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Report from Council Newsletter, October 2005
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Effective January 1, 2006, those who provide strata management services will require licensing under the Real Estate Services Act. A few noted exceptions to the licensing requirement include self managed strata corporations and caretakers.
The Real Estate Services Act defines “strata management services” as
“any of the following services provided to or on behalf of a strata corporation:
- collecting or holding strata fees, contributions, levies or other amounts levied by, or due to, the strata corporation under the Strata Property Act;
- exercising delegated powers and duties of a strata corporation or strata council, including
- making payments to third parties on behalf of the strata corporation,
- negotiating or entering into contracts on behalf of the strata corporation, or
- supervising employees or contractors hired or engaged by the strata corporation.”
If your brokerage is providing strata management services, or intends to do so, the brokerage, managing broker, and all licensees who are to provide those services must take the necessary steps to meet the licensing criteria and comply by the January 1, 2006 deadline. The qualifications for licensing and whether or not a strata manager is “grandparented” vary depending upon individual circumstances. There are educational requirements that must be met as part of the licensing of strata managers and temporary licences will be issued subject to applicants meeting those requirements.
At its meeting on September 20, 2005, the Council decided not to grant any exemptions from the requirement to pass an examination, whether it is the full strata management licensing examination for those who have never been licensed, or a supplemental strata management examination for those who are currently licensed. The Council strongly believes that, on balance, this policy is essential for consumer protection purposes, and to maintain public confidence in both the licensing process and the strata management industry. This decision was re-affirmed at the Council’s meeting on October 18, 2005.
Council Rules have been approved by the Minister of Finance and include specific requirements for strata management agreements, trust accounts, and the maintenance of records. These Rules are an important component for licensee conduct.
The 4th Special Report to Licensees circulated to all licensees in July detailed many of the licensing requirements for strata management service providers. This Report, the Council Rules, and a number of other documents related to these new requirements are posted on the Council’s website www.recbc.ca.
Once you have reviewed this information, should you have any questions please do not hesitate to contact the Council office at 604- 683-9664, or toll free at 877-683-9664.
This Report contains important information about the licensing of strata managers. As the January 1, 2006 licensing deadline is fast approaching, any licensee who is engaged in strata management (whether residential or commercial) must make application to the Council to have their licence amended and complete the required educational qualifications. As noted on page 1, the Council has decided not to grant any exemptions from the Strata Management Licensing Course examinations. This month, you will note in the Disciplinary Decisions section that a licensee was suspended for acting in a conflict of interest situation with their client. As well, two licensees were suspended for failing to properly handle trust funds. I cannot stress too strongly the importance of licensees ensuring that they always operate in the best interests of their clients and ensure that trust funds are dealt with in accordance with the Real Estate Services Act. I urge licensees to familiarize themselves with the Act, Regulations and Rules. Reviewing these items will help you to better serve your clients and do the right thing. Finally, on page 8 of this Report, licensees will find a copy of the Council’s Discipline Policy Statement #1: Publication of Disciplinary Orders. While the majority of this policy has been in effect for some time, the official Policy Statement was formally adopted by the Council at its October 18, 2005 meeting and takes effect November 1, 2005.
On behalf of Council, Dougal Shewan, Chair
As a result of the new terminology contained in the Real Estate Services Act, a number of licensees have contacted the Council with respect to the correct terminology to utilize on business cards and other promotional materials. If licensees choose to utilize a descriptor indicating their licence level in advertising, it is permissible to use the actual category of licence such as “representative”, “associate broker” or “managing broker”. It is also permissible to use alternate versions such as “sales representative” or “leasing representative”.
The Report from Council newsletter often contains critical information that brokerage office staff (eg. administrators and conveyancers) need to know in order that the brokerage can comply with the Real Estate Services Act. In this regard, the Council reminds managing brokers to ensure that copies of the newsletter are made available for their unlicensed office staff in order that they may receive this information in a timely manner.
In accordance with section 6.1 of the Real Estate Services Regulations, the Real Estate Council of British Columbia hereby gives notice of a proposed amendment to section 7-9(6) of the Council Rules. The Council proposes to amend this section to allow for withdrawals from contingency reserve fund/special levy brokerage trust accounts when authorized by two or more signatories from a prescribed list, including a related managing broker. The proposed Rule amendment may be found on the Council’s website at www.recbc.ca.
As a result of a number of complaints to the Council and what appeared to be differences within the industry, the Council has adopted a new standard for measuring floor area and finished area of properties. Originally developed by the American National Standards Institute (ANSI), the standards serve to ensure that licensees accurately record measurements, including basement areas. The newly approved standards are consistent with the current practice of area measurements within the industry. In the interests of consistency, the Council encourages all licensees to utilize these standards.
Floor Area:
The ANSI standards base floor area calculations on the exterior dimensions of the building at each floor level, and include all interior walls and voids. For attached units, the outside dimension is the centerline of the common walls. Internal room dimensions aren’t used in this system of measuring.
Finished Area:
The ANSI standards define “finished area” as “an enclosed area in a house suitable for year-round use, embodying walls, floors, and ceilings that are similar to the rest of the house.” Measurements must be taken to the nearest inch or tenth of a foot, and floor area must be reported to the nearest square foot. Garages are specifically excluded.
Generally, when indicating room sizes, all bedrooms, the living room, dining room, kitchen, eating area, family room, den and special-use rooms (such as the laundry room, finished and heated workshop, playrooms, etc.) must be measured. Bathrooms, hallways, foyers and stairways are not usually measured unless they represent special features of the house or are of a significant size.
Some interior dimensions may be of particular importance to certain buyers who have specific furniture which must fit comfortably within the confines of a room. In these instances, the buyer’s agent should, for certainty, independently undertake to verify the measurements provided by the listing agent.
Licensees with questions may contact the Council at 604-683- 9664, toll-free 1-877-683-9664 or email [email protected].
Mahasen Amirali Gulamhussein Premji, while licensed with All Points Group Ltd. dba Re/Max All Points Realty, requested the Real Estate Council of British Columbia to discontinue disciplinary proceedings against her as she has decided to permanently retire from real estate practice. Ms. Premji was facing a disciplinary hearing into her professional conduct and would have been required to appear before a hearing panel of the Real Estate Council to respond to certain allegations. Considering the fact that there is likely no greater disciplinary penalty than not being licensed to act again, the Real Estate Council agreed with Ms. Premji’s request. The lifetime ban on Ms. Premji’s licensing under the Real Estate Services Act is effective as of September 19, 2005.
Anwer Lalani, while licensed with Sutton Centre Realty Ltd. dba Sutton Centre Realty, requested the Real Estate Council of British Columbia to discontinue disciplinary proceedings against him as he has decided to permanently retire from real estate practice. Mr. Lalani was facing a disciplinary hearing into his professional conduct and would have been required to appear before a hearing panel of the Real Estate Council to respond to certain allegations. Considering the fact that there is likely no greater disciplinary penalty than not being licensed to act again, the Real Estate Council agreed with Mr. Lalani’s request. The lifetime ban on Mr. Lalani’s licensing under the Real Estate Services Act is effective as of August 2, 2005.