Use Your Name Wisely (#550) - British Columbia Real Estate Association - BCREA | Canada News Media
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Use Your Name Wisely (#550) – British Columbia Real Estate Association – BCREA

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Working in any profession with friends is fun and working in real estate is no exception. It is a business of mentorship, networking and relationship-building where these relationships can turn into tangible benefits in the form of referrals and other business opportunities. However, while the instincts to collaborate and reward your network are well-intentioned, there are limits to how far a REALTOR® should go to help a colleague. A recent BC Financial Services Authority (“BCFSA”) discipline matter highlights that if any party breaches these limits, it may mean consequences for the person who benefited from the assistance and the person who gave it.

In the recent case In the matter of Jaspreet Kaur Gill, BCFSA was addressing events that occurred in 2014. Ms. Gill was first licensed in June 2013, so the conduct occurred while she was new to the profession. In September 2014, another real estate professional obtained an exclusive listing for a property in Williams Lake. That licensee ultimately represented the buyer of that property. Despite not having provided any real estate services to any party, nor having even met any party to the transaction, the brokerage deal sheet listed Ms. Gill as having acted for the seller and having earned an $18,000 listing commission.

Further, the real estate professional completed a record of referral fees indicating that Ms. Gill and the brokerage had received a $45,666 referral fee. That was incorrect; rather, the brokerage had paid the real estate professional a referral fee. Ms. Gill said that the real estate professional told her he would name her individually on the referral record but the referral fee would be paid to someone else. She did not object.

In a second incident in and around November 2014, the same real estate professional entered into a client relationship with two individuals (directors of a corporate property owner). The individual identification information record listed the real estate professional and Ms. Gill as sales representatives. The clients then agreed to trade that property for another rental property. The Contract of Purchase and Sale documenting the trade listed the real estate professional and Ms. Gill as agents for the seller and the buyers as being unrepresented. Despite being aware that the real estate professional was including her name on the contract as an agent and expecting to receive remuneration on the trade, Ms. Gill admitted that she never met nor provided any real estate services to the seller.

An initial conveyancing instruction report named Ms. Gill as the listing agent and the real estate professional as the selling agent, though a later instruction report removed the reference to the other real estate professional. Ms. Gill ultimately received a $24,500 commission through the brokerage despite never having met the buyers or sellers in the transaction. She justified her entitlement to a commission by saying she was providing secretarial and support work to the real estate professional. However, neither she nor the real estate professional could provide any examples of real estate services she had provided to any of the involved clients.

Ms. Gill consented to an order acknowledging she had committed professional misconduct under subsections 35(1) and 35(2) of the Real Estate Services Act, SBC 2004, c 42 (“RESA”), including conduct that was deceptive dealing, contrary to the best interests of the public, undermined public confidence in the real estate profession, and which brought the real estate profession into disrepute. The consent order confirmed that Ms. Gill had intentionally misrepresented material facts by entering into arrangements with the real estate professional to misrepresent her entitlement to a commission on both property transactions despite not having provided any real estate services.

In the end, BCFSA ordered Ms. Gill to pay a discipline penalty of $7,500 and enforcement costs of $1,500. She was also required to complete an ethics in business practice course. While the financial implications of this decision were not extreme, it should be noted that the matter proceeded under the version of s. 43(2) of RESA applicable at the time of the conduct, which set the maximum penalty for a breach at $10,000. That section was amended with effect as of September 30, 2016, to increase the maximum penalty to $250,000, meaning that if the BCFSA were investigating the same conduct today, the potential financial consequences are orders of a much greater magnitude. 

The other real estate professional stated in the investigation that Ms. Gill was a new agent and he just wanted to assist her in earning some income. However, even if the motives appear to be altruistic, REALTORS® should take seriously the representations made about their involvement in a transaction. Even with no apparent impact on the clients, intentional and material misrepresentations will be disciplined to protect the profession’s integrity. Given the significantly increased maximum potential penalties under RESA, there is more incentive than ever to use your name wisely.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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