Issue #313
July 2015
Top producer
Zia Abbas His rise to the top
Canada Post Publications Mail Agreement No. 42218523 - Return undeliverable Canadian addresses to 2255B Queen St. E., #1178, Toronto ON M4E 1G3
Page 10
Zoocasa shuts down Page 3
B. C. Human Rights Tribunal dismisses agent’s discrimination complaint Page 8
Vern Morton celebrates 50-year career Page 18
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REM JULY 2015 3
Soper, Sandhu on the Zoocasa closing By Danny Kucharsky
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he shutdown of Zoocasa should come as no surprise because it was operating with a business model that was unsustainable, say top executives at Canada’s largest real estate brokerages. “We thought (the closure) was inevitable,” says Gurinder Sandhu, executive vice-president, regional director at Re/Max Integra. “The industry benefits from business models that add value to the home buying and home selling experience. The overall conclusion from everyone involved is that they weren’t adding value.” Phil Soper, president of Royal LePage, says he told his team last year that Zoocasa would be out of business by the end of this year. “When I looked at the costs associated with their business model, it just seemed to be unsustainable.” The Rogers-owned brokerage began life in 2009 as a controversial web portal that was successfully sued by Century 21 for scraping listings from its website. It later evolved into a referral network of agents. “Rogers has made the decision to no longer continue our investment in Zoocasa as the business is no longer a fit with our overall
company plan, and core areas of focus,” the company said in a statement announcing its June 22 closure. In an email to customers, Zoocasa wrote: “We have had the pleasure of matching thousands of customers like you with great Realtors throughout the country. As a result of your support, Zoocasa has grown into a unique business in a traditional space. Although we have had great success, we have made the difficult decision to close down our business.” Soper says Zoocasa’s referral fee model “was doomed from the outset. Few sophisticated Realtors will pay thousands of dollars for a web-generated lead.” He says the close rate of generated leads was small – four per cent would be considered high – and paying thousands of dollars for such leads did not make sense. Zoocasa received 35 per cent of the agent’s commission entitlement as a referral fee, with almost half of this paid back to the consumer as a closing gift in the form of a cash rebate. For example, if the property’s purchase price was $400,000 and the agent’s commission was 2.5 per cent, the agent was entitled to receive $10,000 in commissions. Zoocasa received
35 per cent, or $3,500, of this $10,000 commission, of which 15 per cent, or $1,500, was given back to the consumer. Sandhu says the referral fee created challenges for Realtors. He says Zoocasa basically stepped in the middle between professionals who help people buy and sell homes and consumers. “The amount of value being added to the transaction did not correlate to the compensation that they were asking for. That was part of the challenge of the business model.” Re/Max, he adds, offers “quality referrals much of which are generated through the Internet without any other additional costs other than our membership to be part of Re/Max. We believe that that adds a significant amount of value to our Realtors.” A source says Zoocasa may have been losing as much as $1 million a month for much of the last two years, paying high administrative and technology costs that far outstripped the number of real estate deals. There were also rumours Zoocasa was being shopped around to companies like Brookfield Real Estate Services, which operates the Royal LePage brand.
Soper says he could not comment on unannounced transactions but he notes: “When you’ve invested a significant amount of money in something and built the initial stages of consumer brand recognition, it would make sense to see if there was a market for it.” He says the original vision for Rogers was to be able to cross-sell its telecommunications services to homeowners, offering consumers discounted Internet, cable and home security services. This, says Soper, was “a very expensive way to generate potential new cable subscriptions.” Zoocasa also used to send out a daily newsletter by email that provided the prices of recently sold homes in a bid to attract more traffic to its website. That stopped earlier this year after the Toronto Real Estate Board (TREB) warned its members that those who break the rules about sharing sold data could lose their access to the Multiple Listing Service. The federal Competition Bureau is determined to break TREB’s policies covering crucial real estate information such as home sales data, which TREB believes will compromise buyer and seller privacy and other matters. A hearing on the matter is
scheduled in September. Comparisons have been made between Zoocasa and U.S. websites like Trulia or Zillow, which offer data on home sales and detailed demographic information about neighbourhoods and price. Soper says some people wonder why such sites are not operating in Canada when they’ve been successful in the U.S. Differences in how online listings function in the two countries provide an explanation, he says. While virtually all listings represented by a licensed real estate agent are on the industry-operated cooperative realtor.ca, there is no such equivalent in the U.S., he says, including realtor.com. As well, websites of the major national brokerages in Canada, such as royallepage.ca or remax.ca, display tens of thousands of listings that aren’t their own. That move stems from a Competition Bureau process from several years ago in which brokerages agreed to share information with one another. “In the U.S., it doesn’t work that way,” Soper says. Given those differences, “it was difficult for Rogers to create anything with any material difference. They weren’t able to build a REM better mousetrap.”
Sutton sells trademarks for $30.6 million V
ancouver-based Diversified Royalty Corp. has inked a deal with Sutton Group Realty Services to acquire the Canadian and U.S. trademarks and other intellectual property rights for $30.6 million. Immediately following the closing of the acquisition, Diversified Royal Corp. will license the Sutton trademarks back to Sutton for 99 years, in exchange for an initial royalty payment of $3.5 million per annum. The transaction is expected to close before the end of June. Founded in 1983, Sutton has more than 8,200 agents and 200 offices across the country. “Sutton
is a franchise business with a history of innovation and a tradition of leadership in the residential real estate industry,” says Diversified Royalty Group in a news release. “Sutton began with a revolutionary business idea (charging agents a low fixed monthly fee) that remains current and relevant after over 30 years.” The company says Sutton has a strong presence in B.C. and Quebec (together representing 45 per cent of their total agents). Ontario has about 40 per cent of Sutton’s agents while Alberta has less than five per cent. Sean Morrison, president and CEO of Diversified Royalty Corp.,
says in the release: “The royalty acquisition from Sutton is… another step in our strategy of purchasing royalties from a diverse group of high-quality multi-location businesses and franchisors. “Sutton is a market leader with a strong national brand, an attractive business model and experienced leadership – all of which are key success factors for a royalty acquisition.” Scott Shaw, president and cofounder of Sutton, says, “The transaction…provides Sutton with the ability to realize some of the value of the Sutton brand today and an even more exciting opportunity to invest in and
grow Sutton.” A management presentation for investors says that Sutton charges agents a “low fixed monthly fee (currently $110), which contractually increases by $2.50 each year on July 1.” It says virtually all of Sutton’s revenue is generated by the fixed monthly fees. “Sutton continues to offer a compelling model for top brokers and parttimers alike,” says the presentation. “Sutton is a pure franchisor (no corporate stores) with over 125 franchises across Canada.” It says that Sutton’s agent count has remained steady during the last 10 years, “despite it not being active in developing new
regions or acquiring brokerages.” It says after the transaction closes with Diversified Royalty Corp., “Sutton expects opportunities to be more active in expanding its agent count – primarily through investments and acquisition.” Diversified Royalty Corp. describes itself as “a multi-royalty corporation, engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America.” The company’s objective “is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors.” REM
4 REM JULY 2015
Multiple Listings By Jim Adair, REM Editor Do you have news to share with Canada’s real estate community? Let REM know about it! Email: jim@remonline.com
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oyal LePage Network Realty recently acquired Century 21 Global Realty of Sylvan Lake, Alta. The merged offices will serve the community of Sylvan Lake under the banner of Royal LePage Network Realty, owned by Norm and Chad Jensen. It is now the largest real estate brokerage in Central Alberta with offices in Stettler, Sylvan Lake, Innisfail and Red Deer. Sylvan Lake is a popular tourist destination for Albertans looking to establish summer vacation properties. While with Century 21, Theresa Strausser and her team of six agents steadily grew their business. Now as part of Royal LePage Network Realty’s Sylvan Lake office, the company says the bro-
kerage will enjoy 51 per cent market share in terms of units sold within the City of Sylvan Lake, a population of more than 10,000.
Norm Jensen
Chad Jensen
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Broker/owners Rui Alves and Fedele Colucci at iPro Realty recently opened a new office in Georgetown, Ont. iPro Realty has more than 700 salespeople with several locations across the Greater Toronto Area. The firm opened a Georgetown office about three years ago in the Metro plaza in Georgetown South, but has outgrown the space. The new location is in a new building on Hwy. 7, which goes through the heart of Georgetown. It is a modern state-of-the-art facility and is
completely handicapped accessible inside and out, the company says. Georgetown is a hub community that services smaller surrounding communities including Acton, Rockwood, Glen Williams and Norval. The Georgetown office is managed by Rui Alves. ■ ■ ■
Pemberton Holmes recently opened two new offices on Vancouver Island. Owner and president Michael Holmes and
managing broker Sue Daniels have added an office in Ladysmith at 516 First St. and in Cobble Hill at 3645 Highcourt Lane. Pemberton Holmes now has 10 offices. The brokerage, currently in its 127th year of operation, is Canada’s oldest independent real estate firm.
team management skills to more than 5,000 buyers and sellers. “They are high-energy, resultsoriented leaders with an entrepreneurial attitude, not only working with the Chinese community, but also helping establish multicultural communities in the GTA,” says Re/Max Integra in a statement.
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Independent brokerage Master’s Choice Realty in Markham, Ont. has joined the Re/Max network. Broker of record Bin Ji has more than 10 years of experience in the real estate industry, with seven years as a broker/ owner. His wife Lily is the general manager. In 2004, the couple established the Toronto Chinese Real Estate Club, through which they have delivered seminars, communications and cross-Chinese cultural
The O’Hara Property Group of Fort McMurray, Alta. has joined forces with Coldwell Banker Fort McMurray under the leadership of broker/owner Colin Hartigan. Continued on page 6
Shirley Williams
Brokers/owners Rui Alves and Fedele Colucci, along with their salespeople and staff, celebrate the opening of a new Georgetown, Ont. office.
Michael Cartwright
The team at Re/Max Master’s Choice Realty Sue Daniels
Mike Holmes
Stéphane Bisson
Suzanne Landry
Danny Samson
From left: Heather Gartner, Tom O’Hara and Angie O’Hara
Jordan Boyes
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Canada’s Millionaire Real Estate Agent Maker Craig Proctor is on a mission to create 1,000 new Millionaire Agents in the next 36 months. By Dione Irwin & Paul Seib
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hen we first started in Real Estate almost 5 years ago, we were of the distinct impression that the phone would just start ringing because friends and family knew we were in the business and the word would travel. We quickly learned this was NOT the case. One of the Top Producers in our office readily told us his success had come about because of Craig Proctor’s Millionaire Real Estate Agent System. We were intrigued and decided to explore the program. The first SuperConference we attended was almost 5 years ago and at that time I had just become a Realtor and Dione didn’t even have her license yet. We remember sitting at the
Conference saying, ‘We can do this!!’ We wanted to do well right from the beginning so we embraced what Craig taught us. Frankly, everything changed once we did. 2011 was our first full year in real estate and we completed 65 transactions. The next year, 2012, we almost tripled that. 2013 was a big year for us. We got married in January, built and moved into a new house, took twice as many vacations as the year before and in January 2014 we had our first baby. Craig showed us how to market ourselves so consumers understood how we were different and better than other Realtors we competed against. He also showed us his recruitment and referral programs and, most importantly, how
Paul Seib and Dione Irwin from Airdre, AB (www.DioneIrwin.com) started from nothing 5 years ago and last year earned GCI of $1.87 Million after implementing Proctor’s Millionaire Real Estate Agent System
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have if you will take only THREE simple actions. I was the top agent in Canada for over a decade, and the number one Re/ Max agent in the world several times, and top 10 for more than 20 years. No one can even come close to matching my track record. This invitation is only for you if you place a high value on successful experience. On methods that are working now but have also proven themselves in every kind of market over time and can be counted on. I know from that experience that this market is good enough, just about everywhere, to reward an agent with a solid 6-7 figure income and, yes, thousands of my students are easily earning $1 Million + in GCI and there’s no reason you can’t do the same. Of course, a lot of people would rather have a good excuse than a good plan, but I’ll tell you: there is no legitimate excuse for not having all the good prospects and clients coming to you right now, for you to earn the big numbers my successful students are earning and still work
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6 REM JULY 2015
Continued from page 4
“The O’Hara Property Group has consistently placed in the top one per cent in sales in Fort McMurray for the last 14 years and we’re delighted to welcome this well-established team to our operation,” says Hartigan. “Angie and Tom O’Hara and Heather Gartner have built a reputation as big community supporters with a strong focus on quality customer service. Their experience includes fundraising, event planning, mar-
keting and sales, banking and the housing industry.” ■ ■ ■
Independent brokerage Olivex Real Estate Agency has become a Keller Williams franchise. Keller Williams Distinction is the first franchise in Outaouais and the second in Quebec. With more than 30 brokers in Gatineau, Stéphane Bisson, president of Keller Williams Distinction “treats his Realtors as partners through board meetings, an open books policy, program
Moose Jaw board disbands after 55 years
and profit sharing technology and world-class training,” the company says in a statement.
Members join the Association of Regina Realtors
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fter more than 55 years as an active philanthropic and business presence in the community, the Moose Jaw Real Estate Board (MJREB) recently disbanded. All 83 Moose Jaw Realtors have joined the Association of Regina Realtors (ARR), bringing the Association’s membership to 557, plus an additional 166 Regional Council members in Yorkton, Estevan, Weyburn and Swift Current. While MJREB president Mike Walz says Moose Jaw buyers and sellers won’t notice much, if any, difference, he acknowledges closing the local board is bittersweet. “We have some Realtors who are the children and grandchildren of founding members. It’s the end of an era, but I think having a bigger, stronger regional voice is going to benefit all involved, especially in working with our provincial and national associations and lobbying the federal government.” Walz says similar consolidation has happened with smaller boards and the Saskatoon Region Association of Realtors. “We’re excited to work more
Dave Liniger, CEO, chairman of the board, and co-founder of Re/Max, left, and Adam Contos, Re/Max senior VP of marketing, were in Kelowna recently to speak to a group of Re/Max broker/owners and managers from throughout Western Canada at Manteo Resort.
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closely with our Moose Jaw colleagues,” says ARR president Tim Chicilo, adding that he hopes Moose Jaw members will run for the ARR Board of Directors. “Adding over 80 members will allow the association to offer new programs and services we perhaps could not have considered before.” In a news release, ARR says that along with administrative support and greater exposure for their listings via the Regina Real Estate Review, Regina LeaderPost and ARR’s own website, Moose Jaw members have access to more sophisticated and accurate pricing information because the city will now be included the MLS Home Price Index. The Moose Jaw board was operating without an executive officer after EO Jim Millar retired a few months ago. At its last meeting, MJREB directors presented the Moose Jaw Health Foundation with a cheque for $100,000 to equip the state-of-the-art trauma room at the new Moose Jaw Regional REM Hospital.
Brokerage owners Suzanne Landry and Danny Samson recently joined the Royal LePage network, opening Royal LePage Bas Du Fleuve in Rimouski, Que. As well as serving the Rimouski region, Landry and Samson and their team of five sales professionals also cover the Matane, Matapedia and Mitis areas. ■ ■ ■
John Iannuzzi and Don Inglehart of HomeLife Macro Realty have joined the Royal LePage network. The brokerage has been renamed Royal LePage Macro Realty. The office serves Stoney Creek, Hamilton, Burlington, Binbrook, Glanbrook, Ancaster, Mount Hope, Flamborough, Waterdown, Grimsby, Beamsville and surrounding areas. Iannuzzi and Inglehart are veteran real estate professionals, each with more than 40 years in the industry. Iannuzzi established the brokerage in 2004 and together with Inglehart has grown the office to include 75 agents. ■ ■ ■
Cover photo: MARKO SHARK
Publisher HEINO MOLLS heino@remonline.com
Editor JIM ADAIR jim@remonline.com
Director, Sales & Marketing DENNIS ROCK dennis@remonline.com
Distribution & Production MILA PURCELL distribution@remonline.com
Digital Media Manager WILLIAM MOLLS web@remonline.com
Art Director LIZ MACKIN
Brand Design SANDRA GOODER
Graphic Design SHAWN KELLY
Royal LePage Premier has expanded operations with the opening of a new office in Morinville, Alta. Broker/owner Shirley Williams says she considered an expansion for some time and felt the timing was perfect when the Morinville location became available. Royal LePage Premier’s main office is in St. Albert. Morinville is 10 minutes north. Williams and her team of 18 sales reps trade in residential, commercial and rural real estate. The team works closely with several local builders in St. Albert and Morinville. Williams currently serves as vice president of the Edmonton Real Estate Board. ■ ■ ■
Boyes Group Realty, Saskatoon’s newest independent brokerage, has joined the Aventure Realty Network. Led by broker/owner Jordon Boyes, the new brokerage delivers a full suite of services through a growing team of sales professionals. “Boyes Group Realty is focused on the development of a unique independent brand in their market and Jordan is directing his history of commitment and success on the delivery of outstanding value to both the consumer and the group’s sales professionals,” says Aventure president Bernie Vogt. Main Street Realty in
2255B Queen Street East, Suite #1178 Toronto, ON M4E 1G3
Phone: 416.425.3504 www.remonline.com REM complies fully with the Canadian Real Estate Association's Rules for Trademarks (CREA Rule 16.5.3.1) REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2015 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. ISSN 1201-1223
Don Inglehart and John Iannuzzi
The new Aventure Connect app
Newmarket, Ont. has also joined the network. Broker/owner Michael Cartwright has focused his 25-year real estate experience on building a strong independent organization serving both residential and commercial customers across the GTA. Main Street Realty has grown, since its inception in 2010, to include offices in Bolton, Brampton, Uxbridge, Stouffville and Keswick with almost 100 sales reps. Aventure recently rolled out Aventure Connect, which Vogt says is “a unique referral app that connects sales professionals and empowers them to send, receive and manage referrals instantly.” REM
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8 REM JULY 2015
B. C. Human Rights Tribunal dismisses agent’s discrimination complaint “At the end of all of this, the definition of employment is more important to the people at the B.C. Human Rights Tribunal than the vile acts of discrimination,” says Allenberg. By Tony Palermo
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he B.C. Human Rights Tribunal has dismissed a discrimination complaint by former Victoria-based sales rep Rick Allenberg, ruling that a real estate listing contract does not create an employment relationship within the meaning of the B.C. Human Rights Code. Allenberg, who is white and from South Africa, initiated the complaint alleging his client, Dr. Roger Johnson, who self-identifies as black, discriminated against him in his employment when Johnson broke their listing contract because of Allenberg’s race and country of origin. After a lengthy analysis of what constitutes an employment relationship under the code, which included reviewing a recent Supreme Court of Canada deci-
sion, tribunal member Norman Trerise concluded that even when interpreted broadly, the term employment still relies on two main questions: how much control is exercised by the employer over working conditions and remuneration, and how dependant the worker is on that employer. Independent contractors, he noted, “have been found to be employees for the purposes of human rights legislation, even though they would not be considered employees in other legal contexts.” However, in this particular case, Trerise found that there was nothing in the content of the listing agreement that limited Allenberg’s ability to perform similar functions for other clientele, nor was Allenberg commercially
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Real estate pioneer Mary Swerdfager dies Mary Swerdfager, the owner of Mary Swerdfager Realty in Stratford, Ont. for 20 years and a real estate pioneer, died on May 10, days before her 88th birthday. One of few women licensed in 1964, she began her career with Forbes and Robertson. She quickly made a name for herself in the business, becoming one of the first Mary Swerdfager women to be president of a real estate board in Canada. She was selected by Canada Trust to become a founding broker as the company ventured into the real estate industry, and after establishing that business moved to Hiller Realty for many years. She is survived by three of her four children, John and Kathryn Robertson (and husband Ross Crawford), and Ann Swerdfager (and husband David Collier), and by her grandchildren Michael Robertson, David and Jonathan Woolley, and Danielle Robertson. She was predeceased by her son Paul Robertson in September and by her husband, Bruce Swerdfager, in 2007. Her first husband, Howard Robertson, died in 1957. Mrs. Swerdfager is also survived by her brother, Tom Huston, nieces, nephews and cousins. Memorial donations may be made to St. James Anglican
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dependent on this one listing agreement for his financial wellbeing. Trerise also found that, subject to the rules established by the B.C. Real Estate Association and the Victoria Real Estate Board, Allenberg was free to determine how he would market and secure a buyer for the property. Given this, Trerise concluded that it would be unlikely “to persuade a tribunal member that this real estate contract created an employment relationship within the meaning of the code” and dismissed Allenberg’s complaint – despite agreeing that the facts supported Allenberg’s complaint of racism based on origin and colour of skin, and that the racism was clearly articulated in emails flowing from Johnson to Allenberg. “The emails are vile, ignorant
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and repulsive, and there is little question that, were this an employment relationship, Dr. Johnson would be unsuccessful in defending the complaint,” wrote Trerise in his decision. The decision has left Allenberg angry and questioning the legal system. “At the end of all of this, the definition of employment is more important to the people at the B.C. Human Rights Tribunal than the vile acts of discrimination,” says Allenberg, who has since retired. “Why tell me I was discriminated against and then tell me that I am not part of the human in human rights?” Robyn Durling, the communications director with the B.C. Human Rights Clinic, says he, too, was disturbed by Allenberg’s
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Church through the W. G. Young Funeral Home at (519) 271-7411 or www.wgyougfuneralhome.com. REM
Joseph John Barnicke, 93, founded major ICI firm Joseph John Barnicke was the founder of J.J. Barnicke Limited, which became Canada’s largest independently owned, full-service commercial real estate services company. He died on May 19, 2015 in his 93rd year. Born in Cudworth, Sask. and raised in Oakville, Ont., Mr. Barnicke was an RCAF flying instructor stationed at Centralia, Camp Borden, Trenton and Kingston during the Second World War. He worked as a regional sales manager for O’Keefe Brewing Company before launching his real estate career in 1957 when he joined Gibson Brothers. In 1959 he founded J.J. Barnicke Limited. By the time the company was sold to DTZ Holdings in 2007, J.J. Barnicke had 17 owned and affiliate offices across Canada with 450 employees, including more than 300 real estate professionals. It provided a range of commercial real estate brokerage services and value-added business advice in commercial real estate to international corporations, institutions and portfolio owners across Canada. Mr. Barnicke was well-known for philanthropic activities, having served successively as Toronto, Ontario and Canadian campaign chairs for the Canadian Cancer Society. He later donated a wing at St. Joseph’s Health Centre in Toronto in his wife’s name. He was also the prime donor for the Justine M.
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allegations, but says that the code establishes areas and grounds of discrimination. In this particular case, the tribunal member found that there was no relationship that brought the complaint within the established parameters of the code. “So, while the conduct may have been offensive, the tribunal’s decision just means that (Allenberg) can’t get remedy under the code,” says Durling. “He could presumably sue for breach of contract and if the conduct reached certain threshold levels, possibly ask for laying of criminal charges or sue for defamation.” Tribunal records show that Johnson did file a “with prejudice” settlement offer, but Allenberg hasn’t decided how he will proceed. REM
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Barnicke Gallery at Hart House at the University of Toronto. He was a director of the Canadian Council of Christians and Jews and Chairman of St. Joseph’s Health Centre Foundation. In recognition of his contributions of time and lead funding, the University of St. Michael’s College dedicated the Joseph and Justina Barnicke Catholic Joseph John Chaplaincy at St. Michael’s. He was Barnicke also one of the lead organizers of Pope John Paul II’s 1984 visit to Toronto. In the Archdiocese of Toronto, he was the founder and, until last year, the main organizer of the annual Cardinal’s Dinner for Catholic Charities and served on the Archdiocesan Finance Council for many years. In 1989, Mr. Barnicke was invested as a Member of the Order of Canada. He was also awarded Member of the Order of Ontario; Knight Grand Cross with Star of the Order of St. Gregory the Great; Degrees of Doctor of Laws (honoris causa) from the University of Toronto and Assumption University, Doctor of Sacred Letters (honoris causa) from the University of St. Michael’s College; the Award of Merit from the City of Toronto; and the Human Relations Award from the Canadian Council of Christians and Jews. In memory of Mr. Barnicke, the family says donations may be made to the Jesuits in English Canada at 43 Queen’s Park Cres. East, Toronto M5S 2C3 or online at www.jesuits.ca. REM
2015 Canadian Commercial Conference Christopher B. Leinberger, Land use strategist, President of Locus and Professor at George Washington University Session: Changing Dynamics, New Perspectives in the U.S. and Canada Glen Hodgson, Senior Vice-President and Chief Economist, Conference Board of Canada Session: Commercial Real Estate in Canada, An Economic Outlook
Open to all REALTORS®
Snapshot of what to expect: • Topics such as emerging trends in REITS, the changing face of office space, how to benefit from global opportunities, and more. • Courses, including “Commercial real estate negotiations” and “Leasing for retail landlords and commercial tenants”. • A live “Haves and Wants” session – a chance for REALTORS® to hit the stage! • Networking with commercial REALTORS® from across Canada.
September 30 – October 2, 2015 Delta Winnipeg Hotel
Space is limited register today Sign up at events.crea.ca
10 REM JULY 2015
Zia Abbas’ rise to the top
One of the top Re/Max sales reps in the world, Toronto’s Zia Abbas says: “You should have only one theme and one tagline: Always protect your client.” By Neil Sharma
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ia Abbas has managed to conflate his realty savoir-faire with an indomitable work ethic to reach professional heights few salespeople could ever dream of. The 46-year-old Abbas is a multi-award winning Re/Max agent in the prime of his career. He’s become one of Toronto’s most trustworthy sales reps because his business model is fundamentally predicated on trust. While it may seem like Abbas puts in countless hours showcasing listings – he does – his recipe for success is simple, yet seemingly contradictory: disclosing absolutely everything there is to know. If that means he loses clients, so be it. “What people see in me is not only a successful Realtor, but they also see my vision and they trust my vision,” he says. “I disclose 100 per cent. I throw everything on the table and it’s up to them to proceed or back off. I’ve lost clients that way, but I’ve built a clientele for a lifetime because of a few transactions.” Abbas was born in Pakistan, pursued a design degree in Dubai and moved to Canada in 1998. He worked as an art director for ad agencies in Dubai and Toronto for 13 years before a burgeoning interest in construction blossomed into a renovations company he ran part-time for nearly two years. It wasn’t long before he started investing in real estate, and buoyed by his experienced sales rep turning to him for investment advice, Abbas turned his nascent aptitude into yet another vocational endeavour. “To be quite honest, I put my feet into the real estate world just as a part-timer,” said the married father of three. “I was quite successful in my first profession. I never thought I’d leave it. In
the first eight months I had 43 transactions close. Then I had no choice but to leave my first profession.” Having wholly devoted himself to real estate, Abbas’ success has manifested as Re/Max’s No. 1 worldwide salesperson in residential and commercial real estate in 2011 and 2012, and No. 2 in 2013 and 2014. He was also Re/Max’s No. 1 agent in Canada from 2011 to 2013 and he came in second place last year. Abbas has also been canonized in the Re/Max Hall of Fame. Additionally, he’s received the Re/Max Lifetime Achievement Award, been a Diamond Award Winner – given to sales reps whose commissions top $1 million – since 2009, and has been nominated for the Re/Max Circle of Legends, honouring those who have collected at least $10 million in commissions. “To me, the product is the same for all the Realtors and the location is the same,” he says. “What makes the difference is the brand, and the brand is the Realtor. How you brand yourself in terms of standing, class, information and building trust among clients – that all matters. If your client is not happy and not satisfied and not making a good return on their real estate investment, you’ll soon lose that account. Use your judgment, experience and vision to properly guide your client. “You should have only one theme and one tagline: Always protect your client.” In no place is that ethos more pronounced than on Buy Low Sell High with Zia Abbas, a 30-minute television program syndicated on CITY TV, ATN and the GEO Network. Abbas shares his acumen in discerning between good and bad real
estate investments, and discusses banalities such as CRA guidelines, taxation details, mortgages and myriad other brass tacks. The program is slated for 52 episodes this year. Omnipresence is simply impossible in a market as vigorous as Toronto’s, so Abbas – who has spent years cultivating lasting relationships with the GTA’s top developers – chooses the best six or seven condo projects per year, what he calls the top one per cent of the market. He focuses on either resale condo units or preconstruction. For the latter, however, he only engages opening day pricing because he says he cannot justify selling uniform units at different price points. “I’ve never sold condominiums to my clients for anything other than the opening-day price and I’ve never engaged in a bidding war. I won’t settle for the second or third day pricing.” Downtown Toronto is his primary playground, but select projects scattered about the GTA attract his attention when their potential is too great to pass on. “Outside of downtown, the product has to be next to a happening area, next to a commute, next to a subway, next to a hospital, next to a university, next to infrastructure like highways. I also have to look at the supply and demand factor.” Abbas regularly consults builders on the components comprising their units. Few people in the city possess Abbas’ acute awareness for what sells and what doesn’t. “A lot of builders take my advice ahead of time,” he says. “I sit with them during initial meetings to design buildings on the functionality of floor plans and what kind of units would sell easily for top Realtors. A
Zia Abbas (Photo by Marko Shark)
successful agent is always standing in the middle of the curtain where they can see the characters and they can see the audience.” There’s no shortage of sales reps in the GTA and only the truly tenacious of the lot will ascend to the same heights as Abbas. He says all salespeople – neophytes and seasoned veterans alike – are akin to shelving stock; lest they posses remarkable qualities to set themselves apart from the fray, their prosaic nature will consign them to obscurity. Advertising is a dependable method for reaching potential clients, so Abbas implores rookies to create buzz around their names,
but he says advertising will ultimately produce diminishing returns. “If you are an unknown soft drink sitting next to Pepsi or Coca-Cola, what would happen? Nobody would buy you,” he says. “So you should brand yourself and then reach up to an extent where you should have the capability sitting next to that Coca-Cola so that people at least consider you. “My real business comes through referrals and word-ofmouth, but I reached this level through advertisements, because when the overall crowd talks positively about you, that is what I call a freebie advertisement.” REM
12 REM JULY 2015
SALES COACH
By Bruce Keith
P
rofessional boxer Dewey Bozella won his first fight in 2010. By itself, not a particularly noteworthy announcement. What is noteworthy is knowing that Dewey was 52-years-old and had just been released from prison after 26 years incarceration for a murder he did not commit. One of the most fascinating parts of Dewey’s story is how he stayed motivated and how he kept his sanity (don’t forget, he was proven innocent after being in prison half of his life). Here’s what Dewey shared: “I focused on two things...self-improvement (he earned two degrees in prison) and staying healthy (boxing was his
Motivating yourself and your clients vehicle)”. It is hard to imagine how Dewey stayed motivated all that time…but he did. His formula was education and boxing. Everybody needs their own formula for staying motivated. In her excellent book Get Motivated, Tamara Lowe suggests that everyone is motivated differently. The key is to understand your own “personal formula for motivation”. As entrepreneur and speaker Jim Rohn said, “When the WHY is strong, the HOW becomes easy.” One of my coaching clients recently shared her plan. It looks like this: 1. Bombard myself daily with inspirational material (books, CDs, positive people). 2. “Staying present” with where I’m going... what is my big picture? 3. Lead generate daily so I’m always adding new possibilities to my life. 4. Have a reward system in place to prevent burnout (“I always plan my next trip well in advance
and I use a dream board as a visual reminder.”). You don’t need to spend 26 years in prison to figure this out. The above formula is just one example. The key is to develop your personal motivation formula and stick to it every day. Some people don’t try... they just say, “I don’t know what I want.” One thing you can count on in your journey is that human beings are “meaningseeking creatures.” Keep investigating your “meaning” and you will find the answer. Next, keep your answer in front of you at all times and you will stay motivated. Your formula will make you unstoppable! No excuses. ■ ■ ■
How to ask why: The salespeople who make the most sales are those who consistently work with highly motivated customers. Motivation is the desire to go from A to B, to make a change, to take on something new. Once the salesperson figures out the customer’s need, the rest becomes easy.
Too many salespeople spin their wheels by working with unmotivated customers. The obvious conclusion is that making the sale becomes dramatically easier if you can identify their motivation as early as possible in the process. Without that the odds are not in your favour. Bottom line: Make sure that you are working with the right people. Here’s how. In real estate sales there are three questions that need to be answered when establishing customer motivation. Where? When? Why? The where and when are pretty simple. Sometimes the customer is a bit vague on the why part. Ask them: “Just so I understand, what’s important to you about this move?” There is a secondary benefit to being very clear on their why. Often as the process evolves, the seller/buyer can become emotionally wrapped up in the details and forget their original motivation. Sometimes a simple reminder from
you is all it takes to help them get back on track. (“I know this is tough for you right now but at the same time won’t it be great when we finally get you moved and the children will each have their own bedroom?”). Give them what they want and never lose the focus on their motivation. The whole idea is to help those who want to be helped. As Shakespeare wrote, don’t try to “make a silk purse out of a sow’s ear”. Find those who need you and then remind them periodically of why they hired you. Sometimes in the heat of the moment, they forget. No excuses. Bruce Keith is a leading motivational speaker and trainer for sales organizations in North America specializing in real estate sales. He has been in real estate more than 25 years, including 15 years as a top coach for thousands of sales agents. Download his free e-report, 5 Building Blocks to Real Estate Results Now at RealEstateResultsNow.com. REM
Strong leadership
IS WHAT WE DO We are thrilled to welcome John Iannuzzi, Don Inglehart and the Macro Realty team to the Royal LePage family. Veteran Realtors® with 70 years combined experience in the real estatte industry, John and Don have grown their brokerage to ovver 75 agents. With the addition of Macro, Royal LePage strengthens its position and increases its leadership in Hamilton, Ontario – one of Canada’s largest markets. Congratulations! Partner with a leader. Join Royal LePage. John Iannuzzi
Don Inglehart
royallepage.ca/franchising This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. All offices are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd., Brokerage”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex”. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2015 Brookfield Real Estate Services Manager Limited. All rights reserved.
14 REM JULY 2015
15 reasons to use a Realtor By Michel Friedman
A
lot has been written about the doom and gloom of the real estate industry as we know it. With high tech advances and licensing authorities tying our hands behind our backs, real estate is still a “peoples’ business”. Online retail is becoming more popular but there will always be a place where people can go to touch, feel and smell the merchandise or product. In real estate it is even more important to do that. The help of a licensed Realtor is in my opinion critical for a fair and hassle-free transaction. Here are 15 reasons why: 1. Most accurate and up-todate market area comparables (sold and active properties). 2. Most up-to-date and accurate evaluation of a home. 3. Ability to “sell the house” to Realtors who are active in the area
so they can bring their buyers. 4. Quick exposure to thousands of agents who each can bring a buyer (better chances of getting a higher price). Quicker sale, higher price. 5. Provide secure, day-long, easy access to the house. 6. Ability to market – spend money up front on cards, letters and newspaper advertising. 7. Extensive social networking marketing. 8. Can lead to “multiple offers” situation resulting in an over asking selling price. 9. Reviewing offers with the seller, analyzing the offer, proper (legal) sign backs without needing a lawyer. 10. Proper and legal handling of deposit monies. 11. Provide buyers a wide variety of homes to visit and transportation to buyers. 12. Third-party (mediator) negotiations make it easier to reach a deal (but still working for your best interest). 13. Assistance with mortgage financing, home inspections and assisting your lawyer until closing. 14. Screening of potential frauds.
15. Does anybody (seller or buyer) really save money when both ends want to save? To FSBO sellers: If you want to sell your house, which is valued at $600,000, and a buyer comes in (no agent) and tells you, “I will pay you $500,000 for your house”, chances are you will say no and be angry about the offer. If that same buyer came in with a Realtor, the buyer has probably been pre-qualified (meaning the bank allowed them to buy a property for $600,000). Their Realtor showed them other properties and this one is the best $600,000 property on the market. The Realtor also most likely showed them what other properties are selling for and are listed for (comparables) in that area. It will be easy to sell the house to the same buyer that the private owner most likely kicked out for full market value. I once approached a FSBO and tried to convince her to list her house with me. She told me that she sold the house already and was very proud to show me a napkin on which it said: “I will buy your house (with the amount to be paid). Under that it said “ I (the seller) hereby acknowledge receiv-
ing $10,000 as deposit for the purchase of the property.” I asked the seller if she received the $10,000 and she said the buyer gave her $5,000 and told her he will bring in the other $5,000 in two weeks. I don’t know what happened to the deposit but the seller still lives in the same house 15 years later. What if a buyer is flying in from out of town for two days to buy a house and then flies back to prepare for the move? Is that buyer going to have time to look at your house when they work with a Realtor who will show them a dozen houses in one day? What if they pass by your house during the day? Is there a lockbox on your house? You could have just missed the highest paying buyer. When you sell your house and go to buy the next house for yourself, will you go to FSBO homes only or will you ask a Realtor to show you properties? To buyers working without a Realtor: Will you also “close” the property without a lawyer? You can if you want to, but it doesn’t make sense, does it? How much will your lawyer
charge you to put together a “custom” agreement of purchase and sale and will the lawyer charge you if the negotiations are not successful? What happens if your home inspector did not catch the fact that the house was previously a grow op and the seller who did not disclose that fact has left the country shortly after closing? What happens if there is asbestos or UFFI in the house and the home inspector was not asked to do the special inspection for it? What if you paid too much for the house? What if a Realtor has information about a specific property that you can take advantage of, but you are not working with an agent? For both buyers and sellers: Yes there are options today, yes there is technology today. Working with a Realtor is still the best and safest way. Michel Friedman is broker of record of Orange Square Realty Inc., a Toronto-based brokerage offering a 100-per-cent concept along with full service, with over 100 salespeople. Visit OrangeSquareRealty.com, or REM call 416-840-6888.
How to build the ‘right’ team By Ken Goodfellow
Y
ou don’t have to be an architect or a civil engineer to know that strong permanent structures need a solid foundation. If you relate this to business, your foundation is your team. Without a great team your business cannot run optimally. How many times have you heard one bad apple spoils the whole bunch – sounds like yadda yadda yadda – but it only takes one sour team member to start your whole business rotting to the core.
It takes time, skill and practice to cherry pick the best candidates for your team. Before you even start to recruit, you should already know what you are looking for in the new team member – independence, confidence and drive in a sales rep; sincerity, friendliness and people skills in reception staff and so on. Each individual position on your team requires a different skill set and defining what you are looking for before you start will save time and effort and derive a better result. It is only natural to be attracted to people who are like us, share our interests and values and have similar personalities, but it is a big mistake to fill your team with people just like you. A cohesive mixture of individuals will propel your business forward and keep it moving in a positive direction.
The most common reason for acquiring new people is to replace a team member or to expand your staff. In either case it is only natural to feel compelled to get new boots on the ground as soon as possible to fill that gap, but rushing to hire will be a disservice to you, your business and the rest of your team. It may seem like an arduous task that you don’t have time for, but slowing down the selection process will actually save you time and money in the long run because the “right” candidate will improve the whole team and help take your business to the next level. Top producers and cream-ofthe-crop candidates are a rare breed and are highly sought after – and they know it. So to win them over, you need to make them an offer they can’t refuse as the Godfather would say. To successfully entice
them, you need to find out what their prime motivator is, for example monetary bonuses, a car allowance, extra time off or an expense account. It is also critical that your commission policy meets or beats your competitor’s – otherwise you will find your perfect candidate working against you instead of for you. One thing many entrepreneurs overlook is their Mission and Vision Statement, which should be easily accessible as well as dynamic and progressive. You can be sure that high achievers will be checking you out long before they allow you to check them out and you might be missing out on some top people if your business doesn’t successfully self promote. Everyone wants to work on a team that seems energetic, exciting, forward-thinking and destined for greatness and
the best candidates not only want this – they crave it. Do you have a vision of your “perfect” team? Are you capable of creating that team on your own? Do you have the time? Most highly successful entrepreneurs simply don’t and that is where a business coach can be invaluable. Knowing that you have a time-tested “mentor” who has been in your shoes and knows the ropes and can guide you through the steps of building a great team is worth its weight in gold. Ken Goodfellow is a real estate coach to top agents, brokers and teams across North America. He is well known for taking high-producing agents and real estate companies to the next level. Visit www.goodfellowcoaching.com or email ken@goodfellowcoaching.com. REM
16 REM JULY 2015
Chattels, fixtures and rental items
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By Mark Weisleder
T
here is nothing more frustrating than working extremely hard to negotiate and close a real estate deal, only to have the buyer complain afterwards about missing or broken appliances or onerous terms contained in rental items that were not explained. In order to make sure that your deals close smoothly, here are five things to remember: 1. A buyer has no automatic right to hold back money on closing if they find something broken or missing during their final visit to the property. My advice is to quickly obtain an estimate to fix the problem, take a picture and send it to your agent or lawyer. In my experience, lawyers are able to settle these issues, even on the date of closing, when a proper estimate is provided. 2. Be clear about everything that is to remain on the property after closing. Include mirrors, builtin appliances, television brackets and closet organizers. If a seller wants the dining room chandelier, say so but require the seller to replace it with another fixture so the buyer does not enter a dark home on the night of closing. 3. Make sure that as a listing agent, you find out the details of any rental contract to be assumed by the buyer and disclose them, especially if there are large cancellation penalties or if the buyer must continue with, for example, any home monitoring obligations. A good place to check is the gas bill, which typically includes rental charges, that could include not only the hot water tank, but also furnaces, air conditioners and entire HVAC systems that were purchased on payments. If you are acting for a buyer, it is
also important to ask for these details in advance so the buyer is not surprised after closing. I have seen buyers have to pay thousands to cancel a hot water tank rental when they wanted to switch to a tankless water solution. I have seen sellers have to buy out an entire contract when they forgot to include the item as a rental in the contract. 4. Small Claims Court is not a good answer. When buyers and sellers end up going to Small Claims Court to settle claims about appliances or rental contracts, no one wins except the lawyers or the paralegals who represent them. The process can take 18 months and will result in at least two days of missed work to attend a settlement meeting and then a trial. In addition, the decision may be published on the Internet, causing further embarrassment to the unsuccessful party. 5. Here is a clause to assist you in making sure the seller does not remove anything that the buyer is expecting to receive on closing: “The seller represents and warrants that all existing flooring and floor coverings, drapery tracks, ceiling fans and fixtures, built-in appliances, bathroom mirror(s), heating-ventilating-air conditioning equipment, central vac and accessories and all other items secured by means of nails, screws, plumbing, wiring, ducting and related accessories that are now on the property are to be included in the purchase price except items which are leased or rented and those specifically listed herein and all shall be in working order and free from all liens and encumbrances on completion.� By being clear and prepared before signing any real estate deal, there should be no surprises, unanticipated charges or unnecessary court proceedings after the deal closes. Mark Weisleder is a partner, author and speaker at RealEstateLawyers.ca LLP. You can contact Mark at mark@realestatelawyers.ca or REM (416) 702-2499.
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18 REM JULY 2015
Vern Morton celebrates 50-year career
He says the secret to his longevity is a simple formula that puts customers before profit. wasn’t going to quit,” he says. Instead, he approached a local brokerage and asked for a job. His new boss, Rafael Roberto of Coldwell Banker RMR in Durham, Ont., gladly took him on.
Vern Morton
A
fter 47 years as a real estate agent, Vern Morton found himself seated in front of a pile of forms. He was just about to sign off on a long and unbroken career and enter a new chapter of his life, one that did not require he get up each morning to show homes or put together deals. But at the age of 73 with his long-time employer about to shut off the lights, he realized he was nowhere near ready for gardening or euchre games at the clubhouse. He thought about past friends who had taken their retirement packages from places like General Motors, but did not (in his words) “last very long afterwards”. Without anything meaningful to be involved with, Morton says, “I determined really quickly that I
That was four years ago. Morton, now 77, has just reached his 50-year anniversary as a member of the Durham Region Association of Realtors and was recently awarded a rare gold ring in recognition of this accomplishment. He wears it proudly as a symbol of his dedication to a business he describes as “stimulating” in which each deal is as different as the people seated across the table from him. The secret to his longevity is a simple formula that puts customers before profit. He attributes his people skills to some early lessons learned while growing up on a 200-acre farm without hydro or running water. Each morning until the age of 13, he would be responsible for fetching water from a cold spring well for the family’s cleaning and cooking activities. It taught him about integrity and the primacy of relationships over money. At 17 he left the farm to study at a trade school, and later took a job in Peterborough with Ruddy Electric, a wholesaler of electrical
products. He stayed there for nine years. The company transferred him to Oshawa where he happened to meet Paul Ristow, who owned a real estate brokerage. The year was 1964 and Ristow had just created The Financial Trade Building in Oshawa. Morton was intrigued by the well-heeled location and the fact that Ristow always wore a suit and a tie to work. “I thought, now this is an interesting way to make a livelihood,” Morton says. “He didn’t have to make a deal every day. He could do one every two weeks. He seemed to be doing quite well. That lured me into the business.” Soon after, Bud Fleming partnered with Ristow to form Ristow and Fleming Limited. The company remained small but productive and became known for developing commercial and residential properties that were unique and quality-built. Morton speaks especially highly of two deluxe condominiums which are known as Plaza 700 and 900 Wilson Road North. “Thirty years later those two buildings are still the best in the area,” he says. Spending 47 years with one company was not a difficult feat considering how much Morton respected the integrity of the operation and its culture of teamwork. He is also proud of having been a part of building stable communities in his hub of Oshawa, Whitby and Clarington, Ont., at a time when people bought homes for the long haul and not as a means of making a profit, as is often the case today, he says.
Jane Hurst, 2014 president of DRAR, places the 50-year membership gold ring on Vern Morton’s finger.
By Carrie Brodi
Over half a century, he has watched Oshawa transform from a once self-sufficient one-industry town, to its present day status as a “commuter haven” thanks to the extension of the GO Train
Ralph Roberto, broker of record of Coldwell Banker RMR, presents the Sapphire 2014 sales production award to Vern Morton.
and the Highway 407. These shifts have brought challenges – everything from higher population density, to smaller lot sizes in new developments and sometimespainful cultural assimilation. He says he has seen too many people enter the real estate industry with profit as their prime motivator or a reliance on flashy cars and other pretensions to build their client bases. “A lot of people are attracted to our industry strictly for money and unfortunately they do not have the legs to stay with it for a long period of time,” he says. From a client perspective, he waxes nostalgic about the days when door knocking and phone calls were a legal way to prospect, and when the most tech-savvy advertisement was a front lawn sign or an ad in a newspaper. He doesn’t see technology as a magic bullet to the business and thinks that sometimes it can even be a hindrance. “In the early days we would pick up data sheets in person from the real estate board office. That was our inventory. Buyers would depend on the agents for the source of all listings information versus today when everyone has access
to the information online. This serves to drive up the pricing with multiple offers. No one knows what anything is worth in this frothy market,” he says. But you don’t last for 50 years without adapting to change. He has had to learn how to use technology to keep pace with the industry but he remains skeptical about the promise of social media as a business tool. (His version of Facebook, he jokes, is walking onto the street and meeting people face to face.) “Really what it comes down to is that the actual sale is a one-toone person relationship and that has not changed and that is not going to change,” he says. Now he mostly works as a sellers’ agent, dealing with past clients and friends, helping them get the top price for their homes, which, in many cases, he sold to them initially. His advice to young sales reps: “Be prepared to work hard. It doesn’t come overnight. There are a lot of hours that go into making a sale. Gaining the confidence of the buyer takes time; it may even take a lifetime.” REM
“ Engel & Völkers is at the leading edge of North American expansion, bringing a level of brand consistency and premium quality that currently does not exist at the same level in our industry.” Max Hahne, Engel & Völkers Collingwood Muskoka
Only the best in the business join our brand. Top producer and market leader, Max Hahne, has built a successful 30-year business by remaining committed to providing the highest level of service to his clients and seeking out new ways to elevate his services on an ongoing basis. These were the values he learned at the very first brokerage he joined after receiving his real estate license. What drew him to Engel & Völkers was the similarity he recognized in the brand’s own core values of competence, exclusivity and passion. Today, as the License Partner for Engel & Völkers Collingwood and Muskoka, Max and his team have joined a growing network of like-minded real estate professionals throughout Canada, and an established network of more than 5,900 Engel & Völkers representatives worldwide who live these core values every day. Learn why Engel & Völkers is one of North America’s fastest growing international real estate brands by visiting www.evcanada.com. Engel & Völkers Canada 2 Bloor Street West · Suite 700 · Toronto · Ontario M4W 3R1 · Canada · Phone +1 416-323-1100 info@evcanada.com · evcanada.com
©2015 Engel & Völkers. All rights reserved. This advertisement is not an offering of a franchise, and where required by law, an offering can only be made 14 days after delivery of the applicable franchise disclosure document.
Giving back
IS WHAT WE DO A house is only a home if the people who live there are safe. That’s why Royal LePage is dedicated to supporting women’s shelters and putting an end to domestic violence. Our agents organize fundraising events, like the annual National Garage Sale for Shelter, and donate to the Royal LePage Shelter Foundation. Although I had a choice of real estate offices to join after receiving my license, I chose Royal LePage because of the Shelter Foundation.
Since 1998, the Royal LePage Shelter Foundation has raised more than $20 million, restoring hope and helping thousands of women and children rebuild their lives after violence.
– Darlis Dreveny, Realtor® Royal LePage Network Realty
royallepage.ca/shelter This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. All offices are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd., Brokerage”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2015 Brookfield Real Estate Services Manager Limited. All rights reserved.
Giving back
IS WHAT WE DO A house is only a home if the people who live there are safe. That’s why Royal LePage is dedicated to supporting women’s shelters and putting an end to domestic violence. Our agents organize fundraising events, like the annual National Garage Sale for Shelter, and donate to the Royal LePage Shelter Foundation. Although I had a choice of real estate offices to join after receiving my license, I chose Royal LePage because of the Shelter Foundation.
Since 1998, the Royal LePage Shelter Foundation has raised more than $20 million, restoring hope and helping thousands of women and children rebuild their lives after violence.
– Darlis Dreveny, Realtor® Royal LePage Network Realty
royallepage.ca/shelter This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. All offices are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd., Brokerage”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2015 Brookfield Real Estate Services Manager Limited. All rights reserved.
22 REM JULY 2015
Beyond the hype: Landlords’ rights and obligations By Heath Applebaum
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sk people who have attended one of Kathy Paliwoda’s informative, no-nonsense real estate classes and they will tell you that this is a woman who has seen it all in the investment property industry. She was a licensed real estate agent in 1978, educating the public when Scott McGillivray was still in diapers, long before transforming basements into mortgage payments became the norm. As a former practising paralegal, licensed real estate agent, real estate educator and sought-after consultant, Paliwoda now spends much of her time teaching real estate professionals and those looking to take the leap and become a landlord. With skyrocketing property prices, over-leveraged homeowners have purchased with the financial need to rent out part of their homes to make ends meet. This becomes even more of a priority with the expectation that interest rates must escalate in years ahead. To make intelligent buying decisions, it’s essential to understand the rules of the game, particularly because the rules keep changing. Whether clients are first-time home buyers, empty-nesters looking for retirement income or real estate agents looking to help their
clients make smart decisions, it is essential that people understand the law and the financial implications. Far more than the provincial Residential Tenancies Act, owners and agents must also be aware of key points in human rights, privacy and Condominium Act legislation too. With more than 1.3 million renter households in Ontario (29 per cent of Ontario’s households) and a major trend towards condominium investment units, Paliwoda believes it is essential to get the facts out there. To help people navigate this minefield, Paliwoda is on tour with ICIWorld.com, running six-hour Ontario Landlord’s Rights & Obligations 2015 sessions. The course is part of a series of real estate seminars she leads throughout the year. While there are many financial benefits to becoming a landlord, Paliwoda is quick to acknowledge that there are also many pitfalls and misconceptions that never make it to television or conventional real estate training programs. Having taught residential tenancy law since 1984, she has heard horror stories from thousands of landlords and real estate agents who attend her sessions. Many say
Kathy Paliwoda’s top 10 tips for landlords 1. Educate yourself before you decide to invest in a residential income property. 2. Establish clearly what you may be up against and walk away before it’s too late. 3. Be prepared to follow the rules or face the consequences. 4. Anticipate potential financial risks – rental income loss due to tenant turnover or evictions. 5. Avoid “get rich schemes and dreams”. They seldom work. 6. Get professional advice when needed. Winging it can have bad financial consequences. 7. Know who you are renting to before you hand over the keys. 8. The difference between success and failure as a landlord is what type of property people buy and where they buy the property. 9. Don’t be misled. Be prepared to do your own homework. Due diligence is the key. 10. Keep informed. Stay up to date, because the rules of the game change.
they didn’t realize how little they actually knew. They return annually for refreshers and updates. One of the biggest misconceptions according to Paliwoda is that landlord tenant laws are balanced. “The truth is that Ontario’s landlord tenant legislation leans heavily in the favour of the tenant. With each piece of legislation, there are many restrictions that landlords must follow, even if the previous owner was not.” Paliwoda adds that fines have become tougher in recent years too. “Fines for committing an offence under the Act for an individual landlord are up to $25,000, and for a corporate landlord they are up to $100,000,” so it pays to stay out of the proverbial penalty box. It’s also important to note that fighting or appealing a landlord tenant dispute can be quite expensive and time consuming to resolve, during which landlords often lose significant rent and cannot evict tenants in arrears. Landlords must understand that damage deposits are illegal, that residential private sector tenants cannot be forced out because they have a pet, or that they can’t prevent students from renting, which is discriminatory. However, if they are renting out a condominium, there is an exception to the pet rule, for example, because the Condominium Act supersedes other legislation. On the purchasing side, Paliwoda shares a valuable, littleknown tip for Ontario landlords. “People ask me all the time, what types of investment properties they should be buying. I advise them to consider buying properties built after Nov. 1, 1991 with rental units, because they are not subject to rent controls in Ontario. An owner subject to rent control is looking at a statutory rent increase limit of only 1.6 per cent for 2015. But for post Nov. 1, 1991 properties, a landlord is free to charge whatever the market will bear.” For a list of Paliwoda’s upcoming seminars, visit http://www. iciworld.com/a-landlords-rights-andobligations-2015/ REM
REM JULY 2015 23
Is your website ready for the mobile world? By Robin Wilding n our increasingly mobile world, having a mobile website has become a necessity. Given that the average real estate agent’s website has about 15 per cent of its users visiting it from a mobile device, not having a mobile-friendly website is throwing away valuable users. In response to the fact that 48 per cent of Google Searches are performed on mobile devices Google made an algorithm update recently. This change has been dubbed Mobilegeddon. The update skews heavily towards mobile-friendly websites, displaying them above their nonmobile counterparts for mobile search results. Experts predict it will impact at least 11 per cent of websites currently on the web. The impact of Mobilegeddon on real estate search results, however, is significantly higher for Canadian real estate websites due to the large number of nonmobile sites. For websites that do offer a mobile experience, industry experts expect to see a 4.7 per cent increase in traffic as they usurp the traffic of non-mobile sites. The benevolent minds at Google have made it easy to determine if your website is mobile friendly with a 30second mobile test at https://www.google.com/webmasters/tools/mobile-friendly/ Websites that aren’t mobilefriendly share a number of common characteristics: • The website requires significant scrolling to find the needed information. • Its menu is difficult to navigate. • Zooming in and out is consistently required to read the menu and/or content. • Buttons are too small to click with your finger or thumb. • Clicking on a phone number does not dial the number.
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• Contact forms are difficult to use, including failing to auto-fill, being improperly displayed and having hard-to-navigate form fields. If you’re ready to make the move to mobile, here are a number of mobile-oriented web design elements to look for: 1. Responsive design. A responsive website has a design that shrinks to fit any screen size. This eliminates zooming in and out and makes it more easily navigable for your users. Responsive websites will rearrange and resize their images, videos, text and other content to fit to the width of the mobile screen. An alternative to responsive design is to use a mobile-only website. Instead of scaling content to fit, it creates a slimmed-down version. A mobile-only site offers basic, static and easy-to-access
information. These websites are fast-loading and easy to use but you do sacrifice user experience. 2. Load time. The average mobile user will leave your website within seven or eight seconds if your website hasn’t loaded. The faster it loads, the better user experience it will offer and the lower bounce rate (users who leave the website immediately) you will have. Load time can be drastically decreased by reducing the file sizes of images and website sliders. 3. Menu and navigation. Mobile websites are all about easy navigation. Standard menus require significant zooming in and out, so navigation is vastly improved with a mobile, dropdown menu. 4. Text. Text on a mobile website should not only be easy to read but also easy to skim (mobile users
are generally looking for specific information quickly). Break up text into short blocks instead of long paragraphs and use sub headings regularly. 5. Contact information. Make your contact information as easy as possible to find by making it front and centre. 6. Click to call. A click-to-call phone number can be easily dialled by clicking on it, which encourages people to contact you. 7. Mobile-friendly contact forms. This means enabling autofill and making them responsive so that they can be easily navigated and display clearly. 8. Mobile call to action. Many call-to-action buttons become misplaced or disappear entirely on mobile websites. Don’t miss your opportunity to catch leads from mobile users by making your website’s lead-generation call-to-action
forms and buttons attractive across all mobile devices. 9. Test. The only way to understand your mobile presence is to test it. Use Google’s mobile test tool to get their thumbs up. Then, navigate it thoroughly looking for areas for improvement. Ideally, have some of the least technologically abled people in your life give it a whirl. Robin Wilding is the creative mind behind Real Estate Websites Canada, a boutique real estate website company providing “differentiating-yet-laughably-affordable web solutions for agents across the country.” She says: “The company’s success is highly attributable to creating low-cost branded websites that highlight the personality of each individual agent. You’re unique; your website should be too.” http://real-estate-websites.ca REM
This one’s for the birds
By Dan St. Yves ouses offer safety and security for a wide variety of dwellers, yet not always just for the typical human or standard four-legged pet members one would normally associate as common residents. Undesired residents are often discovered during a pre-sale home inspection. I found this out one weekend morning while preparing breakfast. I had a skillet of eggs cooking on the stove and bread in the toaster that would soon ignite into flames and black smoke, setting off the wisely installed detectors in the nearby hallway. As that smoke alarm was screeching beyond the frantic
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waves of my dishtowel frantically trying to flap aside the smoke billows, I was running the fan above the stove to help as well, redirecting the breakfast special effects display outside. About four seconds before I was going to switch from a dishtowel to a hammer, the alarm quieted down. I returned to my cooking, scraping baked charcoal off the hardened bread. I then turned to flip my eggs. Which is when I noticed they were covered in feathers. It turned out that not only was the grease filter in my range woefully undersized, but there were clearly freeloading squatters taking up residency in the ductwork leading outdoors. I had feathered tenants that had been making leasehold improvements without the approval of myself or the strata council. After measuring the size of the grease filter and making a note to pick up the correct size later that day, I fetched my three-legged ladder from the garage and leaned it up against the exterior wall of my
townhouse, to climb up and get an assessment of the situation. I wasn’t too far up the ladder when the situation flew out to assess me. In a blur of feathers and squawking fury, I quickly discovered the disadvantages of not having repaired that fourth ladder leg as I added a rash of lawn to the feathers I had to brush off my cheek and clothes. For such small birds, Mama and Papa seemed quite able to protect their improvised duct nest. One watched from the nearby tree until I tried to reset my ladder, at which point he or she attacked as if propelled from a bazooka. The other squawked from inside my vent. How I must have looked about 15 minutes later wearing a beekeepers’ face netting, a black leather motorcycle jacket and suede gloves in the heat of the day! But it did prevent the feathered fiend from plucking out my eyeballs as I finally made my way up the wall, prying open the vent guard to get a look inside. Indeed, a full nest had been built, blocking any hope of air movement within the pipe.
Both birds were in the tree by the time I got back with my barbecue tongs and started to remove the nest. As I dropped fragments into a garbage bag, I was relieved to see that I had started my eviction before any eggs had been laid, or worse yet, hatched. To prevent a hasty repeat over the next few hours, I covered the vent with a paper plate and duct tape, at least until I was able to go pick up a proper plastic vent cover that would keep them out permanently. When I did that and went back up on my new ladder to install the piece, I noticed that my neighbour’s vent cover was slightly opened, and one of the birds flew out. No need to spoil the surprise. Just wait till he’s cooking his breakfast eggs next weekend. Humour columnist and author Dan St. Yves was licensed with Royal LePage Kelowna for 11 years. Check out his website at www.nonsenseandstuff.com, or contact him at danst.yves@hotmail.com. REM
24 REM JULY 2015
STOP SELLING HOUSES & START MAKING MONEY
By Debbie Hanlon
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or whatever reason, people seem to think that anyone can buy and sell houses, not just professional real estate agents. Many people think that selling a home is an easy thing to do. But the number of people selling their own homes is steadily declining as those who have tried the do-it-yourself route have come to realize that it isn’t as simple as it seems. That, however, doesn’t always stop people from trying to help you do your job as I found out recently with a client’s father who was one of
I know a guy. . . those people who “knew a guy”. When it came time for the house inspection, he knew a guy who did them. Now, the inspectors I have encountered are fast and professional. This new guy was neither. He did not return calls or texts and what normally took a matter of a few hours stretched into more than a week. The report itself was confusing and in my opinion, which I did express, was not a true representation of a professional home inspection. It made a fairly simple step in the selling process a headache for everyone involved. When it came to a lawyer, the father knew a guy who did that. Same result. The lawyers I have used over the years have for the most part been professional and thorough – but not this guy. He was new and his inexperience cost us a few more days and stretched the patience of all parties concerned to point of nearly snapping. Need home insurance? Well, we were in luck because the father knew a guy who did insurance. He
didn’t do it well, nor did he do it cheap but by golly he did insurance. He also took his time doing it and more days ticked by without my clients having a home. In the end the couple ended up going with one of the firms I had recommended. I always give my clients several referrals that I have confidence in. The firm was professional, thorough and cost effective. When you deal with the families of clients you’re fighting a losing battle. The parents are trying to do what they think is best for their children. They are trying to help you do your job and all you can really do is let them help. Guide them to make the correct decisions. I always ask them if they’re sure when they put out an opinion on what should be done. That way they have an out. That pause sometimes helps them realize that maybe they should just let you do your job. If this doesn’t work, then I simply arrange to meet my clients – the people who I am representing – in private in my office
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and then I lay the cards on the table. It’s not like they would meddle with any other profession. They wouldn’t tell a doctor how to treat a child’s cold. They wouldn’t stand next to their teacher in school and tell them how to teach a lesson. They wouldn’t dare, they’d let the professionals do their jobs. Except when it comes to real estate. In this business it seems that everyone is an expert in all aspects of the trade. They all “know a guy” who can do what needs to be done. The father’s interference in the deal I was doing for his daughter and her husband cost them a couple of weeks and several thousand dollars. At first they were not aware of the issues that were being creating by these inexperienced professionals because they had never done a real estate deal and were totally unaware of how it’s done and why it’s done the way it is. However, by the time we closed the deal, roughly three weeks beyond the original closing date,
my clients were knowledgeable enough to write the real estate exam. It was through persistence and information that I finally got through to the clients’ parents and in the end my clients. I felt a bit elated when the father who, I have to say, did learn his lesson by the end of it, admitted he was frustrated and had made a few mistakes. He said all the waiting was giving him a headache and asked me to deal with the issues on hand. Not to worry, I assured him. You see, I know a guy. Debbie Hanlon is a real estate broker who has helped train hundreds of sales reps and brokered and managed a national real estate franchise. She also founded an independent real estate firm. Currently she coaches sales reps all over the world. She is the CEO of All Knight Inc, a global educational mobile company, as well as a published children’s author and the creator of the national I’m No Bully Show. https://www.facebook.com/missdebbieandfriends REM
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Congratulations PAC Award Winners! The Canadian Real Estate Association’s 2015 Political Action Committee (PAC) Award winners showcase the dedication of REALTORS® to advancing federal policies that benefit homebuyers, property owners and communities. Thank you for your hard work over the past year! To find out how YOU can get involved in REALTOR® federal advocacy and be part of an award winning PAC team visit www.REALTORActionNetwork.ca OUTSTANDING PAC TEAM AWARD (LARGE BOARD) – THE DURHAM REGION ASSOCIATION OF REALTORS® (DRAR)
OUTSTANDING PAC TEAM AWARD (SMALL BOARD) – PETERBOROUGH AND THE KAWARTHAS ASSOCIATION OF REALTORS® (PKAR)
From left to right: Nancy Shaw, DRAR EO; Pauline Aunger, CREA President; Roger Bouma, DRAR PAC Committee Chair; Gary Simonsen, CREA CEO.
From left to right: Mike Heffernan, PKAR President-Elect and Government Relations Committee Chair; Wendy Giroux, PKAR EO; Pauline Aunger, CREA President; Gary Simonsen, CREA CEO.
MOST INNOVATIVE PAC PROGRAM AWARD – THE LETHBRIDGE AND DISTRICT ASSOCIATION OF REALTORS® (LDAR)
PIERRE BEAUCHAMP AWARD FOR INDIVIDUAL PAC ACHIEVEMENT – BRIAN COLLIE
From left to right: Brad Cook, LDAR Past-President; Cathy Maxwell, LDAR CEO; Pauline Aunger, CREA President; Gary Simonsen, CREA CEO.
From left to right: Pauline Aunger, CREA President; Harry DeLeeuw, accepting the posthumous award on behalf of Brian Collie, longtime friend of Brian and CREA Past-President; Gary Simonsen, CREA CEO; Lorne Weiss, CREA Federal Affairs Committee Chair.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.
26 REM JULY 2015
For the (not quite) paperless office Reviewing the HP Pro Slate 8
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s business technology and mobile computing becomes more and more advanced, many offices are deciding to go “paperless” – exchanging mountains of paperwork for data neatly organized in the cloud. But this transition can be a daunting challenge, especially in an industry like real estate, which depends on having a reliable paper trail to document every legally required step of acquiring and selling property. The HP Pro Slate 8 is a tablet device that is very explicitly built for those who aren’t quite ready to give up their pen and paper. Instead, it promises to work right alongside them. As an Android-powered tablet device, the Pro Slate 8 is fairly standard. The “8” in its name refers to its 8-inch display (HP also offers a Pro Slate 12 with the same features and an even larger 12-inch display), with
By William Molls
a high definition resolution of 2,048x1536 pixels – notably, the same resolution as Apple’s iPad. Offering 2GB of RAM and 16GB of internal storage, the whole package is powered by a 2.3GHz Qualcomm Snapdragon 800series quad-core processor. The device itself is incredibly light and portable, weighing less than a pound. What sets it apart, however, is its unique “duet pen”. Unlike an ordinary stylus, the duet pen can also turn into an ordinary ink pen, and allow you to write on a nearby pad of paper, all while what you’re writing simultaneously appears on the screen of the tablet. This is a pretty fantastic feature for anyone who finds trying to jot down notes on the glass surface of a tablet to be inferior to the old-fashioned pen and paper method. The Pro Slate gives you the best of both worlds – a way to digitize what you’re writing without needing to change the way
you’re used to writing it. This feature works best when used with the HP Pro Slate Folio case, sold separately, which holds a pad of A5 paper in the optimal position to have what’s being written on it recorded by the device – as well as being a stylish package for carrying it around. The duet pen uses ultrasound, detected by built-in microphones positioned around the tip of the pen, to triangulate its position around the device and record what you write to within a fine degree of accuracy. That said, depending on how you’re accustomed to holding a pen, it can be a bit finicky. If you’re like me, you may find you need to hold the duet pen higher up than would normally feel comfortable. Otherwise, your fingers may block the microphone-powered detection and result in a garbled translation of what you’re writing appearing on the screen. So long as it is able to detect
Insurance Renewal
ABOUT THE INSURANCE PROGRAM The Real Estate Council of Ontario (RECO) works with insurance broker Alternative Risk Services to negotiate and secure the best coverage and rates for you year after year. RECO’s insurance program provides essential protection for you and your clients and customers through its Errors & Omissions, Commission Protection and Consumer Deposit insurance coverage. Insurance renewal invoices will be mailed in early July to all registrants. A copy of the insurance invoice package is also available on RECO’s website at www.reco.on.ca
2015
Payments are due by August 14, 2015
William Molls is REM’s digital media manager. Email web@remonline.com REM
The total cost of insurance, including taxes and expenses is $417 for the 2015 – 2016 policy period. Payments are due by August 14, 2015. Additional insurance program details are available on MyWeb. To pay your insurance online please visit MyWeb at https://myweb.reco.on.ca.
HOW TO MAKE A PAYMENT You can make your payment online. Over 83% of registrants are making their insurance payments through MyWeb, RECO’s exclusive web portal for registrants. If you do not already have a MyWeb account, creating one is easy and free; simply visit https://myweb.reco.on.ca to sign up. Use your MasterCard or Visa to pay your insurance online for immediate processing and confirmation of payment. Please note that insurance payments are non-refundable and RECO does not accept insurance payments in cash or by phone.
POLICY CHANGES FOR 2015 – 2016 Effective September 1, 2015 the policy has been expanded to provide some bodily injury coverage. Registrants will now have up to $25,000 of coverage under certain circumstances in the event a consumer makes a claim for bodily injury arising out of Professional Services (as defined in the policy), where the registrant accompanies the consumer to a property in connection with the purchase or sale of that property. This change also includes coverage for claims related to mental anguish or distress after the purchase or sale of a property where it is alleged the registrant failed to disclose an adverse condition relating to that property.
what you’re writing, though, I found the Pro Slate did an excellent job of understanding and translating even my chicken scratch into actual words. Capital and lower case letters, spaces, punctuation and new paragraphs all appeared as I intended, with minimal formatting errors or mistakes. As neat a trick as the duet pen is at home, make no mistake: This is a tablet built for business. The pre-loaded HP Notes app allows you to get the most out of the Pro Slate’s unique duet pen feature, but the device also comes ready to work with other notetaking apps you may already be using at work, like Evernote, making it easy to share notes between devices and co-workers. HP Touchpoint Manager and HP Managed Mobility Services allow for “business-class” hardware and data security. The tablet also can wirelessly interact with a projector or monitor using Miracast for
giving presentations without the need for plugs or wires. It’s immediately apparent how this device and its unique ability could be used by a real estate professional. For quickly filling out forms or contracts on the go, the pen is indeed mightier. Now, instead of having to spend forever at a copier, scanning those signatures and forms after they’ve been completed, they could instead immediately be available in the cloud. It’s a fascinating decision by HP to court such a niche market with the Pro Slate; one that wants a device that attempts to work with a pen and paper rather than outright replace them. But that niche is right at home in the real estate industry, where the unstoppable force of wanting to digitize everything meets the immovable object of needing a reliable paper trail. The HP Pro Slate 8 tries, and for the most part succeeds, in bridging those two worlds in one lightweight, professional package.
Bodily injury claims not pertaining to Professional Services are not covered by the RECO insurance program. The insurance program does not include general liability coverage. Ask your insurance broker about general liability coverage and review all your coverages frequently as changes in the insurance marketplace can occur at any time. The policy has also been modified to allow the insurer to settle claims without consent. This does not change the program’s commitment to keep you informed about settlement offers, or negate your opportunity to provide input on them. Whenever reasonably possible, the program is committed to seeking your consent for any settlement. This change is especially
important in instances where registrants are unable to give their consent due to serious illness. New regulations under the Estate Administration Tax Act have no effect on the existing coverage. Registrants will continue to be covered when providing an opinion of value for estate valuations (subject to the terms of the insurance policy). Opinions for the purposes of financing continue to be excluded. For more information about the insurance program visit the insurer’s web site for registrants at www.reco-claims.ca.
RETIRING OR LEAVING THE BUSINESS BEFORE SEPTEMBER?
SUSPENSION PROCESS – WHAT HAPPENS IF MY PAYMENT IS LATE?
Terminate your registration by August 1, 2015 to avoid becoming involved in the suspension process. You have two options for completing your termination: 1. Send a completed “Notice of Employee Change: TERMINATION” form, found on RECO’s website under Real Estate Professionals > Resources > Forms, and a copy of your resignation letter to RECO’s Registration Department; or 2. Have your Broker of Record or Branch Manager complete the termination process for you on MyWeb. See RECO’s website for further details.
Registrants who fail to make their insurance payment by the due date will become part of the suspension process and will be required to pay an additional $35 for expenses related to administration of the suspension process. The total insurance payment after the due date is $452. Failure to make an insurance payment results in the suspension of your registration and the right to trade in real estate effective September 1, 2015.
Contact RECO’s insurance department at: MyWeb: https://myweb.reco.on.ca | PHONE: 416-207-4841 or TOLL-FREE:1-866-757-7772 | FAX: 416-207-9020 or 416-207-4820 | EMAIL: insurance@reco.on.ca
REM JULY 2015 27
Are you authentic? THE GUEST COLUMN
By Shanan Spencer-Brown
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usinesses around the globe have turned the spotlight on their philanthropic efforts, and with good reason. Corporate social responsibility (CSR) has a direct correlation to consumer and employee satisfaction. According to a 2013 study by Cone Communications, 90 per cent of consumers are more likely to trust and show loyalty to businesses that support causes. Likewise, 71 per cent of respondents stated they would take a 15 per cent pay cut to work for a company committed to CSR, says a 2014 study among graduate students by Net Impact. While those statistics can account for the value and widespread adoption of CSR, there’s an emerging story that entrepreneurs are seizing upon. When we demonstrate good will through individual actions, those efforts serve as powerful networking and marketing tools. The magic happens when real people take real actions, through community initiatives that show authenticity to the cause. In this way, the efforts go beyond communicating the good things we do, by way of the actions we take. Rebecca Permack, a real estate agent from Coquitlam, B.C. runs an annual Easter egg hunt that draws hundreds of families each year while raising substantial funds for a local women’s shelter. The event says a lot about Rebecca’s authenticity. It communicates that she cares about families, she is active in her community, and the safety of women and children are important to her. Every year through her Easter egg hunt, Rebecca meets new people, establishes valuable alliances through
sponsors of the event and has acquired new listings – even months after the event – as a result of her community outreach efforts. Toronto real estate agent Patrice Gale takes another approach within her area. Patrice has run the annual Bedford/ Wanless Community Garage Sale for Shelter for the past seven years. She devotes a significant percentage of her annual marketing budget to the event. She prints and distributes flyers throughout the neighbourhood encouraging residents to hold a garage sale on a chosen date in May. Patrice matches all donations received from the community, 100 per cent of which goes to a local women’s shelter. Other real estate professionals have embarked on physical challenges to raise awareness and funds for worthy causes, building rapport with stakeholders and sponsors along the way. Running marathons, climbing Vancouver’s Grouse Mountain multiple times in a day, long-distance paddling or hiking for eight days to the lost city of Machu Picchu in Peru are fine examples of how agents have chosen to meet a personal challenge to better themselves and contribute to an important cause at the same time. To take a page from Scott Stratten’s book UnSelling, what matters in branding is what you do. Your brand isn’t what you say it is; it’s what your customers experience and tell others. Being authentic, committed to a cause and visible with your good works is paying dividends for many entrepreneurial real estate agents. The challenge for salespeople is to meet new people and establish a personal brand as a way of standing out from the fray. Choosing a cause close to your heart, and committing to actions that demonstrate how much you care, is a great place to start. Shanan Spencer-Brown is the executive director of the Royal LePage Shelter Foundation, which since its establishment in 1998, has raised more than $20 million in support of women’s shelters and violence prevention programs. REM
28 REM JULY 2015
METES & BOUNDS
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y Brown From the desk of Courtne
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hat better way to celebrate Canada Day than by setting your hair on fire over another perceived threat? By the way, setting your hair on fire, while not recommended, is one of the few demonstrations available to Canadians without a permit and, if it goes badly, it’s going to be covered by our fabulous health care system and no doubt, YouTube. Yay Canada! Here’s the fire starter headline from REM: Will real estate brokers get ‘Ubered’ out of a career? by Robert E. Lee. Not the most original name for a revolutionary but probably not one he could do much about. Mr. Lee suggests the success of Uber (not so much in Montreal but c’est la vie!) is a red flag for our industry, that gatherers of BIG DATA will soon create platforms where buyer and seller will meet to finally accomplish what has been threatened for decades – disintermediation. At a recent Re/Max meeting of owners and managers, Adam Lerner reminded the group that computers can “see”, “hear” and “write” as well as humans. Adam is the founder of Solvable and assisted the Journey of Discovery team at BCREA to contemplate the future of British Columbia real estate. Not only can computers do things as well as or better than humans – THEY CAN DO IT FASTER! All they need is data. Freelancer.com. Haven’t heard of it? Well, it’s where you and I may be working tomorrow. Sixty per cent of the world is not connected to the Internet. Forty per cent of online learners are from developing countries. It doesn’t matter if you don’t know what you’re doing or what you want to do because you can learn it or have it provided online. How else did I learn napkin folding?
Learning to deal with big data What’s behind Mr. Lee, the fire starter? A franchise called RealtyPoint. What do they promise? To do everything for you – except the messy bit about selling. Still calling it the “new” economy? Sorry, it’s the “present” economy but some of us have myopia. We haven’t grasped the forest has been clear-cut and we’re working among a rapidly changing opportunity for work. At a recent panel discussion in the Comox Valley – not exactly Silicon Valley – we heard presentations from a local inventor who is creating 3D models of undersea oyster farms. His team consists of an electrical engineer in New Zealand and a manufacturer in Ireland. His assembly and testing is done in Victoria, all for a site on a remote bay on Quadra Island, monitored from his home in Cumberland. Google Map those co-ordinates. On the same panel was an engineer for a logging equipment manufacturer in Campbell River who does build/design with 3D modelling, imports steel and builds multi-million dollar, computer-operated grapple yarders worth $1.5 million per copy. He sells and maintains them for logging companies in B.C. and also to Oregon and New Zealand. Now he’s having a crack at Chile. The third person on the panel writes a computer language for video games that is revolutionizing the industry from that hub of high tech – Port Alberni. His challenge is finding a community with housing to accommodate what might be a team of 100. After you house us, we’ll worry about the working space we need. Their common problem is transportation – not of people but of lumpy objects. My real estate board introduced new technology to the members in late May. Remember this name or Google it right now – Trenlii. It may be the most progressive step forward in a practical real estate tool since Top Producer. Here’s what Trenlii will do: • Embed charts into your
website created to your specifications – personal activity or market in general - updated automatically. • Post statistical facts created automatically for Twitter and Facebook networking. • Review listing data on competitive listings on a map format that also allows street views. • Advise clients in chart form on the price they might expect to obtain based on when they bought their house. • Create an interactive map of competitive listings and email it to your client at times you select. • In major urban areas, pick any crime by type and see occurrences in any neighbourhood. The premise of Trenlii is to interpret the data the client doesn’t have from public sources (but would kill for!) and allow the Realtor to initiate different discussions about the marketplace. It makes us credible interpreters of the information the Internet has given the consumer. What experienced Realtors intuitively know, Trenlii provides in a thirdparty expert presentation. Trenlii feasts on BIG DATA. Here’s the good news – we have the data. Here’s the bad news. My favourite forecast is closer to the truth than ever before. From Warren Bennis, the leadership pioneer who died one year ago, “The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.” Do the best you can. Contact Marty Douglas by email at mgdouglas247@gmail.com . Follow or connect with Marty on Twitter, LinkedIn and Facebook. He is a managing broker for Re/Max Ocean Pacific Realty in Comox and Courtenay, B.C. He is a past chair of the Real Estate Errors and Omissions Insurance Corporation of B.C., the Real Estate Council of B.C., the B.C. Real Estate Association and the Vancouver Island Real Estate Board. REM
REM JULY 2015 29
More reasons to work with buyers first By Ken Wilder
L
ast month in REM, I suggested that the commonly accepted notion of spearheading your marketing and prospecting approach towards sellers is obsolete. I offered an alternative suggestion that working with buyers first is a more powerful and a highly leveraged position. Today, I would like to offer four more reasons why I believe that’s true. 1. Once you work with a buyer, their listing becomes yours, or at the very least, yours to lose. When I am vying for a listing, there is a strong likelihood that I will be up against other agents chasing the same listing. I view that as my listing to win. In other words, I must be better, in
some way, than my competition. When I work with buyers first, I have a much better opportunity to develop a relationship so when it comes time for the client to list their home, I am the only agent they will even consider. That listing is now mine, unless I do something to blow it. It’s my listing to lose. 2. No competition. If you build your business around seeking out buyers first, you will find the field of competitors to be practically empty. That’s because only a very small minority of agents will take the time to get a buyer into the office, explain to their buyers the difference between customer service versus client service, and allow the buyer to choose the service that is best for them, all before showing that buyer a single home. If you put forth this time and effort, the amount of competition you come across will be minimal, if any at all. In addition, you will have little or no competition when it comes
time to listing your buyer’s house. After having already built a relationship with the buyer, in all likelihood, that buyer will naturally choose you as their listing agent. This is not always the case, but it is certainly very common. In this situation, you will not be subject to competing for that listing. Your relationship building in effect has served as your listing presentation. 3) The buy side of the transaction is the easier side. It’s the side of the transaction that almost everybody prefers. I can’t honestly say that I have ever had a seller who enjoyed the selling process, but practically all my buyers over the years have enjoyed some aspects of the buying process. We pride ourselves over the rest of the animal kingdom because we possess a cerebral cortex; that part of the brain responsible for logical thinking. However, we have all experienced what happens to logic when shown something we fall in love with, be it another person, a pair of shoes or a
Accelerate your career Slavens & Associates is a boutique brokerage with offices in two of Toronto’s finest neighbourhoods. Our brokerage enjoys an unparalleled reputation and loyal name recognition in the competitive real estate market. Our agents thrive in a positive atmosphere with exceptional support from management. Partnering with us allows you to focus where it matters most: closing the deal and accelerating your real estate career. Take the next step. Join Slavens & Associates. Contact us today. Liz Garcia
Darren Slavens
BROKER /MANAGER
VICE PRESIDENT/BROKER
egarcia@trebnet.com 416-483-4337
darrenslavens@trebnet.com 416-944-1818
www.slavensrealestate.com/careers 192 Davenport Road Toronto, ON M5R 1J2
new home. How many times in your career have you witnessed emotion override logic? The emotion a buyer experiences often serves to assist us in completing that deal, whereas the emotions a seller experiences normally hinders our efforts in that task. 4) Working with a buyer often results in a higher commission than working with a seller. Not always, but most of the time. However, this is market specific. As an example, the GTA is currently experiencing a strong sellers’ market. There are approximately 15,000 listings on the Toronto Real Estate Board and over 43,000 TREB members. About one listing for every three salespeople. By virtue of this fact alone, the law of supply and demand dictates that there is a downward pressure on listing commissions. Simultaneously, the vast majority of co-operating broker’s commission offered by listing brokers on MLS remains at 2.5 per cent. As an added bonus, when it
comes time to list your buyer’s home, and they have already made the choice of using you as their listing agent, you are now in a stronger position to negotiate a higher commission on the listing side, than if you had approached the seller initially, without first having the opportunity of building a relationship. I am by no means suggesting that we should not be actively seeking listings, quite the contrary. What I am saying is that by first obtaining a repertoire of buyer contracts, we are in a much stronger position to obtain a greater number of listings with much greater ease. Ken Wilder is a 29-year veteran in the real estate industry. In 1993 he pioneered buyer agency. Since 2000, he has been a motivational speaker, coach, mentor and author, and has spoken to more than 20,000 real estate agents and brokers across the country. Email kenwilderseminars@gmail.com REM
30 REM JULY 2015
AS I SEE IT FROM MY DESK
By Stan Albert
“H
oly cow! Not another multiple offer that I lost! This is the third property that my client has lost out on.” How often do we in management hear this woeful cry on Monday morning after a busy weekend? Back in the day, a multiple offer was a rarity. Today, in Vancouver and Toronto, there can be up to a dozen offers on a property. Some of the end prices do not make any sense at all. A prime example was a two-storey tear-down that ended up with over 35 offers. It will be torn down to build a 4,000
When your buyer loses a bidding war sq. ft. monster home. There are many more examples of frustrating stories where our buyers walk away bitter and disillusioned. There’s no remedy, of course, for the unsuccessful buyer for that one great home that they’ve laboriously selected with their agent. Or is there? Let me put on my coaching hat. Here’s a marketing approach for you to clone after an unsuccessful offer presentation. Take the defeated offer and place it in folder (I like using the red colour; it makes the file look really important). Be sure to black out price, terms, conditions and buyers’ name. Approach each home that’s similar to the one you’ve been shot down at and use a script somewhat like this (but first, be sure to ask if the seller has any form of contractual agreement in place with a real estate professional). Introduce yourself and say, “I was involved in an offer on........ that wasn’t accepted. I was won-
dering, since your home is somewhat like the one up the street, if you’d be interested in a simple agreement to sell your home, without tying it up on the MLS or on exclusive?” The seller will have his curiosity peaked. “How is that possible?” “Mr. Seller, the province has developed an agreement to accommodate this novel selling service. It’s called ‘commission agreement’ to sell a property not listed for sale.” Note that this method is only workable if the sellers are ready to move at the same time as your client is looking to move. The one we use here in Ontario has terms and conditions that are not too dissimilar to a regular listing agreement. So let me continue with what I believe is a win-win result. If the seller agrees to sit down and talk, proceed with, “If we could sell your lovely home, which is much like the one we lost out on, when could you move? We need an xx day closing. Will that work for you?”
I’ve trained many, many agents on this technique. It enhances your chances of adding to your data bank and to your own financial bank. The seller may say, “Sure, but where would we move to?” Here’s where you move on to telling them that you will find a dream home for them in that time and you will put in the Agreement of Purchase and Sale that the sale would be conditional on that. For your commission, it usually makes sense to ask for what you get when you have a buyers’ agreement. How do you notify the public of a “sold” on the property? Use a sign with a stick-on that says “sold under contract”. You still
#1 in S Sylvan Lake
IS WHAT WE DO We are We e plle eased to announce tthat broker/owners Norm and Cha Ch ad Jensen of Royal LePage Network Realty Corp ad have acqu uired Century 21 Global Realty of Sylvan Lake, Alberta. Roya y l LePage Netw work Realty Corp is the largest real estate e brokerage in Central Alberta. With thiss merger, they have increased theiir market share in Sylvan Lake to over 50% of units sold. Con ngratulations Norm and Chad! Partner with a leader. Join Royal LePage.
Chad Jensen
Norm Jensen
royallepage.ca/franchising This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. All offices are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd., Brokerage”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex”. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2015 Brookfield Real Estate Services Manager Limited. All rights reserved.
have to have a data sheet on the property and explain all that’s normally required. I’ve trained many, many agents on this technique. It enhances your chances of adding to your data bank and to your own financial bank. Here’s a true story to conclude with: About 2001 or 2002, an aspiring agent who came from an entertainment industry had more than 20,000 names in his data bank. One of them called and asked him to find a home in a very tony neighbourhood and I offered to help him out. All he had to do was draft the offer and come along with me once he found the property of his client’s choice. We did this, but we lost out to a higher offer. He was devastated because it was his first offer. How many of us have felt that way? I gave him the suggestion above and the following day he called on at least two dozen homes. The last one he approached answered the door. It was a young man, about 19, who was living with his dad. The mother had died of cancer the year before and they wanted to have a smaller property, preferably a two-bedroom condo. The sales rep made the deal and since then used that sales technique successfully for several years. He is now a competing broker/manager. As long as listings remain tight, this insanity of gazillions of offers on properties will continue. Stan Albert, ABR, ASA is a consultant with Re/Max Premier in Vaughan, Ont. He can be reached for consultation at stanalb@rogers.com. Stan is now celebrating his 45th year as an active real estate professional. REM
REM JULY 2015 31
Yeo has been the recipient of many awards including the Realtors Care Award, the Giving Hearts Award for Outstanding Volunteer Fundraiser from the Vancouver Chapter of the Association of Fundraising Professionals and the RBC Top Canadian Immigrant awards.
CREB’s ROAR Awards recognize Calgary Realtors Calgary Realtors who demonstrate “role model-calibre performance in specific areas of real estate” were recognized recently by CREB, the local real estate board. Five Calgary Realtors were honoured at the CREB ROAR (recognizing our accomplished Realtors) Awards. “The winners are examples of what clients look for in a Realtor – professional, reliable, courteous and committed to providing the best possible experience,” says ROAR Awards committee chair Robyn Hauck. “We were so impressed with all the nominees this year. They’ve all worked hard to deliver outstanding results for their clients and the ROAR Awards made sure their efforts didn’t go unnoticed.” The 2015 ROAR Award winners are: Commitment to Education: Lindsay Smith, CIR Realty Community Impact: Milton Brandson, Century 21 PowerRealty.ca Marketing Excellence: Chris Mulders, CIR Realty Mentorship Distinction: Robyn Moser, CIR Realty People’s Realtor: Leisa Fuller, Century 21 PowerRealty.ca
World Realty, the largest independently owned and operated real estate firm in British Columbia, Yeo founded two long-term charitable initiatives: B.C. Children’s Hospital Realtors Care Endowment Fund and the Canadian Realtor Care Foundation. He is a leader is the foundation, significantly contributing to the continued success of the Realtors Care Blanket Drive, which collects and delivers warm blankets and clothing to more than 165,000 homeless residents each year. In 2011, Yeo played a leadership role in raising $3.5 million for local charities, including $1.6 million for earthquake relief in Japan. He contributes an average of more than 600 volunteer hours per year to these efforts.
Kelowna office named Royal LePage’s National Brokerage of the Year Brokers/owners Francis Braam and Wade Webb of Royal LePage Kelowna were presented with the British Columbia Brokerage and the National Brokerage of the Year Awards by Royal LePage Canada recently. Recipients of these awards are recognized for their standard of excellence, leadership and performance in 2014. “Our goal is to continue to help and serve others and to make good things happen for good people,” says Webb. “This is a great honour and without the dedication and commitment of our staff and the immense support from our business partners and clients, we
Leisa Fuller
Lindsay Smith
John Yap, MLA, left, and Sing Lim Yeo
would not be where we are today.” The brokerage has five locations in West Kelowna, Kelowna, Lake Country, Big White and a kiosk at Orchard Park Mall.
Linda Mash receives Community Spirit Award Coldwell Banker R.M.R. sales rep Linda Mash was recently presented with a Durham Region
Association of Realtors Community Spirit Award. She is active in many local charities. Mash was surprised by the recognition. “I was shocked and honoured. I don’t volunteer for the recognition, I feel honoured to be able to help people in need,” she says. “I feel giving back is extremely important and giving of my time is the least I can do. We live in a very small community.” REM
Expanding into new markets
IS WHAT WE DO We are thrilled to anno ounce the opening of the new Royal LePage Bas d du Fleuve office in the town of Rimouskki, Quebec, the largest market east of Quebec City. The addition of this new tea am increases Royal LePage’s market share in Rimo ouski by 7%, and positions us to better serve communities from Quebec City to Gaspésie.
Sing Yeo awarded the Order of British Columbia Sing Lim Yeo, a founder of Royal Pacific Realty Group, has been awarded the Order of British Columbia (O.B.C.), the province’s highest form of recognition. He was recognized as one of British Columbia’s most generous volunteers and philanthropists. During 30 years of volunteerism, he has helped raise more than $20 million for a wide range of charitable interests. As co-owner/broker of Royal Pacific Realty Group and New
Linda Mash, left, receives her award from DRAR president Sandra O’Donohue.
We’re pleased d to welcome the new owners Suzanne Landry, Da anny Samson, and their team to the Royal LePage family! Partner with a leader. Join Royal LePage.
royallepage.ca/franchising This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. All offices are independently owned and operated, except those marked as “Royal LePage Real Estate Services Ltd., Brokerage”, “Royal LePage West Real Estate Services” and “Royal LePage Sussex”. Any copying, reproduction, distribution or other use of these materials is prohibited. ©2015 Brookfield Real Estate Services Manager Limited. All rights reserved.
32 REM JULY 2015
Good Works T
he Royal LePage Shelter Foundation has been named a national partner in Sheltersafe.ca – a new online resource – along with RBC Foundation. Funds will be provided to underwrite the costs of the new website. Sheltersafe.ca uses a clickable map to help women connect quickly with the shelter in their community. In addition to being a safe place to stay, shelters have 24-hour phone lines to support women in crisis. “The Sheltersafe.ca website is the only one of its kind in Canada and is accessible on all platforms including the web, on smartphones and tablets. In this way, the needs of women living in remote, rural and urban areas will be served,” says Phil Soper, president and
CEO of Royal LePage. Shanan Spencer-Brown, executive director of the foundation, says: “The key to bringing safety to women who have experienced abuse is for them to know that support is available at a local women’s shelter. Sheltersafe.ca will make it easier for them to find this help.” ■ ■ ■
Re/Max Integra president and co-founder Walter Schneider was one of the first to offer support for the Re/Max Highway of Heroes project, a True Patriot Love Foundation initiative that honours those who have lost their lives serving our country. Re/Max is a sponsor of one of 26 sculpted bronze plaques that will be placed by overpasses on the highway.
Announcement Welcome Master’s Choice Realty!
The Re/Max sponsored plaque on the Highway of Heroes.
Jennifer Skuce presents the cheque to CHEO.
The Western Fair District team from the second annual Hockey Helps the Homeless event.
The Real Estate Centre and Scotiabank present cheques to the Canadian Red Cross in Coaldale, Alta.
The Century 21 team, from left: Annie Zhang, Ashley Lockyer, Chiyoko Kakino, Tina Godard, Carla Ty and Emilie Morin.
Sales reps and staff from Sutton Group - Grande Prairie Professionals visit the local STARS operational base.
Please join us in welcoming RE/MAX Master’s Choice Realty into the RE/MAX INTEGRA family! Master’s Choice Realty was attracted to RE/MAX by its undisputed status as the world’s leading real estate brand with the most productive agents and excellent global networking and marketing opportunities. Bin Ji and Lily Liu decided the RE/MAX business model offered them the best way for them to continue to grow their business. Eleven years ago, Bin Ji (Broker of Record), and Lily Liu (General Manager) established the Toronto Chinese Real Estate Club, through which they have delivered outstanding group showings, seminars, communications and cross-Chinese cultural team management skills to more than 5,000 buyers and sellers. Please welcome Bin and Lily, and everyone at RE/MAX Master’s Choice! We are excited to help you take your business to the next level, maximizing opportunities and supporting you, every step of the way.
National Garage Sale for Shelter Best Group Portrait winner was Royal LePage Frank Real Estate in Whitby, Ont. Right At Home Realty’s Don Mills Branch recently took part in a Habitat for Humanity GTA Brimley Build. From left: Seyed Moghaddam, Nicole Sallese, Donna Coughlin, Fariba Mahdi, Denis Tossan, Tim Andrada, Manu Singh, John Ly, Gian-Piero Furfaro, Vivian Rhee and Ashley Russell-Harte.
Lily Liu General Manager
Bin Ji Broker of Record
Master’s Choice Realty is located at 3190 Steeles Avenue East, Suite 110, Markham, ON.
National Garage Sale for Shelter Best Action Shot winner was Royal LePage Real Estate Services, Bayview Branch in Toronto.
REM JULY 2015 33
Schneider chose the bridge that is the closest to Trenton, Ont. It’s the first bridge that motorcades with the repatriated fallen heros and their families pass after arriving in Trenton en route to Toronto. This bridge also celebrates and is named after a Cobourg Police constable who was killed after responding to an alleged robbery that turned out to be a planned ambush. Constable Chris Garrett’s heroic actions prevented a greater tragedy by halting a heinous chain of events. ■ ■ ■
London, Ont. hockey enthusiasts lived out their fantasy to play alongside former NHL and Olympic hockey players at the second annual Hockey Helps the Homeless (HHTH) event recently. The local real estate community, with leadership from the London and St. Thomas Association of Realtors (LSTAR), have been instrumental in bringing the event to the city with sponsorship, promotion and volunteers. Sales reps Alex Sworik, Michael Legg and Wayne Gibson; and Bruce Sworik, broker of record from Sutton Group - Select Realty were on the LSTAR team, which raised $6,315 toward the 2015 event grand total of $133,260. Warren Shantz, broker at Sutton Group - Preferred Realty, at 60 was the eldest member of the Western Fair District team, which placed fourth in fundraising with $8,657. LSTAR recently recognized
the efforts of the HHTH committee members including Sutton Group – Preferred Realty sales rep Dan Grantham and Shantz. Each received a Quality of Life award. ■ ■ ■
During the recent 72 hr. Preparedness Week, Real Estate Centre in Coaldale, Alta. spearheaded an event, in conjunction with the Town of Coaldale, to inform the community about the importance of being prepared in case of a disaster. The initiative was conceived by salesperson Doreen Lloyd when she was looking online and discovered Emergency Preparedness Week information. Local businesses and the community supported the event and raised $3,040 for Canadian Red Cross, which was matched by Coaldale’s Scotiabank, for a total of $6,080. Heleen Jacobsen of Real Estate Centre and Jamie Rollingson of Scotiabank presented cheques to Penny Balfour of the Canadian Red Cross. ■ ■ ■
Century 21 Canada’s team of six participants ran, climbed and crawled through the annual Woman2Warrior 5 km obstacle race in support of Easter Seals camps in B.C. The team doubled its 2014 fundraising total, contributing $6,716 – enough to give three kids a fully accessible summer camp experience. The company’s vice president of marketing, Chiyoko Kakino, placed second in overall fundrais-
Twenty-seven sales reps from Sutton Group - Grande Prairie Professionals donated $100 each and broker Jason Scott contributed $2,800 to fund a mission. ing totals for the race. The race raised $125,000, benefiting Easter Seals kids by providing the ultimate camping experience for over 900 children and young adults with disabilities. ■ ■ ■
When the occupants of an RV had a serious accident near Fox Creek, 250 km northwest of Edmonton, they required immediate care. With no hospital nearby, STARS came to the rescue. This is one of 29,000 missions completed by the medical helicopter service since 1985. Missions cost an average of $5,400. Sutton Group Grande Prairie Professionals decided to fund a mission and soon afterwards heard that their donation was used for the Fox Creek accident. “We chose this important organization to support as it is outside the general health care system and is critical in saving lives when time is of the essence,” says sales rep Michelle King. “STARS can get to remote locations to begin medical assistance immediately at ground zero and continue treatment while
transporting the patient to the hospital. STARS has saved countless lives that would have otherwise been lost. Time literally means the difference between life and death in many of these situations.” Twenty-seven sales reps from Sutton Group - Grande Prairie Professionals donated $100 each and broker Jason Scott contributed $2,800 to fund a mission. This winter, as a thank you from STARS, the team was invited to tour the Grande Prairie operational base and meet the medical and aviation crew. ■ ■ ■
At the 32nd Children’s Hospital of Eastern Ontario (CHEO) Telethon recently, broker/owner Jennifer Skuce of Re/Max Metro-City in Ottawa presented more than $91,000 to CHEO on behalf of Re/Max agents in the Rideau St. Lawrence area. Re/Max Metro-City is the largest brokerage in the area with many of their agents contributing to Children’s Miracle Network through the Re/Max Miracle
WE SEE
Home Program and with many staff members contributing per pay cheque. The brokerage also contributes in other ways throughout the year, including the Miracle Match on the telethon each year where they match every dollar that is pledged for a period of three minutes during the telethon. It also holds garage sales and a hockey shoot-out where participants pay to shoot on the Ottawa Senator’s ice and winners are supplied with prizes in the suite to watch a hockey game. In addition, anyone who forgets to turn off their phone and has it ring during a general meeting is required to pay $20 for CHEO. With all of these activities, to date Re/Max in Ottawa has raised $1.8 million for CHEO. ■ ■ ■
Royal LePage offices across Canada once again provided a paradise for treasure hunters at the National Garage Sale for Shelter, held annually on the Saturday of the Mother’s Day weekend. More than $240,000 was raised at 100 garage sale locations in support of the Royal LePage Shelter Foundation. The event also generated awareness of local services available for women and children seeking safety from domestic violence and hope for new beginnings. The foundation encouraged all participants to compete in a photo contest. Some of the winners are shown on the opposite page.
HAPPY HOMEBUYERS IN YOUR FUTURE
855.526.3939 • www.housemaster.ca A GreenSaver Home Energy Services Inc. Company. Master Franchise for Canadian HouseMaster operations and Energy Services in North America
REM
34 REM JULY 2015
THE LEBOW REPORT
By Barry Lebow
A
Facebook friend messaged me from across Canada to say she was torn about staying or leaving the firm where she now works. She asked me, “When does one know when it is time to leave?” For some, it is the allure of more money. That makes some sense but not if the trade-off is that more money comes with lack of training, lack of strong management, lack of strong brand and basically being left on one’s own. That is a silly scenario, yet in real estate it is chosen by the unwise and too often. Others leave because of a clash
When to leave a brokerage between them and another associate. I went through four grades in school with the same bully in each of my home room classes. Was I supposed to leave the school? In the end, I confronted the bully and life went on. Some leave because of real or perceived conflicts with management. The manager is not around, the manager or broker plays favourites, or worse – the manager or broker competes. That is not uncommon and would not sit well with me either. But the No. 1 reason to leave is ethics. Ethics are essentially a code of conduct that we each live by. I am not totally ethical. When I can, I break the Highway Traffic Act and the rules of the road anywhere in North America. I would not cheat you or rob you but, damn, if I can get away with speeding, I am going to speed. We all have our own codes. There are so many different ethics. There are religious ethics, there are our own family ethics,
CENTRAL OFFICE: Is looking to hire Real Estate Professionals who are currently earning a minimum of $100,000 annually. These agents must be diligent in their work ethic and take pride in their career and Brokerage. If you feel you qualify, kindly contact Jeffrey Wagman, Broker of Record.
416-785-1500 jwagman@foresthill.com
there are the ethics of our society and there are also the ethics of an office. The office ethics reflect on who you are and what you stand for. You can be in direct conflict with the moral direction of your peers (which starts at the top) and with what lies within you. Some offices have ethics that allow them to function where the only thing that matters is making a deal at any expense. The deal-driven office is obsessed with the bottom line.
By Peyman Aleagha
A
ccording to 176 North American brokerage managers and owners recently surveyed by WebsiteBox, real estate companies that provide agents with professional websites and related marketing tools are more likely to successfully recruit, train and retain agents. Or, as I like to say: “The brokers with the best tools, rule.” But don’t take my word for it. Of those we surveyed, 79 per cent agreed that offering websites helps recruit agents; 76 per cent agreed that offering websites helps retain agents; and 79 per cent agreed that providing websites speeds the productivity of new agents. Who should pay? With so many survey respondents bullish on the training, recruitment and retention benefits of agent sites, it’s no wonder that 75 per cent also agreed that it is “important” for agents to have websites. However, only 45 per cent felt it was the responsibility of brokerages to purchase or subsidize websites for their agents. The survey seemed to show a
Other offices have ethics where the clients and customers dominate and all dealings are to ensure they get treated fairly over all else. Not sure if you should stay or leave? Ask yourself, what are the ethics of your present office and are they in sync with your own values and beliefs? If not, it’s time to move on. And when you go to move on, don’t jump without verifying the ethics of the new office that is soliciting you. They may be worse
than what you leave behind. Ethics – over all else. I hope this helps my friend make her decision. Barry Lebow is now in his 47th year in real estate. He has had an extensive career and has been accepted by Canadian courts as an expert in real estate matters in more than 500 trials. He is an international speaker and an award-winning broker at Re/Max Ultimate Realty in Toronto. Email barry@lebow.ca REM
Providing a website boosts recruitment and retention discrepancy. Brokerages recognize that websites increase agent value, but many aren’t willing to foot the bill for their agent sites. Paying for agent sites would likely justify the control brokerage managers said they wanted to wield over agent branding and
Brokerages recognize that websites increase agent value, but many aren’t willing to foot the bill for their agent sites.
customer relationship management (CRM). For example: • 93 per cent stated that all brokerage listings should be displayed on agent sites • 88 per cent indicated that agent websites should display the brokerage brand • 86 per cent said they preferred websites that allow brokermonitored CRM Such control reduces the risk of conflicting information or poorquality content on agent sites and also increases the likelihood that potential property buyers and sellers will view a particular brokerage as a market force. Yes, the brokers with the best tools, rule. Agents in those brokerages are way more effective if they have sites with quality content and lead-generation tools that bring in deals. Peyman Aleagha is founder and CEO of Toronto’s WebsiteBox, which offers $99 real estate websites and tools. Reach him at peyman.aleagha@websitebox.com. REM
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36 REM JULY 2015
M
ore than 300 Realtors from across Canada met recently with their Members of Parliament in Ottawa at CREA’s Political Action Committee (PAC) Days. The Durham Region Association of Realtors (DRAR) Political Affairs Committee (PAC) won the Outstanding PAC Team Award for a large association. The national award recognizes and honours volunteer initiatives and enterprises in advancing federal Realtor issues. “This award recognizes that DRAR has a long history of advocating for good public policy with our elected officials, thus ensuring that housing continues to play an integral role in our local economy,” says Roger Bouma, 2015 PAC chair. CREA’s 2015 PAC issues include indexing the Home Buyers’ Plan to the Consumer Price Index in $2,500 increments; and supporting workers through job relocation, which would make the Home Buyers’ Plan available to help maintain homeownership after relocating more than 40 km from an existing home to secure employment. ■ ■ ■
Thousands of Greater Toronto Realtors took advantage of an opportunity to learn and connect at the Toronto Real Estate Board’s annual Realtor Quest conference. The event included 44 sessions through its professional development component, Learning Quest. Among this year’s speakers were Walter Sanford, who shared strategies for multiplying effectiveness and Richard Robbins, who outlined his views on emerging trends. Included as part of the Spring Annual Meeting were a number of awards presentations, operations updates, an announcement on the results of the election for the association’s 2015/2016 Board of Directors and financial motions. Presented with TREB’s highest award, the Award of Merit, were
former Real Estate Council of Ontario (RECO) registrar Allan Johnston, former TREB president John Meehan and former RECO CEO and president Tom Wright. Former TREB director Stuart Braund and former TREB president Bill Johnston were recognized with the David Rossi Award for their outstanding contributions to the association’s committees and former TREB director Garry Lander received the Commercial Network Merit Award for his service to commercial practitioners. Member Sandip Singh Sangha was also honoured with TREB’s Community Service Award for his many volunteer efforts. In addition to receiving an update from TREB president Paul Etherington and CEO John DiMichele, members heard from Ontario Real Estate Association president Patricia Verge, CREA president Pauline Aunger and RECO CEO Kate Murray, who talked about their organizations’ recent initiatives. The election results for TREB’s 2015/2016 Board of Directors, which begins its term July 1, were announced: Mark McLean, president; Larry Cerqua, president elect; Paul Etherington, past president; Howard Drukarsh, Don Kottick, John Lusink, Donald Patterson and Sandra Rinomato, directorsat-large; Tim Syrianos, central brokerage director; Lisa Patel, central non-brokerage director; Gurcharan (Garry) Bhaura, west brokerage director; Michael Collins, west non-brokerage director; Richard (Dick) Briscoe, east brokerage director; Michelle Makos, east non-brokerage director; Joseph Shum, north brokerage director; and Peter Burdon, north non-brokerage director. A motion for a $25 one-time dues holiday was carried following the meeting’s financial update, representing the tenth dues reduction in recent years and a total savings of $530 per member over the years. Members also had two chances to
win a free one-year TREB membership by activating their new electronic membership cards. For the eighth consecutive year, members voted in favour of continuing their support of the Ontario Realtors Care Foundation’s Every Realtor campaign by allowing TREB to make a donation equivalent to $1 per member per month for a year to the foundation. Through the foundation, last year alone TREB provided grants totalling $485,410 to 60 different shelter-related charities across the GTA. Realtor Quest featured Canada’s largest real estate trade show with 252 exhibitors spanning 85,000 square feet of space. ■ ■ ■
Kristen Gray and Ben Sackville are the latest recipients of the $1,000 Association of Regina Realtors scholarship. “Regina Realtors have proudly championed youth and education in our community for decades,” says ARR CEO Gord Archibald. “It will be exciting to see the
impact Kristen and Ben make in the years to come, and we believe in giving them a vote of confidence.” ARR has awarded two scholarships every year since 1977. The University of Regina selects the recipients based on academic standing and ability in such areas as leadership, athletics and fine arts. Regina Realtors are also longtime supporters of the North Central Family Centre and its Youth Empowerment Program and, in 2012, ARR introduced the annual Realtors Citizenship Award recognizing dozens of Grade 8 students who demonstrate commitment to their school and community. ■ ■ ■
At the Peterborough and the Kawarthas Association of Realtors (PKAR) Past Presidents Night recently, members Lorne Smith and John Bowes were acknowledged for 60 years of membership. The association says they are the only real estate professionals in
Canada known to be in the business that long. Sharon Lawes, Bill Smerhy, Dean Bridges, Gail Burton and Joe Manacchio were recognized for recently achieving 25-year memberships. Ron Lawes was named an Honorary Fellow for his dedication and loyalty to the association. Diane Lloyd was presented with the Merit Award for her work with Kawartha Pine Ridge District School Board. Donald Barrick was given the Past Presidents Award for his “unwavering dedication to his profession as a Realtor,” says PKAR. The event raised $6,802 at a silent auction, which will be distributed to a local charity on behalf of the Ontario Realtors Care Foundation. ■ ■ ■
The Association of Saskatchewan Realtors (ASR) recently presented the Saskatoon Community Foundation (SCF) with more than $38,000. The Continued on page 37
Realtor Quest included Canada’s largest real estate trade show.
Jane Hurst, DRAR 2014 PAC chair and immediate past president, and Roger Bouma, 2014 PAC chair, accept the award.
Ben Sackville, ARR CEO Gord Archibald and Kristen Gray
Left: New PKAR Quarter Century Members were recognized at the Past Presidents Night. From left: Dean Bridges, Bill Smerhy and Sharon Lawes. Also recognized but unable to attend were Gail Burton and Joe Manacchio.
Don Barrick
Ken Barrick, PKAR past president and awards chair, left, and Rennie Lowes, PKAR awards committee member, right, present Ron Lawes with an Honorary Fellow award.
REM JULY 2015 37
LEGAL ISSUES
By Donald H. Lapowich
T
he plaintiffs sued the defendants when they failed to close on a deal for a preconstruction condominium unit in British Columbia. The defendants alleged they did not receive a disclosure statement before signing the agreement and did not have the opportunity to review it. The seller’s real estate agent testified to her business practices of “always” providing the disclosure statement before a contract to purchase was signed. She had many years of experience selling preconstruction condominiums. Her testimony was accepted by the court. “In my view, given the passage
Boards and Associations Continued from page 36
funds were raised at the third Quality of Life Legacy Gala held in Regina, where Realtors from all over the province gathered to support the cause. That evening the ASR also awarded $5,000 grants to six community organizations from different regions of the province. “This is particularly gratifying for us, as it means we can provide the grants again in 2016,” says Joanne Kerr, co-chair of the ASR’s Quality of Life in Saskatchewan committee. “We are still getting feedback from last year’s grant recipients, so we know what a huge difference they have made; this fall, we’ll happily put out the call for applications for 2016.” I I I
Saskatchewan Realtors Lou Doderai and Kevin Wouters recently showed their support at the Walk a Mile in Her Shoes event, an international men’s march to stop rape, sexual assault and gender violence. It was staged by the North East Outreach & Support Services in Melfort, Sask.
Court sides with sales rep of time that has elapsed between the events of July 4, 2007 and the point when the provision of the disclosure statement became an issue, the reliability of the defendants’ memories and the natural tendency to merge or conflate separate events in the past undermines the defence being advanced,” the judge said. (Bosa Properties [Edgemont] Inc. v. Ban, 2012 BCSC 94) I I I
In an Ontario case, the plaintiff agreed to sell its property to a corporation and a part of the consideration was a promissory note. When no payment was made on the promissory note, the vendor sued the corporation. The corporation then made allegations that there were latent defects, breach of representation and warranties by the vendor. There was also an allegation of failure to make full disclosure. The court noted that the Like many of the “walkers,” Doderai and Wouters expressed new-found respect for women who wear these shoes every day. “I know they make my legs look really long and shapely,” says Wouters, “but flats are just more practical.” Doderai said, “The shoes really complement any outfit, but I think I’m going to have to stick with what’s in my closet right now.” On a serious note, both men agreed that the march was a great way to shine a light on a very dark subject that not many people are comfortable talking about. Doderai is a past president of the Association of Saskatchewan Realtors and Wouters is the current vice president. The event raised $18,000 for the cause. I I I
Children and teens from across Canada will enjoy a summer to remember thanks to the support of Toronto Real Estate Board members who turned out for a networking event. Dubbed TREBFEST, it brought together more than 300 members for a night of dancing, refreshments and entertainment at CUBE nightclub in the city’s
Agreement of Purchase and Sale was not rescinded by the corporation. It also noted that the corporation had information for about a year prior to closing and that any new information added little or nothing to what the corporation already knew. The corporation could have rescinded the transaction in accordance with conditions in the agreement, but it chose to close the deal. Therefore the court awarded judgment to the plaintiff on the promissory note. (French Family Funeral Home Limited v. William Player, Joanne Harpell and Bruce Holtom, and 1564714 Ontario Ltd. and 1872864 Ontario Inc., 2015 ONSC 182) Donald Lapowich, Q.C. is a partner at the law firm of Koskie, Minsky in Toronto, where he practices civil litigation, with a particular emphasis on real estate litigation and mediation, acting for builders, real REM estate agents and lawyers. Queen Street West district. The event featured door prizes, a silent auction and a range of speciality entertainment such as an astrologer, a handwriting analyst and a henna artist. More than $8,000 was raised for Camp Winston, a registered charitable organization that provides recreational opportunities in Muskoka, Ont. for children and teens with neurological conditions such as autism, attention deficit hyperactivity and Tourette’s Disorder. Retreats are also offered year-round to guide families and caregivers in fostering their children’s development. “In many cases Camp Winston provides the first opportunity for kids with challenges to experience that important sense of belonging with peers that we all need, and in addition to developing social skills, they build gross motor skills through activities such as kayaking, ropes courses and theatre,” says TREB president Paul Etherington. As the president’s chosen charity for the 2014/2015 term, Camp Winston was also the recipient of proceeds from a silent auction held at Realtor Quest. REM
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38 REM JULY 2015
THE PUBLISHER’S PAGE
By Heino Molls
T
he price for a house in Canada will continue to go up unabated for the foreseeable future. Prices for condominiums will rise as well, but not as substantially as house prices. It’s all just a matter of supply and demand. It’s not rocket science. There are simply not enough houses in this country to match the demand for them. The demand for houses will continue to be driven by what should be an endless supply of new buyers coming into the market, not annually, not even monthly but daily. The number of immigrants coming into our country will ensure demand will maintain its robust clip. The numbers will surge in the coming years, because we have to open this country to even more immigrants than the number we allow today. We must do this if we want to sleep at night in the face of the great human tragedies that are raging in our world today. If there is another country that offers greater opportunity, greater potential and more desirability I have not heard of it. We are obliged to share it. Canada is the greatest country on the planet and it will continue to be so for years and years to come, provided we
We must welcome more immigration don’t let it get screwed up. That is a simple task that some people are arguably making complex but I believe we can persevere and win over the idiots. There is no ticket more precious than the one that gets you into this country. It has greater value than any lottery. It means that you and your family have landed an opportunity to work and be rewarded for your work in a good home and a lifestyle that is beyond the dreams of many people in the rest of the world. Everyone in this country has a chance and whether you have only arrived here recently (congratulations) or you have lived here for many decades, it’s all yours, free of charge. You have a chance to work honourably, decently and with dignity. There is no one that has to be paid off in this country. There is nothing that can repress your vigour. There are many obstacles, oh man, I could tell you stories about obstacles. There are more challenges for some and less for others, but all can be overcome. We all need luck and we all need help but all these things come to those who work hard. Building a business means first building a reputation and the building blocks you need are free. They are called honesty and integrity. It sounds so easy, yet so
Trade Shows and Conferences
many are unable to deliver them. The real estate business remains an enterprise that can be entered with a relatively low investment compared to other businesses, and rewards good hard honest work. Delivering that level of hard work can be overwhelming. Maintaining a high level of integrity can be maddening when it might seem that so many others cheat. It does, however, pay off to remain honest. Sometimes success comes after a long time of frustration that can seem endless but it does pay off. You could say that about a lot of professions but we are dealing with real estate in these pages and we are working in the greatest country in the world, Canada. The best thing we could do with all this freedom is to share it with others. Whenever we can and wherever we can we should support initiatives that encourage greater immigration. Living in this country is a great treasure. What better thing is there to do with great treasure than to give it away? Let’s share this country with others. We’ll have to build more houses. Happy Canada Day!
To add a listing to this calendar, email jim@remonline.com Coldwell Banker Generation Blue Experience Sept. 16 -18 Chicago Includes Canadian preconference program www.genblue.coldwellbanker.com/ Century 21 Canada Conference and Supplier Expo Oct. 5 - 6 Delta Prince Edward Charlottetown, PEI http://tinyurl.com/oz34du2
Realtors Association of Grey Bruce Owen Sound Trade Show & AGM Tuesday, Oct. 27 Harry Lumley Bayshore Community Centre Owen Sound Marilynn@ragbos.com National Association of Realtors Conference & Expo Nov. 13 - 16 San Diego Convention Centre San Diego www.realtor.org/convention.nsf
Compiled with the assistance of Bob Campbell at Colour Tech Marketing, www.colourtech.com
Heino Molls is publisher of REM. Email heino@remonline.com REM
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29,679 9,675
28,252 9,582
26,932 9,387
26,122 9,094
26,163 8,812
24,969 8,546
25,732 8,768
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9,482 4,671
8,010 4,417
7,102 4,330
5,662 4,032 6,040 3,870
16,410 6,229
20,000
15,000
10,000
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
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