Printed . This content is updated regularly, please refer back to https://bcfsa.ca to ensure that you are relying on the most up-to-date resources.

Report from Council Newsletter, January 2018

Report from Council Newsletter, January 2018

Report from Council
Published on
squircle icon

Select the section you’d like to navigate to.

Accordion items

  • In this issue of the Report from Council newsletter, you’ll notice one word used frequently: new. The new rules from the Superintendent of Real Estate concerning dual agency and disclosure requirements that will come into force on March 15, 2018 are the focus of much attention, but more is underway: new changes to the Legal Update course, new online resources, new disclosure forms, a new strategic plan soon to be released… the list goes on.

    You can expect to see the word new popping up a lot throughout 2018 and beyond, as the Council and the Superintendent of Real Estate continue our work to implement the recommendations of the Independent Advisory Group to increase protection for real estate consumers. I have confidence that these initiatives will not only make BC real estate consumers the best protected and informed consumers in Canada — they will also strengthen our real estate industry, increase the professionalism of licensees, and build awareness of the benefits of a well-regulated real estate industry.

    While the initiatives underway will bring positive change to the practice of real estate services, Council recognizes that adapting to new environments can be challenging. Each licensee bears the responsibility of becoming familiar with and applying these new requirements in practice. Each managing broker should ensure that they and the licensees they supervise do so. It is not good enough to say: “Can’t I put this off and learn it all on the next deal or by word of mouth?” Similarly, Council will be vigilant to protect consumers against any licensee who tries to circumvent the spirit and intent of the new rules.

    As the regulator of licensed real estate professionals, Council is committed to assisting everyone to understand licensees’ roles and obligations, including by making available education materials to licensees and informing consumers about the changes to conduct requirements that will come into force this March.

    Each week throughout the spring of 2018 you will find a brief enewsletter from Council in your inbox, alerting you to new resources we have added to our website to help you prepare for changes you will need to make to your business practices. Called the Real Advice enewsletter, it is just one of the ways we will be working to support the sector’s transition to the new rules.

    Between now and March, I encourage you to read the resources from the Council, talk with your managing broker, and consider how you adjust your business practices. And keep in mind that although the elimination of dual agency is a major change, the fundamental duties and responsibilities of agency in the real estate business remain the same: providing professional real estate services to help clients make the decisions that are right for them. By removing conflicts inherent in representing clients with opposing interests, that fundamental duty of loyalty is now clearer and stronger than ever.

    Best wishes for a happy, productive New Year, full of new challenges and opportunities.

  • The clock is ticking down to March 15th, 2018, when new consumer protection rules come into force that will significantly affect how the province’s 25,000 real estate professionals do business.

    The new rules are intended to foster a more professional and ethical real estate industry in BC, with better protection for consumers.

    The Real Estate Council of BC is fully committed to providing you with the information and resources you need to comply with your obligations as a licensee.

    Real Advice on Changes

    The Superintendent of Real Estate’s new rules will mean licensees must:

    • be more transparent with their seller clients about their remuneration — using a new mandatory Council form to disclose the remuneration they expect to receive;
    • use new required Council forms for consumers when informing them about the duties and responsibilities owed to clients and unrepresented parties;
    • no longer provide limited dual agency, except in extremely rare circumstances, and in such rare circumstances,
    • before providing limited dual agency, use a new required Council form for consumers explaining the risks of dual agency.

    Since the changes were announced in November, the Council has been working to develop the new mandatory disclosure forms that all licensees must use under the new rules, and to create educational tools and resources to support licensees to comply with the new requirements. And we’ve encouraged licensees to send us their questions, so that we can provide you with answers for the questions that are most important to you.

    Here are some of the most frequently asked questions we’ve received so far to our online question form:

    • How will the changes affect teams?
    • How will the changes affect small brokerages, and brokerages or licensees who serve specialty markets?
    • What does remote and under-served mean?
    • With dual agency prohibited, how should licensees treat former clients?

    Answers to these questions and more will be coming to your inbox in our weekly Real Advice e-newsletter. Make sure to check your inbox every week for new tips, answers to your questions, and brief videos and other resources to help you navigate the new Rules. If you miss one, you can find past week’s e-news in the News Bulletins section on our website.

    The Council is your only definitive source for accurate, reliable, and trustworthy information on how to comply with the new rules. Other information sources may not be correct.

    Watch it — Real Advice on screen

    In this brief video, Executive Officer Erin Seeley discusses the new rules, how they will help to enhance consumer protection, and the resources to look for from the Council in the weeks and months ahead.

    /licensee/new-consumer-protection-rules.html

  • New for 2018, we are pleased to unveil a revamped Legal Update course, the Council’s mandatory Relicensing Education Program (REP) course. With an increased emphasis on ethics, consumer protection, and regulatory compliance, the updated course will give you more of the important regulatory information you need in order to comply with your legislated requirements and provide professional service to clients.

    And you’ll access that information through a combination of online learning and in-class sessions that give you the best of both worlds. It’s a fresh approach to the required relicensing education, designed to give you an enhanced educational experience.

    The course content in 2018 focuses on:

    • consumer protection,
    • important regulatory updates,
    • ethics, and
    • best practices.

    Completing Legal Update ensures that you are up-to-date with key information, and that you have the skills and knowledge to provide a high standard of service.

    New in 2018: A Blend of Online and In-Class Learning

    Beginning in 2018, the Legal Update course will have two consecutive components:

    • a self-paced online component, and
    • a full-day classroom session.

    You’ll start the course by reviewing material online, answering quizzes and self-assessments as you go. The online component is completed at your own pace, over two weeks from the time of registration.

    Once you’ve completed the online component, you’ll participate in a day-long classroom session filled with discussion and activities. By engaging with the material ahead of time, everyone will be better-prepared to take part in discussions, making the day in the classroom more valuable for all learners.

    Be sure to give yourself enough time to complete both components of the course before your licence expiry date: the revised course will take a minimum of three weeks to complete. To help ensure every licensee is aware of the new requirements, you’ll see licence renewal notices from the Council arriving in your inbox earlier, and more frequently.

    Classroom sessions at board offices and through PAMA

    In many cases, trading services classroom sessions will continue to be offered at local board offices. The Professional Association of Managing Agents (PAMA) will continue to provide classroom sessions for rental and strata versions of the course.

    Instructors You Recognize and Respect

    The highly-qualified instructors who teach the classroom sessions have always been a big part of the Legal Update course’s effectiveness and success. The British Columbia Real Estate Association (BCREA) and PAMA, who administer Legal Update courses on the Council’s behalf, will work with the instructors to ensure they’re well-prepared to deliver the new course content and format.

    Transitioning to the New Course

    The Legal Update 2018 blended format course will be available beginning in late January 2018. The revised course will be phased in gradually over the next six months, giving licensees options for completing their relicensing requirements.

    If your licence will expire in the first six months of 2018, and you have not yet completed your REP requirement by taking a Legal Update course, you can choose to either:

    • Complete Legal Update 2017 online (rental, strata, or trading)

    OR

    • Complete Legal Update 2018 blended (rental, strata, or trading).

    Any licensee whose licence expires on or after July 1, 2018 must complete the Legal Update 2018 blended course in order to renew their licence.

    Course fees will be changing to reflect the enhancements that have been made to content and format, and we will have more information about these changes in upcoming issues of the Report from Council. Revenues from course fees will be directed towards further course enhancements to make sure that in the years to come, the Legal Update course continues to keep pace with changes in BC’s real estate sector and to provide a high standard of professional education.

  • On November 15, 2017, the Council held its first broadbased stakeholder engagement event, A Conversation About The Future of Real Estate Regulation in BC. Leaders and representatives from a variety of sectors joined Council members and staff of the RECBC in a morning of discussion and interaction. The event focused on finding the solutions to ensure that BC’s real estate consumers are protected, that real estate professionals have the skills and knowledge they need, and that the public can have confidence in the regulatory system.

    Participants joined interactive discussions throughout the morning designed to elicit their ideas and opinions on topics such as

    • the critical issues facing today’s real estate consumers and licensed real estate professionals
    • trends and patterns that may affect real estate consumers and professionals in the future
    • regulatory approaches that will enhance consumer protection and increase consumer confidence

    Feedback from our stakeholders on these and other topics will help shape the Council’s 2018-2021 strategic plan.

    What We Heard

    Among the main themes from feedback we received include:

    • an emphasis on increasing the Council’s communication with the industry and consumers,
    • a need for strengthened professional education,
    • a desire for more information to help licensees and consumers to understand the role of the Council and its disciplinary and governance processes, and
    • the key importance of providing support and resources for managing brokers, to help them in their role.

    Participants who completed a post-event evaluation survey indicated that:

    • 90% were satisfied or very satisfied with the event,
    • 91% felt that questions were relevant and brought up important points, and
    • 97% would attend another RECBC stakeholder engagement event.

    We are looking forward to future engagement events, to hear more from stakeholders about ways to continue the enhancement of public protection and the skills and professionalism of the real estate sector.

    Video Highlights

    Watch this quick highlights video to learn more about the event and the benefits of hearing from our stakeholders.

    More Info

    Learn more about current and past Stakeholder Engagement opportunities.

  • The Council is committed to enhancing consumer protection and building public confidence through transparency and openness. We’ve recently added to the information available online about our governance structure and processes, and opportunities for stakeholders to give us input.

    Committees and Advisory Groups

    Six Council committees help to carry out regulatory responsibilities, along with advisory groups that provide industry consultation. Find out more about the Committees and Advisory Groups.

    Staff Leadership

    The day-to-day management of the organization is the responsibility of the Executive Officer, supported by the management team. Learn more about our Staff Leadership.

    Stakeholder Engagement

    To ensure that we appropriately address the needs of our stakeholders, we gather feedback and listen to the views of our stakeholders about changes that may affect them. Learn more about our upcoming and recent Stakeholder Engagement opportunities.

    Questions

    If you have questions about the Council, please email info@recbc.ca.

    Updates to Contract Assignment Requirements

    Wondering whether the contract assignment regulation applies to development pre-sales — we’ve got the answer you’re looking for.

    Pre-sale condos & contract assignments

    We’ve now clarified the FAQs for consumers to explain that this type of sale is explicitly excluded from the contract assignment regulation introduced by government in May 2016. Click here to read the FAQ for consumers about contract assignments.

    Contract assignments and working with unrepresented parties

    A seller’s licensee who prepares an offer for an unrepresented buyer is providing trading services to that buyer. Likewise, a buyer’s licensee who presents an offer to an unrepresented seller is providing a trading service to that seller plus providing a trading service on behalf of the buyer.

    There are new obligations for licensees who are acting for either a buyer or seller and also dealing with unrepresented parties. Read more in our FAQ.

    Tell us what you think about licensing education

    Check your email inbox in the next few weeks for an invitation to participate in a brief online survey about licensing education requirements. How well prepared were you for professional practice after completing the required licensing education? Do you have ideas or opinions about how licensing education could be improved? Your feedback is important to the Council as we work to enhance the licensing education program.

    The survey will be conducted on behalf of the Council by Reichert and Associates, the consultants who have been engaged to conduct a review of licensing education requirements. We thank all licensees who participate. Questions about the licensing education review can be made to education@recbc.ca.

  • Q: I’ve heard that real estate licensees can be disciplined by the Council for matters that don’t involve real estate services. Is this true?

    A: It’s true that under the Real Estate Services Act the Council can discipline licensees for conduct that:

    • is contrary to the best interests of the public,
    • undermines public confidence in the real estate industry, or
    • brings the real estate industry into disrepute.

    This is known as “conduct unbecoming” and it is not limited to real estate services. It can also apply to conduct that occurs outside work. The scope of what constitutes unbecoming conduct is very broad and it can capture a wide range of activities.

    Maintaining Public Trust

    As a licensed real estate professional, you are responsible for providing a high standard of real estate services to consumers. Your actions and behaviour on the job and off impact how the public view real estate licensees and their confidence in the real estate industry. When a licensee’s actions threaten the public’s interest or damages the public’s confidence in the real estate industry as a whole, the Council is justified in making a finding of conduct unbecoming.

    Demonstrating Professionalism

    Real estate licensees are considered “trusted advisors with special expertise.” That means demonstrating your professionalism and trustworthiness through:

    • A strong knowledge of real estate services
    • Working in the best interests of your client
    • Avoiding conflicts of interest
    • Practicing ethically, with the public interest in mind
    • Conducting yourself in an honest and ethical manner in all aspects of your life

    Licensees should strive to maintain the public’s trust by being aware and accountable for their behaviour both in and outside the workplace. Think carefully before acting in a way that may affect your personal and professional image.

  • Since the November 2017 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 (Sales)

    Rental Property Management Services

    • Olive (O.J.) Jeanette Gorringe, Representative, O.J. Realty & Property Management Inc., and Ann Lorenz, Representative, O.J Realty & Property Management Inc.