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.

June 2016 Report from Council Newsletter

June 2016 Report from Council Newsletter

Report from Council
Published on
squircle icon

Select the section you’d like to navigate to.

  • On May 16, 2016, new regulations relating to the assignment of real estate contracts came into effect in BC. All licensees providing trading services need to be aware of these new regulations and understand how to comply with the requirements.

    The provincial government introduced the amendments to the Real Estate Services Regulation to help real estate consumers make informed decisions about contract assignments before accepting an offer on their property. The new requirements will apply in transactions where a licensee is acting for a seller and/or a prospective buyer.

    The amendments to the Regulation provide that a licensee preparing a proposed contract for the purchase and sale of real estate must include the following terms (the “Standard Assignment Terms”) unless otherwise instructed in writing by the person to whom they are providing trading services:

    1. this contract must not be assigned without the written consent of the seller; and
    2. the seller is entitled to any profit resulting from an assignment of the contract by the buyer or any subsequent assignee.

    The British Columbia Real Estate Association has developed a revised version of the standard Contract of Purchase of Sale that includes the Standard Assignment Terms. The new Contract of Purchase and Sale is available for licensees on WEBForms™.

    The amendments further provide that licensees must take certain steps if they are involved in a potential real estate transaction where an offer to be presented to the seller does not include the Standard Assignment Terms.

    When offers to sellers do not include one or both of the Standard Assignment Terms, or the terms are altered, or new assignment terms are created, sellers must be notified, using the Council’s Notice to Seller Regarding Assignment Terms form. This form is now available on the Council’s Forms page under the subheading “Disclosure Forms”. The form must be provided to sellers or to the sellers’ licensee at the same time the offer is presented.

    Online Resources

    To help consumers understand the effects of the new regulations, and to assist licensees to comply with their legislated requirements, the Council has developed a number of online resources:

    Further Consumer Protection Measures Expected

    The new contract assignment regulations announced by the provincial government are intended to strengthen the requirement under the Real Estate Services Act that licensees act only in the best interests of their clients. The BC government took action to regulate contract assignments in March 2016, following reports in the media that some real estate licensees were not acting in their clients’ best interests in relation to assignments.

    The Council has also taken action by initiating an Independent Advisory Group to develop wide-ranging recommendations on measures to strengthen the enforcement of conduct requirements for real estate licensees and increase consumer protection. We look forward to receiving the final recommendations from that group in late June and to implementing further new measures to enhance consumer protection.

    Changes to Council Rules

    On May 18, the Council notified all licensees of a proposed change to the Council Rules relating to the new regulation. Following a month-long consultation period, the Council approved the rule change at its meeting of June 20, 2016. The amendments to the rule will take effect July 1, 2016.

    Change to Council Rules

    SectionDescription
    General records
    8-4     (1) A brokerage must retain the following records:
    (1) written disclosures under Division 2 [Disclosures] of Part 5 [Relationships with Principals and Parties] or Part 9 [Licensee Exemptions] of these rules and any related acknowledgments;
    (2) written service agreements and any other records that establish the scope of authority of the brokerage respecting the provision of real estate services to a client;
    (3) annual financial reports under section 7-7 [annual financial statements] of these rules.;
    (4) notices under section 8.2 of the regulation.    		The amendment (indicated in red) makes it mandatory for brokerages to keep copies of the Notice to Seller Regarding Assignment Terms form. Brokerages must retain the forms so that Council auditors conducting inspections of brokerages as part of the Office and Records Inspection program can confirm whether licensees and brokerages are complying with new section 8.2 of the Real Estate Services Regulation.This amendment automatically creates a requirement under section 3-2 (1) of the Council Rules for licensees to promptly provide the original or a copy of the Notice to Seller Regarding Assignment Terms form to their managing broker.

  • As I approach the end of my term as Council Chair, I have to say, “What a year!” The real estate sector in BC is in a period of unprecedented growth, and public attention has been focused as never before on the actions of real estate licensees and on the role of the regulator. As a result, the real estate industry and the Real Estate Council of BC have before them an extraordinary opportunity: the chance to introduce changes to our professional practices and rules of conduct that will strengthen protections for real estate consumers and build public confidence in real estate professionals.

    In February of this year, the Council initiated the creation of an Independent Advisory Group to review the conduct requirements in place for BC’s licensed real estate professionals, and to examine whether those requirements are adequate and effectively enforced. Their report is due at the end of June, and I anticipate that its recommendations will bring increased strength to the regulation of real estate in this province.

    As the advisory group conducts its work, the Council has continued to enforce regulations and standards to the fullest extent of its mandate under the Real Estate Services Act. In April the Council took unprecedented action by issuing a wide range of licence conditions against Vancouver- area brokerage New Coast Realty, in order to ensure that consumer protections were in place while the Council investigates allegations of misconduct.

    In May, the provincial government announced new regulations to protect home sellers by injecting transparency around contract assignments into real estate transactions. As a result, the Council has introduced changes to the Council Rules, and we have developed a number of educational resources to assist licensees in understanding and complying with the new requirements.

    We anticipate that further changes will be coming as a result of the Independent Advisory Group’s recommendations. And we welcome change. The Council continuously strives to improve and to increase its effectiveness at protecting the public interest, engaging with consumers and licensees, and fulfilling its mandate to enforce the Real Estate Services Act. I move on with full confidence that the Council will continue to advance real estate regulation in this province.

    I would like to extend my thanks to the following people and organizations for their assistance and cooperation during these extraordinary times:

    • Superintendent of Real Estate Carolyn Rogers, for her exceptional leadership in taking on the task of chairing the Independent Advisory Group.
    • The members of the Independent Advisory Group, all experts and leaders from diverse fields who have given a great deal of their time and energy to reviewing the regulatory framework and conduct requirements for real estate licensees.
    • David Moore, Director and Kevin Arndt, Associate Director, Licensing Education at the Real Estate Division, Sauder School of Business, University of British Columbia.
    • The many volunteers who serve on the Council’s Advisory Groups and Committees.
    • Council Vice-Chair Susan Lynch, and the Council members both past and present whom I have had the pleasure and the privilege to serve with.
    • The hardworking, committed staff of the Council. Thank you all!

    Marylou Leslie, Chair

  • The Council office will be closed on Friday, July 1, 2016 for Canada Day and Monday, August 1, 2016 for BC Day. 

  • On May 11, 2016, the election for members to the Real Estate Council of BC was held. The Council is pleased to announce that the following individuals will commence two-year terms as Council members on July 1, 2016.

    Newly Elected Council Members

    District #1 — County of Vancouver

    Managing Broker/Associate Broker Member

    Allyson Brooke

    Associate Broker, Macdonald Realty, Vancouver

    Licensed for 32 years.

    Districts #2, #3, #6 and #7 — Combined Counties of Victoria, Nanaimo, Yale, Kootenay, Cariboo & Prince Rupert

    Representative Member

    Wendy Moreton (elected by acclamation)

    Representative, Newport Realty Ltd., Victoria

    Licensed for 15 years.

    District #3 — County of Nanaimo

    Managing Broker/Associate Broker Member

    Jennifer Lynch

    Managing Broker, Royal LePage

    Nanaimo Realty, Gabriola

    Licensed for 21 years.

    District #5 — County of Westminster — South of the Fraser River

    Managing Broker/Associate Broker Member

    Gerry Martin (elected by acclamation)

    Managing Broker, B.C. Farm & Ranch Realty Corp., Abbotsford

    Licensed for 38 years.

    Re-Elected Council Members

    District #4 — County of Westminster — North of the Fraser River

    Managing Broker/Associate Broker Member

    Harvey Exner (elected by acclamation)

    Associate Broker, Macdonald Realty, Maple Ridge

    Licensed for 24 years.

    District #1 — County of Vancouver

    Managing Broker/Associate Broker Member

    David Peerless

    Managing Broker, Dexter Associates Realty, Vancouver

    Licensed for 36 years.

    Council Members with a Further Year to Serve

    District #1 — County of Vancouver

    Managing Broker/Associate Broker Member

    Calvin Lindberg

    Angell, Hasman & Associates Realty Ltd., West Vancouver

    Licensed for 27 years.

    District #1 — County of Vancouver

    Representative Member

    Christopher Brown

    Magnum Projects Ltd., Vancouver

    Licensed for 4 years.

    District #2 — County of Victoria

    Managing Broker/Associate Broker Member

    Dennis Fimrite

    Firm Management Corporation, Saanichton

    Licensed for 21 years.

    Districts #4 & #5 — Counties of Westminster (North and South of the Fraser River)

    Representative Member

    Marylou Leslie

    Macdonald Realty, Surrey

    Licensed for 26 years.

    District #7 — Combined Counties of Kootenay, Cariboo and Prince Rupert

    Managing Broker/Associate Broker Member

    Susan Lynch

    RE/MAX Centre City Realty, Prince George

    Licensed for 29 years.

    District #6 -County of Yale

    Managing Broker/Associate Broker Member

    Joseph Pearson

    RE/MAX Vernon, Vernon

    Licensed for 41 years.

    Government Appointed Public Members

    Elana Mignosa, Vancouver

    Colette Squires, Abbotsford

    Council Appointed Strata Owner Member

    John J. Nagy, Delta

    Retiring from Council

    District #3 — County of Nanaimo

    Managing Broker/Associate Broker Member

    Susan G. McGougan

    RE/MAX First Realty, Parksville

    Licensed for 25 years.

    District #2, #3, #6, #7 — Combined Counties of Victoria, Nanaimo, Yale, Kootenay, Cariboo & Prince Rupert

    Representative Member

    Subhadra Ghose

    RE/MAX of Nanaimo, Nanaimo

    Licensed for 25 years.

    District #5 — County of Westminster (South of the Fraser River)

    Managing/Associate Broker Member

    David Rishel

    RE/MAX Little Oak Realty, Abbotsford

    Licensed for 30 years.

    Government Appointed Public Member

    Barbara Barry of North Vancouver is retiring after 6 years of service as a government appointed public member.

  • Contract Assignment Resources

    On June 8 and 9, the Council’s Professional Standards Advisor Maureen Coleman presented an educational webinar for managing brokers on “Understanding BC’s New Contract Assignment Requirements.” A video of the presentation has now been added to the Council’s website, as a resource for licensees looking for information about the recent changes relating to contract assignments.

    Check out the webinar, along with these other helpful resources:

    Career Opportunity: Compliance Officers

    The Council is seeking to grow its compliance team with the addition of two new Compliance Officers. The Compliance Officers work closely with a multi-disciplinary team to conduct investigations of inquiries and complaints from the public, other real estate licensees and regulatory bodies, law enforcement agencies and other organizations.

    These are exciting roles for talented, highly professional and naturally curious individuals who are looking to take on a dynamic role in a growing and evolving organization committed to serving the public good.

    Find out more about the Compliance Officer career opportunities by visiting the Council’s website. Individuals interested in these positions should submit resumes and information to [email protected] and state the title of the position in the subject line of the e-mail.

    Career Opportunity: Professional Standards Advisor

    The real estate sector in BC is in a period of unprecedented growth and public attention. This has led to a significant increase in the number of practice and conduct related enquiries from consumers and industry members. With the goal of providing more proactive advice and education to licensees and the public, in January 2016 the Council created a Professional Standards Advisor position as the first point of contact for licensees and consumers. The Council is now looking to increase its advisory capacity through the addition of another Professional Standards Advisor.

    To explore this exciting opportunity further, visit the Council website for more information. For a full position description, submit a resume and information to [email protected] and state the title of the position in the subject line of your e-mail.

  • The Land Title and Survey Authority of British Columbia (LTSA) has introduced Parcel Activity Notifier, a new parcel monitoring service on myLTSA Enterprise.

    The new service alerts myLTSA customers when a legal notation, register correction or pending activity, such as a transfer of land, claim of builders lien, mortgage, judgment, or statutory right of way, affects a parcel of land they have chosen to monitor. Notifications are delivered to the customer’s myLTSA Inbox, and can be automatically forwarded to one or multiple email addresses by setting forwarding options. It is the responsibility of the customer to order documents or plans or search for the title to determine the final outcome of any pending activity or to seek further information on title.

    More information on the service is available at on the LTSA website: https://ltsa.ca/.

  • As announced in the 2016 Provincial Budget, effective June 10, 2016, citizenship information must be collected and reported when filing property transfer tax returns with the Land Title Office.

    The citizenship information that must be collected and reported depends on if the purchaser (transferee) is an individual, a corporation or if the transaction involves a bare trust.

    Individuals

    When you register a taxable transaction for transferees who are individuals, you will need to report whether they are Canadian citizens or permanent residents of Canada.

    If an individual is not a Canadian citizen or a permanent resident of Canada, the individual will need to disclose their foreign state or country of citizenship.

    Corporations

    When you register a taxable transaction for transferees who are corporations, you will need to report the following:

    • total number of directors,
    • total number of directors who are Canadian citizens or permanent residents, and
    • for any director who is not a Canadian citizen or permanent resident of Canada, you must report the director’s:
      • name,
      • address, and
      • foreign state or country of citizenship.

    The Ministry of Finance Property Transfer Tax (PTT) form (version 26) is in effect June 10, 2016.

    The updated form is available for download through the Land Title and Survey Authority of BC (LTSA) website.

  • It’s Your Responsibility to Ensure Accuracy and Completeness

    Our question this month comes from a managing broker who wonders what he can do to make sure that licence renewal applications for licensees at his brokerage are approved in a timely way.

    Q: What should I do, or what can I tell licensees at my brokerage to do, that will help to make sure licence renewal applications are processed smoothly?

    A: In 2016, the Council will review more than 10,000 licence renewal applications. That is in addition to new licence applications, applications for licence transfer, Personal Real Estate Corporation applications, Team Name requests, brokerage applications, and more. And in every case, licensees and brokerages are eager to have their applications processed quickly.

    The Council’s first priority is to thoroughly review all licence applications to ensure that the application information is complete and accurate. We strive to ensure that our licensing review processes are thorough, efficient and effective. When licence applications take longer than expected, it is often because of errors on the forms we receive, or because incomplete forms have been submitted.

    It is the joint responsibility of the licensee and the managing broker to ensure that all information on licensing application forms is true and complete. Incomplete applications can cause delay; false applications can have much more serious consequences, including licence suspension or cancellation.

    So as a managing broker, what can you do to ensure that applications from your brokerage don’t cause delay? Carefully review all applications before signing and certifying that you approve the application. Use the checklist below to make sure you haven’t overlooked any details.

    Licensing Checklist for Managing Brokers

    • Is it the right form? All Council licensing forms have been updated as of January 1, 2016. Ensure any printed versions of old forms are recycled, and visit our website to download the correct versions.
    • Is the information complete and correct? Before signing a licensee’s application, managing brokers must review all the information on the form. Have all the relevant sections been completed? If the licensee has a Personal Real Estate Corporation, have they submitted an application and payment for themselves and for the corporation? A Personal Real Estate Corporation application form is available from the Council’s website.
    • Is all required information attached? All licence renewals must include proof that the licensee has completed the Relicensing Education Program (REP) requirement. If that information is not included, the renewal cannot be processed. We recommend that managing brokers do not sign renewal forms unless proof of completion of a Legal Update course is attached. If a licensee has answered “Yes” to any questions in the “Information Respecting Reputation and Suitability” section of their application, they must attach additional information. If this information is not included, the application cannot be processed.
    • What about the Criminal Record Check? If an applicant has a criminal record, further screening may be required to determine if they are suitable for licensing. If you are speaking with individuals interested in entering the real estate industry, advise them that if they have a criminal record they should review the Good Reputation Guidelines and complete a Pre-Screening Application before taking the licensing course.
    • Is the Personal Real Estate Corporation applicant incorporated? If a licensee is submitting an application for a Personal Real Estate Corporation, has the licensee completed the incorporation process? Nearly 25% of applicants overlook this basic step before applying! Make sure your licensees have read and completed the steps outlined in Licensing a Personal Real Estate Corporation: A Four-Step Process before submitting their application.

  • Since the April 2016 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

    Rental Property Management

    Strata Management Services

    Notice of Permanent Surrender of License