for the record - real estate council of ontario published by the real estate council of ... about...

RECOrdPUBLISHED BY THE REAL ESTATE COUNCIL OF ONTARIO • WINTER 2017

FOR THE

RECO’S CONSUMER CAMPAIGN KICKS INTO GEAR

ISN’T IT JUST A PRIVATE DEAL?

CALL BEFORE YOU DIG

THE NEW MYWEB

2 For the RECOrd | Winter 2017

Listen. Plan. Execute.This issue of For the RECOrd is particularly exciting for us, and one we hope you will enjoy. In the pages that follow, you will see a number of long-term plans and initiatives coming to fruition.

System ready to launch in 3, 2, 1…We have been working on a new system to improve online services, accessibility, and the MyWeb experience. From consultants to developers, the team tasked with this new project developed a robust system that will benefit registrants across the board. We look forward to launching the new system in the first half of 2017, and we hope you agree that it is more efficient and effective. You can learn more about what the new MyWeb will offer on page 12.

Road trip! Connecting with consumers on our Be Home Smart tourConsumer education is a primary focus for us. After all, an informed buyer is more likely to have a positive experience. RECO has had a number of campaigns that specifically target consumers, and over the years we have modified them based on our experience. This past September we launched a brand new campaign and hit the road to engage with consumers in 13 communities across the province. Our interactive Be Home Smart exhibit gives consumers an engaging opportunity to learn what they need to know before buying and selling, and why it’s beneficial to work with a registered real estate professional. Flip to page 6 to learn more.

Wanted: CEO Advisory Group Finally, as we enter the last remaining months of 2016, we’re looking ahead to some new initiatives coming up in the near future. Primarily, the formation of the CEO Advisory Group, which we began

developing last year following a review of feedback from you, our registrants. The CEO Advisory Group will provide an opportunity for members to offer advice and feedback in support of RECO’s mission: excellence in the delivery of regulatory services that protect the public interest and enhance consumer confidence in the real estate profession. Later this month, we’ll begin recruitment for enthusiastic, knowledgeable registrants across Ontario, as well as non-registrants who contribute to the industry in a meaningful way. More details to come on the CEO Advisory Group, so stay tuned.

We’re continually looking for ways to enhance communication, business practices, and consumer confidence in the real estate profession, and a large part of this effort involves you and your participation in providing RECO feedback. We hope you will enjoy reading this issue and learning about our new initiatives.

Message from the Chair RECO Board of Directors

Mike Cusano

Real Estate Council of Ontario3300 Bloor Street West Suite 1200, West TowerToronto, Ontario M8X 2X2

Tel.: 416-207-4800 | 1-800-245-6910 Fax: 416-207-4820

Do you have any comments or inquiries about For the RECOrd newsletter? Please send them to [email protected]

@RECOhelps www.reco.on.ca

Disclaimer: While RECO makes every effort to ensure that the information in this publication is current and accurate, RECO does not warrant or guarantee that it will be free of errors. The information contained in this publication is not intended to cover all situations. It is general information only and users/readers are encouraged to seek their own independent advice for particular fact situations.

For the RECOrd | Winter 2017 3

RECO’S REGISTRANT SURVEY RESULTS

WILL GUIDE IMPROVEMENTS

Every two years, RECO conducts a survey to better understand how registrants feel about RECO’s services. The feedback from the survey helps us ensure that we are effectively meeting our consumer protection mandate.

“We want registrants to be satisfied with RECO’s services,” says RECO Chair Mike Cusano. “Consumer protection is enhanced when we are doing our job well.”

This year, The Portage Group conducted the survey on RECO’s behalf.

“We saw solid results for an organization with RECO’s size and mandate,” says Geoffrey Thacker, Executive Partner at The Portage Group.


GENERAL SATISFACTION

69%: reasonably satisfiedRespondents were asked to rank their satisfaction on a seven point scale, with seven indicating the highest level of satisfaction and one the lowest.

The Portage Group has conducted studies for 40 similar organizations, and the average satisfaction score is 63%. That means RECO is doing better than average, but there is room for improvement.


WHERE SATISFACTION IS STRONG

THE CONVERSATION CONTINUES

WHERE SATISFACTION IS LOWER

Those who used MyWeb or visited the RECO office expressed excellent satisfaction levels. Those who called or sent an email were reasonably satisfied.

We’re pleased with the positive feedback we’ve received in these areas, but there’s still room for improvement.

RECO is providing additional customer service training to all staff and setting higher service standards for customer service responsiveness. Efforts to improve customer service are ongoing.

76%: very satisfied with customer service

68%: reasonably satisfied with communication to registrants

76%: very satisfied with communication channels

59%: borderline satisfaction with ease of having voice heard

76%: very satisfied with delivery of mandateDelivery of RECO’s mandate includes our key regulatory activities.

The insurance and registration processes were rated as excellent. Other areas, like consumer education and promotion of professional standards and ethics, received ratings in the “very satisfied range.” Complaints, inspections, and investigations was lower than the others, at 73%.

This is something RECO is addressing by making the rules more clear, changing how we handle advertising complaints, improved communication during the complaints process, and more.

We believe that these improvements will lead to increased satisfaction in the next survey.

“The survey has ended, but our conversation with registrants is ongoing,” says Cusano. “Webinars, industry events and the advisory group are key ways that we will keep in touch with the sector.”

Registrants were asked about the effectiveness of RECO’s communications and how easy or difficult it is to have their voice heard by RECO.

Although the results are very similar to comparable organizations, we’re working to communicate better with registrants and get them more engaged via improved outreach. This includes improved bulletins on regulatory issues and the upcoming CEO advisory group that will include members from the real estate sector.


The hot real estate market around Ontario is

putting more pressure on buyers, and the real

estate professionals who represent them. How

anxious are your clients about the challenges

they’ll face in the marketplace?

RECO’s Be Home Smart Tour is hitting the

road to help home buyers and sellers navigate

Ontario’s hot market. At the heart of the

campaign are our five tips, such as reading

and understanding everything you sign, and

making sure you’re on the same page as your

real estate representative. It’s all designed to

empower consumers while showing the benefits

of working with a regulated professional.

“A better educated consumer is able to plan

ahead, and knows the right questions to ask,”

says RECO Registrar Joseph Richer. “That’s

better for everyone involved, including the real

estate professional who is representing them.”

People often buy or sell a home at major life

stages. Newlyweds and new Canadians are

often first-time homebuyers, expecting couples

are often looking to upsize, and boomers are

often looking to downsize. Targeting people in

one of these life stages is a great way to reach

those who are eager to receive home buying

and selling info.

RECO reaches out to consumers who are feeling the heat

COVER STORY: CONSUMER CAMPAIGN

An ambassador hands out bags with the Reconnect newsletter inside.


And that’s exactly what we’re doing: RECO is visiting consumer shows across Ontario for engaged couples, new Canadians, expecting parents and boomers. At our interactive display booth, visitors get to have a little fun by picking the home of their dreams to pose in front of, whether it’s a beach front mansion, a cabin in the woods, or even a ginger bread house.The photo is printed on the cover of the Reconnect newsletter. This personal touch turns the newsletter into a nice keepsake that is more likely to end up on the fridge than in the recycle bin. Inside they’ll find helpful buying and selling tips.

“We continue to show friends the picture we took at your booth and tell them how important it is to share the information your organization had,” says Sarah Baldwin, who visited RECO’s booth at the London Baby Expo.The booth also features a fun, interactive quiz that tests their real estate knowledge.

“There’s a lot of information out there about buying and selling, and it can be overwhelming for consumers,” says Richer. “Face-to-face interaction lets us have a conversation, provide helpful information and answer any questions they might have.”

Crowds gather at RECO’s booth at Canada’s Bridal Show.

A pair of consumers go through the Be Home Smart quiz.


Last month, the tour made its

first stop at Canada’s Bridal Show

in Toronto, followed by the London

Baby Expo. Consumers at both

shows were eager for guidance

on buying and selling.

“A lot of the brides-to-be were

excited about finding a new home,

but stressed about the state of the

market,” says Melissa Ringuette,

one of the ambassadors that RECO

has trained on consumer outreach.

“One woman I spoke to was quite

nervous about hiring a real estate

professional, because she was

worried about choosing the

wrong person to work with,” says

Ringuette. “We told her it’s a good

idea to interview at least three

representatives, and we talked

about the right questions to ask

each one of them. Those tips really

put her at ease.”

Upcoming tour stops include the

Bump, Baby & Toddler Expo in

Windsor on May 27 & 28, followed

by the Carassauga Festival in

Mississauga May 26-28, and the

Windsor 50+ Expo on June 24 & 25.

A bride-to-be and her friend show off their photo.

A bride-to-be and her friend get their photo taken for the cover of Reconnect.


An engaged couple gets their photos taken for the cover of Reconnect.

Registrants can get involved by sharing our materials on Facebook and Twitter, as well as the updated materials in the registrant toolkit.

Before printing, the green screen is replaced with a photo of the couple’s dream home.


You wouldn’t expect a “private surgery” or “private legal services” that aren’t subject to rules of professional conduct. The same applies to the real estate services that you provide.

If you are registered under the Real Estate and Business Brokers Act, 2002 (REBBA 2002), any real estate trade you are involved in is subject to REBBA 2002. Therefore, for a registrant, there is no such thing as a “private” real estate deal. Even if you’re not being compensated, your conduct in relation to that trade is subject to the provisions of REBBA 2002, including the Code of Ethics.

Here are some key requirements:

� A broker or salesperson can only trade in real estate on behalf of the brokerage that employs them. Their employing brokerage is responsible for their conduct in all trading situations. When they are involved in a trade, they must provide their employing brokerage with copies of all documents relating to the trade.

� Brokers or salespersons can accept commission or other remuneration for a trade in real estate only from the brokerage that employs them

� A registrant must disclose any personal interest they have in the real estate transaction, this would include:

• When a registrant is the buyer or seller• When a relative of the registrant is the buyer

or seller• When a registrant or their relative is a

shareholder of a company that is buying or selling, or has another role in the transaction that is not evident to a consumer

For information about this disclosure, see the Registrar’s Bulletin titled Disclosure: personal interest and knowledge.

Other requirements might also arise depending on the specific circumstances of the transaction. If you are unsure, consult the regulations or seek the advice of your Broker of Record.

Brokers and salespeople are regulated, just like doctors and lawyers.

If I help my brother or a friend to buy or sell their house at no charge, am I still subject to REBBA 2002? Isn’t it just a private deal?


In August 2015, Chris Swift was putting in a “for sale” yard sign as part of his sign installation business. It was something he’d done many times before, but this time something wasn’t right. He smelled gas, and quickly realized that the post had punctured a gas line.

“It was an imminent danger, and there could have been an explosion that caused death or injury,” says Chris.

He was fortunate that nobody was hurt, but he still had to pay a $1,500 fine from the Technical Standards & Safety Authority (TSSA) and $3,500 for repairs and other costs. Others who have punctured gas lines haven’t been so lucky.

In one case, a home near Winnipeg exploded as a result of a natural gas leak. Earlier that day, the homeowner had been driving spikes into his lawn. When the line ruptured, the basement filled with gas, leading to the explosion. The resulting fire also destroyed the home next door.

And it’s not just gas lines under the ground. A yard could contain oil pipelines, phone and cable lines, electric lines, and sewer and water pipes. All of this infrastructure could be damaged by sign installation, and that’s a big safety risk.

In the rush to get a property up for sale, registrants may not want to wait to find out where it’s safe to install a yard sign. But under the law, you have to. RECO does not enforce these rules, but the Technical

Standards & Safety Authority, Electrical Safety Authority and Ontario One Call all have requirements for obtaining a “locate” that will let you know about any underground infrastructure.

If you’re installing the sign yourself, obtain a locate by contacting Ontario One Call at www.on1call.com or 1-800-400-2255. It’s a free service and you can contact them 24/7. If you’re contracting with a sign installation company, you should ensure that they get a locate as well. Even if you don’t handle the installation personally, you could still be held liable for any damage.

Remember, you have a duty of care to your client, which means following all relevant laws and regulations, not just the Real Estate and Business Brokers Act, 2002 (REBBA 2002).

Chris had to learn the hard way, and he’s since advocated for more awareness in the real estate community.

“This is an issue that everyone in the real estate industry should care about,” he says.

Call before you dig.What you need to know before you put up that “for sale” sign


Here’s what you need to know about the new MyWeb

Here are some of the improvements we’re making:

� An improved profile page summarizes key information for registrants, eliminating the need to move from page to page to get the “big picture.” You can also change your address for service directly from the profile page.

� MyMessages is one stop shop for communications from RECO. If you have problems with your email account, you’ll still have access to emails from RECO in one convenient place.

� Check all outstanding payments, including insurance payments, at any time.

� Complaints tracking will enable the parties of a complaint to track the complaint’s status.

� Bulk insurance payments for Brokers of Records. They’ll be able to pay insurance for one, several or all of their employees.

� Increased brokerage features for Brokers of Records, allowing them to view open brokerage applications and track their status.

To help users learn the new MyWeb interface, RECO will be providing how-to information, including a video tour, when it launches this fall.

The new MyWeb will roll out in the first half of 2017, featuring improved online services and accessibility.

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