February 2015 Report from Council Newsletter

How to Ensure Unlicensed Assistants Aren’t Doing Your Job

• “My assistant is great! He’s bright and capable, and really interested in learning about the business! Since I’m so busy right now, I keep giving him more and more to do, and he’s always up for it. In fact, he keeps asking for more responsibility.”

If you’ve ever found yourself saying something like this, congratulations- it sounds as though you’ve got the kind of support many business people only dream of. But wait-are you confident that none of the responsibilities you’re giving to an unlicensed assistant require a licence?

Showing properties. Hosting open houses. Prospecting for buyers and sellers. These, and more, are among the duties that busy licensees may sometimes consider asking their unlicensed assistants to take care of for them. But in fact, these are services that only a licensed individual can perform. And paying an unlicensed person (even your eager-to-succeed assistant) to provide real estate services that require licensing is in violation of section 6-1 of the Council Rules.

The result? A licensee who uses an unlicensed individual to provide these services risks becoming the subject of a Council investigation, may be found to have committed professional misconduct, and may be disciplined by the Council. Make sure this doesn’t happen to you, by taking these steps:

• Review the Council’s guidelines on the services an unlicensed assistant may and may not provide.
• Establish a clear understanding with your unlicensed assistants about these limits to their duties and responsibilities.
• Provide an adequate level of supervision for your employees, to ensure any unlicensed individual doesn’t go beyond these allowable services and begin to provide services that require licensing. (See section 3-2(4) of the Council Rules)

Managing brokers should be aware that section 3-1(1) of the Council Rules requires that they ensure there is adequate supervision of the brokerage’s related licensees, employees, and others who perform duties on behalf of the brokerage. If, as a managing broker, you become aware of an unlicensed assistant providing services that require licensing, you must take steps to resolve the issue or you may also face professional discipline.

Employing Assistants: Frequently Asked Questions

I’m a licensee, and I need an assistant. Can I pay them directly, or does that need to go through my brokerage?

The answer depends on whether your new assistant will be licensed or unlicensed. While licensees may pay their unlicensed assistants directly, any licensed assistants must be licensed with the brokerage and paid by the brokerage.

Ensuring there is an adequate level of supervision for licensed assistants is the responsibility of the managing broker. See www.recbc.ca/psm/licensees-assistants/ for more information on unlicensed vs. licensed assistants.

I’ve got too many open houses this weekend! Can I send my assistant to represent me at one of them?

An unlicensed assistant may not host open houses for the public. An unlicensed assistant may be in attendance during a licensee tour, but only if the tour is not open to the public.

See www.recbc.ca/psm/solicitation-of-listings-and-conduct-of-open-houses to learn more.

Can I make my unlicensed assistant part of my team?

Yes. Note that any unlicensed team member must be identified as being unlicensed in any team advertising in which they appear. For example: Joe Bloggs (unlicensed assistant)

See www.recbc.ca/psm/team-names/ for more information.

• For Further Information

  Not sure what an unlicensed assistant can and can’t do? You’ll find comprehensive lists on the Council’s website:

  • Information about the duties an unlicensed assistant can provide for trading services.
  • Details about unlicensed rental property management assistants.
  • Information on unlicensed assistants and strata management.

Welcome to 2015. Traditionally, the start of a new year is a time of new beginnings, and for the Council this year is no exception. There are a number of changes and updates that licensees should be aware of, which have taken effect as of January 1, 2015. These include changes to the individual application and renewal forms, the return of Relicensing Education Program requirements for licence renewal, and changes to the Council’s Education Guidelines reflecting the new format of the Applied Practice Course. You can read about these changes, and others that may affect your professional practice, in this issue.

Many licensees employ unlicensed assistants, and whether you already have an assistant or you’re thinking about hiring one, please take time to read our article on “The Rules of Engagement” in this issue, which highlights the activities that unlicensed assistants may and may not provide under the Council Rules. You’ll find important advice on making sure that your unlicensed assistant is only providing services that do not require licensing, how licensed and unlicensed assistants may be paid, and how to represent unlicensed assistants in team advertising.

If you are (or someone you know is) a respected professional with a broad range of knowledge and experience in the real estate sector, I encourage you to take a few minutes to review the nomination information in this newsletter. The districts in which elections will be running and the role and responsibilities of Council members are outlined here.

The Council election will be taking place on May 13, 2015, and in April ballots will be distributed to licensees in those districts where elections are being held. Please remember to exercise your right to vote for your representative on Council.

Last but not least, be sure to check out the new “You Asked Us” feature making its debut in this issue of the Report from Council. In each upcoming issue of the newsletter we’ll be highlighting one of the frequently asked questions received by the Council. In this issue, we’re focusing on what trading services or strata management licensees should do when a client asks them to take care of a property for them.

On behalf of Council members and staff, I wish you a happy and prosperous 2015.

Susan McGougan, Chair

The Council office will be closed on

• Friday, April 3, 2015 (Good Friday)
• Monday, April 6, 2015 (Easter Monday)

New individual licensing application and renewal forms are now in effect and must be used for all individual licensing purposes. Older versions of the forms will no longer be accepted.

Licensees who submit an older version of these forms will be asked to re-submit their application using the current forms-resulting in delays in licence processing.

You can avoid these delays by making sure you use the new forms, available online.

Questions? Contact the Licensing Department at 604-683-9664, toll free 1-877-683-9664 or email licensing@recbc.ca.

Examination Re-Writes

Re-qualifying candidates who fail an exam must wait a minimum of 90 days before again attempting the examination. The second attempt at writing the exam must be within two years of the first attempt. Should the candidate fail an exam twice in succession, the candidate must retake and successfully complete the applicable licensing/supplemental course before again attempting the examination.

Rental/Strata management licensees wishing to become licensed to perform trading services

Current rental/strata licensees who wish to add trading services to either a representative or broker level licence must successfully complete the Real Estate Trading Services Supplemental Course and Examination. In addition, completion of either the Residential or the Commercial Trading Services Applied Practice Course is required. Learn more about the requirements.

Challenging the Exam

Individuals eligible to challenge the Real Estate Trading Services Licensing Examination are required to complete an abridged version of the Residential or Commercial Trading Services Applied Practice Course. This abridged version consists of Component 1 and Component 3, the online modules of the revised course.

Brokers Re-qualification Date Policy

Managing or associate brokers who surrender their licence after January 1, 2015 and exceed their Education Re-qualification Date will be required to pass both the Broker’s Business Planning and Financial Management Licensing Examination and the applicable service category licensing examination in order to requalify for licensing.

As of January 1, 2015, individuals renewing their licences must confirm on their renewal application that they have fulfilled their Relicensing Education Program (REP) requirements by completing a Legal Update Course.

Make sure you complete a Legal Update Course before you submit your licence renewal application. Already, the Council’s Licensing Department has identified instances of false statements on applications: applicants who attested that their REP requirement was completed, when in fact they did not complete a Legal Update Course until after the renewal application was submitted to the Council.

Don’t risk making a false statement on your licence renewal application: complete a Legal Update Course, and then submit your renewal. Find out more about REP requirements.

Managing brokers — before signing a licensee’s renewal application, take a moment to confirm that the licensee has completed their REP requirement. You may wish to put processes in place that require REP proof to be attached to the renewal application before you’ll sign it. Submitting a false application may have consequences for both managing brokers and licensees.

In March, 2013, the Council established an 18 month phase-in period for the management of strata corporations with sections. This phased approach gave strata management licensees and brokerages the opportunity to familiarize themselves with requirements under the Real Estate Services Act and the Council Rules relating to the operation of sections.

On December 31, 2014, that phase-in period came to an end. As of January 1, 2015, brokerages and licensees providing strata management services relating to sections are expected to have their business processes in compliance with the legislated requirements.

To help strata management licensees understand the requirements, and to give them the knowledge and tools to comply, the Council has developed a number of resources, now available on our website:

• a Special Report from Council newsletter
• educational seminars including videos and PowerPoints

If you have questions about any aspects of managing strata corporations with sections, email your enquiry to sections@recbc.ca.

The British Columbia Real Estate Association (BCREA) has developed a toolkit for managing brokers that gives them the information they need about the changes to the new Residential Trading Services Applied Course launched in January.

The resources in the toolkit and the accompanying recorded webinar will assist managing brokers in understanding the new format of the course, its content, and the ways that new licensees can be supported as they progress through the new Applied Practice Course.

Visit the BCREA’s website to download the Managing Broker Toolkit and watch a video overview of the toolkit materials.

February 2015

TO: ALL REAL ESTATE LICENSEES

RE: NOTICE OF ELECTION-REAL ESTATE COUNCIL MEMBER NOMINATIONS

The term of office for the following Council members expires on June 30, 2015. The Real Estate Council of BC is seeking nominations from licensees wishing to stand for election in these Districts.

Managing Broker/Associate Broker Members

• In District #1 (County of Vancouver), the term of Richard Valouche expires.
• In District #2 (County of Victoria), the term of R.E. Michael Ziegler expires.
• In District #6 (County of Yale), the term of Joseph Pearson expires.
• In District #7 (Combined Counties of Kootenay, Cariboo and Prince Rupert), the term of Susan Lynch expires.

Representative Members

• In District #1 (County of Vancouver), the term of Abdul Ghouri expires.
• In Districts #4 & #5 (Counties of Westminster, North and South of the Fraser River), the term of Marylou Leslie expires.

Rental/Strata Management Member

• The term of J. Garth Cambrey expires.

There will be no election for a managing broker/associate broker member in District #3 (County of Nanaimo), District #4 (County of Westminster North of the Fraser River), or District #5 (County of Westminster South of the Fraser River). There will be no election for a representative member in Districts #2, #3, #6 and #7 (Combined Counties of Victoria, Nanaimo, Yale, Kootenay, Cariboo & Prince Rupert).

About the Council

The Council is comprised of 16 members. Three are public members appointed by the provincial government. The remaining 13 are members elected by their peers for two-year terms. Nine of the elected members are managing brokers or associate brokers, three are representatives, and one is the rental property management/strata management member. Half of the members are elected each year, to ensure continuity on the Council. All eight counties in the province are represented on the Council.

Nomination and Election Process

Licensees who wish to become candidates for election in their District must use the nomination form included in this issue of the Report from Council.

When nominating a candidate for election, remember:

• You must be licensed at the managing broker or associate broker level to nominate brokers.
• You must be licensed at the representative level to nominate representatives.
• You must be licensed to provide rental property management services and/or strata management services to nominate a rental property/strata management candidate.
• Candidates nominated for election in a District must be licensed at a location in that District.

Please return completed nomination forms to the Council office as soon as possible. Nominations must be received at the Council office not later than 4:30 p.m. on Monday, March 30, 2015.

In mid-April, voting papers, including a biographical summary of each candidate, will be mailed to all licensees in districts where elections are being held. All completed ballots must be received at the Council office not later than Tuesday, May 12, 2015. The ballots will be counted on Wednesday, May 13, 2015.

Please see over the page for detailed information on the roles and responsibilities of Council members.

Yours truly,

Robert O. Fawcett

Executive Officer

Consumer Protection BC to Take on Enhanced Licensing Role

In the fall of 2014, the Government of BC announced plans to improve home inspector licensing requirements by creating a common professional standard for home inspectors. The new standard, which will be in place by the end of 2015, will ensure homebuyers benefit from a more consistent approach to home inspections.

Currently, home inspectors are licensed by Consumer Protection BC, which approves four groups-all with different standards-to assess inspectors’ qualifications. As a result, it can be difficult for consumers to know the qualifications and competency of their home inspector, what is covered in an inspection, how to choose a home inspector, and who to take complaints to and how complaints will be addressed.

The new home inspector licensing requirements are expected to improve inspection consistency, consumer certainty, and industry transparency. Consumer Protection BC will take a larger role in licensing home inspectors by:

• setting new education and training requirements;
• establishing standard testing and evaluation;
• implementing provincial inspection standards and a common code of ethics; and
• taking on an expanded compliance and enforcement role.

This new approach follows consultations with both consumers and industry stakeholders. According to a survey conducted by Consumer Protection BC as part of the consultations, 62% of consumers choose a home inspector with the help of a real estate licensee. Almost one third of the respondents to the Consumer Protection BC survey indicated they were very satisfied with their home inspection, and 58% agreed that it provided peace of mind about their purchase. However, nearly two thirds of the survey participants felt that higher minimum standards for inspections would better serve consumers.

Currently, only two provinces in Canada regulate home inspectors: BC and Alberta. In BC, there are approximately 440 licensed home inspectors.

• For Further Information

  Find a licensed home inspector:

  www.consumerprotectionbc.ca/consumers-home-inspections/confirm-an-inspectors-license

  Consumer Protection BC:

  www.homeinspectionrightsbc.ca

  Results of Public Consultation:

  www2.gov.bc.ca/local/haveyoursay/Docs/home_inspector_licensing_consult_report.pdf

The Council’s website features a number of handy FAQs that can help you to find quick answers when situations arise that you’re not sure how to handle. In upcoming issues of the Report from Council, we’ll be highlighting some of those questions and answers.

In this month’s issue, our question focuses on the dilemma that licensees may encounter when they’re asked to “help out” a client by taking care of a property for them.

Q: A client has just purchased a property and has asked me to assist her in obtaining a tenant, collecting rent, and generally ‘keeping an eye’ on the property while they’re out of town. Am I able to do this?

A: Collecting rents is an activity that requires a license to provide rental property management services. So if you are only licensed to provide trading services and/or strata management services, you cannot provide rental property management services to your client.

If you are licensed to provide rental property management services, these services must be provided in the name of and on behalf of your related brokerage. You may not provide these services “on the side.” You’ll need to have a rental property management service agreement signed between the brokerage and the client, and if you’ll be collecting rent, the trust accounting requirements of the Real Estate Services Act apply.

See more Frequently Asked Questions for Real Estate Licensees.

Strata corporations, owners and tenants looking for an affordable, efficient way to settle disagreements will soon have new tools at their disposal. The Civil Resolution Tribunal (CRT), Canada’s first online tribunal, is scheduled to launch in 2015.

While the Strata Property Act provides a number of mechanisms to resolve disputes, up to and including the Supreme Court for the most serious matters, strata owners were asking for better-and faster-methods of dispute resolution. In response, the government introduced the Civil Resolution Tribunal Act in 2012, offering the CRT as an alternative to court. Work on the Tribunal has been ongoing since that time.

Designed to help people identify, prevent and manage strata-related issues before they develop into larger disputes, the CRT will encourage people to use collaborative dispute resolution tools to address strata disputes such as

• non-payment of monthly strata fees or fines,
• unfair actions by the strata corporation or by people owning more than half of the strata lots in a complex,
• unfair, arbitrary or non-enforcement of strata bylaws (such as noise, pets, parking, rentals),
• issues of financial responsibility for repairs and the choice of bids for services,
• irregularities in the conduct of meetings, voting, minutes or other matters,
• interpretation of the legislation, regulations or bylaws, and
• issues regarding common property.

Starting in 2015, users of the CRT will have 24/7 access to a variety of easy-to-use online tools and information to help resolve strata and small claims disputes. Fees for use of the CRT’s tools will be about the same as Small Claims Court, but will be in stages so that parties who settle their disputes at the facilitation stage will pay less than those who go through to adjudication.

The CRT will provide users with a multistage dispute resolution process: if the parties cannot resolve their disagreement using the CRT’s online tools, the Tribunal will provide negotiation and case management services and attempt to facilitate a resolution. Finally, if the parties are unable to come to a negotiated agreement, the Tribunal can resolve the dispute by adjudication. Tribunal members will be strata property and law experts, drawn from around the province.

While the CRT will be able to handle many strata disputes, matters that affect land or that deal with significant issues in a strata complex, such as allegations of conflict of interest, will be outside of the CRT’s mandate.

• For Further Information

  The CRT’s website is now available and offers extensive information about the tribunal process and plans:

  www.civilresolutionbc.ca

Since the December 2014 Report from Council newsletter, the following actions have been taken as a result of disciplinary hearings and Consent Orders conducted by the Council.

Trading Services

• Charles Robindra Bilash
• Pierre (Peter) Daniel Carleton
• Eric Guido Putoto
• Ann-Christine Sonnenberg

Rental Property Management

• Brian Albert Paetkau
• Jing (Jane) Yao

Strata Management Services

• Raymond John Keen
• Stephan Douglas Starling
• Leila Margaret Duncan and Populace Holding Ltd. dba Willow Point Realty
• Joseph (Joe) Timothy Hackett and Teamwork Property Management Ltd.
• Arthur Derwyn Owen and Ocean Bay Management Ltd.
• Richard Spencer Dickson and Boon-Teik Sim

Notice of Permanent Surrender of Licence

• Russell (Russ) Guy Crouse

In addition to the Report from Council and the Professional Standards Manual, did you know that the Council also publishes the following publications on its website?

• Working with a Strata Management Company Guide
• Brokerage Standards Manual
• Selling a Home in BC Guide
• Buying a Home in BC Guide
• Complaint and Discipline Procedures Guide

Be sure to promote these information guides with clients, colleagues and prospective employees.

Changes to section 5-11 [Disclosure of remuneration] of the Council Rules took effect January 1, 2015. Repetition of the words “to a client” in section 5-11 as printed in the October 2014 Report from Council newsletter has been amended.

The October Report from Council is available on the Council’s website at www.recbc.ca.

Use the Licensee Search feature on the Council’s website when you need to confirm that an individual holds a BC real estate licence. It’s a handy feature for both consumers and licensees, provided by the Council as a public service.