June 2017

Issue #336

June 2017

OREA is more important than ever, says Tim Hudak

Page 3

Real estate fees: Risky business Page 10

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REM JUNE 2017 3

OREA’s role more important than ever −Hudak

OREA CEO Tim Hudak says in B.C., the provincial government “threw Realtors under the bus and dramatically interfered with day-to-day business.” But in Ontario, “We were seen as active partners and (the provincial government) responded to our advice.” By Tony Palermo being developed. It included no less than 16 separate meetings with the premier, her ministers and executive team.

OREA, Hudak says, had three goals for the plan and was successful in having them all realized: to make sure supply was an important part of the solution; to consider a vacancy tax (“because no one has any sympathy for a speculator who buys a house and then leaves it sitting empty”) and to have the provincial real estate act reviewed and updated to help raise industry standards – something Hudak says the province has committed to doing.

“It was rewarding that (the Ontario government) actively came to us for good advice on policy changes to ensure affordable home ownership,” says Hudak.

Again, he points to British Columbia as a good contrast.

O

Tim Hudak

ntario Real Estate Association (OREA) CEO Tim Hudak says with consumers becoming more sophisticated and demanding, new technology threatening to tear apart the industry’s business model and pressures from a hot GTA housing market, this is an extremely complex and challenging time for Realtors.

It’s also a time when some Ontario Realtors are questioning whether OREA is still relevant or needed, especially after losing the licensing education side of its business as of 2020.

To that, Hudak says OREA is needed “even more so, than ever.”

“Just look at what happened

in Vancouver,” says Hudak. “The provincial government threw the (real estate) industry under the bus and dramatically interfered with day-to-day business and blew up the regulator. So that’s where OREA’s strengths in government relations, communications and research become increasingly vital to the success of Realtors in our province.”

Hudak says OREA has been a stronger – and necessary – voice in the public debate. He points to the recent Ontario Fair Housing Plan put together by Premier Kathleen Wynne’s government as a successful example of OREA’s impact. He says OREA was given “extraordinary access to government” while the plan was

“You had the same situation (in B.C.) where you had a longtime government heading into an election with rapidly increasing housing prices,” says Hudak. “But B.C. threw Realtors under the bus.

In Ontario, we were seen as active partners and (the provincial government) responded to our advice.”

There’s no denying his 21 years of political experience as a member of the Ontario Progressive Conservative party helped pave the way to ensure OREA was heard.

“Look, it’s sometimes a lot like wrestling, where you make a lot of noise for the cameras and then go and have a beer afterwards,” says Hudak. “I didn’t burn any bridges and (the Ontario government) has been very kind and receptive to what Realtors

are putting on the table.”

Losing the Realtor licensing education program after 2020 was definitely a blow to OREA. Its 2016 annual report shows that approximately 76 per cent of its 2015 revenue – about $29 million – came from its real estate college. But Hudak says while the revenue coming in from the college was the biggest portion of OREA’s budget, the college also represented its biggest expense.

He says it’ll be up to a future board to determine how that affects member fees down the road, but he believes that there will have to be a continued improvement in the quality of services before OREA asks “for one additional penny” from its members.

“We’re going to do fewer things, but we’re going to do them better,” he says, adding that includes things like “doublingdown” on government relations and doing more leadership training.

It’s what he calls the “new rising of OREA”, which began under past-president Ray Ferris and continues under currentpresident Ettore Cardarelli. He says he’s been given “very clear marching orders” on where OREA should be heading and that includes being very accountable for every member dollar.

“In my first month on the job, we found over $1.5 million in savings,” says Hudak, explaining that he cancelled various expenses and eliminated consultants where OREA could do the job themselves. He says staff travel and accommodations are down by 32 per cent (including 37 per cent in the CEO’s office) and that the board cut their own expenditures by 20 per cent.

“So, we shifted money that was going to fancy consultants

and travel and hospitality, and refocused them on government relations and member services.”

Advocacy and being a stronger voice is another priority. That includes pushing for higher professional standards within Ontario’s real estate industry.

“Quite frankly, when OREA had the college contract, there were occasions where OREA bit its tongue instead of holding RECO to account,” says Hudak.

“Because RECO effectively controlled the purse strings, we were too shy from holding RECO to account in terms of enforcement, higher fines and penalties, and improving the continuing education program, which the vast majority of Realtors tell me is a joke.”

No more, says Hudak.

When he became CEO of OREA, he went on a tour and met with 36 of Ontario’s 39 boards personally. He says 95 per cent of those conversations involved complaints about the continuing education program. Aside from believing there should be a classroom aspect to the program, Hudak says the program is open for abuse and sets poor standards.

“The fact that you don’t even know who is taking the test really opens it up to abuse,” says Hudak.

“And, you can still get all of the answers wrong and still pass.”

Hudak says it’s the Realtors themselves who have been calling for the program to be revamped and to have the industry standards raised, and it’s something he is very proud of.

To that end, Realtors can expect that OREA will be their collective and loud voice.

“Realtors are going to see a stronger and more effective OREA,” says Hudak. REM

4 REM JUNE 2017

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

T

wo Toronto real estate teams, DeClute Real Estate and Wright Sisters Real Estate, have created a strategic partnership under the newly formed Union Realty banner.

Both local, family-owned and operated businesses, the brokerages had combined sales reaching $400 million in 2016. Rick and Rochelle DeClute and Melanie and Lindsay Wright are the principals of the new company. The two companies will continue to maintain their individual businesses under the new Union

Realty umbrella. DeClute Real Estate and Wright Sisters Real Estate will keep building their brands separate from each other, while sharing combined resources.

Each company will work out of their existing offices while they draw on their respective expertise and the resources of their two staging companies and independent marketing and advertising departments.

DeClute Real Estate says it has been operating “over the past five decades…with over three generations of experience, knowledge

From left: Melanie Wright, Lindsay Wright, Rochelle DeClute and Rick DeClute.

mate. For us, Kelowna has the perfect conditions for a work-life balance and is where we want to call home.”

and success in the Toronto area marketplace.”

Lindsay and Melanie Wright created The Wright Sisters Group in 1999.

■ ■ ■

Max and Anna Carbone have purchased Century 21 Assurance Realty in Kelowna, B.C. from Myrna Park, after relocating to the Okanagan from Toronto. Park will stay on board as the managing broker as will Ken Wiebe, associate broker and co-founder.

Together, they will operate as a leadership team.

Prior to moving to the Okanagan, the Carbones ran a strategic planning service that helped leaders and teams improve performance and deliver positive results. They have experience in sales, sales management and leadership in real estate, and media and finance with leading firms.

“Over the last couple of years, we have travelled across Canada to find the best place for us to live,” says Anna. “We considered economic conditions, the amazing outdoor activities and a great cli-

As part of the launch of the Coldwell Banker Global Luxury program, the Coldwell Banker brand is unveiling a logo, signage and website. The rebranding means that the Coldwell Banker Previews International name will be retired.

The new site (coldwellbankerluxury.com) will connect 750,000 luxury agents across multiple international brands and syndicate listings globally to real estate portals around the world, the company says.

The new program includes enhancements to the brand’s agent certification program, worldwide distribution of its Homes + Estates magazine and global networking opportunities for agents, the company says.

Peter Zorbas

■ ■ ■

The Real Estate Council of Alberta (RECA) Hearing Panel recently suspended the real estate licence of Edmonton sales rep Terry William Paranych. The licence was suspended for three months. Paranych was also ordered to pay fines and costs totaling $96,000 and ordered to complete the Fundamentals of Real Estate course and all related examinations.

The proceedings against Paranych date back to 2012 and relate to some of his advertising.

The panel found that 14 times, Paranych “made representations or carried on conduct that was reckless or intentional and that misled or deceived any person or was likely to do so.”

He “engaged in conduct that undermines public confidence in the industry, harms the integrity of the industry, or brings the Continued on page 6

Ron Stader

Mike Rampf and Shawn Anderson Mustafa Abbasi

Lindsay Smith

From left: Christian Bouvrette, general manager, Royal LePage Humania; Johanne Robert, manager of network services, Royal LePage; Phil Soper, president and CEO, Royal LePage; Lise Lechasseur, manager, Royal LePage Humania; François Léger, coowner, Royal LePage Humania; Dominic St-Pierre, senior director, Royal LePage; Anne Léger, co-owner, Royal LePage Humania; Mélanie Fortin, manager, Royal LePage Humania business centre; Geneviève Lavoie, manager of agency development, Royal LePage; George Heos, vice president, business development, Royal LePage; and Roseline Joyal-Guillot, manager, communication and marketing, Royal LePage.

Coldwell Banker recently launched its Global Luxury program.

6 REM JUNE 2017

Continued from page 4

industry into disrepute” six times, and “did not ensure that in any communication, advertising or marketing material there was no suggestion, implication or statement that may suggest or lead the public to believe an unlicensed or unregistered assistant is qualified to trade in real estate, deal in mortgages or perform real estate appraisals, as the case may be.”

The Hearing Panel order can be viewed on the council’s website at www.reca.ca.

■ ■ ■

Mike Rampf and Shawn Anderson, founder and cofounder of the VANCITYliving Team, have joined Engel & Völkers Vancouver.

Rampf and Anderson came from Re/Max, where they had been a top producing sales team in Vancouver, ranked within the Top 100 Re/Max teams in Canada in 2016. Now based out of the Engel & Völkers office at 1301152 Mainland St. in Yaletown, they will continue to serve the Downtown, Vancouver Eastside, Vancouver Westside and North Shore markets.

The team is on track to beat their 2016 total of over $100-million in real estate sales, the company says.

■ ■ ■

Zolo Realty recently moved its head office to 895 Lawrence Ave. E. in Toronto, near the Shops at Don Mills.

“The decision to relocate our head office was based on accessibility for our consumers and Realtors,” says Mustafa Abbasi, president of Zolo Realty.

The firm bills itself as Canada’s largest digital real estate marketplace. It currently

Cover photo: RACHAEL LITTLE

operates brokerages in Toronto, Vancouver, Calgary and Edmonton and plans to open brokerages in Saskatoon, Regina and Winnipeg in the upcoming months. Zolo has more than 350 sales reps in its network and runs the real estate website www.Zolo.ca ■ ■ ■

CIR Realty of Calgary has joined the Aventure Realty Network. It is Alberta’s largest independent real estate brokerage. Founded in 1983, “CIR Realty has earned an enviable reputation for service delivery and giving back to its home communities,” says Aventure Realty Network president Bernie Vogt.

Under the leadership of co-owners Ron Stader and Lindsey Smith, CIR has grown to 13 locations with 700 salespeople.

The network held its seventh annual broker/owner meeting in Winnipeg recently. More than 40 of the network’s independent broker/owners participated in meetings focused on building strong brands, revenue and unique cultures. Speakers included The Executive Council (TEC) 2012 Speaker of the Year Gair Maxwell, who discussed the value of independent brands and how to capitalize on them.

The group reviewed several new approved supplier proposals and ways to continue building on the network’s referral capacity.

The next meeting will be held at the Lord Elgin hotel in Ottawa, May 2018.

Aventure has 52 member companies and close to 3,000 Realtors from coast to coast.

■ ■ ■

JLL recently appointed Peter Zorbas to lead the firm’s Capital Markets platform in the Prairie region. Zorbas joins the team as

an executive vice president and will be based out of JLL’s Calgary office. He will be responsible for broadening the firm’s service offerings including origination and execution of investment transactions in Alberta, Saskatchewan and Manitoba.

Prior to joining JLL, Zorbas was a partner at Brookfield

■ ■ ■

Agents and staff at Royal LePage Humania gathered recently for an event held at Manoir St-

Sauveur to mark their conversion to the Royal LePage national network. As the largest traditional real estate brokerage in Quebec, Royal LePage Humania brings close to 225 new agents to the brand. Headed by François Léger and Anne Léger, the company has eight offices, mainly located in the Laurentians. REM

Nova Scotia introduces Down Payment Assistance Program “This program will stimulate real estate activities, which have a positive impact on the Nova Scotia economy,” says Anne DaSilva, president of the Nova Scotia Association of Realtors.

Nova Scotians struggling to save for a down payment for their first home could soon get an interest-free loan from Housing Nova Scotia. The provincial and federal governments are investing $1.3 million to fund a new oneyear Down Payment Assistance Program.

The program is designed to help modest-income Nova Scotians who are pre-approved for an insured mortgage from an accredited lender, but struggle to save for the required down payment because of their income.

First-time homebuyers will be eligible for an interest-free loan of up to five per cent of the purchase price of a new or existing home, to a maximum price of $280,000 in Halifax Regional Municipality (HRM) and $150,000 in the rest of the province.

To be eligible, applicants must have a total household income of $75,000 or less. Based on a sliding scale of income and house purchase price, the loans can range from up to $14,000 in HRM or up to $7,500 elsewhere in the province. Eligible homebuyers will have 10 years to repay the

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Financial and has also worked for a leading commercial real estate brokerage firm. He has more than 14 years of commercial real estate experience.

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Announcing the new Down Payment Assistance Program, from left: Anne DaSilva, president of the Nova Scotia Association of Realtors; MP Andy Fillmore; Joanne Bernard, Minister Responsible for Housing Nova Scotia; and Sherry Donovan, CEO, Canadian Home Builders’ Association of Nova Scotia.

loan. Payments can be waived for the first year to allow new homeowners to adjust to any unforeseen costs.

“This is welcome news for first-time homebuyers,” says Anne DaSilva, president of the Nova Scotia Association of Realtors. “This program will stimulate real estate activities, which

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Phone: 416.425.3504 www.remonline.com 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 2017 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.

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ISSN 1201-1223

have a positive impact on the Nova Scotia economy.”

It’s expected that the pilot program will help between 100 and 125 households.

Applications are available at Housing Nova Scotia’s regional offices or online at https://housing.novascotia.ca/downpayment.

REM

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8 REM JUNE 2017

Starting a new franchise from scratch With the support of Peerage Realty Partners, in less than a year StreetCity has become one of the country’s fastest-growing real estate franchises.

By Susan Doran

Y

ou can safely assume you’re valued as a leader if the only way to get an hour to yourself is by hiding out in your car.

That’s where newly minted brokerage StreetCity Realty’s vice president Mary Johnson and president/CEO Costa Poulopoulos decided to hunker down to carve out an undisturbed hour away from their sales reps in order to speak by phone with REM for this article.

“People don’t leave us alone,” says Johnson, laughing. “Someone will knock on the window soon.”

But that’s exactly how she and Poulopoulos want it. They believe in karma and in ensuring that their brokerage “feels like a family.”

The married pair, who formerly operated Realty Executives Elite, re-branded and launched London, Ont.-based StreetCity last summer, in partnership with Canadian real estate brokerage network Peerage Realty Partners.

Asked whether the real estate industry really needs a new independent brand, StreetCity’s principals respond with a resounding yes. They’re building “a better real estate brokerage,” they say.

“The industry is ready for an entrepreneurial alternative focused on customer service and supported by the latest technology and social media marketing...built upon our proven culture of superior customer service, collaboration and professionalism,” says Poulopoulos, who is a CREA director and a past president of the Ontario Real Estate Association.

Time will tell, but StreetCity’s first year has certainly been promising.

The company is currently one of the fastest growing brands around. In just the past few months, it has opened five new offices across Ontario, bringing its total to eight in all (London, St. Thomas, Glencoe, Thunder Bay, Hamilton, Kingston, Sarnia and Port Dover), serviced by around 150 sales reps. In addition, at the

time of this writing, the paperwork was being finalized for an office in Sault Ste. Marie.

“This is only the beginning for StreetCity. Costa and Mary are working on plans for more branches across Ontario,” says Peerage’s CEO Gavin Swartzman.

In fact, the couple says they are already getting calls about taking StreetCity nationwide and that word-of-mouth among sales reps continues to allow the brokerage to grow organically without the need for active recruitment.

All brokerages pay lip service to putting their sales reps and clients first, but StreetCity is the real deal, they maintain.

“What makes us different is that we really care about people,” says Johnson. “It’s about relationships; we live that. I may not remember the addresses of all the places we’ve sold, but I can remember the people, the children and the dog.”

Kindness Above Everything – the name of a charity founded by Johnson that provides poverty relief to local families – is also what the couple wants to embody.

Says Poulopoulos: “We’re a service-focused brokerage. Our culture made us successful.”

Expansion opportunities are greatly enhanced by Peerage’s support and deep pockets.

“Nothing has changed except we’ve gotten stronger,” says Johnson. “They take care of people like we do.”

Peerage, founded by megawealthy mover and shaker Miles Nadal, takes an equity stake in the strong entrepreneurial brokerages with which it partners, encouraging their autonomy and culture while providing access to a multitude of stellar financial, technological, operational, training, marketing and other resources to accelerate growth.

In other words, Peerage partners get help with expansion while retaining the freedom and the mojo that has made them stand outs.

Costa Poulopoulos and Mary Johnson (Photo by Rachael Little)

Poulopoulos says he’s “one of the six per cent in the real estate world whose first career was real estate.”

“We’re blown away by how open and supportive Peerage is....Who better than Miles Nadal as a partner?” asks Poulopoulos rhetorically. “He’s on the cutting edge, the winning team. The calibre of our materials, our website, are top notch thanks to Miles and his expertise. Our marketing materials (and) listing/buying packages are like glossy magazines.

Agents from other firms ask our agents where they got their forms and clauses.”

Additionally, partnership with Peerage has opened up a market affiliation with Leading Real Estate Companies of the World, a global luxury network with exposure to international buyers.

Many people resist change, so

Poulopoulos and Johnson expected to lose up to 20 per cent of their agents due to the conversion.

When no one left, they considered it a testament to their leadership.

As part of the rebranding process, besides being re-christened as StreetCity (“We wanted something fresh and young that speaks to all demographics,” says Poulopoulos) the brokerage came out with distinctive orange and grey signage.

With Nadal’s background as founder of MDC Partners (one of the top advertising/marketing companies in the world), the rebranding process cost a bundle and was highly professional and intensive.

“So many questions,” recalls

Johnson.

“It was nothing like sitting around the kitchen table,” says Poulopoulos.

Between them, the duo has half a century of real estate experience. After getting a couple of college business diplomas, Poulopoulos, who speaks three languages and grew up in Montreal in what he refers to as “a traditional Greek family,” got his real estate licence at age 21.

He says he always tells people that he’s “one of the six per cent in the real estate world whose first career was real estate.” Even in his high school yearbook he predicted he was going to have a successful career in real estate.

He met Johnson over 20 years ago when she was the vice president of a real estate holdings company. Before long she got her licence as well and the pair teamed up both professionally and romantically (although due to the challenges of combining families, they officially married only three years ago).

With her corporate background, Johnson was in for some surprises. She tells a story about week one, when she said to Poulopoulos, “The key is ready for the closing. Which courier service do you use?”

His amused reply was, “Welcome to commission sales.

You are now officially the courier.”

They rose through the ranks of London’s real estate professionals, winning numerous performance awards and opening up their own real estate brokerage in 2008. It was intended to be just the two of them, at least initially. But agents were calling to join the firm within its first hour, “before we even knew how to sign them up,” the couple recall. “Our reputation followed us.”

And they continued to grow.

In July 2016 they were approached

by Peerage, for the second time.

They laugh now that Johnson’s reaction was “not those guys again!” REM

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10 REM JUNE 2017

Real estate fees: Risky business

By Ross Wilson “If you don’t risk anything, you risk even more.” – Erica Jong. n this third column in my series on the controversial topic of real estate fees, let’s talk about something that I suspect most agents fail to seriously consider when plying their trade – risk.

It’s your fiduciary responsibility to your clients to do everything possible to obtain the most favourable terms for them. Selling real estate is not, as they may believe, just a matter of signing up a standard form, uploading an ad onto a website and installing a lawn sign. If it were, you couldn’t begin to justify your traditional fee.

The lion’s share of the fee is earned during the advice stages.

Establishing an estimate of fair market value and original and amended asking prices, advising on property preparation and offer negotiation – sometimes more

I

than one – are the most critical services. The other marketing activities, though important, are secondary.

By accepting the listing, you agree to assume significant obligations. Hopefully, your new seller will appreciate that marketing expenses lower your net compensation, at least if the property sells.

And if for any reason it doesn’t, remind them that you will be in a loss position. The risk is all yours and unfortunately, they’re in the “profit” driver’s seat. You have control of the marketing gas pedal, but they control the brakes. Their level of reasonable co-operation and your risk of loss are inversely proportional.

When sellers see the big commission number on their lawyer’s Statement of Adjustments, they sometimes resent parting with such a sizable sum for a particularly brief service period. They may not have appreciated the service provided, or more importantly, the risk you undertook, or the fact that for each listing that sells, there were many more that didn’t. Whether it sells or expires, agents incur marketing expenses on every listing.

There must be sufficient compensation for assuming all the risk.

That alone justifies higher fees. You assume responsibilities and obligations with all associated expenses without any guarantee of a return on your investment of time, money and expertise. There must be a reasonable profit incentive, and not just reimbursement for time and expense. Otherwise, why be in the business? Key word: business.

It’s not a job where you trade time for money, nor are you a notfor-profit organization. You make the commitment with the hope that the market will favour you with a sale so you can not only be satisfactorily compensated, but make a profit. If it fails to sell, you lose – not the property owner.

You’re out of pocket, both in money and what’s even more valuable – your time. Upon expiry, they can re-list with you or another brokerage without any penalty. For any investment, risk and rate of return should be directly related.

For understandable reasons, a commission based on a percentage of the ultimate sale price is an important agent incentive. It’s also an attractive inducement for a homeowner because it provides them with an opportunity to attempt a sale without any risk or expense and with minimal effort.

That’s a huge seller advantage!

Here’s something else to think about. When accepting a listing, by charging a lower rate, you’re not actually reducing your fee. Why? Because there’s no fee yet; it’s merely a percentage of nothing. What you’re really doing is devaluing your service, your worth. You’re ultimately lowering your effective hourly rate – maybe to zero or less – and reducing the chance of generating a profit.

You’re entitled to make a reasonable living, just as the homeowners are. Typically, they’re paid a salary or hourly wage, whereas you’re paid by commission. If you fail to generate a sale that closes, you don’t get paid. Period.

Ask your seller how they’d feel if their employer instructed them to do their job, but without their usual compensation unless the company sold some product or was profitable. In such cases, because of the risk of no pay, your prospective seller would no doubt demand a higher compensation from their boss. As I said, for the risk you agree to undertake, your fee is higher. Second mortgage rates are higher than those of a first mortgage for the same reason. It’s not complicated. You don’t work for

Discussing your commission with clients

By Jim Fannon ow many times have you, as a Realtor, been asked the question, “How much is your commission?”

How you answer this question is important and may set the stage for how future conversations around commissions go, both on the listing and selling side of the transaction.

The answer to this important and valid question, usually asked by a home seller or listing prospect, is something that should be explored very early into every listing presentation. The only correct answer is, “Commissions are negotiable.”

H

Pretty much everyone knows that real estate commissions are negotiable and you may be able to differentiate yourself from other agents by putting it forward, up front, without being asked the question directly, as a term of the contract that can be used as a selling tool.

The direct and early addressing of what sellers think might be their greatest concern in the selling of real estate of any kind, will help you have a successful experience and fewer unknowns later during the transaction process.

The value of acknowledging the issue of how much sellers can expect to pay in commission, at varying price points, is also something to consider during listing negotiations.

You will find that most sellers will be happy to pay more in total commis-

sion, if they’re netting a larger corresponding amount after costs.

It is also important to address the listing contract verbiage that states the seller agrees to pay a set commission for an agreed upon price.

The contract also goes on to say that the same amount of commission can still be payable at a reduced, acceptable price, but who would choose that option without asking the agents to also take less, if the sale price is significantly lower than the list price?

The best time to negotiate a listing and co-op commission is not before or during the listing presentation. We are all clear how much the commission payable will be when the contract is fulfilled – it’s in the listing agreement. What isn’t in the listing agreement is advice on if or

when the seller has leverage over the agents to reduce that commission, if they choose to accept a lower sale price. This is the best time to attempt to negotiate a lower commission and the only time that the seller has leverage over the agents to accept a lower commission in exchange for a lower acceptable price and a completed transaction.

Commissions are negotiable upwards too and may result in conditions that are ripe for putting more money in the seller’s pocket. If the seller can see how paying a higher commission could net them more after commission costs, they’ll happily sign a listing contact with a higher commission amount, with the understanding that the commission payable could be subject to negotiating a lower amount if their

free. Well, actually you often do.

Greater risk goes hand in hand with higher fees. And the risk is normally spread out over all your listings.

For your usual fee, you’ve always accepted such risks as an integral part of the business because you normally generate sufficient “pooled” commission income from multiple listings to rationalize the individual risks. When you lower your fee without a major boost in volume, are those risks still justified? At some point, your traditional business model will no longer make sense.

That’s when the public will begin to notice a changing industry – possibly not a better one. Our business is already moving in that direction. In the next column, I’ll discuss our evolving industry.

Ross Wilson, broker with iPro Realty, has extensive experience as a brokerage owner, manager, trainer and mentor. His book, The Happy Agent – Finding Harmony with a Thriving Realty Career and an Enriched Personal Life is available where print and e-books are sold, including the TREB, BREB, RAHB and OMDREB stores. Visit RealtyREM Voice.com. full list price is not achieved. After all, the seller probably is more concerned with how much they take home after costs rather than how much the total commission is. The bottom line is the bottom line.

Justifying your commission rate by attempting to promote the value of an agent and all that they do to market the property is not the right road to travel for this conversation.

The co-op commission is not about how the agent’s activities create value for the seller, it is more about another marketing tool that creates leverage in the transaction and could help sell the property for even more money than the seller expected.

Jim Fannon, a 25-year veteran of the Niagara Association of Realtors, has always been willing to share how to take listings that offer higher commissions to the buyer’s agent, as a strategy to make listings more saleable and result in a better net for the seller. Email realestate@teamniagara.ca or phone 905-934-1110. REM

KEYNOTE SPEAKER:

Donald Trump Jr. on International Real Estate Opportunities

October 15-16

TORONTO

2017 THIS EVENT WILL SELL OUT Learn more at www.ccim.com /conference

Achieve a better life in just three minutes a day using the power of affirmations.

Download the FREE Prompter!™ app or sign up at prompter.ca today!

“People may eat right and exercise but when was the last time they reinforced who they are as human beings at their core? Who they believe themselves to be forms their beliefs and those beliefs manifest in action. Every action begins with a thought and we owe it to ourselves to pay close attention to and nurture the thoughts we’re thinking in order to achieve our full potential.”

Let’s say you’re driving to work and the roadway you’re taking is blocked with debris.

You’ve been driving that same roadway for as long as you can remember so it has become second nature to you. But what if there was a way to build a new roadway; a clear, well-constructed path to your destination in as little as three minutes a day?

Now there is.

We are the thoughts we think and those thoughts are the roadways which lead to our beliefs and actions. When those roadways become blocked with the debris of limiting beliefs formed in childhood and through negative outside influences, our lives can become very narrow and our potential for greatness, stymied. Through the ritualized reconstruction of our thoughts we can create new roadways to greatness.

To assist in this process, Steve Morris, visionary, author, entrepreneur and EXIT Realty’s Founder and Chairman, has announced the unveiling of Prompter!™, an easy-to-use app, to habitualize this process using the power of the Affirmation Principle.

“After five thousand hours of seminars and three thousand books on the subject of successful achievement, it’s my considered opinion that deliberate intentions, in the form of affirmations, habitualized in the present tense is perhaps the most important fundamental principle I have learned,” Morris explains. “Following the initial introduction of Prompter!™ at EXIT’s 20th Anniversary Convention in The Bahamas, thousands of people from all walks of life have signed up and are now participating on a daily basis.”

Through Prompter!™, anyone can register to receive a list of 12 affirmations which they will hand-write (not type) daily for 21 days in the privacy of their home. It’s well-understood that successful people are ritualistic by nature. It takes 21 days to form a new habit and accountability is built in because participants then take a photo of their written list with their mobile device and submit it back to Prompter!™ then throw it away, keeping the master list to repeat the process the next day, and every day, for 21 days. When the first course of 21 days is complete, Prompter!™ will generate a new set of 12 and the process continues.

“Prompter!™ was forged to assist everyone in their personal growth and development in a manner similar to that which I have used over my

Steve Morris

EXIT Realty Founder & Chairman

entire career,” Morris says. “Knowing and understanding that time is of the essence, the methodology used by Prompter!™ to affirm on a daily basis takes approximately three minutes per day and [I recommend] that you do it first thing, perhaps when you have your morning coffee.”

The affirmations sent by Prompter!™ are simple, positive statements written in first person and in the present tense, such as “I am a do-it-now person”, or “I am well-organized in everything I do.” The act of first reading the affirmation, then writing it down helps to form new thought roadways where littered ones existed before. Participants may not believe the statements to be true but the magic occurs when the work is done regardless of the participant’s current limiting beliefs. There’s no requirement to visualize or meditate and the process of writing out the affirmations takes approximately three minutes.

“Individual success and achievement is primarily based on one’s sense of selfworth. The picture that you have of yourself on the inside determines how you act and react on the outside,” Morris describes. “If you see yourself as a four out of 10, you will act like a four out of 10. When self-concept or self-image is reinforced in the present tense with deliberate intentions (affirmations) over 21 days they become habits. This builds in new mental roadways of opportunity and expands an individual’s sense of self-worth.”

Prompter!™ creator, Steve Morris, has spent his adult life studying the power

of affirmations and attributes his success as an award-winning businessman and loving father of seven children to his ritualized and dedicated adherence to these principles. He has taught self-worth reinforcement through the use of affirmations to business leaders across North America and now Prompter!™ is a mechanism through which people from all walks of life and all ages may benefit in an easy and fun way.

“People may eat right and exercise but when was the last time they reinforced who they are as human beings at their core? Who they believe themselves to be forms their beliefs and those beliefs manifest in action. Every action begins with a thought and we owe it to ourselves to pay close attention to and nurture the thoughts we’re thinking in order to achieve our full potential,” Morris says.

Anyone can participate and Prompter!™ is completely free of charge. The system does not contact participants for any reason other than to communicate regarding the use of the system and participants’ information is kept private.

“Affirmations become fixed into your subconscious mind and a new you will begin to blossom, much stronger and more capable than before,” Morris continues. “Everyone participating in Prompter!™ enjoys it immensely. This is one of the easiest and most effective ways to self-improve known. It’s literally good for everyone.”

“Affirmations become fixed into your subconscious mind and a new you will begin to blossom, much stronger and more capable than before. Everyone participating in Prompter!™ enjoys it immensely. This is one of the easiest and most effective ways to self-improve known.

It’s literally good for everyone.”

Not signed up yet?

Want more information?

If you or someone you know would like to register for Prompter!™ or receive further details about the program visit www.prompter.ca or download the app from the App Store or Google Play today!

—Steve Morris, Founder

REM JUNE 2017 15

Mortgage brokers push for rule changes M

ortgage Professionals Canada has launched a new web-based consumer advocacy campaign and website (www.tellyourmp.ca) to highlight “the negative impacts of the federal government’s changes to mortgage insurance and eligibility,” the association says. The association says the federal government should make “reasonable, common-sense changes to the new rules”.

“Our members are working with and seeing directly that many Canadians are frustrated by the impacts of these changes and are looking at ways to reach out to the government directly,” says Paul Taylor, president and CEO, Mortgage Professionals Canada.

“Our goal with this grassroots campaign is to make it incredibly easy for Canadians who have been disadvantaged by the changes to send a message to their local MP to build support for affordable homeownership.”

The association is encouraging anyone who has been negatively impacted by these changes to visit the website to send a letter to their MP. It has been lobbying local MPs about the negative impacts the changes are having on housing activity in Canada “and the additional costs that are being placed on the Canadian middle class through higher rates and reduced purchasing power,” it says.

It says the mortgage broker channel originates 33 per cent of all mortgages in Canada and nearly 50 per cent of mortgages for firsttime homebuyers, representing approximately $80 billion in annual economic activity.

Currently, all insured mortgages need to qualify at either the Bank of Canada benchmark rate (currently 4.64 per cent) or the contract rate offered on the homebuyer’s commitment, whichever is greater. Portfolio (bulk) insurance must now meet the same criteria as mortgages that are high-ratio insured. This means that amortizations greater than 25 years, rental

and investment properties, refinances and homes with values greater than $1 million can no longer be portfolio-insured.

The association wants the rules changed to allow for refinances to be included in portfolio insurance.

“If 80 per cent LTV is unpalatable, consider reducing the threshold to 75 per cent or 70 per cent rather than removing these products eligibility altogether,” it says.

It also wants the government to “decouple the stress test rate from the posted Bank of Canada rate. Instead, set the stress test based on a market rate, either by looking at the Canadian 10-year bond yields or having the Bank of Canada set a rate that is independent of the average of the banks posted rates.”

It also says all mortgages should be required to qualify at the stress test rate, not just insured mortgages.

Dominion Lending Centres has also launched a website to advocate for a change in the rules, at NewRulesHurt.ca.

The website is a partnership between broker networks DLC, The Mortgage Centre, Mortgage Architects and Mortgage Professionals Canada, the company says.

“While we understand and agree with the government’s desire to protect consumers, DLC fundamentally disagrees with the proposed approaches to do so, as it will make housing less affordable for the middle class,” says Gary Mauris, president and CEO of Dominion Lending Centres.

DLC says the government’s mortgage rule changes have reduced the average Canadian’s purchasing power by upwards of 20 per cent and have the unintended consequence of making housing less affordable for Canadians.

Mauris says government must take a regional market approach when setting mortgage policy to avoid sweeping policy that hurts all REM Canadian consumers.

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16 REM JUNE 2017

Stan Albert’s exit interview Retiring after 56 years in the business, and in spite of his myriad provisos, Stan Albert says there’s simply no other job like being a real estate agent. By Neil Sharma

T

here’s much to be gleaned from Stan Albert’s decorated career in real estate.

Lasting over five decades, he’s seen markets rise and fall, but what sets him apart is the hawk eye he’s developed for every facet of sales – from houses and neighbourhoods to the agents themselves.

So, then, what would he tell someone contemplating a career in real estate?

“Think twice,” he says emphatically. “It is not all the glamour that novices and new people see, like new cars and the nice way people dress, and big commissions. It’s difficult to get started, especially for newcomers with the way prices are escalating.

I’d say for newcomers, find a broker that is well established with many listings, and especially that has ongoing training courses every month.”

Another caveat Albert has for

prospective sales agents is be prepared to go stretches without income, especially at the outset.

“Be financially prepared to be without an income for up to 60 or 90 days,” he says. “They should, after they’ve passed a couple of courses, start interviewing brokers – and not just to see what commissions are paid, but how they’re currently helping new people.”

Newcomers also have to deal with the rise of real estate teams, whose members work on reduced commissions but don’t carry the same expenses team leaders do.

Making matters particularly daunting, agents who don’t earn at least $1 million annually are often precluded from joining a team.

“Somebody who is really good has five to 10 listings at a time, so they get a helper who gets another helper,” says Albert.

“There are some top trainers who preach like gospel the

advantage of having teams.”

Born in Belleville, Ont., Albert operated a realty brokerage there before moving to Toronto in 1981 to work with Safeguard Real Estate, which ceased operations a decade later. By 1992, he moved to Re/Max Realtron Realty for four years, then to Re/Max Professionals for 10 years. Albert has been with Re/Max Premier, who retains his now-inactive license, ever since.

Over the years, Albert has been on a number of Toronto Real Estate Board and Real Estate Council of Ontario (RECO) committees, including Ethics, Arbitration, MLS Rules and Regulations, Education and Complaints and Discipline – but it was here at REM that he developed a niche in the form of a popular column called From My Desk As I See It. His ruminations spanned 185 articles, the last of

Your clients and loyalty

By Jeffrey Wagman

A

re you expecting to have loyal clients in the real estate sales world? You will need to put in a lot of years to get a few.

It’s not a negative thing, but most people look after themselves first, not you. I have learned that for every 10 years you are working in this business, you would be doing well if you retained two to three loyal clients per each 10 years. That’s not a lot of loyalty, but that’s the cold hard truth.

I tell you this because in this business, you can’t rely on anyone. Nothing is for sure and nothing is a “given.” You may

have sold multiple homes to a client over the years and suddenly on MLS you see the house you helped them get for sale with another agent.

First, you will take it personally and be hurt and dumbfounded. The steam inside your head burns with thoughts of, “How could they do that to me?” Once you have calmed down you will realize they didn’t do it to you.

They did it for themselves, as they should.

It’s a business where thin skin can get burned badly. After it happens a few times, it still hurts, but you get past it faster and better equipped with a new energy. It’s like when I coached my kids’ hockey and the other team gave one of my players a cheap shot and received a penalty for it. My player initially got

mad and wanted to retaliate. I suggested the best revenge is to put the puck in the net and a goal on the scoreboard.

It’s similar in that when your former client lists with someone else, you feel energized to get another listing or buyer and work with them.

It’s important to know that no one is immune from this. The best in the business deal with it too. Hopefully after reading this you will be better prepared for when it does happen.

Jeffrey Wagman is a partner and broker of record at Forest Hill Real Estate in Toronto. He sells homes and condominiums in the central Toronto market and is consistently ranked in the top one per cent of all real estate salespeople in Toronto. REM

which appeared in July 2016.

“In my column, I vented many times about OREA, RECO, the unethical practices of a lot of agents, but I also lobbied for courses to be improved,” says Albert.

In spite of Albert’s myriad provisos – and there are more – he nevertheless remains adamant that there’s simply no other job like being a real estate agent.

Provided one practices with integrity, it will be the most rewarding career you could ever embark upon, he says.

“There’s no cap on the salary you can earn; there is a bevy of reasons I think it’s a great career because you make friends with your colleagues and even other colleagues who are your competition,” says Albert. “You can always, with the advancement of education now, increase your knowledge to the point that you can become a broker. That may be in the offering with RECO’s new mandate.

“It’s a marvelous career that can lead to property management, property ownership and property development.”

What will the 80-year-old miss most?

“Every day is different and every day is a challenge. The challenge is to have a reason to get up in the morning,” he says, before quipping, “I’m retired now and I have lots to do every day.”

No interview with a 56-year real estate veteran would be complete without asking him what he thinks about the so-called real estate bubble in Toronto.

“What’s happening now is everyone is looking around, saying, ‘Our bungalow is worth a million-and-a-half? Let’s cash in and move to Orillia or Cobourg where prices are cheaper.’

“It’s sustainable as long as people have money,” he says. “Even if the province puts a 10 per cent tax on foreign investors, does the province think someone who pays a million in cash will worry about another $100,000 in taxes?

It boggles my mind as a Realtor, but we’re the largest, fastest growing city in Canada. Vancouver

Stan Albert

has slowed down a bit; Toronto is the benchmark. We’re building more condos than New York City.”

While Albert maintains Toronto housing prices are still lower than other international cities such as New York, London, Tokyo and most major Chinese cities, he admits there is an affordability issue.

“In Vaughan, there are another 17 or 18 condos slated to be built, and as soon as there’s a preview, most are sold out,” he says.

“One at Hwy. 7 sold out before putting a shovel in the ground.

“Kids are going to have to move in with their parents. Close friends will buy together, maybe a triplex or duplex and rent out the other part to pay off the mortgage.

I’ve been in the industry a long time and saw a bad downturn in ’89 that carried on to ’92 and in ’95 it rebounded to a normal market, but this is not a normal market. Would I want to be 20 or 25 going into the market today? No, I wouldn’t.”

But Albert says immigration is also driving the market, and as long as people move to the GTA in droves, the housing market shouldn’t be imperiled.

Albert is critical of rampant unethical practices in the industry for which clients suffer the ramifications.

While technology is changing the nature of the industry, Albert venerates its human touch.

“There’s nothing like an agent holding the hand of a seller who’s selling the house they’ve lived in for 50 years – that’s something artificial intelligence can’t touch.”

REM

18 REM JUNE 2017

Starting over: From phonebook to Facebook

By Debbie Hanlon

W

hen I was 27 I started out in real estate with nothing, not even a vehicle. In order to survive, let alone succeed, I needed to start making money and start making it fast. So the first thing I did was search out agents who carried a lot of listings. I studied them, invited them to lunch and picked their brains to find out what they were doing to get their clients.

They were more than happy to share their tips and techniques with a rookie like myself, especially if that rookie was paying for lunch. Then I took what I learned from them and using my own experiences I developed a series of real estate systems. Using these systems I became No. 1 in Canada with the national franchise I worked with, in my very first year.

Life changed for me after that.

I became a non-selling broker and opened my own real estate firm. I stopped directly selling and started training other salespeople. In no time I passed all my clients along to my salespeople, and taking a back seat to clients, I lost touch with the front line of real

estate. I lost myself in speaking engagements and travel and eventually, through misplaced trust, I lost the company I had spent years building. How that happened is another story for another day. Be sure to watch for my upcoming book, Erasing the Lines, an action-packed adventure tale of the ups and downs in real estate and real life.

So, there I was, pretty much right back where I was those many years before, starting over in real estate with nothing, bankrupt, with not even a vehicle because they’d taken my company car.

Was I scared? I was terrified, because as we all know, real estate can be tough.

In my 25-year career, I’ve seen literally thousands of people try and make it in real estate, only to fail. Those people came from all walks of life with all kinds of background: rich and poor, old and young, educated and not, male and female. Some couldn’t handle the stress, others couldn’t take the long hours and some just weren’t good dealing with people. All excuses if you ask me, as we all have the ability to sell real estate.

As different as all those people were, and as different as their reasons were for quitting, they all had one thing in common: they didn’t

know how to secure and maintain clients and if you can’t get clients in real estate, you can’t succeed in real estate. Simple as that.

So that’s what I needed, clients, people looking to buy or sell, and I needed to get them soon or I’d sink like a deal with a leaky roof and a low credit rating. Luckily, there was one thing I never lost and that was the sys-

they’d be as easy to use on social media as in the real world. Did they still work? Well, let’s just say that right now I’m carrying 52 listings including a subdivision. In the first quarter of 2017 I’ve written 26 sales. That’s all while being an independent brokerage that’s not a part of any major company with their backing. So, yeah, I think my systems

So, there I was, pretty much right back where I was those many years before, starting over in real estate with nothing, bankrupt, with not even a vehicle because they’d taken my company car. tems I created way back when. I took them out, dusted them off and wondered if they’d still work in a world that had changed so much since I first developed them.

There was only one way to find out and that was try them and see what happened. Before I did that, I tweaked them so

still worked just fine. In fact they work absolutely amazing! In today’s fast past paperless word I’d say they even work better.

If you can carry that many listings and close that many deals, you’re not just doing something right, you’re doing it right over and over again. That’s what systems do; they take the thinking

out of a big part of your job so you can concentrate on other things, like talking clients off of ledges when they get too stressed. These systems have also allowed me the freedom to pursue my public speaking, which I dearly love.

This month I’ll be appearing in Toronto for a national franchise.

Here in REM over the next few months I’ll be sharing the systems I created – listing systems, FSBO systems, expired listing systems, buyer systems, systems for every part of your real estate career.

The systems that made me successful not only the first time round but also the second time around. The systems I’ve created, if followed, will work for you just as well as they work for me.

When it comes to success it’s all systems go!

Debbie Hanlon is the owner broker and Realtor at Debbie Hanlon Real Estate, a new boutique brokerage in St. John’s, Nfld. She is also a motivational speaker, real estate coach, author, former city councillor and children’s entertainer. She lives in St. John’s with her husband, Oral Mews and her dog Fisher. debbie@debbiehanlon.com or follow on Facebook at Debbie Hanlon Real REM Estate.

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“I was surprised and honoured to be recognized among this group of business leaders.” Morris said. “I have been a fan of Mandino’s work for many years. The Greatest Salesman in the World is a bible for anyone following an entrepreneurial path. Dave Blanchard and his team are exposing Mandino’s principles to a whole new audience and expanding on them with relatable, relevant stories such as Equanimity - Conquering Mt. Entrepreneur.

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EXIT Realty Founder & Chairman

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www.exitrealty.com

20 REM JUNE 2017

When hot markets outpace comparable solds The issue is a growing disconnect between the comps used by appraisers and what buyers are actually willing to pay in some of Canada’s tightest real estate markets

By Penelope Graham

I

t’s an unfortunate scenario all good agents strive to avoid; let’s say a buyer you represent has just purchased a home at the top of their budget and participated in a bidding war to do so. To stand out from the pack, they’ve dropped their financing and inspection conditions. You’ve guided them through every step of the offer process, basing pricing strategy on solid comparable solds data for the neighbourhood. But when it comes time to confirm financing, their lender balks – they don’t agree on the home’s valuation and refuse to put up the total mortgage amount.

With precious few financial options, and potentially facing legal action from the seller, your client is between a rock and a hard place.

But it’s not your offer strategy that’s at fault.

The issue is a growing disconnect between the comps used by appraisers and what buyers are actually willing to pay in some of Canada’s tightest real estate markets. As witnessed in the days of Vancouver’s double-digit market appreciation and currently in the GTA, bidding wars can pump neighbourhood prices overnight, leaving lenders’ data in the dust.

“Prices change so quickly that when appraisers are looking at the properties, they’re not as up-to-date on the market as we are,” says Carlos Moniz, a Toronto-based agent with Zoocasa Realty. “They might be pulling sales from two to three months ago, while we’re looking at sales from the same week.”

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Adds Mike Bricknell, a mortgage broker at CanWise Financial: “The appraisers do not have access to the near-future closing prices, which the Realtors do. Two weeks is a realistic timeframe for the properties sold and closed.”

For agents who have real-time access to the market, a two-week disconnect is an eternity – and it’s an especially pronounced issue for high-ratio buyers. The added requirement of qualifying for mortgage default insurance can further risk a deal, as the comps used by the Canada Mortgage and Housing Corp. and private insurers may be even more obsolete.

“The service that the high-ratio insurers (CMHC, Genworth, Canada Guaranty) use tend to lag by a month or so, which could stop a deal in its tracks,” says Bricknell.

Moniz adds that it’s especially challenging when price appreciation in hot markets deviates from the usual trends. While listing prices typically rise in January, spring and fall, 2017 activity has defied seasonality. Comps have surged overnight in some cases and he’s had to evolve his strategy to keep pace.

“This year, for example, it was substantial. I had a condo that we put an offer on and all the comparable solds were in the mid-fours,” he says. “Because the market is really hot, I advised my clients, ‘We probably need to be in the high fours to be competitive.’ This was in North York at Yonge and Finch, for a two-bedroom, two-bath listed

at $399,000. We were pegging it at high $400,000s based on the comparable sales over the past couple of months. It ended up selling for $615,000.”

So what kind of guidance can agents give to help clients safeguard themselves against mortgage shock?

Don’t max yourself out: The scariest thing, Moniz says, are buyers with the bare minimum jumping into – and winning – bidding wars. Armed with a pre-approval, they may think they can afford to carry the larger mortgage, but they’re most vulnerable should their lender refuse to fund them.

“Let’s say something came up and the ratio has changed a bit – they’ll be scrambling to find financing while the broker tells them, ‘You just need to come up with another $19,000.’ Well, people don’t just have that under their mattress,” he says.

“If you only have five per cent, don’t stretch yourself too thin, just get something – even if it may not be the place of your dreams – that would leave you a little money aside in case something happens.”

Time is of the essence. While Moniz posits that in a perfect world, buyers would simply save a larger down payment, that’s not a realistic approach in blistering hot markets.

“The difficulty you’ll run into is in the amount of time it takes you to save that money, the market is outpacing that,” he says. “I meet

first-time buyers who say, ‘I have 10 per cent or 15 per cent down, but we’ll wait until we get to 20 per cent to avoid CMHC.’ Well, the market is appreciating at 10 to 15 per cent and an average house is $500,000. Are you saving $50,000 after tax? Probably not, so you’re probably better off getting in, paying CMHC and getting into the market earlier.”

Adjusting expectations may be a particularly tough pill to swallow for clients, especially if they started their home search with loftier goals.

“Even sitting down with people you first met three months ago, you’re now having to reassess things,” Moniz says. “You say, ‘When we first sat down – where the market was – it has changed substantially.

“Instead of going to your max budget to get what you want, make a bit of a sacrifice. If you want to live downtown, maybe go to Mississauga, where the price point is a bit lower and give yourself a bit of a cushion. If you’re going for a two bedroom, maybe go with a one bedroom and be a little more conservative. Once you’ve built a little bit of equity, then make that move in three to five years.”

Penelope Graham is the managing editor of Zoocasa.com, a real estate resource “that uses full brokerage service and online tools to empower Canadians to buy or sell their home faster, easier and more successfully.”

REM

CIPS Leadership Invitational comes to Canada June 12-16 he first Certified International Property Specialist (CIPS) Leadership Invitational in Canada is coming to Winnipeg June 12 – 16.

The CIPS Leadership Invitational is offered every two years in the United States by the National Association of Realtors.

This is the first event that will be held outside the United States and

T

the only one to be offered in 2017.

“In addition to the educational opportunity, this initiative will also serve as an inbound trade experience, enabling attendees to experience various aspects of Manitoba and to interact with key Manitoba business, economic development and political leaders,” says the Manitoba Real Estate Association (MREA), which is seeking sponsors for the event.

It will feature “50 to 60 influential, established and emerging real estate leaders from western Canada and the United States.”

Various sponsorship opportunities are available providing reach during the five days of in-classroom sessions, the marquee networking reception and a dinner.

For information, contact Elianne Lambert at elambert@ mrea.mb.ca. REM

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Canadian n Real Estate Team Wins Inaugural Titanium Award Milton, Ontario Couple Achieves 72.2% Increase in GCI for Business Growth of $1.4 Million Milton, Ontario Real Estate Agents Domenic and Jody Manchisi were one of four recipients of the inaugural Titanium Award for the staggering business success they achieved which resulted in a 72.2% increase in their GCI for dollar growth of $1.4

Million over twelve months.

Real success in any business means not only healthy earnings, but also time off to enjoy life. The fact is, however, that most Canadian real estate agents sacrifice their entire lifestyle in pursuit of success and, ironically, instead

of gaining more freedom, they become slaves to their real estate business.

If you don’t have a real business system, you don’t really have a business at all.

What you have instead is a “job”, and for many, it’s a really bad job: one that consumes

your time, keeps you away from friends and family, and doesn’t pay very well.

The fact is that agents leave our industry in droves, not because they’re not great at working with clients, but because they simply can’t make the business work. They don’t have enough leads, they don’t find enough time to properly follow up and thus convert their leads, they don’t know exactly why they win or lose a listing. Even though they work very hard, too much is left to chance. Trying to “do it all” without a clear understanding of what works and what doesn’t ultimately sows the seeds of failure for many.

A profitable and “real” business MUST be based on a solid system. In real estate, that means a system to generate leads, a system to convert those leads, and a system to convert qualified prospects into paying clients. Every successful business in the world, from McDonalds to Google, is based on proven and duplicatable “systems”, and the agents who achieve mega success in our industry, like Domenic and Jody Manchisi, have done so on the strength of solid, proven, efficient business systems.

Each of the agents profiled here credits the same real estate system as being responsible for their success: The Ultimate Real Estate Success System pioneered by Craig Proctor.

Not only is Proctor’s system responsible for more

Millionaire Agents than any other real estate system, but Craig Proctor was a highly successful AGENT himself for more than 20 years right here in Canada. As you may know, Proctor was twice named the #1 RE/MAX agent in the world and was in the top 10 for RE/MAX International for 15 years. In fact, for 6 years straight, no one listed or sold more homes in the Greater Toronto Area than Proctor did. (Source: TREB Statistics).

No one in Canada has sold more homes than Proctor has, and by sharing the system he used to achieve his own success, he’s been able to help over 30,000 agents worldwide to transform their real estate jobs into highly lucrative real estate businesses that don’t come at the expense of high lifestyle costs.

If you do not have a clear, detailed business system (key word, system) that you are using to move methodically to your goals…a plan you could show a banker or investor or new partner or key associate…a plan you have reasoned, complete confidence in, then why wouldn’t you examine Proctor’s Ultimate Real Estate Success System – free?

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24 REM JUNE 2017

Should you be blogging?

By Robin Wilding

B

logging has become as much of a buzzword as “hash tags”. But much like hash tag, many people don’t really understand the purpose of it. Realtors are told “you should blog.” But why?

To answer this let’s look at what blogging is, its purpose and why Realtors blog.

What is blogging? It is simply a modern term for writing, which can be published on a blog on your website, a blog on someone else’s website or on a stand-alone blog. Its purpose is to get people to read it and establish yourself as an expert.

Sounds great right? Write a blog, people read it, they will think you’re an expert and contact you.

While creating a blog and writing content sounds easy, there are a few realities to consider (don’t worry – it’s not all doom and gloom): • Just because you write a blog doesn’t mean people will read it.

The concept of writing a blog and having thousands of people of read it is lovely, but unfortunately naïve. In order to have people read your blog you need to promote it on social networks, through advertising, with search

engine optimization (SEO) on Google and/or other forms of promotion.

• Many real estate salespeople are blogging to increase their Google ranking. This can work if done on a regular basis, but it takes a fair bit of blogging to do this. Numbers vary depending on the competition but it can take hundreds of blogs to improve overall website ranking. And it takes many blogs for individual stories to rank (unless they are for a very specific local keyword without much competition).

• People searching the topic in your blog could be anywhere in Canada, the continent or the world. This is especially true if the blog is based on non-local keywords (for example, “10 ways to stage your home” or “How to enhance curb appeal”).

• Most people read a blog and leave. If you look at the analytics of blogs, most people read the blog content (which they found on an Internet search or through a social media post), then leave. Simply put, they wanted that information but nothing more.

How to blog with a purpose: Hopefully the above didn’t scare you off too much. Blogging can be a useful tool; it just needs to be done with purpose. To help get the biggest bang for the buck (or effort if you’re writing them yourself, which is great if you have the time), here are a few tips to get you started: • Pick local keywords. Blog about local topics that are likely to come on Google searches and be popular in social networks in

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your area. For example, “The top 5 condos in Edmonton” or “The best schools in Fredericton”.

• Topics and format: Choose topics that people are interested in, such as upcoming events, charities, neighbourhoods, schools and market updates (and what that means for them).

Then choose a writing format that will grab their attention.

List-style blogs are generally the most popular, as are how-to, thought leadership, interviews, cheat sheets, checklists and controversial topics.

• Do it regularly. To be successful in blogging you need to build momentum. By posting often you can build a following/readership. More people will share them – and possibly most importantly, many people won’t contact you until they’ve seen your work at least a few times.

• Be an expert. Don’t copy content. Many salespeople have companies that post content to their blogs regularly. However, this is too often copied content, meaning it shows up on more than one site.

This can lead to your website being penalized by Google, so you won’t show up in Google search-

es. It also tends to be generic and doesn’t define you as an expert.

Hiring someone to do your blogging for you can be a powerful tool, but if it isn’t expert-defining original content that will get your blogs found and respected, then it isn’t an effective use of time and dollars.

• Guest blog: Posting on your own blog can build your expert status in your own circles…but guest blogging (posting on other people’s blogs or other media sites) can introduce you to entirely new circles.

Finding the best guest blogging opportunities can be difficult, but a good way to do this is to search your city’s name on Facebook and look for the publications with the biggest followings (and for bonus points the ones with the most social engagements, which generally means higher actual readership).

• Promote your posts. If you’ve created the blog posts on your own website blog or dedicated blog, you’ll need to promote them to get them read more. This means not only sharing on your social networks (which reaches your own contacts/friends), but also doing promoted posts, asking friends to share it and doing SEO.

• Have a call to action.

Possibly the most important aspect of this article is to add a “call to action” to your blog post. This means adding something to it that encourages people to interact with you. This can be a lead-generation form, including your phone number and encouragement to call, or a link to your highest-converting website page or blog post. Just be sure to make it persuasive –because you worked too hard to get someone to your blog post to not have him or her take the next step!

Robin Wilding is the creative mind behind Real Estate Websites Canada (http://real-estate-websites.ca), a boutique real estate online marketing company hyperfocused on lead generation. The company’s success is attributable to its modern, mobile-friendly websites, lead-generation packages and beatable-by-none customer service.

She also runs the Facebook Group, “Canadian Realtor Tech & Marketing”, an ad-free group that has some great tips for sales reps and a forum to discuss things that have (and haven’t) worked for them.

Https://www.facebook.com/groups /560248634136535/ REM

Re/Max releases school mapping tool

R

e/Max recently introduced an online tool mapping residential properties to school catchment areas across Canada. The search tool allows users to view schools on the map, select a specific school, view properties within that school’s catchment area and match schools to a specific home address. The new feature is at remax.ca within the online search and mapping function.

“We’re excited about the Re/Max school mapping tool because it puts home buyers in the driver’s seat whether they are reviewing school options for a particular street address or look-

ing for available properties in a specific school catchment area,” says Elton Ash, regional EVP, Re/Max of Western Canada.

A recent Re/Max survey conducted by Leger found most Canadian parents (84 per cent) want access to information on schools during their new home search. Millennials with children scored the highest in this category with 87 per cent saying they want easily accessible information as part of the property search process.

The Leger survey also found nearly four out of five (79 per cent) millennials with kids suggest proximity to preferred

schools is “an important factor” in the home buying decision.

“We know there are many factors that influence the decision to purchase a particular home, from proximity to work, to overall cost, neighbourhood culture and access to green space,” says Christopher Alexander, regional director, Re/Max Integra OntarioAtlantic Canada.

“The Re/Max/Leger study makes it clear that access to quality education is a critical factor in the residential home decision-making process for Canadians, especially for millennials and their growing families.”

REM

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26 REM JUNE 2017

T

he British Columbia Real Estate Association (BCREA) has announced a five-pillar approach to address housing affordability for renters, homebuyers and homeowners across British Columbia.

BCREA’s five pillars include recommendations to assist consumers with housing costs, encourage the creation of more rental housing, densify urban areas, adjust the Property Transfer Tax and promote best practices among local governments.

BCREA’s recommendations are supported by the Canadian Home Builders’ Association of B.C. “Many of the BCREA proposals on market housing affordability are shared priorities and goals of CHBA BC,” says Neil Moody, CEO. “These actions on supply and building costs help industry deliver a more affordable product for homebuyers, provide more choice for buying or renting and decrease extra costs for buyers like the Property Transfer Tax.”

■ ■ ■

Mathieu Cousineau has been elected president of the Board of Directors of the Greater Montreal Real Estate Board (GMREB).

Managing director of Groupe Sutton Synergie, he has close to 15 years of real estate experience, including 11 years as a real estate broker and four years as an agency executive officer. He is in his second term on the GMREB Board of Directors, where he has served on several committees.

Cousineau has been president of the Board of Directors of the Collège de l’immobilier du Québec since 2015. He also held the position of Treasurer of the GMREB Board of Directors since 2015 and of Centris since its creation.

The board has more than 9,000 members.

■ ■ ■

Three trailblazers of the Association of Regina Realtors (ARR) were recently recognized

for their outstanding contributions to the development of organized real estate and the real estate industry. Bert Dollard, H.A. Gibson and Herb Hollstein were inducted into the Centennial Builders’ Hall.

Bert Dollard was notable for his extensive development of major residential and commercial projects in Regina in the ‘50s and ‘60s, along with spearheading the creation of the Saskatchewan Real Estate Act to better protect members and the public.

H.A. Gibson was well-known as a leader in the local marketplace in the ‘60s. Gibson helped financially back the ARR Office at 1854 McIntyre St. and formalized operations and standardized forms.

Herb Hollstein, who began his career in the mid ‘60s, was noteworthy as an advocate for member education and promoting the value of acquiring designations in the real estate industry.

Past inductees to the Centennial Builders’ Hall are: J.R. Peverett, W. Clarence Mahon, Felix Kraft, Cal Abrahamson, Brian Gibson (2012); A.J. Hosie, Stan Clear, Frances Olson, Les Donnelly (2013); Venetta Evans, Jack Walker, Casey Steinson (2014); Ralph Leibel (2015); and Gary Cossette (2016).

■ ■ ■

Manitoba Real Estate Association president Chris Pennycook recently took part in Finance Minister Cameron Friesen’s made-in-Manitoba version of the annual “new shoes on budget day” tradition. Instead of buying new shoes for himself, Friesen made a personal donation from members of the government to the Manitoba chapter of The Shoebox Project for Shelters.

The project collects and distributes gifts in the form of shoeboxes to women who are homeless or at high risk of homelessness.

Each “shoebox” is filled with items that are not likely to be splurged on during difficult times.

The founder of the Manitoba chapter of the project, Eva Whitmore, is being honoured with the MREA Shelter Foundation Award at the 34th Annual Volunteer Awards later this month.

At the announcement and through social media, MREA called on Realtors to create their own shoebox for shelter and make a difference in the lives of at-risk women in the province.

■ ■ ■

The Association of Saskatchewan Realtors recently hosted a fundraising event in Regina that featured Realtors and industry partners decked out in their best rock star attire. It

raised more than $20,000 for the Quality of Life Legacy Fund.

Six charities were presented with $5,000 cheques at the ASR Annual General meeting the following day. They are: • Rail City Industries in Melville, to purchase a Mobi Changer adult change table • Southwest Youth Emergency Shelter in Swift Current, to assist in the provision of safe, secure shelter and support for youth who are homeless or at risk of becoming homeless • Battlefords Trade & Education Centre, North Battleford, to purchase a massage chair that will be part of a future sensory room • Jubilation Residential Centres, Prince Albert, to provide free blood pressure/blood glucose testing as part of operations for Seniors’ Advocacy Centre • Saskatoon Downtown Youth Centre – EGADZ, Saskatoon, to provide support for the Action to Employment program, which provides work for youth and young mothers and • REALM Ripplinger, Ehmann and Laborde, Mang Foundation, Regina, to assist in the provision of a support network to parents of children with disabilities and enhance the chilREM dren’s lives.

From left: Bert Dollard, H.A. Gibson and Herb Hollstein

Patricia Switzer of Rail City Industries, left, accepts the grant from ASR director Shelby Wilk.

MREA president Chris Pennycook, left, and Manitoba Finance Minister Cameron Friesen.

Mathieu Cousineau

WHY WE JOINED SUTTON “Honesty, integrity and hard work go a long way - which is why I feel that Sutton Group is where I belong.

It just felt like home.”

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Welcome to the

Sutton family For over 30 years, our agents have been empowered to build and grow their business their own way. We believe that you can be a part of something great without sacrificing your individuality.

AMBER WALKER sales representative

“I have been treated like an important member of the family; Supported, respected, and instilled with the expertise of those before me.”

A LY S S A M C M A N I N G W E L L sales representative

“At Sutton, I can be myself and know that I am backed up 100%

sutton.com/joinsutton

by a great team of experts.

I fell in love instantly.”

D A N I E L L A D E L L AT E R Z A sales representative

“The warm, friendly and helpful staff was what attracted me to Sutton, including the fact that it’s 100% Canadian owned and operated.”

A LT E A D E L G U I D I C E sales representative

After considering other real estate companies, these new agents chose Sutton Group Incentive Realty Inc. Brokerage (Barrie, ON).

28 REM JUNE 2017

A primer on U.S. and Canadian interest rates W

e live in interesting times, as the Chinese proverb goes. The presidential election in the United States shows us the ripple effect that can occur when our neighbours to the south do something a little different with policies and rules.

While the Bank of Canada sometimes follows as the U.S. leads, other times it does not.

When the U.S. Federal Reserve raised interest rates recently (Dec. 14, 2016 and again in March 2017) the Bank of Canada did not raise rates. Recently the Fed raised its interest rate by 0.25 per cent so that it now stands at 1.0 per cent. The plan is for it to be raised again in 2017 until a 1.4 per cent interest rate is achieved.

The Bank of Canada’s current interest rate is 0.5 per cent and it is likely to stay there in the near future.

The Bank of Canada’s key interest rate is a target rate used by banks to set the prime rate.

This determines what your base

interest rate will be when borrowing money. Factors such as your credit may increase your interest rate, but the base rate of interest your bank begins with in calculating your interest starts from its prime rate. Since this rate is reevaluated and sometimes re-set eight times every year, each change can have an effect on future borrowing and current variable rate borrowing.

We know that the U.S. and Canada generally move in the same directions with monetary policies. Canada has been divergent from the usual for a few months, while other countries are also trending toward the divergence of monetary policies. For instance, the Fed kept its policy rate near zero for the past seven years, the European Central Bank cut its rate to negative 0.3 per cent and Canada cut its rate in late 2016. The central banks are following policy that assists their country’s own economies.

Governor Stephen Poloz of the Bank of Canada says he believes

divergence patterns will be around for a while. While the U.S. economy is picking up, Canada is remaining stagnant. Higher interest rates are therefore are not in the cards at the moment.

When the Fed raises interest rates, the loonie becomes weaker.

To augment that, the Bank of Canada may keep interest rates low, as they have most recently.

Our oil prices have a strong effect on the Canadian dollar as well and sometimes higher oil prices buffer a weak loonie. Good for some sectors, bad for others.

Tourism goes up with a weak loonie, while prices of things like groceries usually go up. U.S. equity investments will rise.

In real estate, a lower loonie can also translate into more foreign buyers hitting the hot markets.

Fixed-rate mortgages are linked to 10-year bond yields. A rise in bond rates will begin to increase fixed-rate mortgage rates. That is because fixed-rate loans can feel the pressure from inflation, market fluctuation and investor senti-

ment. Bond markets can move faster than the prime rate.

A negative scenario for mortgage buyers, for instance, is when the market does not like a series of factors such as divergent money policy, slow global economic growth, an aging global population and even who is elected president or prime minister of key influential countries.

Variable rates are less likely to change in the current market.

Although the Fed has an effect on these rates too, it is U.S. variable rate mortgage holders along with credit card, auto loan and line of credit users who will feel the pain first. Higher loans can also decrease business spending along the line and affect the stock market, through sectors such as financial holdings when there is a rate hike.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

By Yvonne Dick

While this is a simplification, it is a good reminder that whether your clients get a fixed or variable rate mortgage, be sure it is something they are comfortable paying back. For consumers, continuing to watch both the Federal Reserve and Bank of Canada are prudent steps when thinking of a mortgage.

The increasing interest rate at the Fed will eventually increase borrowing costs across the board, which trickles down to similar increases for Canadian borrowing REM costs.

Why most real estate partnerships fail

By Ryan Hodge am often approached by salespeople who say they plan to “partner up” with another agent. Reasons to do this vary from sharing marketing dollars to “spotting” each other while one takes a vacation. While there is a definite appeal to having a partner in an industry that can be very lonely at times, most real estate partnerships fail.

In my own experience, I have been fortunate to create and sustain a long lasting business partnership with a close friend and colleague.

Our partnership originated after a combined 20 plus years of selling experience, when we determined

I

that we wanted to own and grow a successful real estate company.

The partnership has faced its challenges but overall it has been the best experience I’ve had inside my career and it continues to evolve in a positive direction. A constant awareness has been crucial in maintaining our friendship inside the growing model we have created.

Partnerships dissolve due to challenges that stem from many different circumstances. The list is long and ranges from contribution and commitment to ego-based problems and profit responsibilities. In my experience the No. 1 reason that partnerships fail is a pure result-based mindset by one or both partners involved.

Here are five specific principles to understand and evaluate when you are considering a partnership: 1. Understanding your joint vision: There are no two people who are exactly the same.

Although you may have the same ideas as far as goals, money is not the driving factor of a successful real estate partnership. Have you clearly identified your purpose as individuals and how that can be matched up to create the purpose of a business partnership? We call these life goals.

2. Embrace your strengths and weaknesses: If each of you brings various skill sets to the business relationship, it will ensure that you focus on the positive aspects of each other versus the negative. My recommendation is to be abundant in your own individual skill sets and recognize the other for doing the same.

3. Know your numbers.

Whether it’s selling or recruiting, understanding your numbers and tracking everything is a science that I encourage. Reverse engineer all of your results and outcomes to create a process that is measurable and sustainable. This applies to sales and

conversion rates along with recruiting and attrition rates. When you focus on the activity and process that is required to meet your goals together, you will then be able to find success through new systems and improvements.

4. Have predetermined expectations: No partnership will exhibit the same productivity result per partner. However, this is where most partnerships meet their demise. Consider creating an agreement to a minimal level of commitment required for income generating activities. With an understanding that you both are contributing at the highest level, you will soon eliminate the idea that one of you is doing more than the other.

5. Make it more than just business: Real estate is a personal relationship business. Your partnership should be and will be one of a personal nature as well. Learn to understand what fuels your part-

ner and what they truly value inside and outside of the business.

A partnership is just as much about quality of life inside real estate as it is selling more homes or recruiting more agents.

Developing an understanding of one another on a deep personal level will serve your partnership at the highest level.

A real estate partnership, like any business partnership, can be both very rewarding and very frustrating. The challenges that most relationships of this nature face will always present themselves.

With the right level of awareness and a commitment to serving yourselves and others, you may find success in a partnership model and develop a life-long friendship through the process.

Ryan Hodge is broker of record/owner of The Realty Firm in London, Ontario. www.therealtyREM firm.ca

“Engel & Völkers’ core values which are competence, exclusivity and passion, perfectly aligned with the vision I have for my business and future.”

Suzie Doratti, License Partner, Engel & Völkers Okanagan

Only the best in the business join our brand.

Suzie Doratti began her real estate career straight out of college. She had a strong desire to build a business that would provide the best service possible to her clients. For the next 25 years, she gained the experience and knowledge to become the owner and broker of Lexterra Real Estate, leading a dedicated team of market experts serving home sellers and buyers in the Okanagan Valley. To enhance their level of service while showcasing the market and its properties around the world, she teamed up with Engel & Völkers. As the owner of Engel & Völkers Okanagan, Suzie and her team have access to a global network, training, and marketing platforms and a new way to offer the best service possible to their clients.

Engel & Völkers Canada 2 Bloor Street West, Suite 700 · Toronto · ON M4W 3RI · Phone +1 416-323-1100 evcanada.com · info@evcanada.com

©2017 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.

30 REM JUNE 2017

Just what is a ‘full-service’ brokerage?

Calgary-based Redline Real Estate Group CEO Kelley Skar is on a mission to restore what he believes it means to be a full-service brokerage.

By Tony Palermo

K

elley Skar, the chief operating officer of Calgarybased Redline Real Estate Group, believes the term “fullservice brokerage” is being used too loosely within the real estate industry, including within the pages of REM, and it’s something he finds puzzling.

“In the current model, you have the conveyance, an administrator at the front desk, and a broker – that’s it,” says Skar, adding that this typical model is anything but a full-service offering to agents, let alone a brokerage’s clients.

He believes the main reason agents flock to the larger brands in today’s market is name recognition and the illusion that bigger

is better and can offer more.

Agents are quick to buy into this illusion, he says, and the assumption that it will make them more successful.

He says that Realtors need to remember that success is determined not only by what they put into their business, but in the amount of support they get from their brokerage as well.

“And, I’ll go out on a limb and say that most brokerages – like 95 per cent of the brokerages out there – are not providing any real value to the agent other than the name that they have.”

He says in today’s ever-changing market, Realtors should be looking for greater support from their brokerage and their brand,

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just as it was a few decades ago, when full-service meant true support from the brokerage to both the agent and the customer.

He’s on a mission to restore what he believes a true full-service brokerage should be, just as it was years ago when Skar says the brokerage played a bigger role in fostering success.

He says to consider the real estate transaction: as it is, most people believe the success of the real estate transaction is based solely on whether the agent can deliver the value they promised.

But not so, says Skar, explaining the success of the transaction (and what the consumer is ultimately going to say about it) doesn’t rely solely on the agent, but the role the brokerage plays as well.

As an example, Skar says Redline has developed a proprietary system called The Dropand-Go Listing, which uses a backend checklist, of sorts, to automatically split duties up between the agent and the brokerage administrator. When the agent takes a listing, all they have to do to get the ball rolling is meet with the client, get the listing contract signed, pull open the web form, fill in the required information, and check off any add-ons like drone photography.

As soon as the form is submitted, the brokerage’s administrator takes over, ordering things like measurements and photography, and then touching base with the client to make sure the scheduled dates and times are still convenient.

“Literally, the brokerage administrator starts organizing everything and making sure the client is aware of what’s going on and communicated with on a regular basis,” says Skar.

But that is only one side of it, he says. The way the software works is as soon as the agent goes in and does something to service the property, the client automati-

cally receives an email from the agent showing exactly what has been done.

“The whole idea is we’ve identified what the seller’s journey looks like and the biggest component we found that was missing from every real estate transaction was communication,” says Skar, adding that with this system, the client can see that both the brokerage and the agent are actively working on their listing – all while the brokerage also supports the agent to become more efficient.

He says agents do pay a nominal fee for use of the system, but only enough for Redline to recoup their costs. As he says, all of the photography is done professionally, there are marketing sheets created by Redline’s inhouse marketing person, there’s a listing put on Facebook targeted to a custom audience, a website gets created for each property and the property gets syndicated out.

And, at the end of the day, those hard costs have to be recovered.

“We can’t be dependent on fulfilling those hard costs based on whether a property sells or not,” says Skar. “It’s all of these marketing and communication layers that agents don’t typically do. And, we believe an agent’s time is better spent going out on appointments, generating business and getting listings – not editing and staging photos, as an example.”

Skar says this is only one example of a true service offering that benefits all parties: the brokerage, the agent and the client.

Another, he says, is marketing support – an area where he believes “a lot of agents fall down.”

“Many agents have a hard time staying in front of their clients and keeping in touch with people they sold a house to four, five or six years ago,” he says. “So, another thing we do is take the

Kelley Skar

agent’s database and market it for them, all while making it look like the agent is doing it themselves.”

Skar says emails are sent out on a bi-weekly basis, there is a direct mail package sent out four times over the year and that Redline hosts four or five client events every year. It works out to over 30 client touches a year.

“And, I would be willing to bet that most agents don’t even do half of that,” he says.

Skar says there is a statistic that is thrown around that says approximately 88 per cent of sellers say they would use the same agent again who helped them buy their property, but that only 11 per cent actually do.

Why is that?

“Well, we know why,” says Skar. “It’s because agents suck at following up. They suck at staying in front of the client. They suck at communicating. Well, at Redline, we don’t.”

While they currently only operate in Alberta, Skar says they are looking to franchise out their model across the country and already have plans to expand into the Ontario region in the third quarter of this year.

Skar describes Redline’s model as a true full-service offering that is bringing back old values and making them new again.

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Career Opportunities At Right at Home Realty

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32 REM JUNE 2017

Living on a houseboat in Amsterdam Story and photos by Diane Slawych

W

hen Vincent van Loon lived on a houseboat in Amsterdam, he often encountered questions from passersby. “How do you get your water and electricity?” they would ask, or “Is it cold, damp and dark onboard?”

After a while, van Loon thought up a way to satisfy people’s curiosity – he opened a houseboat museum. That was 20 years ago and today the Hendrika Maria, as the vessel is called, continues to get a steady stream of visitors.

The boat, with geraniums and other potted plants on its deck, is located on the Prinsengracht canal in the central Jordaan district. A sign outside beckons visitors to “See a houseboat inside.”

Living on a houseboat is not as primitive as some people think.

Residents have all the typical services of those living on land – including electricity, gas, water and phone. Some are surprised to find the interior is not as cramped as they expected. This ship is about 75 feet long by 15 feet wide, and offers an interior living space about equal to the size of an average Amsterdam apartment.

The Hendrika Maria was built in 1914 and started life as a working freighter that transported

years as the iron hull is prone to rusting. Most houseboats have no engine and have to be tugged to a shipyard, where the hull is pressure hosed and painted. Amsterdam also has houseboats made of concrete, which float on a concrete base and require no such maintenance. They’re sometimes called “arks.” A third type of houseboat is a combination of ship and ark – and is referred to as (you might’ve guessed) a “schark.”

In a room near the bow, visitors can watch a four-minute slide presentation, which includes

The Hendrika Maria houseboat museum in Amsterdam.

mainly timber, sand and gravel. In 1967 the vessel was transformed into a houseboat and was occupied until 1997. Then, in 2008, several areas including the deckhouse, kitchen, living room, sleeping nook and the bathroom were restored to their original state. No one lives here now, as it functions strictly as a museum.

Entrance is from the stern, down five steps into the deckhouse where the skipper and his family once lived. There’s a hand pump above the sink that was used to pump drinking water from the

water tank.

Next is a small kitchen and a cosy and authentically furnished living room with 1950s décor. The room is heated with a wood burner and throughout the boat are radiators connected to a gas fired central heating boiler.

The space under the floor is filled with insulation and tiles that serve as ballast, which helps the ship lie lower in the water and makes it easier to pass under the bridges.

Ships like this one require maintenance every three to six

The interior of the houseboat, with a reproduction of a Van Gogh painting above the sleeping quarters

Little pink houses

By Dan St. Yves

S

ome interesting new options appearing across the country for struggling homeowners are the quaint, adaptable “tiny houses” – tiny little spaces that might make you compromise on what you can buy at the local furniture store, but allow for an affordable roof over your head. Even if that roof only features 12 shingles.

You can tow them, park them or play a game of catch with some –

images of some of these other houseboats. Some vary greatly in appearance. One is shaped like an actual house, while another resembles a Mondrian painting.

In a city with lots of canals and a shortage of housing, it’s not surprising so many residents live on the water. In Amsterdam’s city centre alone there are 900 houseboats, a few of which are available for rent. For those simply wanting a glimpse inside one of these floating homes, there’s the Hendrika Maria – billed as the only houseboat REM museum in the world.

these little homes are charming and just require a bit of sacrifice, if you’ve grown up in a large rambling three-storey property.

Here are a few pluses that you may not have considered if you’re in the market for a tiny house: A tiny house is not just a cosy living space; it also makes a great keychain fob!

All your childhood dollhouse furniture will work in there just as well as it did for Barbie.

The pantry is also the guest bedroom, the broom closet, the basement and the attic.

Any laptop is now a big screen TV. One tornado can convert the property into a treehouse or an

experimental underwater home.

Your empty two-litre Pepsi bottle retrofits in seamlessly to replace your hot water tank.

If you can’t find your reading glasses, you haven’t looked around your 14-square-foot living room hard enough.

Despite the cramped quarters, the wee home will be the perfect gathering space for all of your imaginary friends.

Your cat will no longer do that crazy pacing thing when he can’t find his stuffed squeaky toy.

You’ll save a fortune on curtains. And area rugs.

You may be able to use the same Swiffer for years.

For a fancy new design on all

four walls, just shake your Pepsi can really hard before you open it.

If you suddenly find yourself needing new flooring, just remove the legs from your ping-pong table.

If your roof is leaking, you may be able to get through that bad rainstorm by just setting your pup tent up over the home.

If you’ve misplaced your painting drop-cloth, a cocktail napkin should do the trick.

Say what you will, there’s something just plain awesome about making toast right from the cosy comfort of your master bedroom.

You may want to convince that spider to share his web – you’ve always wanted a hammock.

You can read one page of the

morning newspaper in your kitchen and the other in your foyer – without moving.

That annoying dust that accumulates so quickly from the Kleenex boxes makes for a surprisingly delightful hill, easing the access into your two-poster bed at night.

Spoiler alert! Your partner’s bad gas attacks may require an adjoining tiny house – proximity fumes in small enclosed spaces may be deemed fatal.

Well, most of them are upsides – consider a tiny house, and you may never want to go cramping again.

Sorry, camping.

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

REM JUNE 2017 33

B.C. court rules notary public is responsible for tax owed by buyer Determining the residency status of the seller should be completed well before the closing date and should go beyond a simple conversation.

By Irina Sfranciog and Rachael Segal

I

n Canada, resident sellers of a principal residence are usually eligible for an exemption from the capital gains tax that would otherwise be triggered by the sale of a principal residence.

Non-resident sellers must pay a capital gains tax of 25 per cent on the profits from the sale of a residential property.

In Mao v Liu (2017 BCSC 226), the court was asked to determine whether a notary public was negligent and therefore obligated to pay the capital gains tax triggered by the sale of a residential property. The negligent act in question was the notary public’s failure to confirm whether the seller was a Canadian resident.

The facts underlying the Mao v. Liu action were relatively straightforward. In the period following the execution of the Agreement of Purchase and Sale for a residential property, the lawyer for the seller was asked for but refused to sign a statutory declaration regarding the residency of the seller. Upon closing, with no clearance certificate and no holdback in the Agreement of Purchase and Sale, the Canadian

Revenue Agency required that the buyer pay the capital gains tax owing in the amount of $695,000.

The buyer then sued the notary public seeking damages associated with this payment.

This case turned upon the question of whether the notary public had a duty to make further inquiries to determine the residency of the seller and whether that duty was breached.

In the decision, Justice Affleck stated: “In my view the defendants agreed to make the ‘reasonable inquiry’... but failed to do so, and failed to advise the plaintiffs of their potential tax liability.”

Ultimately Justice Affleck found the notary public liable to the buyers for the full amount of the capital gains tax triggered by the sale of the property.

The law is clear that buyers are required to be diligent and make reasonable inquiries to ascertain the tax residency status of sellers. If the buyer fails to make reasonable inquiries, the buyer and his or her agent can be assessed for the entirety of the capital gains tax.

Conducting fulsome due diligence at the outset of a real estate transaction cannot be disregarded, as the penalties for failing to do so can be significant. It is now possible that a court could find that notaries’ public and real estate duties go beyond general inquiries and must determine whether there are any potential liabilities for their clients. This duty puts the onus on both buyers and their agents and representatives to ensure specific inquiries are made that previous to this decision, would have been

expected only from a lawyer.

Determining the residency status of the seller should be completed well before the closing date and should go beyond a simple conversation. It would be prudent for buyers and their agents to request that evidence of the seller’s residency status be a condition of the purchase. Alternatively, agents should also consider a clause in their retainer agreement releasing the agent of all liability associated with any unpaid taxes after “reasonable inquiries” have been made. The problem with this is that the purchaser, the party in the transaction who should be held at the lowest possible standard when it comes to assessing risk, would still remain liable to CRA for the unpaid taxes.

Continued on page 35

34 REM JUNE 2017

Good Works A

l and Peggy Cunningham of Re/Max West Realty in Toronto started an Internet funding campaign (www.gofundme.com/the-castrillon-family) for the family of sales rep Hugo Castrillon. His daughter Erica was recently diagnosed with idiopathic pulmonary arterial hypertension (IPAH).

“There are going to be some hard times ahead, especially financial, to pay the day-to-day bills,” wrote Al in setting up the campaign site. “Add to that the unforeseen medical bills that will surely arise and maybe a little to go to fulfill some dreams. Hugo is not the type of guy who would ask for a

hand out and that is where we can all help. A little here and a little there will help ease the Castrillon burden. It’s all about Erica, a pretty little girl that needs the family support to fight this awful disease.”

The blog says Erica is “under the care of the best pediatric PH clinic in the country, which currently treats around 200 patients across Canada. We are hopeful that she will respond well to the treatment and will continue to live a normal, healthy life.”

However, the family reports that Erica has been denied coverage for some medications by the family’s insurance provider.

Castrillon writes, “We are

humbled to see how our friends and family have rallied around us during this difficult time… I want to especially thank Al and Peggy Cunningham…along with their two kids Laura and Rick. I have known the Cunningham’s for about six months, but what this experience has taught me is that you don’t need to know someone for years to form a real relationship with them. Al and Peggy have been campaigning on our behalf as though Erica was their own granddaughter.”

■ ■ ■

Each month for the past two years, a group from Sutton Premier Realty has volunteered at the Surrey, B.C. Food Bank. They sort stacks of canned goods during four hour shifts.

“Our office got involved because it’s a very worthy cause,” says associate broker Shirley Whitters, a frequent volunteer.

“We remain dedicated to this project because it feels good to know that we are helping people who are struggling to get back on their feet

Re/Max Blue Chip Realty in Yorkton, Sask. and the Kinsmen Telemiracle Foundation partnered to buy an accessible minivan for the Saskatchewan Abilities Council.

Hugo Castrillon and Erica

Front row, from left: Ron Clauzel, Shirley Whitters, Neru Johal, Shivani Cheema, Emily Oh and Charlie Oh. Back row: Ron Christensen, P.J. Cheema, Shahin Soheili, Eric Jung and Allen Shen.

From left: Royal LePage Elite real estate brokers Kimberly Windsor, Mark Broady and Sean Broady.

Robin Evans

Mark Broady of Royal LePage Elite entertains the crowd at his recent charity concert.

From left: Sutton Group – Preferred broker/manager Ken Payne, sales rep Dan Grantham and broker of record Gerry Weir

The Realtors at Core Real Estate in Yorkton, Sask. volunteered recently for a Burger Night to raise funds for Habitat for Humanity. The brokerage partnered with Browns Socialhouse Yorkton, Canadian Tire and Scotiabank to raise $4,000. From left: Tom Seeley, Habitat for Humanity; Corey Werner, broker, Core Real Estate; and Sylvia Heneffer, Habitat for Humanity.

The annual Easter egg hunt in Coquitlam raised more than $10,000. (Photo: Nicholas Lam)

Royal LePage Real Estate Services’ Kingsway Branch broker/area manager Al Orlando, right, and Bloor West Village Branch broker/manager Gus Monteleone, centre, recently presented a cheque for $10,000 to Paul Baumann from the St. Joseph’s Health Centre Foundation. The funds will be used for renovations to the emergency department at the centre.

REM JUNE 2017 35

and are in need of some support.”

Typically the brokerage sends a team of 10 people. Shirley says this type of volunteer work is a great team-builder for the office and one she highly recommends to other businesses and social groups.

■ ■ ■

The Saskatchewan Abilities Council in Yorkton recently unveiled a new accessible minvan.

Re/Max Blue Chip Realty and the Kinsmen Telemiracle Foundation partnered to purchase the van, which cost more than $44,000.

John Denysek of the council says that previously, wheelchair users had no other option than to use a 10-passenger bus. The van can carry two wheelchairs along with a passenger and driver. It will help people take part in a new Saskatchewan Abilities individualized program, which provides one-on-one support for individuals in need.

■ ■ ■

When Royal LePage Elite real estate brokers Mark Broady, Sean Broady and Kimberly Windsor from Beconsfield, Que. signed up for the Iceland Challenge for Shelter, they decided a fundraising concert was the best way to begin tackling their $15,000 fundraising goal. A former rapper, Mark Broady was keen to come out of retirement for an evening in support of the Royal LePage Shelter Foundation and the West Island Women’s Shelter.

More than 130 concert goers purchased tickets to hear Broady

perform, along with seven other acts. With his brother and Windsor in charge of event promotions and logistics, Broady set out to brush up on his greatest hits and write an original song for the fundraiser.

More than $7,000 was raised towards the trio’s $15,000 goal, all of which will go to their local women’s shelter and domestic violence prevention and education programs across Canada.

■ ■ ■

The 8th annual Robin Evans Bradford Charity Golf Tournament in memory of Gary Colangelo (a York Regional Police Superintendent) will take place on Fri., June 2 the Harbour View Golf & Country Club in Gilford. The tournament has raised more than $140,000 for a variety of causes including the War Amps, the Bradford Food Bank, a school breakfast program, seniors who require in-home care, people with disabilities, a reading program at Chris Hadfield Public School and more. Organizer Robin Evans, a sales rep with Sutton Group Future Realty, invites sponsors to help make this year’s tournament another success.

As in previous years, the tournament offers players the chance to win approximately $8,000 in prizes plus a $10,000 hole-in-one prize. The fee for golf and dinner is $175 and a foursome is $700.

Sponsorship opportunities begin at $250. Contact Robin Evans at 905-953-6200 to sign up.

■ ■ ■

Dan Grantham, of Sutton Group - Preferred Realty in London, Ont. was recently recognized by broker of record Gerry Weir with the brokerage’s first ever Community Service Award.

Among his many projects, Grantham serves on the executive committee of Youth Opportunities Unlimited and has sat on their Board of Directors for more than 15 years. He was one of the organizers of Hockey Helps the Homeless for the third year in a row. Proceeds of this fantasy hockey tournament benefit shelterbased charities in London.

He also helps to organize the Forest City Charity Golf Classic, benefiting Habitat for Humanity International. A few years ago, he helped to build homes in Bolivia and saw first-hand how safe shelter transforms lives. In 2016, the tournament set a record raising $25,000, which funded the construction of three homes in Paraguay through Habitat for Humanity International. The 19th Annual Forest City Charity Golf Classic will take place on June 13 at the Greenhills Golf Club.

Grantham also volunteers for the London and St. Thomas Association of Realtors (LSTAR) as a director and chairs the Finance Committee.

■ ■ ■

Sales rep Nellie Terzieva of Re/Max West Realty in Toronto is urging local brokers and salespeople to help with fundraising for the playground at Twentieth Street Junior School in Etobicoke. The

aging playground needs to be upgraded for the students at the school, which includes four Intensive Support Programs to meet the needs of Special Education students.

The school’s new Outdoor Play Structure is currently in the planning stage but must be funded by the community. The school is seeking sponsors for its annual Fun Fair on June 7. For information, contact Kristy Costello – kristycostello@hotmail.com.

■ ■ ■

More than 700 children in the Coquitlam, B.C. area showed up on Good Friday to look for 40,000 hidden chocolate eggs at the 7th

B.C. court rules

Annual Burke Mountain Community Easter Egg Hunt, organized by Royal LePage West Real Estate Services sales representative Rebecca Permack.

“Despite the forecast for miserable rain, the sun shone down on us again this year and not only did everyone have an awesome time, we also raised more than $10,000 for the cause,” says Permack.

“We’re incredibly grateful to our volunteers and to our wonderful community who gave so generously in support of our local shelter.

The services they provide to women and children seeking an escape from violence are critical and we feel honored to help in any way we can.”

REM

Continued from page 33

While buyers are able to withhold a portion of the purchase price in situations where the seller is known to be a non-resident, an avenue to withhold part of the purchase price when the seller’s residency is unknown should be adopted as well.

Whether you are an agent or a buyer, the bottom line in buying real estate in Canada is to take extra precautions when purchasing from a non-resident. Be certain to ascertain the legal residency status of sellers prior to the closing date.

Copyright McCague Borlack LLP. Irina Sfranciog is an associate lawyer at McCague Borlack in Toronto. She practices civil litigation with an emphasis on subrogation and insurance defence. Her broad practice focuses on property damage, professional liability, product liability and civil fraud recovery.

Rachael Segal is student-at-law at the firm. She received her law degree from the University of Leicester in the United Kingdom and her Masters of Law from Osgoode Hall law school. She has worked in a number of federal political offices including for two members of parliament, the government house leader, the minister of public safety and emergency preparedness and most recently, as director of policy to a Canadian senator. REM

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36 REM JUNE 2017

Landlords must deal with noisy apartment neighbours

By Avi Rosen

I

f you or your family has ever lived in an apartment, you might have had to deal with a noisy neighbour. The neighbour could be playing loud music, watching television on surround sound, having late-night parties into the morning, using exercise equipment, vacuuming or just deliberately making noise, which disturbs your sleep and overall well being.

What can you do? Who is responsible if the noise and disturbances are occurring regularly?

Property managers could have designated “quiet hours” within the complex. This rule is usually presented and explained to tenants before they sign the lease with

proof of understanding. Quiet hours are usually 10 pm to 8 am daily. Even if an apartment does not have these rules, tenants should respect each other’s sleep time. Landlords should make sure that all tenants have the right to rest and sleep before another busy day at work.

In one case, an elderly couple (the tenants) was being disturbed by the neighbour who lived above them. It happened between 11 pm and 6 am for almost a year and a half. The tenants were consistently being disturbed with noises from their bedroom ceiling, which they described as like a hammer striking the hardwood floor, along with scratching sounds like those made by furniture being dragged across the floor.

The couple had been living in the apartment for over 10 years.

Since mid-2011, they repeatedly complained to the property man-

ager personnel regarding the ongoing noise. The couple said the neighbour above them moved in approximately four years ago. He was an elderly man and the noise disturbances started after his wife passed away.

The apartment was taken over by a new property manager at the beginning of May 2012. The previous property manager had advised the tenants to create a log of the disturbances. The tenants also made a recording of the noises.

The tenants provided the log and recordings to the property manager, serving as agents to the owner landlord, but no action was taken to halt the disturbances.

The tenants filed the same complaints with their new property manager but had no better luck.

According to the tenants, the landlord’s response was that they could do nothing to resolve the issue.

The tenants had called the police to file a complaint in April 2011. In January 2012, the tenants filed a complaint to noise enforcement personnel, who came to the complex and directed the property manager to install weather stripping and felt pads under the neighbour’s furniture to eliminate the scratching noises.

After a period of exhaustion with no response, the tenants took legal action against their landlord at Ontario’s Landlord and Tenant Board.

The tenants claimed they were unable to sleep in their bedroom and that they were deprived of sleep. Their lack of sleep and ongoing stress exacerbated their health problems, including heightened blood pressure.

During hearings on Oct. 2, 2012 and Nov. 26, 2012, the tenants presented descriptive logs and tape recordings generated from a

microphone placed on their ceiling by their son. Many recordings demonstrated the disturbances between 11 pm and 5:54 am.

The judge concluded after examining the evidence that the noises made by a hammer stuck against the floor were deliberate and intermittent. The dragging of furniture across the floor during the early morning hours before 6 am did not constitute normal sounds caused by normal living activities. The judge said the tenants provided credible evidence that they were interfered with by the upstairs neighbour’s nocturnal activities.

The judge deliberated that under section 22 of the Ontario Residential Tenancies Act, a landlord is obligated to ensure that all tenants are afforded reasonable enjoyment of their units/the resiContinued on page 37

REM JUNE 2017 37

Courts contort real estate under Ontario act Section nine of REBBA continues to be a trap for the unwary in which one individual is barred from receiving compensation while another enjoys a windfall.

By Tom Arndt and Rand Salih

T

he saga of the contorted definition of “real estate� under the Ontario’s Real Estate and Business Brokers Act (REBBA) continues.

In 2013 I wrote an article about my win in Geofre v Ki Kit Li. In that case, Li hired Geofre, his accountant, to find a buyer for his two licenses and agreed to pay Geofre a consulting fee on closing based on a selling price of $1.75 million. Geofre found a buyer for the licenses. The transaction closed. The buyer paid for the licenses. The licenses were transferred and future revenues from the licenses were directed to the buyer’s bank account. Geofre sought payment of his consulting fee.

Geofre invoiced Li for his consulting fee. Li refused to pay.

Geofre sued Li for payment. Li brought a motion to stay the lawsuit under section nine of REBBA, which states that a person cannot bring an action for commission or remuneration for services in connection with a “trade in real estate� unless that person was registered or exempt under REBBA. Li took the position that the licenses were “real

estate� under REBBA. Li argued that because Geofre is not registered or exempt, the consulting fee was illegal and the court should strike Geofre’s lawsuit.

The court denied Li’s motion.

The court held that the license fell outside the definition of real estate in REBBA. The court also found that this would hold true even if the rest of the business sold has little independent value from the licenses.

From a practical perspective, the result was not surprising; a license is not real estate under the ordinary meaning of the term.

Geofre and Li entered an agreement and Geofre discharged his services. However, the definition of “real estate� in REBBA is not ordinary.

In 2016, the Superior Court of Justice, Ontario addressed a related question. In Windrock Associates Ltd. v Minicucci the defendant, Ludy, held a half interest in a multi-unit residential apartment building and the defendant’s partner held the remaining half. A dispute arose after Ludy’s partner died and the partner’s family was dissatisfied with Ludy’s work. As a result of the conflict, the partnership could not continue and Ludy retained the plaintiff, John, to resolve the dispute.

Landlords must deal...

Continued from page 36

dential complex. The landlord must take reasonable and effective action to protect a tenant from being disturbed by a neighbouring tenant. The landlord had probable cause to act on behalf of the tenants, including serving the neighbour a Form N5 notice of termination.

It was also determined that should the landlord fail to comply with the rules, the tenants had the right to a future application to seek a five per cent rent rebate as compensation from the landlord.

Unfortunately, the tenants did not file an amount for compensation and could not receive the rebate at the hearing.

Avi Rosen has been a real estate broker for nearly 50 years. He is also a paralegal. His focus is on the real estate industry, landlord-tenant disputes, Small Claims Court, evictions, RECO representation, BRA and other legal REM services. 416-818-6130; www.avirosen.ca

Ludy and John entered into an agreement whereby John would provide advisory services in relation to the resolution of the partnership dispute. Although technically framed as an agreement for dispute resolution, John’s advice mainly centred on either selling Ludy’s position in the property, purchasing his partner’s interest in the property or selling the whole property to a third party.

Upon extensive negotiations in which John played an important role, the partnership dispute was resolved whereby Ludy purchased his deceased partner’s half interest in the property. The ultimate transaction was a transfer of the deceased partner’s interest in the property, rather than a transfer of the shares held by the deceased partner’s family. The significance of this nuance comes from an early 1951 Supreme Court decision where the court held that REBBA does not apply to the sale of shares in a business.

Put differently, had Ludy purchased his partner’s shares, John’s advisory services would not be captured by REBBA and he would be entitled to compensation.

After the deal closed, John demanded payment but Ludy relied on the same argument used

by Li in Geofre: the consultant is not licensed under REBBA so the action should be stayed.

In Windrock, the court granted summary judgment in favor of Ludy and dismissed the action.

Although John did not market the property or introduce any potential buyers to Ludy or take any steps to initiate or effect a sale or purchase of the property, John’s involvement was ultimately tied to a trade in real estate; selling Ludy’s interest in the property or acquiring the interests of the partner’s family. As such, section nine of REBBA applied and it prevented recovery.

The court in Windrock also clarified that labels attached to remuneration will not allow individuals to escape the application

of REBBA. For example, referring to remuneration as a “consulting fee�, “success fee� or “commission� will not defy the application of section nine of REBBA if the fee is based on or dependent on a trade in real estate. In other words, if the fee depends on a sale

decision and reaffirmed that purchases and sales of shares are not captured by REBBA, whereas purchases and sales of an interest in a property is captured by the definition of real estate in REBBA. Section nine of REBBA continues to be a trap for the unwary

If the fee depends on a sale of property and is calculated as a percentage of the sale price, the transaction will be considered a trade in real estate. of property and is calculated as a percentage of the sale price, the transaction will be considered a trade in real estate and as such, recovery of remuneration is barred by section nine of REBBA if the service provider is not registered under REBBA. In 1951, the Supreme Court of Canada narrowed the application of REBBA when it held that the legislation does not apply to the sale of shares of a business. In 2013, the Superior Court of Justice, Ontario continued the narrowing pattern when it found that licenses are not real estate and as such selling licenses is not captured by section nine of REBBA. In 2016, the Ontario Superior Court of Justice, Ontario echoed the 1951 Supreme Court

in which one individual is barred from receiving compensation while another enjoys a windfall. If you are retained or considering a retainer to provide services that may be captured by section nine of REBBA, consult with a lawyer before investing valuable time and effort and to avoid costly litigation to seek remuneration for your services. I am regularly consulted in this area and would be pleased to hear from you.

Tom Arndt is head of the commercial litigation group at Himelfarb Proszanski. Rand Salih is the invaluable articling student at Himelfarb Proszanski who helped prepare this article and case brief. Arndt can be reached at tom@himprolaw.com or 416.599.8080. REM

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38 REM JUNE 2017

Four excuses for not staging a home

By Christine Rae

1.

I can’t afford to stage!

In today’s market, you can’t afford not to stage!

Every seller we talk to wants to get the most for the property when selling, so to not capitalize on the opportunity to maximize your equity return is short sighted.

Buyers want “move-in ready” and are willing to pay for it. They don’t want a list of deferred maintenance items without compromising what they are willing to pay. Before you say no to staging, consider the cost of NOT staging. You’ll have additional mortgage and utility payments, property taxes and household expenses while the house sits waiting for a buyer who can see past the seller’s life.

According to research by the National Association of Realtors, the longer the property sits, the lower the sale price goes. Sellers have many options to secure the money they need to get the house ready for sale: borrow it from a friend, family or neighbour. Secure a home equity loan, use a credit card, have a garage sale, sell something on eBay/craigslist/Kijii. The world is full of money – you just have to find some. It is in your best interest to do so.

2. Staging is just decluttering and cleaning. I can do that myself.

This is one of the biggest myths about staging. Pre-packing personal belongings and cleaning are only part of the recipe for successful selling. Fully preparing property for sale involves commitment to three vital steps.

The first step identifies areas throughout the property that may adversely affect offers and suggestions to maximize equity. Step two is the fulfillment of those recommendations and step three is the truly amazing component – we

call it showcasing. This step ensures fabulous photos, impactful open houses and memorable first impressions.

Many people think of this as decorating, but it isn’t. There is nothing personal about showcasing; it involves research of the targeted buyer demographic and a scientific approach to furniture placement and accessories selected with a subtle colour strategy. Why would sellers potentially risk thousands of dollars in equity by electing not to do this?

3. I get compliments all the time about how great my house looks! Why do I need to stage?

Again, it’s a myth that staging is about decorating. Decorating is a personal expression of how we live.

The buyer of property isn’t interested in that – they want to envision how they will live. Decorating for living and staging for selling are two very different disciplines.

Anyone telling you differently is misinformed.

Selling a house is not about the sellers, their tastes or decorating style; it is all about what the buyer wants and what we want the buyer to see in the property – the things they inherit when the seller moves their things out –

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n Toronto we are experiencing an unbelievable market. Mostly everything for sale sells and fast. What a great market to work in. For those who are new to the business, less than three years, you are set! Or so you think. Do you have enough experience under your belt to really advise your clients properly? In other words, have you paid your dues?

Dues are basically hard work.

I mean really hard work! Getting out there and “pounding the

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Staging has radically changed the way real estate is sold. tunity because our perception filter is through what has been before. Staging has radically changed the way real estate is sold.

Not doing it puts the sale in jeopardy one way or the other – no

matter what the economy is doing.

A common cry from sales reps during hot markets is, “We don’t have any inventory and the house will sell regardless of condition.” This is true, and if you don’t mind gambling with your equity, then go ahead and sell without staging. However, if you are a savvy seller/investor and want to realize the most equity from the sale of your property, stage it before contacting an agent.

More than 40 per cent of stagers’ work comes directly from property owners. Staging brings exceptional returns on your investment. When the market is slower or softer, properties need staging to generate interested buyers. You may not stage your listing but someone else who is selling at the same time – competing for the same buyer – will and they will be selected by the buyer as the property to purchase.

Christine Rae is president of CSP International Staging Business Training Academy. She is a celebrity staging expert and author of the best-selling Home Staging for Dummies and SOLD books. www.StagingTraining.com REM

Have you paid your dues?

Director in the Regional Development Department

• Familiarity of operating a real estate franchise

that is what we are selling.

4. My agent said I don’t need to stage my house; it will sell itself.

I am sure your agent believes that and that she/he is giving you good advice – because it is what you want to hear. The question to ask yourself is, “At what price will it sell and when?” Staging is a proven and sound marketing method to sell property around the world.

Sometimes we can’t see oppor-

I

pavement” work. Along with this is learning, failing, succeeding, being humbled, feeling despair and experiencing letdowns.

Every occupation has a period at the beginning where “dues” must be paid. You are not exempt from this even in a good market.

In order for you to have a long lasting career, you must pay the dues at the beginning. This is when you admit to yourself that you don’t know everything and that you want to learn.

By paying your dues at the beginning, you are building a solid foundation for your long term career that will surely pay large dividends down the road. If you don’t pay your dues, the

foundation you build will be on straw. We can all see where that will go.

When the market changes from what it is today, will you be prepared to guide your clients properly?

If you are new in the business and even if you have found instant success, don’t forget to pay your dues along the way. It will help you stay grounded.

Jeffrey Wagman is a partner and broker of record at Forest Hill Real Estate in Toronto. He sells homes and condominiums in the central Toronto market and is consistently ranked in the top one per cent of all real estate salespeople in Toronto. REM

REM JUNE 2017 39

T

he Association of Saskatchewan Realtors recently honoured two of its members for their outstanding leadership, dedication and contributions to the Realtor community.

Len Wassill of Melville was presented with the CMHC Distinguished Realtor Award and Cristin Korchinski of Regina received the Young Professionals Network Rising Star Award. The awards were presented at the Annual General Meeting in Regina.

■ ■ ■

Exit Realty Corp. International founder and chairman Steve Morris was recently inducted into The Og Mandino Hall of Fame.

Mandino is best known as the author of The Greatest Salesman in the World, which has sold more than 25 million copies worldwide since it was first published in 1968.

Mandino’s work is carried on by the Og Mandino Leadership Institute

Len Wassill

Puthon has visited three Ontario affiliates to present their 15-year Crystal Milestone Awards. Awards were presented to Bill Bestward, Coldwell Banker Advantage Real Estate, Welland, Ont; Brad Angel, Coldwell Banker The Property Shoppe Real Estate, Port Elgin, Ont.; and Coldwell Banker Momentum Realty, St. Catharines, Ont., now owned by Stephen Oliver.

headed by CEO Dave Blanchard.

“We were so excited to induct Steve Morris, the consummate entrepreneur, into The Og Mandino Hall of Fame,” says Blanchard. “He is a powerful example of someone who lives and teaches correct principles. He recently wrote the prologue for our new book, Equanimity— Conquering Mt. Entrepreneur and he has become a treasured member of the Og Mandino family.”

“I was surprised and honoured to be recognized among this group of business leaders,” says Morris.

“I have been a fan of Mandino’s work for many years. The Greatest Salesman in the World is a bible for anyone following an entrepreneurial path.”

■ ■ ■

Long-time Regina Realtor Ian Johnston has been named the 2016 Realtor of the Year by the Association of Regina Realtors (ARR).

Sponsored by Canada Mortgage and Housing Corp., the award recognizes an ARR member who has demonstrated outstanding leadership and dedication to both the real estate industry and the community at large.

Born in New Glasgow, N.S. Johnston learned the importance of volunteering and giving back to the community at a young age, says the ARR. He carried this philanthropy with him to Saskatchewan.

Over the years, he has been president, vice president, treasurer and secretary for both local and provincial real estate associations, as well as serving in leadership roles in his various community organizations and charities. REM

■ ■ ■

Coldwell Banker recognizes the loyalty of long-standing affiliates with the Milestone Awards program. During 2017, Coldwell Banker Canada president Andy

Cristin Korchinski

Steve Morris

Bill Bestward, left, and Andy Puthon

Welcome, RE/MAX IMPACT Realty!

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this business card will now feature a RE/MAX brokerage he owns and operates.

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Shah’s new RE/MAX IMPACT Realty office is located in Courtice, and will be servicing the Durham region, primarily Oshawa and Clarington.

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Having been an agent for 10+ years, Shah feels that half the battle is already won when you have the number one brand behind you. He says 1413 King Street, he has always been proud to give out a RE/MAX Courtice ON business card to clients, and we are proud that If you are interested in ownership opportunities with RE/MAX, the largest most productive real estate brand, contact Jennifer Dominey at 1.647.519.7735 to arrange your confidential meeting, or visit remaxintegra.com.

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Congratulations RE/MAX Finest Realty on your New Home!

Many organizations are moving towards a lifestyle-office approach, and RE/MAX Finest Realty is certainly embracing this concept! Their new office is over 12,000 square feet of comfort.

It houses a large lunch area, a staff entertainment area, multiple closing rooms and training facilities, a kids play place, and single, double and team office space.

Cindy Haggerty, the Owner of RE/MAX Finest Realty, says the primary goal with this new space is to give the agents an environment they

Andy Puthon, left, and Brad Angel From left: Peggy Rose, founder, Coldwell Banker Momentum Realty; Stephen Oliver, the brokerage’s new owners; and Andy Puthon

are comfortable in, which results in more top producers earning while they’re learning.

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Congratulations and good luck!

RE/MAX Finest Realty’s new office location is: 1329 Gardiners Road, Kingston, ON K7P 0L8

Picture L-R: Nancy Sears – Franchise Growth Consultant, RE/MAX INTEGRA, R Christopher Alexander – Regional Director, RE/MAX INTEGRA, Brian Patterson – Mayor of Kingston, n Cindy Haggerty – Broker/Owner, RE/MAX Finest Realty,y Terra Haggerty – Broker/Manager, RE/MAX Finest Realty

Ian Johnston, left, is presented with his award by Derek Ramage of CMHC.

If you are interested in ownership opportunities with RE/MAX, the largest most productive real estate brand, contact Jennifer Dominey at 1.647.519.7735 to arrange your confidential meeting, or visit remaxintegra.com.

remaxintegra.com

40 REM JUNE 2017

What’s

New Pillar to Post applauds new Ontario legislation The Ontario government has passed legislation to regulate the home inspection industry and establish qualifications for home inspectors. The Home Inspection Act 2017 establishes minimum standards for home inspection contracts, home inspection reports, disclosures and the performance of home inspections.

Under the new law, anyone performing a home inspection

must be licensed and insured. A written contract with the homeowner must be signed and a written report has to be delivered after the inspection.

“This is a crucial, necessary step,” says Dan Steward, president and CEO of Toronto based Pillar To Post Home Inspectors. “Can you imagine finding out that your dentist took a one-day course in dentistry? Your home is your single biggest investment so you absolutely have to protect it with a thorough home inspection before putting down your hard earned money.”

Steward says, “It’s also crucial to have the inspection before you buy, but with the current situation (in some hot markets) we see many would-be homeowners bypassing the inspection process and foregoing the contingency so they don’t lose the home to another bidder.”

Graham Clarke, president of the Canadian Association of Home and Property Inspectors (CAHPI) says, “With such a supply and demand issue, it is a real dilemma for Realtors as well.

They want to protect their buyer clients from making a huge mis-

take, which could mean thousands of dollars in repairs later down the road, but they also don’t want to lose the insistent client. They can only do their best to assert their warning on the dangers of buying without a home inspection.”

Steward says the company is making special offers to real estate salespeople “to have one of our home inspectors come out to the new homeowner right after closing. If they find problems early enough, repairs can be hopefully limited to a minimum.”

iGuide VR now available Planitar, the creator of iGuide, a platform for capturing, processing and hosting immersive 3D virtual home tours and detailed property information, recently introduced iGuide VR. It enables users of Premium iGuide packages to immediately upgrade to the latest release.

“We recognized the growing demand for headset enabled real estate content and developed a VR experience that benefits from floor plan navigation, the hallmark of

the iGuide.” says Kevin Klages, cofounder at iGuide.

Cliff Rego, broker of record at Rego Realty in Cambridge, Ont. recently previewed the iGuide VR technology and will be introducing it as a brand building program for his marketplace, says a news release from the company. “iGuide VR offers a new level of experience for searchers and prospective home buyers. We view this technology as a way to capture mind and market share in unconventional and overlooked ways.”

To view a sample of the new iGuide VR, visit www.goiguide.com.

Firm launches mortgage-monitoring tool Toronto-based 3Foundations Technology Group recently launched Monitor My Mortgage, which the company says is “a firstof-its-kind technology platform that gives users the power to determine the best options available to them for their ‘in term’ mortgage – at any time.”

The program is free and available via mobile, tablet or web.

“Monitor My Mortgage is the first application to accumulate and share this type of information and customize it for each user; it offers mortgage transparency and governance like never before,” says Monitor My Mortgage founding partner Brent Hughes. “We wanted to build something that would monitor your mortgage similar to how you would monitor any investment – with data and information that helps show opportunities to save money throughout the term, not just three months before renewal time.”

The program also directs users to a mortgage broker when they’re interested in pursuing a different opportunity. For information: www.monitormymortgage.com

Photolemur makes enhancing photos easy Photolemur is an automatic photo enhancement tool that runs on artificial intelligence, says the software developer. It analyzes the photo and applies appropriate improvements using 12 technolo-

Lone Wolf’s new logo Dan Steward Mortgage Smarts was written by a real estate managing broker and a mortgage broker.

Photolemur runs on artificial intelligence, the company says.

Real estate companies invite their clients to their own branded version of MoveSnap.

FCT and AmeriSpec recently launched Certified Resale Home.

iGuide VR

REM JUNE 2017 41

gies. “While it has an easy one-button interface for the user, it provides a result that can be expected from a professional photographer working on the photo in a manual photo editor. Almost one million photos have been analyzed to reach this quality of enhancement,” says the company.

Unlike photo editors, Photolemur does everything automatically. It eliminates the need for manual adjustments and hours of complex learning, says the company.

It is available for Mac and PC and works on a subscription model of $5.99 per month for an annual subscription and $8 per month for a monthly subscription.

For information: www.photolemur.com.

MoveSnap helps reps ease client’s moving stress Toronto-based MoveSnap has been working on a technology that simplifies the entire relocation process, the company says.

Research has named moving as the third-most stressful event after death and divorce.

Real estate companies invite their clients to their own branded version of MoveSnap, making tasks like forwarding mail, connecting utilities or changing addresses as simple as a few clicks for their clients.

“There’s no better way to build long-lasting client relationships than by being helpful when clients need help most,” says Reuven Gorsht, MoveSnap’s co-founder and CEO. “Clients will quickly forget how their agent worked until 2 am to negotiate a few thousand dollars more for them, but they’ll always remember someone who was there for them at a time of need. That’s when the law of reciprocity kicks in and word-ofmouth referrals happen.”

He says while there are many technologies that focus on the marketing and lead-generation aspects of real estate, MoveSnap helps real estate companies build long-term client relationships and increase referrals by covering the gap that happens during the time between when the transaction is firm until completion, when communications between a client and their agent drops substantially.

For information: https://movesnap.com

Managing broker, mortgage broker write award-winning book Mortgage Smarts, a guide to mortgage procurement in Canada

by Victoria real estate agent Helen Jones and mortgage broker Peter Dale, has won the 2017 Independent Publisher Book awards silver medal in the Finance, Investment and Economics category.

Dale is a registered mortgage broker with Sidney-based Yardale Mortgage Company and the founder of Betterthan50.com.

Jones is managing broker at Jonesco Real Estate and has been in real estate since 1974.

Conducted annually, the Independent Publisher Book Awards honour the year’s best independently published titles from around the world.

Published through Friesen Press, Mortgage Smarts focuses the readers’ attention not just on the costs of getting into a mortgage, but the costs of getting out of one as well. It takes readers through all aspects of the mortgage application process in the order a house buyer would need it.

There is a chapter on the history of mortgages, a chapter on essential terms and one about the specifics of the mortgage application process. Another chapter looks at how to get out of a mortgage. Other chapters relate the mortgage to the purchase of a home and special cases.

The book looks at mortgages for houseboats, mobile homes, agriculture and for the first time anywhere in Canada, Islamic mortgages, the authors say.

“Since procedures and mortgage laws very across the country, the book contains links to further information for each of the provinces as well as Yukon, North West Territories and Nunavut,” Jones says.

Mortgage Smarts is available for order from FriesenPress.com and Barnes & Noble, as well as book retailers. Readers can also purchase the e-book on Kindle, Nook, iTunes, Kobo and GooglePlay.

Web4Realty to give real estate education grant to newcomer Web4Realty, which produces marketing software for real estate professionals, is giving a

Newcomer and Refugee Realtor Education Grant valued at more than $5,000 to an eligible applicant.

“We understand the positive influence that immigrants and refugees have in our economy and as we continue to grow, we’d like to help newcomers getting acclimated to professional life in Canada,” says Kosta Panagoulias, co-founder at Web4Realty. “It is how we can continue to nurture and foster the thriving diverse real estate community in Ontario.”

The company is offering a grant subsidizing one applicant’s full OREA Real Estate College tuition, valued at more than $3,000, along with lifetime access to Web4Realty’s Real Estate Marketing Software, valued at more than $2,000.

Web4Realty was founded in 2011 and now serves thousands of clients across Canada and the U.S. For information: https:// www.web4realty.com/newcomerand-refugee-realtor-educationgrant/

FCT, AmeriSpec launch Certified Resale Home FCT has launched Certified Resale Home, a pre-listing home inspection and warranty in partnership with AmeriSpec Inspection Services.

The new service combines a home inspection conducted before a seller’s home is put on the market with an 18-month warranty from FCT that is transferrable from seller to buyer.

“Sellers are able to enhance buyer comfort by reducing the risk to home buyers, especially in a multi-offer market that often precludes getting a home inspection,” says FCT in a news release. “The service was successfully piloted last year in the Niagara region and was embraced by local real estate agents and brokers as a valuable service.”

The warranty covers systems and components of the home that may be difficult to assess during the home inspection because of seasonality or accessibility. The coverage offers a maximum of $20,000 for the repair and/or replacement of the foundation, roof, heating and cooling systems.

“Certified Resale Home offers tremendous value to home sellers

and protection to home buyers by streamlining the transaction, providing more information transparency, particularly about ‘blind spots’ such as the foundation, roof and heating and cooling systems,” says Mark Page, head of the initiative. He says it “ultimately reduces anxiety and friction points in the transaction.”

The new service is currently being launched in Ontario with plans to expand in the near future.

Pricing is currently $689, plus HST, with some additional optional coverage available. It includes a full home inspection and coverage for the four major home components.

For information: www.thecertifiedresalehome.ca.

Lone Wolf reveals new brand and ‘Idea Portal’ Real estate software producer Lone Wolf Technologies recently launched the Idea Portal, where the company’s clients can submit

ideas, view and vote on other ideas and see the status of any suggestion that has been submitted. The portal is designed to increase the level of transparency and promote collaboration between Lone Wolf and its users, the company says.

“While our many years in real estate have provided us with a firm grasp of the industry, our users are the true experts. The insight into our clients’ unique experiences will allow us to shape our solutions in a way that really works for them,” says Gordon Wallace, back office product director at Lone Wolf.

The company has also launched a modernized brand and logo. “‘We aren’t the same company that we were 30 years ago and while we remain rooted in our history and values, we want to celebrate our future and create a visual representation of who we are today and where we are headed,” says Kate Annis, VP of marketing.

For information, visit REM lwolf.com.

Defending ‘lazy real estate millionaires’ nfair criticism of people who made their millions by owning property during Vancouver’s real estate boom prompted Vancouver sales rep Owen Bigland to write book to defend them.

“Having earned their fortunes with seemingly no work, these millionaires have provoked outrage.

From scathing editorials to calls for legislation, much of the public seems angered by the apparent unfairness of the situation,” says a news release promoting Bigland’s new book, Along for the Ride.

Bigland says these property millionaires should not to be condemned nor viewed as “lazy”. They should be seen as proof of the rewards for long-term investing, says.

“Where was the outrage when the markets were uncertain and these individuals chose not to sell their properties? Where too, is the outrage over early investors in Pepsi and other nowlucrative stocks? People who made fortunes off those stocks simply by holding them into the present? Such ‘visionary’ stock investors are no different than Vancouver’s ‘lazy’ real estate mil-

U

lionaires,” says the release.

The book may not be popular among those with “get rich quick” schemes, says the release. It offers honest, actionable advice on becoming financially independent, it says.

It promises “a simple, straightforward blueprint based on real estate and stock investing. On the real estate side, he advocates a strategy involving owning your principal residence and steadily acquiring rental properties. On the stock investing side, his approach focuses on dividend growth, and index investing via low-cost ETFs.” The release adds: “A stream of passive income doesn’t just happen. At least not for the kind of snowballs or income streams large enough to matter. Instead, both require time and discipline to build. This is perhaps the central theme of Along for the Ride. The idea that achieving true financial independence, as Bigland has done, is a gradual journey, one that anyone can embark on regardless of their background and position in life.”

For more information, visit REM www.OwenBigland.com.

42 REM JUNE 2017

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How to compensate team members

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By Kathleen Black

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he most popular question circulating about teams is: How do we compensate our team members? We have talented, self-directed, motivated, top people, but how do we make sure we aren’t training the competition? How do we help them to stay? We have admin roles, field agents, buyers’ agents and partners.

How do we compensate for the roles on our team?

Working hands-on with top producers across North America over the past several years, I have seen how creating a structure for compensation opens up teams for long-term growth. We are looking at the term “compensate”, which does not mean, “How much will we pay them?” or “What will the commission split be?” It does mean, “How will we enable growth, hap-

piness and balance?” Studies have shown us that there are three pillars to a high-quality working environment: compensation, opportunity and security. These three pillars are how we help the top talent to stay, thrive and grow.

You are building a team and creating a people-first environment. In this ideal working atmosphere, there is more than money on the table for compensation.

This team creates a family, a business and a caring environment. It consists of encouragement, training and leads.

Compensation is more than offering up to 95 per cent per deal.

There must be finances in place to support team members in reaching their goals, in growing with the company and continuing to develop with the team and the vision.

Absolutely, people need to be paid fairly for their role on the team, but that cannot be the only way people

Remembering North Battleford Realtor Wayne Hoffman Long-time salesperson and property manager died on Feb. 2 Wayne Hoffman, a sales rep and property manager with Better Homes and Gardens Real Estate The Battlefords in North Battleford, Sask., died on Feb. 2. He had a 41year career “doing what he loved,” says his obituary.

He started in real estate in 1975 and moved to Westland Agencies in 1977. The brokerage is now known as Better Homes and Gardens Real Estate The Battlefords.

Wayne Hoffman A notice posted in the office says Wayne was a “friend, co-worker, mentor” and that he was kind, generous, had a terrific sense of humour, and was dedicated to family, friends and clients. The salespeople and staff at the brokerage served as honorary pallbearers.

Wayne Hoffman was 69.

REM

are compensated.

Opportunity is the second pillar in creating the ideal quality in work-life balance. When creating your compensation structure, you are continuously looking at the vision of the business’s future and you are taking your team members to that vision. They need training and support so they can see the opportunity for growth in themselves and their own skills. They need to be able to see where they will continue to grow within the company and understand the opportunities that will be made available to them.

Finally, your compensation structure needs to have security.

Not only will your top talent team members have a job tomorrow, but they will have leads next month and then in another two months and next year. With the ongoing training, encouragement and team finances to support the growth, there is security in the direction the company is taking.

If you create a system based on only some of the pillars, the structure will be unsound. This will lead to higher turnover, even on teams that may pay dramatically more per transaction, because their team members won’t actually have any transactions to do, or very little.

Ultimately, the most successful teams will see a distribution of the pillars and this maintains the top teams for optimum growth. It’s essential to look with the end in mind. It’s not where you are today; it’s where you want to go.

Kathleen Black has taken her experience as a top-producing Realtor and built it into a dynamic, resultsdriven consulting company, Kathleen Black Coaching & Consulting, where she serves as CEO, speaker, trainer and elite coach. The systems she used in her daily real estate business to get her to the top are now the backbone of a real estate consulting company specializing in helping real estate professionals across North America build top teams. www.kathleenspeaks.com, email info@kathleenREM speaks.com.

REM JUNE 2017 43

THE PUBLISHER’S PAGE

By Heino Molls

I

MARKETPLACE

n April, the CBC reported about Home Capital: “Shares in the alternative mortgage lender plunged� and “clients withdrew hundreds of millions of dollars in a matter of days. The troubles at Home Capital began when the Ontario Securities Commission alleged that several company executives misled shareholders in their handling of a scandal involving falsified documentation for a bunch of mortgages almost two years ago.�

The CBC further reported that “in the summer of 2015, Home Capital announced that it had cut ties with about 45 mortgage brokers for fudging numbers� and they reported that “Home Capital

I’m grateful to Home Capital makes most of its money selling uninsured mortgages to clients who the big banks don’t cater to, usually because they have spotty credit histories, are self-employed or have otherwise uneven incomes.�

In other words, Home Capital gave mortgages to people who had been brushed off by the banks and other standard financial lenders so they could buy a house. Most mortgage lenders don’t want to take a chance on a person who might be working for themselves or who has been through some tough luck in the past, even though they can show that they are hard working and entrepreneurial. Does that sound like anyone you know? Well I can tell you someone who that sounds like – me, that’s who. It also sounds like a lot of real estate brokers and salespeople I know.

These are people who are selfemployed and especially people who have been through the ringer of sales careers and whose credit has boomed and busted for no other reason than some bad luck or

unforeseen happenings. I have often said and written that although I have never been a Realtor, I have enormous empathy for sales reps and brokers because we are all unemployed every single month. I can tell you, dear reader, that while I have covered your business for over 30 years, the only thing I know for sure about your business after all this time is that it is uncertain whether you will make a sale this coming month. I can also tell you that even though I have been in the business of providing news to this industry for almost 30 years, there is no guarantee that I will make a sale this month either.

For a lot of us, a company like Home Capital and what happens to them is important. I had a mortgage from Home Capital (through its subsidiary, Home Trust) a few years ago. It was arranged by a good mortgage broker who worked hard for me. I must be honest and say that I was not overly pleased because I had

to pay a higher rate of interest than my straight-laced, union member neighbours with their guaranteed jobs and gold-plated benefits. I had to pay some extra charges that I kind of thought were suspect in terms of real bona fide costs to get my mortgage, such as “administrative fees�.

The important thing was that at the time no bank would even talk to me but Home Trust did and they did that for thousands of other people as well and for that I will be forever grateful. We all know the market is currently robust but there was a time that it was not and I can tell you that at that time, when the chips were down, Home Trust stood with me and they stood with a lot of other folks who didn’t have great credit.

The bottom line was that if wasn’t for Home Capital, we would not have been able to buy houses for our families.

Today, for all the mud that is being slung at this mortgage company, even if some of it is deserved,

somebody should say, “Hey, you know these guys helped a lot of people buy houses who would not have been able to because of the evil banks and conservative financial lenders in the real estate world.� For all the smug people who have lots of money and cushy incomes, there are a lot of folks who don’t. We ought to acknowledge the mortgage lenders and the mortgage brokers who work hard to help people buy a house who would otherwise not be able to. They deserve a lot of accolades that they don’t ordinarily get these days.

If I am not explaining this well enough, find the movie It’s a Wonderful Life and watch it. It is all about a guy who runs a savings and loan company that lends money to people that the banks turn away so they can buy homes for their family. It’s not just about Christmas, its about good people in business.

Heino Molls is the publisher of REM. Email heino@remonline.com.

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