Managing Broker Corner
News and information to support the important role of managing brokers.
Webinars for managing brokers in 2019
Coming in 2019: the Professional Matters series of webinars for managing brokers. Each monthly webinar gives managing brokers an opportunity to familiarize themselves with regulatory requirements and best practices on a particular topic, to help ensure they maintain the expertise and awareness that real estate licensees rely upon.
It’s all part of RECBC’s commitment to supporting managing brokers in fulfilling their important role in training and supervising their licensees, providing competent services to consumers, and upholding standards of ethical behaviour.
Each webinar features a presentation by RECBC staff or an invited expert, followed by a question and answer period. A recording of each webinar will be made available through RECBC’s Licensee Knowledge Base following the initial presentation.
We get started in January by focusing on the impacts of cannabis legalization: there will be two offerings of this webinar, for residential trading services and rental practitioners, and for commercial practitioners. Note: both webinars address aspects relevant to strata management.
January: Impacts of Cannabis Legalization on Real Estate Practice
Do you have concerns about what the legalization of cannabis may mean for residential or commercial transactions? Looking for clarity on questions such as the difference between illegal grow-ups and legal home cultivation of plants? Questions about issues that may affect rental or strata properties?
Register for a Professional Matters webinar for managing brokers on January 17, 2019 to learn more about how the recent legalization of cannabis will impact the practices of BC real estate professionals.
RECBC Professional Standards Advisor Marty Douglas will be joined by lawyers Neil Davie and Herman Li of Norton Rose Fulbright for an engaging and informative discussion about the impacts of legalization on residential, commercial, and rental property real estate practices.
Learn more about the Professional Matters webinars for managing brokers on the Licensee Knowledge Base.
Professional Standards Manual Update – Disclosure of Illegal Activities
Content in the Professional Standards Manual has been amended to reflect the legalization of cannabis. Disclosures of Illegal Activities clauses for non-strata properties and strata properties have been revised to clarify language in light of the changes to the law.
If real estate has been used for the illegal production of substances, such as illegal cannabis growth operations or as a methamphetamine laboratory, and the property has not been properly restored, a material latent defect may exist in the form of toxic hazards or structural damage that cannot be discovered on a reasonable examination of the property.
If no disclosure has been made by the seller in this regard, RECBC recommends that licensees acting for buyers encourage including one of the following clauses in the contract of purchase and sale to confirm that the property has not been used to grow or manufacture illegal substances:
- No Illegal Growth of Substances, or Growth or Manufacture of Illegal Substances Clause (for use with non-strata properties)
- No Illegal Growth of Substances, or Growth or Manufacture of Illegal Substances Clause (for use with strata lots)
If, however, the property has been used to grow cannabis or manufacture illegal substances, and the buyer is prepared to accept the condition of the property on an “as is” basis, RECBC recommends that
a) written disclosure of the property use be made to the buyer in a form separate from the Contract of Purchase and Sale; and
b) on of the following clauses be included in the Contract:
- Illegal Growth of Substances, or Growth or Manufacture of Illegal Substances Clause (for use with non-strata properties)
- Illegal Growth of Substances, or Growth or Manufacture of Illegal Substances Clause (for use with strata lots)
Licensees should also be aware that many financial institutions have lending restrictions they may apply to properties that have been used for illegal cannabis growth operations or the manufacture of illegal substances.
Licensees should also be aware that home warranty insurance may be void if it is found that illegal activity has occurred in the premises. The Homeowner Protection Act provides for certain permitted exclusions from warranty coverage due to, among other items, non-residential use, illegal activity (including illegal cannabis growth operations) and failure to properly maintain the premises. Under some home warranty programs, current or subsequent owners may be impacted by exclusions from warranty coverage that are permitted by the Homeowner Protection Act and thus could void warranty insurance.
For more information see Disclosure of Illegal Activities in the Professional Standards Manual.
Staying Current by Completing the Rules Changes Course
We’re delighted to hear that after completing the Rules Changes: Agency and Disclosure course, many licensees report that along with information about the agency and disclosure requirements in effect since June, the course also provided them with a useful refresher on the fundamentals of agency relationships. Completing Rules Changes: Agency and Disclosure is now part of the mandatory relicensing requirements for all trading services and rental property management licensees.
While this means that everyone with a trading services or rental property management licence must complete the course before applying to renew their licence, don’t wait until your licence is due to expire to register!
We strongly recommend that everyone complete the course as soon as possible — and it is particularly important for managing brokers, who have a responsibility for supervising the activities of licensees at their brokerage. Make sure you have a thorough understanding of the new requirements, by completing the Rules Changes course. It is an online course that you complete at your own pace over three days. Most licensees find that it takes 4-5 hours to complete the course.
Over the next several weeks, managing brokers who haven’t yet completed the course will be receiving a series of email reminders from RECBC, encouraging them to sign up.
Learn more about Rules Changes: Agency and Disclosure, including how to register, on the RECBC website.