allows members to add modifiers to REALTOR® in domain names, email addresses, and social media usernames that contain their name, firm name, or team name (e.g. JohnJonesTorontoRealtor.com, JanetheProfessionalRealtor.ca, [email protected], @BigBobRealtor)
In order to implement the new usage requirements, CREA has re-written its Trademark Policy. A copy of that policy is found in the Resources and Compliance section on CREA’s REALTOR Link® page.
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Did you know that the information about using CREA’s REALTOR® trademark appeared in CREA’s blog, “CREA Café”? Want to see what you might be missing? Check it out at www.creacafe.ca!
Here’s a sample of other great info you can find on CREA Café. The following article is reprinted from the CREA Café, October 22, 2015.
Refresh your knowledge of the REALTOR® Code with CREA’s new online course
The words “REALTOR®” and “real estate agent” are not interchangeable, although some real estate agents might like them to be.
What sets CREA members—REALTOR® members—apart? Their adherence to the REALTOR® Code: the standard of conduct that helps to ensure the protection of the rights and interests of consumers of real estate services.
As REALTOR® members are aware, CREA’s REALTOR® Code has been the measure of professionalism in organized real estate for many years. The first code was approved in 1913; members approved the first code of ethics specific to CREA members in 1959. The Code has since been amended many times, most recently in 2014, to reflect changes in the real estate marketplace, the needs of property owners and the perceptions and values of society.
REALTOR® members can be justifiably proud of their Code.
Like any set of principles, the Code is only truly valuable if incorporated into day-to-day practice. But what, you may ask, is the best way to go about doing that? In an ideal world, REALTOR® members would pick up the Code and refresh their memory on its various nuances, from time to time.
That’s why CREA created the REALTOR® Code of Ethics Course.
The course is designed to help increase awareness and understanding of the REALTOR® Code of Ethics amongst REALTOR® members, by presenting the code in a user-friendly manner, using practical examples and quizzes to help ensure the knowledge sticks, and providing members with up-to-date information on the most recent changes to the Code.
For example, did you know that in March, 2015, the Code was amended to include, among other things:
- A new commitment to civility;
- A new Interpretation to reinforce the obligation on members that they are responsible for the improper use by businesses partners of CREA’s trademarks; and
- A new Article with respect to unbecoming conduct (A REALTOR® shall not engage in conduct that is disgraceful, unprofessional or unbecoming of a REALTOR®).
Pop quiz:
Do you think this clause would apply if another REALTOR® member was curt with you? Take the course to find out! Hint: the answer is a two letter word starting with ‘n’ and ending with a vowel.
Mar 4, 2016 | CREA/OREA/RECO News |
The Ontario Real Estate Association circulated the following information about the 2016 Ontario Budget, and what it means for REALTORS®.
The highlights from Ontario Budget 2016:
- Budget 2016 outlines the government’s plan to create jobs and grow the economy, invest in major infrastructure projects, low-carbon initiatives and programs to improve skills in Ontario’s workforce.
- Budget 2016 reaffirms and updates the government’s commitments to reform beer and alcohol sales, maximize the value of government assets and improve Ontarians retirement through the Ontario Retirement Pension Plan.
- Budget 2016 commits $100 million to a new home energy audit and retrofit rebate program. Home energy efficiency retrofit rebates for home owners was one of OREA’s recommendations to the 2016 Pre-Budget consultation.
- While there is no commitment to move forward on personal real estate corporations (PRECs), the 2016 Budget does not signal any intention to move forward with giving additional revenue tools (MLTT) to municipalities.
What does the 2016 Budget mean for Ontario REALTORS®?
- Municipal Land Transfer Tax (MLTT): We are happy to report that Budget 2016 does not reverse the province’s commitment not to give municipalities MLTT powers. OREA continues to monitor for legislation that would give any new revenue tools to municipalities.
- Personal Real Estate Corporations (PRECs): Unfortunately, the government did not include OREA’s pre-budget recommendation to permit the use of PRECs by real estate salespeople or brokers. OREA will continue to advocate for this proposal.
- Cap-and-Trade Initiative: Ontario will move forward with a cap-and-trade system as its carbon pricing mechanism. The government estimates that the cap-and-trade plan will add about 4.3 cents a litre to the price of gasoline and about $5 a month to natural gas bills.
- Ontario Home Energy Audits and Retrofits: The budget reconfirms the home energy audit and retrofit program introduced earlier this month. The program would invest $100 million from the Ontario Green Investment Fund to provide rebates for home owners with Enbridge or Union Gas to conduct an energy audit and retrofits recommended by the auditor. While OREA is supportive of the new program, we will continue to oppose any efforts to introduce mandatory home energy audits.
- Ontario Retirement Pension Plan/Pooled Registered Pension Plan: The budget announces the government’s commitment to move forward with the ORPP. The government also reaffirmed that their long term objective is to enhance the CPP.
- Changing Workplaces Review: OREA is currently involved in the Employment Standards Act, 2000 review, advocating to maintain the current exemption for real estate professionals. Budget 2016 announces that the Special Advisors leading the consultation will release their interim report by early 2016 and the full report in summer 2016.
- Healthy Homes Renovation Tax Credit (HHRTC): Budget 2016 announced that the HHRTC will end on January 1, 2017. The HHRTC was created to help seniors live independently in their homes by making renovations more affordable.
- Affordable Housing: The government announced that legislative and regulatory changes will be introduced to increase the supply and sustainability of affordable housing. In addition, Budget 2016 commits $178 million over three years to provide housing subsidies and support the construction of up to 1,500 new housing units.
Mar 4, 2016 | CREA/OREA/RECO News |
From the Registrar’s Bulletin, December 1, 2015 – reprinted with permission
(For information on commission rebates, see the Registrar’s Bulletin “Commission rebates to clients and customers.”)
When you use commission reductions, it is essential to create an appropriate agreement in order to comply with the Real Estate and Business Brokers Act, 2002 (REBBA 2002).
In a commission reduction agreement, the listing brokerage agrees with the seller to reduce commission that was previously agreed to. The following are the two most common ways this can happen:
- The seller and buyer are represented by the same brokerage.
- A cooperating (buyer’s) brokerage offers to reduce its commission and the listing brokerage and seller agree to reduce the total commission payable under a seller representation agreement, i.e. offers to accept less commission.
All commission reduction agreements negotiated by brokers and salespersons are binding on the brokerage. If commission reduction agreements are being offered, the details must be put in writing, and provided by the broker or salesperson to their brokerage. Any commission reductions should be in keeping with the brokerage’s policies. But in any case, the brokerage is bound by commission reduction agreements made by its employees in its name.
Most commonly, commission is paid to the brokerage representing the seller under a written seller representation agreement, which may include an agreement to pay a portion of the total commission to a cooperating brokerage that represents the buyer. However, it’s important to note that specific commission models are not mandated under REBBA 2002. Various commission models are acceptable as long as they comply with the law.
Section 25 of the Code of Ethics contains provisions that apply to commission agreements between a brokerage and a seller and offers or proposals to amend them. If the brokerage representing the seller and the seller agree to commission terms that may affect whether one offer would be accepted over another, then the brokerage representing the seller must disclose the details of such terms to anyone who makes a written offer to buy.
This typically occurs in one of two ways:
- Buyer and seller represented by the same brokerage: The brokerage representing the seller offers to reduce commission if the buyer is also represented by the same brokerage (multiple representation). A detailed disclosure must be made to everyone who has made a written offer at the earliest practicable opportunity, and before any offer is accepted. The listing brokerage must put this commission amending agreement in writing.
- Buyer represented by a separate cooperating brokerage: The following are typical steps when a cooperating brokerage offers (proposes) to reduce its commission.
A cooperating brokerage representing a potential buyer proposes to reduce its commission to make that buyer’s offer more attractive.
This would cause a reduction in the total commission payable to the brokerage representing the seller. By accepting that buyer’s offer the seller will receive a higher “net” value for the property than they would receive if they paid the commission that they originally agreed to.
Detailed disclosure must then be made to everyone who has made a written offer. The disclosure must be made at the earliest practicable opportunity, but before any offer is accepted. The brokerage representing the seller also needs to provide a written copy of the amendment to the written seller representation agreement to the seller in the event this offer is accepted.
“Detailed” disclosure, as set out in Section 25, means disclosing the terms of the agreement relating to commission and that may affect whether an offer to buy is accepted. The complexity of the disclosure depends on the terms. For example, if the commission reduction agreement is a simple percentage reduction without any limitations or conditions, that is what must be disclosed. More complex reductions would require more detail. The best practice is to disclose in writing to ensure clarity and to create a record of the disclosure.
Commission reduction agreements can be a way to facilitate a transaction. However, registrants have a duty to ensure that the promotion, documentation and delivery of a commission reduction are done in a manner that complies with REBBA 2002. Failure to do so could result in disciplinary or other legal action.
Feb 5, 2016 | CREA/OREA/RECO News |
From the Registrar’s office ….
In response to registrant feedback, RECO is making changes to further help registrants comply with regulations, starting with a new process to review advertising before it is published.
A new Registrar’s Bulletin describes a new procedure whereby RECO will review registrant advertising before it is published. RECO will review the advertisement when asked to do so by a Broker of Record. The bulletin also introduces a new process for registrant-based complaints about advertising. All registrants should review the bulletin as soon as possible.
The changes are intended to:
- Elevate advertising compliance;
- Promote accountability for brokerage advertising among brokers of record; and,
- Encourage registrants to settle more disputes amongst themselves before taking a complaint to RECO.
The changes took effect January 1, 2016.
Feb 5, 2016 | CREA/OREA/RECO News |
The following article appeared in the January, 2016 issue of OREA’s “The Edge” by Merv Burgard, Q.C
It all began when a home owner arranged for an alarm system to be installed in his residence. The cost of installing the system was more than $700 and the package featured a keypad entry and basic alarm system. The owner also signed up for a monitoring service, which included a monthly charge of $45.14. A modem was installed that would trigger the monitoring device.
Some 18 months later, the same owner decided to sell his home. The agreement of purchase and sale (APS) stated: “Chattels included … Alarm system and equipment.” However, the only item listed in the Rented Equipment category
was as follows: “Hot water tank with the buyer to assume the rental contract.”
In the course of the property sale, a lawsuit ensued. The buyer and seller disagreed on whether the buyer was required to assume the monthly charges for the alarm system. The seller claimed that the buyer was to have taken over the cost of the alarm modem and monitoring system.
The judge in this case ruled that the APS was a “botched” agreement. It was not made clear to the court why the seller did not have the modem and alarm monitoring system removed from his prior residence and transferred to his new residence, to minimize costs. The seller stated that he did not know where the modem had been physically located. The judge ruled that the seller was responsible for the monthly charges. The seller’s claim against the buyer was dismissed.
Gu v Carnovale 2013 CanLII 60220
This content has been reproduced with permission from the Ontario Real Estate Association.
Feb 5, 2016 | CREA/OREA/RECO News |
You will soon be receiving a brochure that describes the benefits of the Plan which is underwritten by ManuLife Financial. If you want more information, click here, the website designed exclusively for CREA members, where you can evaluate the merits of the plan and get a no-obligation quote.
