P U B L I S H E D B Y T H E R E A L E S T A T E C O U N C I L O F O N T A R I O

I think outgoing chair Bruce Lawstruck the right tone at the recentRECO AGM, when he noted thatit is the hard work and dedicationof all the players – from RECOstaff and Board members toemployees of the Ministry ofGovernment Services andmembers of numerous industryassociations – that made REBBA2002 a reality.

It’s important to recognize andcelebrate this fact, not because wewant to keep patting ourselves onthe back, but because we want tocontinuously remind ourselves ofwhat can be achieved when wework together. It is a reminderthat will sustain us as we workwith and continue to adapt toREBBA 2002 in the months andyears ahead.

As we move forward, theBoard’s Strategic Plan will guideRECO as we focus on the valuereal estate regulation brings to the public, registrants and govern-ment. The new organizational

structure, which supports theadministration of REBBA 2002 as well as the current and futureneeds of RECO, will furtherenhance its ability to deliver valueand high quality service.

The Board will work hard toensure the lines of communicationremain open between RECO, the public and registrants. Thoselines of communication will keepus moving forward in an effectiveand efficient manner as we alladapt to the requirements of thenew regulatory environment.

The newly establishedCommercial Real Estate AdvisoryGroup is one example – you can read more about their recent activities on page four.

Input provided to thePresident/CEO by the ConsumerAdvisory Group has been helpfulas we prepare to issue newconsumer-focused publications and enhance online consumerresources. Our goal is to ensureconsumers understand the value

of working with a regulatedprofessional and the protectionsavailable to them in Ontario.

I anticipate RECO willcontinue to enjoy a strong workingpartnership with the Ministry ofGovernment Services, as well asindustry stakeholders.

I am honored to be able toserve as RECO’s Chair this yearand look forward to celebratinganother year of significantachievements at RECO’s 10thAnnual General Meeting on June 21, 2007.

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Real Estate Council Of Ontario 3250 Bloor Street West, Suite 600, East Tower, Toronto, ON, Canada M8X 2X9

W H A T ’ S I N S I D E

Celebrating a New Era 2

Board Update 3

New Director, Corporate Services 3

Insurance Renewal 2006 3

New Registrar’s Guidelines 4

CREAG Update 4

Message from RECO Chair,Joe Pinheiro

JULY 2006

RECO has developed into a mature organization with a high standard of service and integrity.Thanks to cooperation among government, RECO and industry participants, the long-awaited improvements in thelegislation that governs the real estate industry have been achieved.

JOE O. PINHEIRO SIOR, CCIMChair, Real Estate Council of Ontario

F O R T H E R E C O R D2

Celebrating a New EraHighlights of RECO’s Accomplishments in Fiscal 2005 – 2006

RECO’s past fiscal year, which ended onMarch 31, 2006, was one of the most significantperiods in its nine-year history. It marked thebeginning of a new era in real estate regulation.While continuing to carry out day-to-dayactivities of regulating Ontario’s real estateindustry, the successful implementation of thenew Act was RECO’s top priority.

Celebrating 2005 – 2006

• Following the release of the regulations inNovember 2005, RECO devoted its efforts todeveloping communications materials, revisingexisting publications, training staff, preparingthe organization for the transition and review-ing policies and procedures. RECO imple-mented all these operational objectives in timefor the proclamation of the Real Estate andBusiness Brokers Act, 2002 on March 31, 2006.

• RECO’s single most significant accomplish-ment was the production of the IntroducingREBBA 2002 kit hailed by registrants andindustry stakeholders as an indispensableresource for information about the applicationof the Act and regulations. The kit, mailed toevery registrant in Ontario before March 31,2006, contains a video presentation on CD and a300-page publication – Guide to REBBA 2002.

• The most significant enhancement toRECO’s information delivery was the imple-mentation of an e-mail service for registrantswho have signed up for MyWeb, RECO’sextranet service. The ability to distributeannouncements and information electronicallyensures that registrants have timely and

convenient access to the information theyneed. There are now more than 22,000 registrants using MyWeb.

• RECO completed its strategic planningprocess initiated in the previous fiscal year. Theresult was the establishment of long-range goalsthat bring both exclusive and mutual value tothe public, registrants and government.

• A review of RECO’s organizational structurewas completed and changes were implementedto support the administration of REBBA 2002.The most significant change is the division ofRECO into two groups: regulatory and corporateservices. The Registrar assumes authority forregulatory departments and a new position ofDirector of Corporate Services will overseedepartments such as Information Technology,Finance, Legal and Communications.

• RECO established its new Commercial Real Estate Advisory Group, which held its firstmeeting in June 2006. The recruitment ofmembers to serve in the Group was successful.RECO received more than 60 applications fromcommercial practitioners. The Group will provideadvice to the Board of Directors on regulatoryissues in the commercial real estate sector.

• RECO conducted its first client satisfactionsurvey with a view to enhancing programs andservices based on input from registrants andconsumers. The survey results clearly indicatedthat registrants and consumers believe allRECO’s programs and services are importantand that RECO is meeting or exceeding theirservice expectations.

• RECO participated in more than 20 realestate board/association events and trade showsthroughout the province. The majority of theserelated to the implementation of REBBA 2002and provided RECO with an opportunity toincrease registrant awareness of the impendingchanges.

• RECO was fortunate to be located in Toronto,which was the host city for the Association ofReal Estate Licence Law Officials’ (ARELLO)75th anniversary conference in September2005. RECO’s participation in the conferenceincluded attendees at the event, as well assponsorship of the ARELLO Awards Breakfast.ARELLO was formed in Toronto in 1930 toexchange information and facilitate coopera-tion among regulators and policy makers in the area of real property.

Regulatory Activity

• The number of individuals and businessesregistered to trade real estate in Ontarioincreased by approximately 2,400, bringing the total to more than 48,000.

• The Registrar issued 24 proposals to revokeor refuse registration, of which 17 involvedallegations of mortgage fraud. Mortgage fraudis an increasing target of investigations asRECO seeks to safeguard the integrity of thereal estate industry.

• RECO’s investigations increased to 86 from77 in the previous year and investigative workled to 20 prosecutions in the Ontario Court ofJustice, resulting in a total of 18 convictions.

As we move forward in this current fiscal year,RECO’s primary focus will relate to the ongoingimplementation of REBBA 2002 and thecontinued commitment to fostering confidenceand integrity in real estate transactions.

Full details of RECO’s 2005–2006 achieve-ments are contained in the Annual Reportreleased in June. A PDF version of the report is available on RECO’s website at www.reco.on.ca.

RECO’s Ninth Annual General Meeting was held at the Old Mill Inn in Toronto on June 15, 2006. It was a special year as RECO celebrated the achievement of real estate act reform and the many accomplishmentsof the past year.

Out-going Chair, Bruce Law, speaks to attendees at RECO’s Ninth Annual General Meeting

3R E A L E S T A T E C O U N C I L O F O N T A R I O

Dan Stapleton joins RECO asDirector ofCorporate Services

Dan Stapleton joined RECO onJuly 4, 2006 as its first Director ofCorporate Services.

Dan has been in non-profitmanagement for over 20 years,with close to 15 years in the association sector. He recently co-authored a human resourcesmanual for the AssociationExecutives Council of the CanadianReal Estate Association.

Dan has led three associations, the most recent asCEO of the Human Resources ProfessionalsAssociation of Ontario (HRPAO) for five years.He spearheaded a variety of initiatives includingpartnerships with private sector companies anduniversities to expand the range of programs andservices; new professional development andgovernment affairs portfolios; and a proactivepublic and media relations program.

Prior to joining HRPAO, Dan was CEO withthe Canadian Physiotherapy Association and thefounding Executive Director of the OntarioCommunity Support Association. Before joiningthe association sector, Dan was Assistant VicePresident with the Ontario Cancer Institute/PrincessMargaret Hospital, and a Director of Social Workwith Toronto East General Hospital.

Along with Bachelors and Masters Degreesfrom the University of Toronto, he is a CertifiedAssociation Executive (CAE), and has a Certificatein Health Services Management. Dan is a member of both the Canadian and American Societies ofAssociation Executives.

RECO is pleased to have Dan Stapleton joinits management team.

The recently elected Directors were installed at RECO’s Ninth Annual General Meetingand will each serve a three-year term, from June 2006 to June 2009:

David Rossi from Toronto in Region One

George Lavallee from Kitchener in Region Two

Glenda Brindle from Ottawa in Region Three

New Board Elects Chair and Vice-Chair

Immediately following the Annual General Meeting, the Board held a meeting and elected Joe Pinheiro to serve as Chair and Brian Sukkau to serve as Vice-Chair.

Introducing RECO’sNewly Elected Directors

Pay Online Through MyWeb at www.reco.on.caOnline payments can be made through MyWeb – available exclusively to registrants. YourMyWeb account allows you the convenience of 24 hour access to make online insurancepayments by Visa or MasterCard and receive prompt confirmation of payment through your personal e-mail account. You will be able to access and print your income tax receiptand certificate of insurance the next time you log in to MyWeb. Online payments are immediately reflected on your account.

Insurance is a Condition of Registration Effective March 31, 2006, insurance became a condition of registration under the RealEstate and Business Brokers Act, 2002 (REBBA 2002) and associated regulations rather thanRECO By-laws. You are required to make your insurance payment of $194.96 on or beforeAugust 15, 2006.

You Are Required to Disclose Insurance StatusYou are required to inform buyers and sellers in writing whether or not you are insured priorto representing, providing service or entering into an agreement with a buyer or seller. Ifyour insurance status changes during an agreement with a buyer or seller in respect of trad-ing in real estate, you must inform the buyer or seller in writing, as soon as practicable, ofthe change and of what your status is after the change. The status of your insurance paymentwill be made available to the public on the RECO website.

Consequences of Non-PaymentYou are not entitled to collect commissions or other remuneration unless you have madeyour insurance payment. Failure to make your insurance payment may result in the loss ofyour registration and the right to trade in real estate addressed through a Registrar’s proposalto revoke your registration for failure to meet a prescribed condition of registration. In addi-tion, the Registrar has the authority to order a registrant’s registration be immediatelytemporarily suspended.

Insurance Renewal 2006RECO is pleased to advise registrants that they will continue to enjoy stable and affordable insurance coverage.The total costfor insurance coverage under the renewed policy, which includeserrors & omissions, commission protection and consumer depositprotection will be $194.96. Payments are due by August 15, 2006.

DAN STAPLETON,Director, Corporate Services

F O R T H E R E C O R D4

Real Estate Council Of Ontario3250 Bloor Street West, Suite 600, East Tower Toronto, ON M8X 2X9

Tel: 416-207-4800 Toll-Free: 1-800-245-6910 Fax: 416-207-4820 E-mail: information@reco.on.ca

Do you have any comments or inquiriesabout For the RECOrdnewsletter?

Please send them to:

Real Estate Council of OntarioCommunications Department3250 Bloor Street WestEast Tower, Suite 600Toronto, ON M8X 2X9

E-mail: communications@reco.on.ca

Public Trust In The RealEstate Marketplace

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 informationcontained 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.

After reviewing more than 60 applications in response to arecruitment campaign, the Board, based on the recommendationsof the Governance Committee, appointed the initial members forthe Commercial Real Estate Advisory Group (CREAG) in May.

CREAG Chair and Membership

Chair: Tom Bosley, Bosley Real Estate Ltd., TorontoMembers: Emile Boudreau, Coldwell Banker Rhodes

and Company, OttawaPaul Fink, CB Richard Ellis Limited, TorontoBruce Law, J.J. Barnicke Ltd., BurlingtonDean Morrison, Cushman Wakefield, LePage Inc., MississaugaPaul Smith, Smith Company, Toronto

The purpose of the CREAG is to provide input and advice to theBoard of Directors on regulatory matters affecting the commer-cial real estate industry. The CREAG will research and discuss

emerging issues, and make recommendations related to areassuch as registration and education standards, standards ofconduct and industry practices.

The newly established Group held its first meeting in June.One of the Group’s initial goal is a review of the Guide toREBBA 2002, to identify areas that present unique challenges tocommercial practitioners. The CREAG is seeking comments fromcommercial real estate practitioners as it undertakes this review.

Comments may be submitted until the end of September 2006.Please send them to:

Email: CREAG@reco.on.caMail: Real Estate Council of Ontario

Attn: CREAG3250 Bloor Street WestEast Tower, Suite 600Toronto ON M8X 2X9

Fax: 416-207-4820

R E C O R E M I N D E R

Commercial Real Estate Advisory Group Seeks Input fromCommercial Practitioners

New! Registrar’s Guidelines on Trust Deposits and Interest

Since the implementation of REBBA 2002, the Registrar’s Office has receivedmany questions from registrants wanting to know how trust deposits andinterest on trust deposits should be handled.

The Registrar recently concluded a review of various forms and clauses that have been developed in relation to interest on deposits.

The Registrar’s Guidelines on Trust Deposits and Interest issued on June 15, 2006, provides the direction registrants have been seeking. The Guidelines – available on RECO’swebsite – provide guidelines for of how requirements of section 27 of REBBA 2002 may beapplied in day-to-day practice.