March 2014 by Real Estate Magazine (REM)

Issue #297

March 2014

Board staffer surfaces with new novel Page 8

Canada Post Publications Mail Agreement No. 42218523 - Return undeliverable Canadian addresses to 2255B Queen St. E., #1178, Toronto ON M4E 1G3

Cubaâ&#x20AC;&#x2122;s new real estate environment Page 26

Grow-ops, drug labs and real estate deals Page 30

Martin Charlwood

named CEO of Century 21 Page 3

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REM MARCH 2014 3

Martin Charlwood takes over as Century 21 CEO By Jim Adair

artin Charlwood knows he has big shoes to fill in his new role as CEO of Charlwood Pacific Group’s real estate division, which includes Century 21 Canada, Centum Financial Group and Real Canadian Property Management. He spent six years preparing to take over from Don Lawby, the muchrespected 35-year veteran executive who has retired. “Don and I spent a lot of time doing our cross-country tours, including our national convention and awards events,” says Charlwood. “I’m not a stranger to the business. I know the people and they know me, but now I’m taking it to the next level.” Charlwood has worked in partnership with his father, group founder U. Gary Charlwood and his brother Christopher, since the late 1980s. The group also owns Uniglobe Travel International, where Martin was president and COO. He says the departure of Lawby is “bittersweet, for the family and for the company and all the brokers and agents who know Don so well.

But he’s done such a great job that he deserves the time to cool his jets a little bit.” Former senior vice-president of operations Brian Rushton has been promoted to executive vice-president, which means he is responsible for the “day-to-day management of the brand, and specifically for setting up a competitive technological direction and managing the growth of our organization,” says Charlwood. Century 21 Canada was launched in Canada almost 40 years ago. It currently has nearly 9,000 sales reps in 400 offices across the country. “We plan to continue to grow the brand strategically, through a strong emphasis on broker recruitment – helping our brokers get new agents and to get experienced agents to come from other brands,” says Charlwood. “We’ll also have a continued emphasis on new franchise sales, and on helping our existing brokers in the mergers and acquisitions side of the business.” Century 21 Canada licenses the brand from Realogy, which owns it in the United States. The U.S.

Martin Charlwood says technology is “bringing the sex appeal back into the real estate agent and broker business” for young people thinking of getting into the profession. (Photo by Darla Furlani)

company spends a lot of money on consumer advertising at big sporting events, which provides a spinoff benefit in Canada. As a result, Century 21 Canada has been able to put its marketing dollars toward improving its consumer website. “We’re using that technology to enable our brokers to be better recruiters and to make their agents

more productive and grow the business from an organic perspective,” says Charlwood. He says the emphasis on technology is catching the attention of a younger generation – the “millennials” – and that is “bringing the sex appeal back into the real estate agent and broker business. We’re seeing younger people approaching Century 21 because it’s becoming the home for the cool, edgy, technologically savvy real estate agent.” He says real estate is a great profession for young people to consider. “You can get into the business with very few start-up costs except for your licence, and you don’t need to buy the houses to sell them, so you don’t need big working capital. You can be in business for yourself and your earning opportunities are unlimited.” Charlwood says he is also encouraged by the growth of the Centum organization. “A couple of years back, we had one location that did more than $100 million in placed mortgages in any given year. By the end of 2013, we had six locations at over $100,000 in mortgages.” Centum Interstate

Mortgages in Brampton, Ont., under the leadership of owners Davinder Bouns and Gupreet Samra, grew by more than $200 million last year and placed $320,000 in mortgages. He says the goal for Real Canadian Property Management is to have a nationwide network within the next two years. Meanwhile, Charlwood is getting ready for the next awards events. The company just learned that for the sixth year in a row, Century 21 Percy Fulton in Toronto, under the leadership of Clare Fulton, has been named the No. 1 office in the world-wide Century 21 network. The team of Don Goodale and Brad Miller from Century 21 Miller Real Estate in Oakville, Ont. has been named the top team internationally. Don Lawby was known for his blunt and outspoken opinions on the real estate industry issues of the day. Charlwood says the company will continue that tradition and “will be very active and vocal when we see a point that needs to be made.” REM

CREA to vote on lowering Quebec members’ fees By Danny Kucharsky

he divorce between Quebec’s two largest boards and CREA was short-lived but the renewed marriage vows between the organizations means the relationship will be different than it was before. After announcing their departure last month, the Montreal and Quebec City boards reached an agreement to return as CREA members. Details of the deal were outlined in a joint letter sent to Quebec brokers by CREA president Laura Leyser, Greater Montreal Real Estate Board president Patrick Juanéda and Quebec City Real Estate Board president Luce Fecteau. The three said the organizations operated in an

“open-minded” fashion that allowed the deal to be reached. Under the deal, listings for properties in Quebec posted by brokers not licensed by the OACIQ – Quebec’s real estate regulatory body – are being removed from Realtor.ca. Agents from outside Quebec will no longer be able to post such properties on Realtor.ca. CREA has also created a process to deal with this issue on an ongoing basis. Juanéda and his board were upset that brokers from outside the province were allowed to list For Sale by Owner properties and flatfee listings on Realtor.ca without being subject to Quebec regulations, which only allow Quebec properties to be sold by brokers in

the province. “Since this issue began, the board has been animated by one unique objective – defending the interest of our members,” said Patrick Juanéda, president of the close to 10,000-member Montreal board. “We are proud to have obtained appreciable gains in recent weeks for the industry and for Quebec’s real estate brokerage industry.” Regulations regarding real estate brokerage are stricter in Quebec, particularly when it comes to divulging information, which is a “major problem,” Juanéda says. As well, CREA will propose at its AGM in March that Quebec member dues be reduced to $225 in 2014 to reflect the previous credit

for the national ad campaign and the fact Quebec members do not use WEBforms due to regulatory restrictions. The proposed agreement “addresses our demands concerning issues facing the industry,” Manon Stébenne, manager, communications and public relations of the Montreal board told REM. “We firmly believe this agreement provides significant gains for brokers.” “The fact that the parties have agreed to work together to find solutions means we are confident that a return is in our members’ best interests,” Stébenne says. In addition, the three organizations have agreed to address issues surrounding CREA’s data distribution facility and its code of ethics.

Stébenne says the national code of ethics conflicts with that of the OACIQ and that Quebec brokers were being double-billed for services already available to them. “It is important to mention that this agreement arose from willingness by all three presidents to find solutions in the best interest of members,” the three presidents wrote. “We believe that this agreement will be positive for all Quebec real estate brokers.” Quebec has its own listings website, Centris.ca, which Juanéda says is superior to Realtor.ca. However, some Montreal members expressed concern that losing the ability to list on Realtor.ca would reduce exposure to potential buyers outside the province. REM

4 REM MARCH 2014

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

he Toronto-based brokerage formerly known as Coldwell Banker Terrequity Realty has joined the Royal LePage Network. Terrequity was the largest Coldwell Banker franchise in Canada with nearly 400 agents, operating out of 13 offices across the Greater Toronto Area. “Royal LePage has firmly established itself as the dominant player in Ontario’s real estate market, which can only serve to assist our Realtors as they strive to build their businesses in an increasingly competitive industry,” says Andrew Zsolt, president of the brokerage. The brokerage now becomes Royal LePage Terrequity Realty. ■ ■ ■

Exit Realty International has awarded the franchise rights to the Region of Atlantic Canada to Anne Squires. Squires, who was named among the Top 50 CEOs in Atlantic Canada by The Atlantic

Business Magazine in 2012, is the franchisee of Exit Realty on the Rock, with brokerages throughout Newfoundland and Labrador. She is also the regional owner of Exit Realty Alberta. “Anne is not only known for being a hard worker, she is an inspiration to us all. With her drive and determination Anne will lead franchisees, brokers and agents to take Atlantic Canada to the next level,” says Joyce Paron, president of Exit’s Canadian Division. The company says this move is part of Exit’s “aggressive growth plans throughout the country” that include plans to sell the remainder of its sub franchise rights within the next 12 months. ■ ■ ■

Ingersoll Oxford Realty, a longtime independent in Western Ontario, recently merged with Re/Max a-b Realty. Ingersoll Oxford Realty has been in operation for almost 30 years and currently has 10 sales reps and brokers. It will continue to serve clients

Ingersoll Oxford Realty has joined Re/Max a-b Realty in Ingersoll, Ont.

Andrew Zsolt

Anne Squires

from their current location in Ingersoll, under the Re/Max banner. Cathy Dos Santos, broker of record for the office says, “We have enjoyed a great deal of success as an independent brokerage, however with the changing climate of the real estate industry we needed to look at what was best for our clients.” John Wolfe, broker of record and owner of Re/Max a-b Realty, says, “The corporate culture between our offices is an excellent fit and I am looking forward to working with them to help grow their own personal businesses.” Re/Max a-b Realty has 71 Realtors in branch offices in Woodstock, Ingersoll, St. Marys, Norwich and Stratford.

and passionate real estate agents. They are a good cultural fit for our organization,” says Ralph J. Stephen, president of Royal LePage Atlantic. “This partnership allows us to offer new and existing clients access to the services, technology and market intelligence that comes from becoming part of a large quality real estate sales team. It’s something we’re excited to bring to our clients,” says Bouchard. Royal LePage Atlantic has 360 sales associates and administrative personnel, with offices in Halifax, Dartmouth, Bedford, New Minas, Shelburne and Windsor in Nova Scotia; and Moncton, Shediac, Sussex, Saint John and Rothesay in New Brunswick. ■ ■ ■

Canada to accept his commission in Bitcoins. Bitcoins were introduced in 2009 as a digital form of currency that relies on complex mathematical online formulas to unlock each of the 21 million Bitcoins in existence, says Arora in a news release. It is known as a “cryptocurrency”, which can gain or lose value quickly. In November 2013, the price of a single Bitcoin quadrupled in price from $250 to $1,000 a coin in a few weeks. At press time, one Bitcoin was worth about $900. “I might be the first Realtor and brokerage in Canada to do this, but I would expect others to follow my lead,” says Arora. “Bitcoins can’t be ignored as a currency, particularly in the real estate business.” While some markets are not as receptive to Bitcoin, North

Vancouver sales rep Mayur Arora says he is the first Realtor in

Continued on page 6

■ ■ ■

Royal LePage Metro in Moncton has joined Royal LePage Atlantic, the largest real estate brokerage in Atlantic Canada. Metro owner Carla Bouchard and the firm's 48 sales reps “have a long-standing reputation in New Brunswick as very knowledgeable

Alex and Taryn Aragon

Carla Bouchard

Ralph J. Stephen

Scott Mills

Diane Jennings

Josie Gammiero

Maggie Tessier

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*Source: 2012 Ad Tracking Study. The study was conducted in two waves by Millward Brown, a leading global market research organization during the following time periods: Wave 1 between February 5th – February 19th 2012, Wave 2 between August 12th- August 26th 2012. The survey results are based on 1,204 online interviews with a national random sample of adults (ages 18+) who are equal decision makers and who have bought or sold a home within the past two years or plan to purchase or sell a home within the next two years. Brand awareness, Consideration and Likelihood to Recommend questions based on a sample of 1,204 respondents at a 90% confidence level, with a margin of error of +/-2.4%. Recognition and Respected questions are based on those who had awareness of the brand. Results are significant at a 90% Confidence level, with a margin of error of +/- 2.4%. Independently Owned and Operated. ®™ Trademarks of AIR MILES International Trading B.V. Used under license by LoyaltyOne, Inc. and Century 21 Canada Limited Partnership. ®/™ trademarks owned by Century 21 Real Estate LLC used under license or authorized sub-license. © 2014 Century 21 Canada Limited Partnership

6 REM MARCH 2014

Continued from page 4

America is seen as open to the virtual currency, especially to investors from Asia who view Bitcoins as a valuable commodity like gold or silver, he says. With a high percentage of immigrants moving from China to Western Canada, the ability to use Bitcoins as part of Realtor commission payments will be an attractive option, says Arora. ■ ■ ■

Scott Mills has joined Coldwell Banker Canada as director of affiliate services, based at the company’s national office in Burlington, Ont. He is responsible for franchisee services in Canada, which includes consulting with brokers and managers about the delivery of programs and resources, recruiting and retention and business operations. He will also lead the development of Canadian learning and recruiting initiatives and develop and implement a Canadian education calendar, the company says. He has experience in both real estate brokerage and sales, as well as nine years in residence management for three major Canadian universities. His 10 years of industry experience includes managing one of Coldwell Banker Canada’s brokerages, which offered both residential and commercial real estate services, the company says. ■ ■ ■

Alex and Taryn Aragon, a husband and wife real estate team, recently made the move to Keller Williams Elite Realty in Port Coquitlam, B.C. Team Aragon has combined experience of more than 20 years in resale and new homes. They have worked for some of the largest developers in the Lower Mainland, selling new communities throughout the Vancouver area and Fraser Valley. ■ ■ ■

Cover photo: DARLA FURLANI

Diane Jennings has been appointed manager – franchise support for Exit Realty Atlantic and Alberta. “Diane brings her strength, warmth and enthusiasm to her new career as well as her 30plus years of real estate knowledge,” says Anne Squires, regional owner. “Her exceptional organizational and interpersonal skills will be a definite asset to the regions.”

Sotheby’s International Realty; Tom Kunz, EVP and former president and CEO of Century 21 International; and Richard Brinkley, former director of business development for Sutton Group, who is representing the brand as senior VP Canada. “It was an extremely successful meeting to launch a very aggressive strategy,” says Brinkley.

■ ■ ■

Josie Gammiero, owner of Agence immobilière Prodev in the Montreal area, has joined the Royal LePage franchise network. The agency will now operate under the name Royal LePage Cité. The new Royal LePage Cité agency already has a dozen experienced real estate brokers to serve its clients, but Gammiero expects to add more brokers. They will work in the areas surrounding Laval, Boisbriand, Ville St-Laurent (Montreal) and Saint-Eustache.

Century 21 Seller’s Choice has served St. John’s home buyers and sellers for 16 years. To benefit their clients and Realtors, the company recently moved to a new office building. “We wanted a location that was highly accessible. Our new office is near every major highway and has ample parking,” says owner Gordon Hiscock. “Our overall space can now accommodate 70 agents.” The office also features specially wired boardrooms to support professional development programs. Private offices and meeting rooms will provide agents with modern spaces and technology to host clients on-site.

■ ■ ■

Engel & Völkers’ senior leadership team gathered recently at the international luxury real estate firm’s North American headquarters in New York City to begin implementation of plans to enter new markets in Canada, the United States and Mexico. The firm specializes in the sales of premium properties through high-end services and has an international network of over 500 brokerages in 38 countries. “Our goal is not to be everywhere in the world, but in the best locations to best serve our clients,” says Anthony Hitt, CEO of Engel & Völkers North America. “We have a strong presence in the U.S., a growing presence in Mexico and look forward to seeing the first Engel & Völkers brokerages in Canada in the very near future.” The management team includes Hitt, who had been a topproducing agent for eight years as well as trainer and manager at

Linda and Gordon Hiscock cut the cake at the official opening of the new Century 21 Seller’s Choice offices in St. John’s. Alberta Lt.-Gov. Donald S. Ethell, left, presents the Governor General’s Caring Canadian award to David Jamieson.

■ ■ ■

Construction is now complete on the new home of Exit Realty Matrix in Orleans, Ont. “The appointments are modern and inviting. Every part of the space is thoughtfully laid out, has a professional polish and exudes an upbeat energy,” says Joyce Paron, president of the Canadian Division of Exit Realty International. “Our dreams are limitless. We are planning our third building right at this moment,” says Maggie Tessier, franchisee. “Our agents get excited each time a new office opens, knowing they have tremendous financial potential by referring agents to it.” Tessier has a second office in Embrun, Ont. She was recently recognized as Exit’s all-around sales champion last year.

Publisher HEINO MOLLS email: heino@remonline.com

Editor in Chief JIM ADAIR email: jim@remonline.com

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Distribution & Production MILA PURCELL distribution@remonline.com

Manager, French Edition MICHEL CHEVALIER michel@remenligne.com

Art Director LIZ MACKIN

Digital Media Manager WILLIAM MOLLS web@remonline.com

From left: Engel & Völkers’ Tom Kunz, EVP; Anthony Hitt, CEO; and Richard Brinkley, senior VP Canada.

Graphic Design SHAWN KELLY Brand Design SANDRA GOODER

■ ■ ■

David Jamieson, a sales rep with Atlas Realty in Medicine Hat, Alta. was recently presented with a Governor General’s Caring Canadian Award. The award recognizes individuals who volunteer their time to help others build a smart and more caring nation. Jamieson was a member of the Friends of Medalta Society and was involved in rebuilding the historic

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Phone: 416.425.3504 www.remonline.com www.remenligne.com REM complies fully with the Canadian Real Estate Association's Rules for Trademarks (CREA Rule 16.5.3.1) REALTOR® and REALTORS® are trademarks controlled in Canada by The Canadian Real Estate Association (CREA) and identify licensed real estate practitioners who are members of CREA. MLS® and Multiple Listing Service® are trademarks owned by CREA and identify the services rendered by members of CREA. REM is published 12 times a year. It is an independently owned and operated company and is not affiliated with any real estate association, board or company. REM is distributed across Canada by leading real estate boards and by direct delivery in selected areas. For subscription information, email distribution@remonline.com. Entire contents copyright 2014 REM. All rights reserved. Reproduction in whole or in part without written permission from the publisher is prohibited. The opinions expressed in REM are not necessarily those of the publisher. ISSN 1201-1223

Medalta historic factory and beehive kilns, the centerpiece of a 150-acre Canadian National Historic Site. Today the factory is a contemporary ceramic artists’ studio and industrial museum. “David helped keep the dream of Medalta alive during the early days,” says Barry Finkelman, executive director of the Historic Clay District. “He put a lot of his time REM into Medalta.” Printed by Metroland Media Group, Ltd. A certified SFI Printer

Multiple Listings

8 REM MARCH 2014

TREB competition case goes back to tribunal T

he Competition Bureau’s case against the Toronto Real Estate Board (TREB) is going back to the Competition Tribunal, the Federal Court of Appeal ruled recently. It allowed an appeal of an April 2013 decision that dismissed the bureau’s complaint against TREB. “The application was based on the commissioner’s allegation that a certain rule adopted by the board is anti-competitive because it substantially lessons competition among Realtors in the Greater Toronto Area who are members of the board,” says the court’s Reasons for Judgment, written by Justice J. A. Sharlow. “The tri-

bunal dismissed the application without considering the merits,” on the basis that subsection 79(1) of the Competition Act doesn’t apply to the board because it does not compete with its members. The appeal court says the tribunal erred in its interpretation of the law. “I would allow the appeal and refer the commissioner’s application back to the tribunal for determination on the merits,” wrote Sharlow. The board “disputes many factual and legal aspects of the commissioner’s application, but the tribunal did not resolve any of those disputes because it dismissed the application solely on a ques-

tion of law,” says the ruling. The Competition Bureau originally filed its case in 2011 and it was heard in late 2012. The decision was released in April 2013. The bureau’s application before the tribunal requested that TREB eliminate rules that it claimed “denied real estate agents the ability to introduce innovative Internet-based real estate brokerage services, such as Virtual Office Websites (VOWs).” Although ruling that the bureau failed to make its case under one section of the Competition Act, the tribunal’s April decision stated in “an observation” that another section of the

act “might give the commissioner a means to apply to the tribunal.” Lawrence Dale, who was president of RealtySellers Real Estate at the time of the application and was granted intervenor status at the tribunal, said of the April decision: “This was a classic case of a legal technicality where nothing gets resolved…Once these technicalities are addressed, the fundamental issues still remain to be determined. How long that takes to get resolved is anyone’s guess.” In a statement, TREB said: “The commissioner of competition is persisting in its efforts to erode the personal privacy and

contractual safeguards afforded by the MLS system. TREB will continue to work to protect the personal information entrusted to it and its members by the general public, while it strives always to do what it can to ensure a highly competitive environment for real estate professionals in the GTA.” John Pecman, commissioner of competition, said in a statement: “I am pleased with the Federal Court of Appeal’s decision to refer our application back to the Competition Tribunal. The Competition Bureau will continue to fight to promote innovation in the marketplace to the benefit of REM Canadian consumers.”

LSTAR staffer surfaces with new novel Melissa Hardy, director of communications for the London and St. Thomas Association of Realtors, is an award-winning author of three novels and two collections of short stories. By Dennis McCloskey

t was Mark Twain who first advised writers to “write what you know,” and judging from Melissa Hardy’s latest novel, Surface Rights, the director of communications for the London and St. Thomas Association of Realtors (LSTAR) has taken his counsel to heart. Hardy is an accomplished, multi-award winning author of three novels and two collections of short stories. In her latest 294-page fiction novel, readers will find many connections to the real estate industry and at least one zany Realtor. Carmen the Cottage Lady is a Northern Ontario real estate agent in the fictional town of Greater Gommage. She is a cigarette-smoking “mountainous” woman who doesn’t get out of the car – she “decants” herself. Despite her eccentric (freakish?) behaviour and appearance, Carmen is a competent professional Realtor. “Everyone is a composite,” says Hardy, a former freelance journalist who has been with LSTAR for 23 years. “Carmen is not based on any particular person I’ve known in the business. She may appear to be crazy or

weird but the lady is astute!” Surface Rights was published by Dundurn in December and immediately received good reviews, with the Toronto Star calling it “a thoroughly readable, and enjoyable, modern family saga.” The story is about a middle-aged woman who returns to the family cottage for the first time in 38 years to scatter the ashes of her husband, father and twin sister. She soon discovers a mysterious and menacing prospector who posts a notice on the cottage door, stating his intention to dig for ore. Turns out, her dysfunctional family holds the surface rights for the land but not the mineral rights and trouble ensues. When Hardy is asked if her knowledge and familiarity of topics-ofthe-trade comes directly from her experience in the real estate field, she answers, “Absolutely!” She works part-time for the association from her home overlooking Lake Erie in Port Stanley, 45 minutes south of London, in a house she shares with her professional musician husband, Ken Trevenna and a golden retriever, Nellie. Hardy has three grown children, Sabrina, Alice and William,

and acquired two more (Shanah and Raina) when she married Trevenna. All five are grown up and have moved away. Her husband is from Timmins, which provided Hardy with the inspiration and setting for her current book and another, titled The Unchartered Heart. It was described by the Globe and Mail as “a remarkable evocation of events and places in Canadian history.” A multi-linguist who has an honours BA degree in English in creative writing at the University of North Carolina, Hardy is a selfdescribed history nerd who also received a masters degree in postclassical history at University of Toronto. She describes herself as the “point person” for LSTAR and devotes her time to communicating the association’s services, including government relations, lobbying, community services and writing and producing publications. LSTAR is one of the 10 largest Realtor associations in Canada with a membership of nearly 1,500 real estate brokers and salespersons working out of 134 offices. A native of Chapel Hill, N.C., Hardy is now a Canadian citizen

but also retained her American citizenship. Her parents were professors and her father is novelist William Hardy, who has published seven fiction novels. He gave her the best advice of her professional writing career, which began for her in 1970 at age 17, when Viking Press published her first novel, A Cry of Bees. He told her: “Set your completed manuscript aside for one month. Then go back to it and say: ‘What idiot wrote this and how can I help him?’” Hardy’s dad worked for 30 years in the summer with the Cherokee Historical Association and his daughter got to spend seven summers living on a reservation of the Cherokee Nation in the U.S. Her current book, and others, contains many references and themes of native influences. Hardy says her real estate colleagues have been very supportive. “By nature, Realtors are giving and committed people and they have been very complimentary and pleased with any success I have achieved in my writing,” she says. “They are great cheerleaders!” If anyone has a desire and aptitude for writing, the best advice she can give is to write! Write! Write!

Melissa Hardy

“When people tell me they’ve had an interesting life and they’d like to write their life story, I encourage them to find their voice by starting with a blog,” she says. Hardy suggests that a novel is “hard to hold in your head” with all its complexities, threads, story lines and characters. She writes a blog on her website and describes it as “the funnest thing ever.” In 1994, Hardy won the Journey Prize, which is a Canadian literary award presented for the best short story published by an emerging writer in a Canadian literary magazine. Many awards and accomplishments followed and the inveterate writer is not showing any signs of slowing down or reducing her literary input. She hopes to complete a novel this spring that is “a darkly, comical work of speculative fiction set in early 19th century Italy.” Watch for it. You might be in it. As a composite, of course. REM

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10 REM MARCH 2014

Industrial, Commercial & Investment P

lant Your Flag Commercial Real Estate Services recently launched its brand in commercial real estate brokerage. The service targets small-to-medium enterprise, a market segment that represents 98 per cent of the North American economic engine, the company says. “Our system allows for commercial real estate brokers to be compensated in a manner that enables them to focus on small and medium-sized lease transactions or small-to-medium-sized building purchases and sales. We believe that our commercial real estate brokers and salespeople understand their clients’ needs and their required services the best. We do not believe that an ivory tower

top-down management system will add value with small-to-mediumsized enterprise clients,” says the company’s website. Company founder Greg O’Donnell says, “We are committed to training people in commercial real estate leasing and sales.

Greg O’Donnell

The system we have created will change the lives of people who choose commercial real estate brokerage as a career.” “We all want to plant our flag in life and business,” says advertising expert and Plant Your Flag advisor George Lois. “This new brand identifies with commercial real estate brokers and their clients, people who have something to prove.” ■ ■ ■

Jones Lang LaSalle (JLL) has added Damien Mills to its Canadian team as EVP and managing director of Western Canada. “We have opened three new offices in Western Canada over the last two years to meet the growing demand for real estate experts in the market,” says Brett Miller, president of Jones Lang LaSalle Canada. “Damien will act as a market ambassador for business development and provide support and leadership to our teams as we continue to grow our presence in Western Canada.” Mills has worked with all sizes of clients from small one-off office transactions to multi-market

Canada’s most expensive streets

ay Street in Toronto has the most expensive office rates in the country, followed by Burrard Street in Vancouver and 2nd Street SW in Calgary, says a report by Jones Lang LaSalle (JLL). “Location is everything,” says Brett Miller, president of JLL. “As the Canadian market continues to strengthen, we are seeing that companies are increasingly willing to pay higher rental rates in order to be in prestigious locations.” The most expensive streets fall into financial, retail or government hubs that are highly prominent and competition to get space is growing, the company says. The most expensive streets for office space in Canada (asking rents): 1. Bay Street, Toronto, $73.54 p.s.f. Bay Street topped the list for the third year running in the annual survey. The street spans through both the heart of

Toronto’s financial district and Yorkville, a high-end shopping district. 2. Burrard Street, Vancouver, $65.91 p.s.f. Burrard Street has moved up since 2012, when it took third place. With increased office asking prices of nearly $4 p.s.f., the street is a centre point of downtown. 3. 2nd Street SW, Calgary, $59.72 p.s.f. This street made the list for the first time this year, succeeding last year’s 8th Avenue SW. Located in Calgary’s financial district, it is home to some of Calgary’s tallest buildings. 4. Albert Street, Ottawa, $53.40 p.s.f. Albert Street held its fourth-place position from 2012, after dropping from second in 2011. The street is central to many government towers and facilities. 5. 101st Street NW, Edmonton, $57.25 p.s.f. 101st Street NW kept its position of fifth place. With retail and office space available, the area

is appealing to a variety of tenants. 6. René-Lévesque W, Montreal, $57.04 p.s.f. RenéLévesque W. has maintained its position from 2012. Acting as a thoroughfare, the street is lined with numerous high-rise office towers. 7. Upper Water Street, Halifax, $35.83 p.s.f. Upper Water Street has maintained seventh place from 2012, after moving up from 9th place in 2011. Located on Halifax’s waterfront, it is home to large office complexes. 8. Portage Avenue, Winnipeg, $36.36 p.s.f. Portage Avenue has kept its position in eighth place since 2012. It acts as a thoroughfare, connecting east and west ends of Winnipeg. 9. Laurier Boulevard, Québec City, $31.00 p.s.f. Laurier Boulevard took the ninth place position. Known for its retail, the street also acts as a main artery in REM the city.

Craig Bradshaw

assignments and large headquarters planning and development, and brings 25 years of experience to JLL. He joins JLL from Cresa Partners LLC, where he was one of the founding principals and former directors. ■ ■ ■

Craig Bradshaw has joined Avison Young as VP, property management. He will direct the growth of Avison Young’s property management business coverage in Vancouver and throughout B.C. and recruit industry professionals to build the team, the company says. “Craig is among the elite property management executives in Canada and a true industry leader,” says Michael Keenan, principal and managing director of the Vancouver office. “Unlike with the more traditional silo model favoured by competitors, our goal is to provide a full-service, integrated approach whereby our leasing, investment and property management groups operate as one cohesive unit.” Bradshaw brings more than 30 years of commercial real estate experience to Avison Young. He served as a VP, business development for Arcturus Realty and before that he spent 14 years with Colliers International, rising to lead the firm’s commercial property management operations in B.C.

America that we are confident enough to build a major project from the ground up.” The 31-storey office tower, The Exchange, will be built in the heart of the financial district. “We are negotiating with a number of tenants at the moment and expect to make announcements soon,” says Mark Renzoni, president & CEO of CBRE, the leasing brokerage for the development. “As the global economy recovers, Vancouver is one of the strongest office markets in North America,” says Mark Chambers, senior VP of Cushman & Wakefield. “The downtown Vancouver office market currently sits at near-record low vacancy rates, with mounting pressure on availability of quality space.” Until recently, the City of Vancouver was projecting a critical shortage of office space by 2031 if land-use policies remained the same. With a new Metro Core Jobs & Economic Land Use plan in place, there are now seven new office towers under construction downtown, creating 2.18-million square feet of new office space. More than half of that space is already pre-leased, says Credit Suisse. The development will include Canada’s first LEED Platinum heritage conversion, as the neighbouring Old Stock Exchange building (circa 1929) will be renovated and restored as part of The Exchange. It is slated for completion in 2016. REM

■ ■ ■

Credit Suisse, one of the top 10 largest private real estate investors in the world, soon will break ground on a $200-million LEED Platinum office tower in Vancouver. “Normally, we would invest in a fully developed, leased property,” says Rainer Scherwey, director at Credit Suisse Real Estate Asset Management. “This office tower represents the first time in North

The development will see Canada’s first LEED Platinum conversion of an historic building in the Old Stock Exchange, circa 1929. (CNW Group/Credit Suisse Real Estate Asset Management)

12 REM MARCH 2014

THE GUEST COLUMN

By Andy Puthon

eal estate professionals are popular people. No matter where you are or who you’re speaking with, the subject always comes back to housing. Name another sales business where potential customers can’t wait to talk to you and get your advice. Your ability to respond and deliver positive consumer messages can be pivotal to your success. One of the most clearly evident changes in communication is that messaging has become much shorter. Those of us who have been around long enough to remember communication theorist Marshall McLuhan will remember his ground-breaking quote, “The medium is the message”. His prophetic words have come to pass. With news being shared in a tweet of just a few characters, the

The headline is king headline is king. Consumers are forming assumptions about the market solely from reading provocative news headlines and moving on without even clicking through to get the full story. It has never been more important for you as real estate professionals to offer a sense of perspective and balance. A report by NADbank (Newspaper Audience Databank), an organization that measures newspaper readership in Canada, found that “readership of digital content continues to offset declines to printed editions”. Interestingly, while printed papers are losing readers, weekly audiences are larger now than they were in 2008. So the good news is more Canadians than ever are accessing news, but they’re getting it through different vehicles. Nearly eight out of every 20 Canadians still read their daily newspapers – that’s 15.9 million adults according to NADbank – but as more portable and increasingly affordable devices become available, a third of Canadians now access online news every week. As a growing number of Canadians grab their news on the go, I believe there will be an

increasing reliance by consumers on headlines and short clips versus in-depth insights. Once again, readers will be basing their conclusions about the real estate market on what may only be a brief glimpse of a story. Never has the potential for provocative or inflammatory headlines to negatively impact the market been as great as it is today. Another relatively new trend in news reporting is the blog format, which allows online readers to comment on various stories in the media. This trend is something of a double-edged sword when it comes to communication. While it offers readers a voice, it can also create situations where uninformed individuals can cloud an issue with comments that are not relevant or even accurate. The good news here is it also offers an opportunity for you as well. So, if we recognize that news reporting practices are changing the way consumers perceive the real estate market, the next question has to be: What can we, as real estate professionals, do to counter this growing trend? Here are a few suggestions any individual Realtor can employ to

offer perspective: 1. Put your own positive focus on real estate news. Don’t email or re-tweet news headlines without first looking for the “nugget” of information you most want to share. Recognizing the headline is king when it comes to consumer perception, find the positive news in a story and use that as your leadin, rather than just copying the media’s existing headline. For example, instead of sending out a board release using their headline of “Sales down 3 per cent over last year”, you can still send the same release with a new title, such as, “Sales continue climb for 4th consecutive month” or “Prices holding steady at near record levels”. Same story, different focus. And the reader’s takeaway will be completely different, simply because you took the time to change the headline in your link. 2. Wade in with a balanced perspective. When you see an online news story that creates a negative perception with a onesided or limited point of view, contribute to the comments section. In a respectful way, offer additional information that might help to create a more positive point of

view. For example, if the story is comparing periods after new Canadian mortgage regulations kicked in, but sales have been steadily improving since the change, the consumer deserves to hear that. 3. Tell your own story with positive anecdotes. Readers and the media both love to hear “real world” examples of buyer and seller successes that add credibility to your story and help make a more personal connection. Remember, you cannot use customer names without written consent, so it’s usually best to just describe them in general terms, such as “a newly married Oakville couple I recently worked with are so glad they decided to buy a house now because...”. Just remember that thinking before you write or post on social media channels or online news sites is even more important than it is in personal conversations, because news travels quickly over the Internet and cannot be retracted. Know your facts and let your voice be heard. It could result in a more balanced perspective for consumers and translate into leads for your individual business. Andy Puthon is President of Coldwell Banker Canada, and can be reached at andy.puthon@coldwellbanker.ca REM

How much do you charge? By Jerry Bresser

ne of our graduates reports that she has not taken less than a 7.5 per cent commission in 17 years in spite of the fact that competitors, including agents in her own company, offer to take listings at four and five per cent. When a seller starts by asking what she charges, she asks, “Are you looking for a discount agent?” When the seller says yes, she responds, “You don’t want me. I am the highest priced agent in the county. But I get more for the house and put more money in the sellers’ pockets. Would you like to know

how I do that?” She then shows the wisdom of getting more local agents eager to show a home that gives them a bonus commission and how more showings result in more and better offers. Her closing line is, “A one-percent increase in commission offsets a five-per-cent reduction in price every time, don’t you agree?” Dealing with indecision: Most people actually don’t like to make decisions … especially big decisions that have big consequences. That’s why, when you get your listing prospects down to the moment of signing on the dotted line, many will hesitate, vacillate, stall, object, falter, waver, dither, dawdle or delay. The best way to minimize this (you cannot eliminate it altogether. The fear of commitment often doesn’t strike until you put a pen in

someone’s hand) is to get a tentative commitment early in the listing interview. My qualification procedure has four steps. 1. Basic questions: Why are you selling, where are you going and what is your deadline? 2. Probing questions: What happens if the home does not sell on a timely basis? What will you do? How will you feel? 3. Time target questions: Would it be in your best interest to have the home sold and closed in 90 days? 4. Tentative commitment questions: If you felt that you had a good chance to sell your home for the most money by listing with me today, is there any reason you would not do that? It’s the last question that prevents hesitation, vacillation, stalling or objections when you ask them to sign the listing contract later. If they said no to your tentative commit-

ment question, they will have a hard time justifying indecision later. Your local statistics can be powerful: From your MLS, get the number of homes currently for sale and the number of sales last month. Example: 3,600 listings and 400 sales. Divide last month’s sales by 4.3 to get the approximate number of sales last week (102). Remind the prospect that buyers are people who actually buy homes. Everyone else is a potential buyer. That is an important distinction. Divide the total listings available by the sales last week to show how many choices each buyer had on average (35). Tell the prospect that, on average, buyers look at four homes before they make their buying decision. Ask if that sounds reasonable. They will say yes. Everybody does. Multiply the number of sales last

week by four. Explain that if every buyer was in a different home than any other buyer, there were only 408 listed homes seen by buyers. Subtract the 408 from 3,600. Tell the sellers there were 3,192 homes that did NOT have a buyer through last week. Ask the sellers if they are absolutely serious about selling their home. Finally, ask them if they see why it is important to price right, commission right, stage right and select an agent who knows how to increase showings on their home. Jerry Bresser has been training and coaching real estate agents how to sell homes faster and for more money for over 35 years. He recently published his second book, More Money In Your Pocket. www.jerrybresser.com or for information about the book, www.moremoneyinyourpocket.biz. REM

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14 REM MARCH 2014

METES & BOUNDS

By Marty Douglas

arch marks my 44th year in real estate. Thanks Mom. But enough about me. Iâ&#x20AC;&#x2122;m kidding. My â&#x20AC;&#x2DC;hobbyâ&#x20AC;&#x2122; is musical theatre. A couple of times a year for about 30 years, I have auditioned and performed in amateur productions. My first was Jesus Christ Superstar, the iconic Webber and Rice production that changed the way many of us regarded the concept of a musical, not to mention Christianity. The latest was The Drowsy Chaperone, a smash hit on Broadway in 2006 and winner of five Tony Awards. In between, some oldies â&#x20AC;&#x201C; Brigadoon, Fiddler

From 44 years on the real estate stage On The Roof and Kiss Me Kate, shows for kids â&#x20AC;&#x201C; Beauty and the Beast, and shows definitely for adults â&#x20AC;&#x201C; A Man of No Importance. Iâ&#x20AC;&#x2122;ve had a few leading roles and a lot of chorus. Iâ&#x20AC;&#x2122;m not a dancer but movement in a musical is unavoidable. Chorus roles particularly will have you in the grip of a choreographer who can tap dance, scissor kick and pirouette around your meagre grapevine and shuffle-ballchange. (YouTube those if you are desperate.) After one audition, the director suggested Iâ&#x20AC;&#x2122;d be well placed in the back row. Female dance partners have been known to trade me off once their shins healed and toenails regrew. Iâ&#x20AC;&#x2122;m nervous every time I step on the stage. What propels me on to the stage is knowing Iâ&#x20AC;&#x2122;ve been there, done that and survived. Fluffed or forgot my lines? Sure. Sung the wrong note? Many times. Died? Once, but in character, not of stage fright or mistakes or because the director yelled at me.

Brian Tracy, in a live webcast from Seattle two days after the Superbowl â&#x20AC;&#x201C; go Seahawks â&#x20AC;&#x201C; reminded me that taking action gives you feedback and allows you to self-correct. Taking action gives you self-confidence, which is the greatest asset we can have in sales â&#x20AC;&#x201C; and in life. It propels you on to your stage. Some people collect and memorize Shakespeare. I gather snippets I hear every day. Thereâ&#x20AC;&#x2122;s a recurring theme. Here are a few from my 44 years on the real estate stage. â&#x20AC;&#x153;Real life is the ultimate exam.â&#x20AC;? â&#x20AC;&#x201C; Rob Stevens, past EO of the Real Estate Errors and Omissions Insurance Corporation of B.C. â&#x20AC;&#x153;Performance is different. You can take classes all your life and rehearse forever, but you make more progress in one performance than you do in a year of lessons. Performance is the real thing. The other stuff is getting ready.â&#x20AC;? â&#x20AC;&#x201C; Robert Parker. â&#x20AC;&#x153;Actors donâ&#x20AC;&#x2122;t get paid for the minute or two they spend in front of the camera. They get paid for the

preparation and waiting around.â&#x20AC;? â&#x20AC;&#x201C; Michael Caine. â&#x20AC;&#x153;The practices were the killers â&#x20AC;&#x201C; they made the real thing, the game on Sunday seem easy â&#x20AC;&#x201C; fun even.â&#x20AC;? â&#x20AC;&#x201C; Willie McGee on playing for Vince Lombardiâ&#x20AC;&#x2122;s Green Bay Packers. â&#x20AC;&#x153;I am not a gifted person. I made myself gifted by hard work.â&#x20AC;? â&#x20AC;&#x201C; Carlos Delgado. â&#x20AC;&#x153;A lot of people die, stuck in three to get ready. Take the next step.â&#x20AC;? â&#x20AC;&#x201C; Rosita Perez. â&#x20AC;&#x153;You have to practise and memorize your presentation. The reason a magician can pull a rabbit out of the hat is that he put it there in the first place.â&#x20AC;? â&#x20AC;&#x201C; Howard Brinton. â&#x20AC;&#x153;The moments in between the shots count as much on the tennis court as the shot itself. If you can focus on timing, confidence and positive thinking while you are walking back to the base line between points, then when the time comes to perform, you will ace it.â&#x20AC;? â&#x20AC;&#x201C; Ellie Rubin in her book Bulldog. â&#x20AC;&#x153;Success will not lower its standard to us. We must raise our stan-

dard to success.â&#x20AC;? â&#x20AC;&#x201C; Rev. Randall McBride. â&#x20AC;&#x153;Before every game Michael Jordan took 100 practise shots. If you want to overcome your fear, get back to work.â&#x20AC;? â&#x20AC;&#x201C; Mike â&#x20AC;&#x153;Pinballâ&#x20AC;? Clemons. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s only when the tide goes out that you learn whoâ&#x20AC;&#x2122;s been swimming naked.â&#x20AC;? â&#x20AC;&#x201C; Warren Buffet. â&#x20AC;&#x153;Times may have changed but the real secrets have not.â&#x20AC;? â&#x20AC;&#x201C; Peter Legge. You want a daily affirmation? Iâ&#x20AC;&#x2122;ll give you a word â&#x20AC;&#x201C; Quotidian. It means â&#x20AC;&#x153;daily, of every dayâ&#x20AC;? according to the Canadian Oxford Paperback Dictionary. Do something every day that will move you towards the performance you seek. In our business that daily task is pretty simple. See the people. Contact Marty Douglas by email at mgdouglas247@gmail.com. Follow or connect with Marty on Twitter, LinkedIn and Facebook. He is a managing broker for Re/Max Ocean Pacific Realty in Comox and Courtenay, B.C. REM

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16 REM MARCH 2014

Broker turns pumpkins into leads I

n fairy tales, pumpkins turn into coaches but at Century 21 Summit Realty in Calgary, pumpkins turn into leads. Brokerage owner KaraLee Foat created a full-service marketing plan that includes events and competitions, such as pumpkin carving and gingerbread house decorating contests. The events help the brokerage’s agents expand their data bases, increase their website traffic and generate leads. Foat, a Realtor for nine years, used personal connections and online marketing to build her business and wants to help the agents in her one-year-old brokerage do the same. “If they’re successful, we’re successful,” she says. The office handles the details of the initiatives, down to sending invitations, so agents can offer events without having to do the planning. For Halloween Foat ordered 6,000 pounds of pumpkins fresh from the farm and invited members of the community to pick one

up, carve it and post a photo on the company’s Facebook page, www.facebook.com/century21sum mitrealty. Agents dropped pumpkins off on clients’ doorsteps, then texted to invite them to carve their pumpkin and email a photo of the finished work of art. One pumpkin, created by an art professor, depicted Van Gogh’s Starry Night. The contest was judged by two Calgary Stampeders players. Foat says an agent new to her brokerage at the time was skeptical, thinking advertising would be his prime source of leads. Foat suggested he attend the pumpkin event. She says the agent watched as his colleagues enthusiastically loaded pumpkins into their vehicles before he hesitantly decided to give it a try. On several occasions since, the agent has told Foat that the deal he was working on was thanks to a lead garnered when he delivered a pumpkin. The company’s agents also

2014 Election of Directors

Call for Nominations begins February 21

gave away gingerbread house kits for the holidays. Foat used to give out bottles of wine and poinsettias to her client data base, but she wanted something more in keeping with her core values. The holidays are about spending time with family and what better way than to spend time together building and decorating a gingerbread house, she says. The pumpkin carving and gingerbread house decorating contests will be annual events. She has two other events planned for 2014 but is keeping the details under wraps. In Movember, clients were encouraged to send in their best hairy photos. The best photo won the beard-grower a bottle of wine and his wife two bottles, she says. Foat says she had a lot of success building relationships through events but that it’s a time-consuming process. “I had a good assistant but not all agents do,” she says. By offering the marketing plan, she helps agents create exposure and followers. In the year that they

Don Barrett and KaraLee Foat

have been with the company, all of the agents have increased their number of transactions, Foat says. Events are subsidized and the office also hosts some, such as wine tastings and Christmas mingles, at no cost to its 16 agents. Pumpkins were available to the agents for a couple of dollars each and promotional items are kept at less than $10 each, she says. Foat and husband, Don Barrett, who is not a Realtor but has a background in business management, provide agents with support.

Members of the Real Estate Council of Ontario (RECO) who are interested in serving on its Board of Directors are required to submit their Nomination Form no later than 2:00 p.m. Tuesday, April 1, 2014. Three Directors will be elected — one in each of the three regions of the province as established by RECO. A copy of the Nomination Form and Candidate Instructions are posted on RECO’s website at www.reco.on.ca or on MyWeb at https://myweb.reco.on.ca. For more information contact: Shelley Westlake-Brown Tel: 416-207-4800 Toll-free: 1-800-245-6910 Email: election@reco.on.ca

By Connie Adair

The pumpkin carving contest included several creative entries.

The events are not designed to be gimmicky but to bring value, she says. “We don’t want to be another postcard in the garbage.”

NEW this year to the nominations process RECO is accepting candidate profile videos. For instructions and details on this submission, with your nomination form, visit www.reco.on.ca.

YOUR MARK NDAR CALE ations Nomin eb. 21 F begin

Real Estate Council of Ontario www.reco.on.ca https://myweb.reco.on.ca

REM

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18 REM MARCH 2014

Mortgage firm granted seizure relief in drug bust

The case revolved around the standard of care that Maple Trust should be held to as a lender. By Jean Sorensen

B.C. Supreme Court justice has ruled that a mortgage company should be granted relief from forfeiture laws in the case of a seized grow-op, because the company followed standard practices of the day, exercised some due diligence and did not collude in the crime. The B.C. Supreme Court decision ruled it was unreasonable to expect Scotiabank’s Maple Trust Company to be held to the standard of an enforcement officer when it approved the 2002 mortgage. The mortgage company followed common practices of the day and there were no indications that the house had or would be used for illegal purposes. While the trust company was considered to have been aware of Canada’s forfeiture laws, “It should not, in my view, be held to the standard of an enforcement officer whose function it was to combat the potential for setting up marijuana grow operations in a home,” Justice Brian M. Joyce said in the reasons for judgement handed down in January. “There is no reason to suspect that the borrower was likely to use his own home, which he swore he was going to live in, as a marijuana grow operation.” Maple Trust petitioned the court for relief from forfeiture under s. 20 of the Controlled Drug and Substances Act (CDSA), arguing it was not a party to the grow operation crime and had taken reasonable care when extending the loan. The case stems from a December 2005 arrest after police entered the Fraser Valley home of Kien Tam Nguyen and wife, Nga Thuy Nguyen and found their 18-year-old daughter living there alone in a grow operation. In March 9,

2006, the husband and wife were sentenced to 18 months incarceration, to be served in the community under conditional sentences. The court also made an order under s. 16 of the CDSA to seize the house; the Nguyen family appeals failed. Maple Trust then filed to be exempt from the seizure. The federal prosecutors acting for the Crown concede that Maple Trust was not complicit in the offences or guilty of collusion in the offences. “The Crown takes the position, however, that Maple Trust did not exercise the standard of care required of it when it granted the mortgage loan to Mr. Nguyen and, therefore, is not entitled to relief from forfeiture,” Joyce said in his judgement. The case revolved around the standard of care that Maple Trust should be held to as a lender.

from the borrower of sufficient income to service the debt; a good credit rating; a minimum down payment and verification that the down payment was the borrower’s own funds; a marketable property; and a declaration by the borrower that he was residing in the property.

“Does Maple Trust have to show that, when it granted the loan, it exercised all reasonable care to be satisfied that the property likely had not been used in connection with the commission of an unlawful act, as the applicant contends, or does Maple Trust have to show that, when it granted the loan, it exercised all reasonable care to be satisfied that the property likely had not been used and would not be used in connection with the commission of an unlawful act, as the Crown contends?” the justice wrote.

Maple Trust didn’t verify the income source or amount or ask for the borrower’s tax returns or notice of assessment, which was the practice of the day. The buyer claimed to be self-employed and owned a mushroom farm. The mortgage broker taking Nguyen’s application testified in court “he had brokered hundreds of NIQ loans for Maple Trust and that the loan requirements were the same as those of other lenders.” At the time, he was unaware that there was any problem with grow operations springing up in the Fraser Valley.

Nguyen applied for a nonincome qualifying (NIQ) loan for the house and the mortgage broker indicated there was nothing in his application that would have indicated a grow operation was to be set up. Maple Trust’s lending requirements from the borrower included: a statement of income

Joyce considered the act’s phrase that the entity seeking exemption should have “exercised all reasonable care to be satisfied that the property was not likely to have been

There was nothing in the appraisal to indicate it had been used for any criminal activity in the past.

used in connection with the commission of an unlawful act.” Maple Trust argued that the wording “not likely to have been used” for illegal activities as set out in the act was only up to the point of the sale but not beyond. The trust company said that if those writing the law wanted the lender to assume preventative measures, it would have been spelled out more clearly such as in the Excise Act, 2001, S.C. 2002, c. 22 and the Fisheries Act, R.S.C. 1985, c. F-14. But Joyce said he agreed with the Crown that exercising reasonable care could relate to both before and after Maple Trust acquired its interest. He interpreted the phrasing to relate to specific circumstances, such as a house identified as a grow-op going to another buyer, a renter wanting to buy the property, or someone wanting to refinance. In such cases, there was a duty to determine that the house was not being financed for future criminal activity. “The applicant also has to demonstrate that it exercised reasonable care to ensure that it was not unwittingly used as an instrument to aid in the

proliferation of such illegal uses of property. That purpose would not be met if the lender was not required to take any steps to be satisfied that the property it was financing would not be used for an illegal activity,” the justice said. Joyce said there was “no evidence before me that the financial institutions were aware of the large increase in the number of marijuana grow operations in homes in the Lower Mainland or that they ought to have been aware based on their actual experience as of 2002. There is no evidence that financial institutions were commonly experiencing defaults or forfeitures due to the existence of marijuana grow operations on residential properties for which they had granted mortgage loans.” The justice said it was his opinion that the Crown’s position placed “too great an obligation of surveillance on Maple Trust” and required it to consider borrowers “with a degree of suspicion that is unreasonable when one looks at the situation through the eyes of a reasonable lender in 2002.” REM

How You Can Become a Listing Machine With These

Killer Listing Presentation Secrets Are you tired of losing listings to agents in your marketplace who resort to desperate tactics such as commission discounting and list price inflation? Hi, I’m Craig Proctor, and I was one of the top listing agents in North America for over 20 years. I would like to share with you the strategies and language you should be using to help you secure the right result when you meet with sellers. Your listing presentation has to be so strong, that it not only convinces the seller that you’re the right agent for the job, but also convinces them to pay you more than your competitors who may be discounting. Let me share

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20 REM MARCH 2014

I’m a (lower case ‘p’) professional By Kevin Clark n recent years it has become popular to be identified as a “professional.” The term somehow distinguishes a person, providing a certain dignity worthy of respect and higher rewards. As a result there has developed a growing discussion over the difference between being “a professional” and that of “acting professionally”. The former were historically doctors, lawyers and engineers who held some form of higher education than the general public, and therefore had something to “profess” for which they would be held responsible. They had the capacity to help or harm those they served and subsequently had a “duty of care” in the information they professed to those around them – a fiduciary duty. In recent decades, with the advancement of learning, knowledge and training in so many fields of work, it is no wonder that many additional occupations are now considered professions. As a result, society holds their work to a higher standard. They are expected to maintain a duty of care in the conduct of their business and are considered by simple definition to be

fiduciaries to those they serve. The real estate industry would be one such field. To work in this industry one must be granted a licence by completing a wide-ranging program of education and successfully passing required provincial examinations. One must also be of good character and adhere to comprehensive standards of regulation through law, rules and business standards. If found to breach these standards, those licensed will be held accountable by a government appointed regulator. In addition, local, provincial and national associations establish Codes of Ethics that their members commit to follow. All of this suggests the right to be called a professional. However, though professional by designation, we don’t always act professionally. To “act professionally” may be much more to describe someone else’s behaviour and whether it meets our own expectation of how they should be behaving within a given circumstance. - My plumber is so professional because he gets to me on time and does the job on budget. - At Tony’s Restaurant in St. Louis the staff is the most professional in Missouri. - Go to ABC Service, they will greet you and treat you very professionally. or - That taxi driver was so unpro-

fessional because he ignored my request to stop smoking. - They act so unprofessionally at ABC Diner because they never get the order right. - If only they would act more professionally and treat me the way I think I should be treated. When we make such pronouncements it sounds as though what is being described is more how the person behaved than what they are. Professional behaviour seems to have more to do with how a person/company deals with me (or the person who is pronouncing that quality of behaviour) than their qualifications. If a person is behaving professionally it is because they have made me feel valued and if I feel they are acting unprofessionally it is because they have somehow inconvenienced me or what I represent. It is also interesting to note that, in most cases, when a speaker is telling us about professional behaviour, we are confident we know what is being described, without further explanation of what the behaviour was. For example, “She is such a professional...” Why, what did she do? So what are some of the behaviours that make us say we have been dealt with professionally? One who is patient, who perseveres in the face of delay or irritation, without acting in annoyance or anger or in a negative way. Impatience would never be

described as professional, nor would it be a quality to pursue. One who is kind. Attentive, considerate, thoughtful, concerned, caring, compassionate, sympathetic and/or courteous. Unkindness/cruelty would never be described as professional nor would it be a quality to pursue. One who is not envious, boastful or arrogant. Someone who does not resent an advantage enjoyed by another, with an envy to possess the same advantage; who does not brag that they are better than others and does not present an inflated sense of their personal status or accomplishments. Envy, conceit and arrogance would never be described as qualities to pursue in one’s pursuit of professionalism. One who does not put others down or seek advantage over others. A person who does not gossip, speak ill of others or cunningly try to take an unfair advantage. Cunning may be secretly admired and gossip so seductive, but neither would be described as professional. One who is not quick to get angry and does not hold on to a memory of resentment. Someone who constrains their emotions even when frustrated; who gives the “benefit of the doubt” and “throws a little slack” without a get-even memory. Unconstrained anger, revenge and holding ill-will are hardly seen as professional behaviour. One who does not find plea-

sure in doing wrong but finds pleasure in professional behaviour: Those who are saddened by the behaviour of others who dismiss the law, regulations and standards. Who are encouraged and seek to encourage higher ideals of behaviour in themselves and others. Indifference and apathy are rarely seen as being professional behaviour. One who seeks to protect the laws, rules, regulations and standards that together create a profession within which to operate. One who protects the public, whom they have been granted a licence to serve and through whom they make a living. One who protects his fellow licensees who provide a vast pool of opportunity, knowledge and experience. Those whose behaviour disregards and even harms the society within which they conduct their business would not be seen as professional. One who seeks to trust. Who extends trust and encourages trust, rather than suspicion and judgment. Who looks for the good before judging to be bad. Who seeks to demonstrate trustworthy behaviour in themselves even when not reciprocated. Few business dealings are worse than having to deal with someone you do not trust. One who always hopes. An optimist, looking for the good in those around them. Who inspires, encourages and lifts those with

REM MARCH 2014 21

whom they come in contact. A problem solver and solution finder. Few dealings are more discouraging than those with a pessimist who sees the grey in every situation. One who always perseveres. Who keeps trying even in the face of difficulty or with little indication of success. Who “keeps their head while all around them are losing theirs and blaming it on them”. Laziness, idleness or giving up would hardly be qualities to adopt in an effort to be more professional. Thus, to “act professionally” is more a personal lifestyle choice that one seeks, rather than a list of standards one can attain for better business. It is neither something to

In the words of Ghandi: “Be the change you wish to see in the world.” claim of oneself nor something one will ever fully accomplish, and yet it is something one can pursue every day and in every area of one’s life. Certainly those of society considered to be professionals can encourage professional behaviour through instruction. Perhaps more importantly, however, they will lead by example, since they recognize that they too are still learning to be more professional in their own lives. Surely this is the essence of self-regulation. In the words of Ghandi: “Be the change you wish to see in the world.” In the real estate industry, as the legal leader of every brokerage, a broker has the greatest opportunity to model and mentor such behaviour to those they choose to represent their brokerage. In order Continued on page 22

22 REM MARCH 2014

Homeownership important to Gen X and Y

oung people in Canada still dream of owning a home. A new poll by Ipsos Reid for the Ontario Real Estate Association (OREA) says 77 per cent of Generation Y and 79 per cent of Generation X say real estate is important to them. For the purposes of this study, Gen X is defined as those born from 1965 to 1980; Gen Y was born between 1981 and 1995. “A large majority of younger Ontarians believe that owning a home makes more sense than renting,” says Sean Simpson, VP, Ipsos Public Affairs. “They also have a positive perception of the economy and the current residential real estate market in Ontario, both of which are important considerations in the decision to buy a home. Insights like these help us understand the motivation for younger people to buy homes.” A significant percentage of Gen Y and Xers, 76 per cent and 82 per cent, respectively, think it makes more sense to own a home rather than rent over the long-term. Furthermore, 73 per cent of Gen Y and 82 per cent of Gen X believe real estate is a good investment. In terms of the current residential real estate market in Ontario, more than half of Gen Y and Gen X have a favourable assessment while only 23 per cent and 17 per cent have a negative assessment. The majority also describe the economy as “good” right now (61 per cent of Gen Y and 57 per cent of Gen X). One-third of Gen Xers, and 39 per cent of Gen Y believe the real estate market in Ontario will be stronger in the next year, while only 20 per cent and 19 per cent, respectively, believe it will get weaker. Looking ahead to the next 10 years, 50 per cent of Gen Y and 48 per cent of Gen X believe the provincial real estate market will be stronger. Fourteen per cent of Gen Y and 17 per cent of Gen X say they are “very likely” to buy a home within the next two years. REM

I’m a professional Continued from page 21

to make that effort they must however be convicted in the value, both to themselves and to their brokerage. This is the “what’s in it for me” benefit of acting more professionally even when others are not doing so. Fundamentally, professional behaviour in every aspect of our lives (as real estate licensees, as marriage partners, as parents, as neighbours and as members of society), builds greater trust and confidence in those around us. Trust and confidence build stronger and more satisfying relationships, more referrals and ultimately a stronger business model. After all: If I can quote every line of the law, rules, regulations and bylaws, but do not present myself professionally, I am only an empty bag of wind with no

real respect from those around me. If I have all the awards and honoured plaques mounted around my office wall, but do not present myself professionally, I stand on a lonely pedestal awaiting my fall. If I give away all of my time, my energy and my commission, but do not present myself professionally, I will have nothing to show for my efforts. A “true professional” is never something one should claim for oneself and something one will never fully attain – but the sweetest accolade that can be extended upon you. Kevin Clark is a past president of the Calgary Real Estate Board (2006) and proud to be a street level licensee in his 38th year representing clients in their real estate transactions. REM

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26 REM MARCH 2014

Cuba’s new real estate environment

By Toby Welch

to pay, some Cubans say, for the right for the first time in decades to have a legal title to a saleable property. Mortgages and lending are not a booming business in Cuba so property must be paid for with cash or a money transfer.

he recession that hit almost every corner of the globe in late 2008 impacted countries in different ways. Some countries responded by fiercely slashing interest rates while others tightened mortgage regulations to a staggering degree. Cuba wasn’t exempt from the recession’s reach, and for the first time in more than 50 years, Realtors and brokers can function there without the threat of being arrested. Well, sort of … While Cuba has finally legitimized the sale of homes, the government has been slow to completely legalize the work Realtors and brokers do. Although the sale of property is now allowed, those who facilitate deals do so on the down-low. For example, one broker claims that his business is photographing properties and helping home sellers create advertising; he doesn’t broadcast that he is a broker. It’s the same as the used car market in Cuba – the government legalized a used automobile market but it is still illegal to open a business that sells used cars.

Before the Decree-Law No. 288 took effect in November 2011, it was illegal to bring buyers and sellers together and for a third party to make money from the deal. Since the late 1950s, Cubans could only barter or swap their homes. It was the only way for residents to move or change their accommodations because private home sales were strictly prohibited. But the 16-page Decree-Law grants Cubans the right to sell their home to another person or exchange their abode without having to get permission first from authorities. Essentially, they can now purchase, sell, donate or trade their house. Two conditions apply – a civil law notary must document the conveyance and the title to the owner’s housing rights must be recorded with the Cuban property registration office, Registro de la Propiedad. Before the Cuban Revolution in the 1950s, Cuba had a recording system that rivalled record keeping in most industrialized countries and they are attempting to reconstruct their efficient system.

One caveat is that Cubans cannot sell their property to just anyone. Buyers have to be Cuban residents or foreigners who reside in Cuba full-time. Foreigners cannot come to the island and purchase property, ensuring the door is kept shut to massive foreign investment. Exceptions are being considered for a few tourist developments and time will reveal whether

In the two years since the new regulations took effect, sales have slowly escalated. In the first quarter of 2012, 2,730 sales were reported. The second and third quarter of 2012 saw another 42,000 sales, as reported by Cuba’s National Statistics Office. One of the numerous challenges Realtors face is that since the country hasn’t had a real estate market in half a century, price points are tough to pin down. Two identical homes can have asking prices that vary greatly, depending on what the owners believe the homes are worth and how desperately they want to sell. A perusal of Cuban property for sale reveals that asking prices range from US $5,000 to over $1 million with a median price range between $25,000 and $45,000. More than 100,000 properties are for sale in Cuba.

Although the sale of property in Cuba is now allowed, those who facilitate deals do so on the down-low the foreign companies get the thumbs up for development in Cuba. Along with this relatively new property freedom and the ability to buy and sell homes, Cubans will have to pay inheritance taxes and transfer fees, something they previously didn’t have to pay. A tax of about four per cent is paid by both the buyer and the seller on each residential transaction. This is a relatively small price

For now, expatriates are the main buyers of Cuban property as Cubans earn an average salary of $19 per month. Future prices aren’t easy to predict either, with the market still in its infancy. Just to be clear, the majority of property laws haven’t changed. All land in Cuba is still owned and/or controlled by the government but new regulations allow for 99-year leases in some instances. All

real estate transactions still have to go through Cuban bank accounts to ensure regulations are adhered to. Not just any bank will suffice – it has to be one on the approved list of financial institutions. The money for the purchase has to be verified as legitimate. Cubans are still limited to owning two homes, one in the city and one in the country; that hasn’t changed. The rationale behind not amending that law is to decrease the likelihood of one person accumulating a lengthy list of real estate investments or properties. Why the changes in the regulations to allow property sales? It appears that President Raul Castro and the communist government are hoping to revitalize their sluggish economy. For the first time in decades, authentic economic opportunities and development are becoming a priority in Cuba. These changes will increase the likelihood of more money flowing into the country more than it has seen since the early days of the Cuban Revolution in the 1950s. These are baby steps toward a freer market in a country that remains socialist at its core. When looking for Cuban real estate, check out Point 2 Cuba and Cubisima, websites that buyers and sellers recommend. For a country filled with people who grew up believing that private home ownership was wrong because property should be shared, the advent of Realtors and brokers is a major adjustment. Disclaimer: The author is a Cuba junkie who has followed the changing climate in that country with gusto. But she is not an expert and recommends you seek legal advice before doing business in Cuba as economic conditions change constantly. REM

28 REM MARCH 2014

LEGAL ISSUES

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By Donald H. Lapowich

developer retained a law firm for the purchase of four commercial properties in downtown Toronto, for $22.5 million. Unfortunately title was owned by the City of Toronto for a strip of land in a laneway at the rear of one of the buildings, which meant a lack of egress to these lands. This was missed by the lawyer on the search of title and in any event, the lawyer felt that the laneway cutting off access was a minor issue that would be covered by title insurance or alternatively could be solved after closing for a relatively nominal cost. After the closing, the law firm approached the city for a bylaw to convey the laneway to the plaintiff, their client. But it turned out the client would have to pay $106,000 for the laneway. Title insurance did not cover it because the title insurance company would not pay for coverage of an encumbrance of city-owned laneways or property. Notwithstanding all these problems, the client received an unsolicited offer to purchase the properties for $31.5 million. The client paid the $106,000 to obtain the laneway. So the client paid $22.5 million and sold the lands for $31.5 million â&#x20AC;&#x201C; $9 million in profit (less the $106,000). Nevertheless, the client sued the law firm for negligence. I believe that what really was behind it is that the law firm went on to bill the client more than $270,000 in fees for the purchase. The client felt it was excessive. This case states that for a lawyer to be liable for professional negligence, the client must prove that the error or omission â&#x20AC;&#x153;causedâ&#x20AC;? a clientâ&#x20AC;&#x2122;s loss. This is what we call the â&#x20AC;&#x153;but forâ&#x20AC;? test. The client must show that â&#x20AC;&#x153;but for the negligence of the lawyerâ&#x20AC;? he

Suing the lawyers for negligence would not have sustained the injury and damages. It was quite clear in this case that the lawyer was liable. As a defense, the lawyer attempted to argue that if the existence of the laneway cutting access to the property had been caught, the client would have made an agreement with the owner of the property, which would involve a hold back or abatement of the purchase price. The court did not accept this and granted summary judgment to the client, with a trial to follow to determine the clientâ&#x20AC;&#x2122;s total damages. (King Lofts Toronto I Ltd. v. Emmons, 2013 ONSC 6113) â&#x2013; â&#x2013; â&#x2013;

In another case, a lawyer acted for the mortgage lender as well as the mortgagor in advancing funds under the mortgage. The mortgagor who obtained those funds used the cash to purchase a bank draft. As it turned out, the mortgagor was an imposter and the injured party cashed the bank draft with an endorsement on it by the imposter. When the imposter and a number of other parties and the lawyer were sued by the entity that cashed the bank draft from the forged mortgage proceeds, the court rejected the position that a lawyer who does a mortgage owes a duty of care to an entity who later negotiates a cheque or bank draft purchased with the proceeds on the mortgage. The lawyer in

that case does not guarantee that the transaction was legitimate and the cheque or bank draft was valid and negotiable. This finding would not stretch the duty of care to a non-client even though the lawyer was involved in the mortgage transaction and could be said to be negligent (but no duty of care to the person suing) in the following circumstances: a) the lawyerâ&#x20AC;&#x2122;s independent conveyancer as well as paralegal handled the entire transaction; b) the lawyer never met with the fraudulent mortgagor; c) the lawyer did not make sure that all necessary declarations were signed; d) real estate taxes on the property in question were in arrears; e) the lawyer released some mortgage proceeds several days before the mortgage was registered. The reasoning of the court is that the bank draft would still have been issued to the imposter mortgagor, notwithstanding the acts of the lawyer. (The Cash House Inc. v. Choy, 2013 ONSC 7181) Full decisions are available at www.canlii.org. Donald Lapowich, Q.C. is a partner at the law firm of Koskie, Minsky in Toronto, where he practices civil litigation with a particular emphasis on real estate litigation and mediation, acting for builders, real estate agents and lawyers. REM

Toronto still high-rise leader

oronto remains North Americaâ&#x20AC;&#x2122;s high-rise boomtown going into 2014. With 130 projects, the city heads a ranking compiled by Emporis, a provider of building data, of the North American cities with the most skyscrapers and high-rises currently under construction. New York is in second place with 91 buildings. Montreal follows with 25 high-rises. New York has been making up ground: Since 2012, the city has recorded a growth in high-rise construction projects of 26 per cent, while Torontoâ&#x20AC;&#x2122;s numbers have receded slightly. While 2012 saw over twice as many high-rises under construction in Toronto as in the â&#x20AC;&#x153;Big Appleâ&#x20AC;?, the gap is now only just under a third. The majority of the high-rises under construction in all cities are residential buildings. Current residential high-rise construction in Canada comprises almost exclusively condominiums, while in the U.S. it includes a relatively large proportion of rental apartments. The sole exceptions to the U.S. trend are the cities of Miami and New York. REM

30 REM MARCH 2014

Grow-ops, drug labs and real estate deals By Martin Rumack

ost people know that real estate values can be affected by how property that is being sold has been used. One of the more unusual scenarios – and the one most likely to show up on the nightly news – is when a home has been used as a marijuana grow operation and/or for the manufacture of illegal substances. The RCMP says there are about 4,000 confirmed grow-ops across Canada presently and those are only the ones they are aware of! The main issue with grow-op properties relates to the resulting physical damage. In order to accommodate the high levels of electrical consumption (including the use of high-wattage lights needed to grow the plants), the

home often contains illegal wiring. For an unknowing buyer, there may be extensive (and expensive) remediation work necessary to restore the home back to current required electrical code standards. The high moisture levels necessary to sustain plant growth often give rise to mould contamination, health issues and structural damage to the property. The cleanup involves a thorough environmental analysis, the involvement of engineers and ultimately construction tradespeople. The hope is that the property can be salvaged and won’t require complete demolition. If a home is known to have been a former grow-op, it may be extremely difficult or even impossible to obtain financing and/or insurance, because banks and insurers tend to steer clear of these properties. And while less tangible, there is often a stigma attached to such residences as well, serving to

dissuade potential buyers from pursuing an offer. This may ultimately result in a major price reduction and possibly a monetary loss to the seller. Disclosure: A big concern when selling a grow-up is disclosure. There is a clear legal duty on the part of all sellers to advise potential purchasers about those issues that are reasonably considered to be relevant to the buyer’s decision. Since illegal drug operations are generally kept secret, sellers may simply not be aware of the home’s history of illegal activity. But even if they are, the scope of the disclosure obligation may vary according to the specific circumstances. In the decision of an Ontario Small Claims Court case (Leech v. Dietrich, 2012 CanLII 98284), the potential buyers agreed in 2010 to purchase what the judge called “a beautiful country home” for $655,000. However, they learned

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through casual conversations with both a local tradesperson and a neighbour that the home was rumoured to have been used as a grow-op or methamphetamine lab about 15 years earlier. The buyers made inquiries of their own with local police and were told that there was no record of the home having been used for these major types of drug operations, but that it had contained a smaller “clandestine lab”. The buyers were also told that at one point a “large quantity of hash oil” had been found on the property, but no further details were ever given. Based on this information, the buyers refused to close and the deal fell through. The sellers sued for damages; the buyers sued for the return of their $10,000 deposit. The court was asked to consider whether the buyers had been justified in refusing to complete the transaction and whether the sellers had known about the home’s prior

use and whether they had breached their duty to advise the buyers accordingly. At trial, the buyers produced a 1995 police report indicating that a room beneath the garage was being used as a “hydroponic grow room”. It detailed the drug-making paraphernalia, including “hazardous chemicals”, that had been seized from the home by police. The report also indicated that several people had been charged with possession for the purposes of trafficking, which was also chronicled in a newspaper article that the buyers were able to produce as part of their evidence. However, the court’s task was to examine how this information, known at the time the sale agreement was submitted and being negotiated, affected the parties’ legal rights and the sellers’ duty to disclose. The court conceded that Continued on page 32

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Grow-ops, drug labs Continued from page 30

the details the buyers had initially received from the police (and which formed the basis of their refusal to close) had been “extremely low-quality information”. Still, the home had never been used as a meth lab or marijuana grow-op; it only housed a small hash-oil operation. And since the sellers had been completely in the dark about it in any event (aside from the rumours from neighbours perhaps) there was no disclosure obligation on them at all. More importantly, the court found that the lab’s existence had not damaged the property, nor was there evidence that it created a health hazard. As a result, the buyers had no legal right to not proceed with the deal and the sellers were entitled to damages. Property values: Although it is not common that a home’s use as a grow-op only comes to light after a property has changed hands, this kind of late-breaking revelation can have a devastating effect on property values, which comes into play when it comes time to sell the

home. Conversely a buyer or a mortgagee may be unaware of the home’s previous, value-deflating use, until it’s too late. Such surprises are never a good thing. The news that a home or property has been used as a growop often triggers a long and unfortunate series of legal disputes and wrangling between all kinds of dif-

of the potential investment, which would be secured as a second mortgage subject to a first mortgage of almost $300,000. The couple decided to proceed with the mortgage investment. It later came to light that the home was being used as a marijuana grow-op. The home had been destroyed in the process and its

The news that a home or property has been used as a grow-op often triggers a long and unfortunate series of legal disputes and wrangling. ferent participants, often culminating in costly litigation. This was exactly the situation in a case called Lindner v. Williams (2004 BCCA 243), which went all the way to the B.C. Court of Appeal. In that case, the couple had been approached by a friend/mortgage broker to invest $65,000 on a property valued at approximately $450,000. The broker emphasized the secure nature

value had plummeted. After foreclosure proceedings, the couple were out of luck in recovering their $65,000. They launched several lawsuits against the property owner, against a party to whom they thought they were lending, against their own lawyer and against the friend/mortgage broker. In connection with their negligence lawsuit against the friend/broker specifically, the court

found that his liability hinged on the difficult question of whether there was evidence to show that, at the time the mortgage was being negotiated, there was insufficient value in the property to adequately protect them – in other words, that the property was overvalued at the time the friend/broker urged them to invest. The court found there was no evidence to support such a finding and that it was just as likely the damage had occurred after the mortgage was arranged as opposed to before the mortgage was arranged and the funds advanced. The couple was unable to prove that their losses flowed from such an overvaluation and their negligence-based claim against the broker failed. The bottom line: So what’s the solution to the potential problem of grow-ops? In Ontario, the standard form Agreement of Purchase and Sale does not contain any sort of warranty that covers either grow-ops or the manufacture of illegal substances on the property. Real estate agents should make it a standard practice to include this form of representation and warranty together with a non-merger survival provision in all of their

Agreements of Purchase and Sale. Here is a clause you may wish to consider including in your offers: “The seller represents and warrants that during the time the seller has owned the property, the property has not been used for the growth and/or manufacture of any illegal substance, and that to the best of the seller’s knowledge and belief, the property has never been used for the growth and/or manufacture of illegal substances. This warranty shall survive and not merge on the completion of this transaction.” At the end of the day, you want to ensure that the deal you have diligently worked on does not go up in smoke or does not explode in an illegal chemistry lab – and does not destroy your commission as the end result. Toronto lawyer Martin Rumack’s practice areas include real estate law, corporate and commercial law, wills, estates, powers of attorney, family law and civil litigation. He is coauthor of Legal Responsibilities of Real Estate Agents, 3rd Edition, available at www.lexisnexis.ca/bookstore. Visit Martin Rumack’s website at www.martinrumack.com. REM

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34 REM MARCH 2014

dency. The only Canadians to hold this prestigious position were Phillip Holmes (1975) and Albert Fish (1987), both former CREA presidents.” ■ ■ ■

. C. Realtor Nora Valdez is the 2014 President of the Canadian Chapter of FIABCI, an international real estate federation. Valdez entered the real estate profession in 1992 working for a premier independent brokerage in Mexico City. She immigrated to Vancouver in 2000 and joined Royal LePage Northshore in West Vancouver in 2003. She has been one of the top 10 per cent of agents there. She belongs to the Mexican Business Association of Canada and was a member of its Board of Directors from 2004 to 2008. Currently Valdez works mainly with Latin American residents in Vancouver and newcomers, helping them with the relocation process. Her career has expanded to promote commercial properties, hotels and new development projects in Mexico, Dominican Republic and Latin America.

Calvin Lindberg has been reelected to serve a third term as the president of the Americas Region for FIABCI and will serve on the international directorate. He is best known to many as a former president of CREA, past-president of the Real Estate Board of Greater Vancouver, a director of the British Columbia Real Estate Association and a founding director of Realtor Link. “Calvin has brought a fresh dynamic in a leadership role to FIABCI and garnered a great deal of respect for Canada on the world stage of real estate,” says Americas Region secretary-general Jerry England. “He is a sought-after speaker in the U.S. and abroad, proving to be a tremendous ambassador in promoting Canada as a place for real estate investment.” England adds: “Calvin has been approached as a future candidate for the FIABCI world presi-

Len Wassill has taken on the role of president of The Association of Saskatchewan Realtors (ASR). Wassill is the broker/co-owner of Century 21 Parkland Realty in his hometown of Melville. Bringing 35 years of real estate experience to the table, he has actively participated at every level of organized real estate. “We’re working on some big projects that will have a dramatic effect on many facets of organized real estate,” says Wassill. “I’ve been at the ASR table since 2009 and the strides we’re making to communicate, educate, advocate are truly amazing.” He says: “As is the case with every industry, organized real estate must move with the times – or even ahead of the times – or it can become irrelevant. By committing to our brand… we are working hard for our existing members as well as paving the way for all of those who will choose real estate as a career.” Joining Wassill on the board of directors are VP Ian Johnston of Century 21 Dome Realty in

Regina; past-president Lou Doderai of Re/Max PA Realty in Prince Albert; Shelby Wilk of Yorkton; Amber Tangjerd of Moose Jaw; Al Weiler of Lloydminster; Kevin Wouters of Prince Albert; Rich Jeanneau of Saskatoon; Lane Boghean of Regina; and CREA representative Cliff Iverson of Regina. ■ ■ ■

Saskatchewan’s Realtors have sent a brief to Justice Minister Gordon Wyant asking the provincial government to require all properties found to be drug production sites to be registered centrally, and that the information be made available to the public. Approximately 200 properties are known as drug production sites in Saskatchewan. The majority of them are used to grow marijuana, but some were used as labs to produce hard drugs like methamphetamines, says ASR. RCMP and local police already collect information on properties where they find drug production going on, but the details are scattered in different files and databases and not accessible to the public, says ASR. It is suggesting a two-step solution: the creation of a central registry where all police forces in the province would list properties found to be at-risk as production

sites; and the development of standards for remediation to be put in place for these properties to meet in order to be certified as fit for occupancy again. ■ ■ ■

The Saskatchewan Real Estate Commission has appointed ASR as its provider of all provincial mandatory education required to obtain and maintain registration under The Real Estate Act. The five-year contract will see a number of enhancements to the existing program and has an option for renewal. Bill Madder, CEO of ASR, says the association will improve the program through the use of online education, webinars, virtual classrooms and live meeting technology. The ASR provided real estate education in Saskatchewan for as long as most practicing registrants can remember and the education model has evolved to keep up with the times. In the past, changes to the model have had more to do with course content and structure, and less with technology, the ASR says in a news release. “But as technology has evolved, we’ve become more tech-savvy and our next steps will take home study to a whole new level.” ASR also announced that

Len Wassill

Jane Hurst

Gaye Males

David Powell

Nora Valdez, right, FIABCI-Canada president, is congratulated by Toronto Real Estate Board president Dianne Usher at the recent chapter AGM. Trevor Forrest of the Saskatoon Community foundation, receives the cheque from Joanne Kerr, ASR Qualify of Life chair.

REM MARCH 2014 35

$11,137.67 was presented to the Saskatoon Community Foundation, funds raised in 2013 for the ASR Quality of Life Legacy Fund. Quality of Life chair Joanne Kerr says: “Realtors really got on board with the whole Quality of Life concept and the fact that we were able to raise $40,536 – $10,500 over and above our goal – is proof positive that Realtors care.” The funds will be used to provide a $5,000 grant to a registered charity in each of the six regions within the province. ■ ■ ■

Gaye Males, a member of the Kitchener-Waterloo Association of Realtors (KWAR), was recently presented with the KWAR Volunteer Award. The award is given to an individual who has demonstrated commitment and dedication as an association volunteer and who has also made significant impact on their community through various volunteering efforts. Males started her real estate career in 1984 and is a broker with Coldwell Banker Peter Benninger

Realty. She served as a director of the KWAR from 2005 to 2008 and has served on several KWAR committees. She has taken part in just about every kind of charitable activity the KWAR has participated in: collecting for the food bank, Adopt-a-Road clean-ups, Cure for Cancer walks and Christmas toy drives, among others. She also helped to organize and run the KWAR’s annual Children’s Christmas Party and Charity Golf Tournaments. ■ ■ ■

Jane Hurst of Coldwell Banker 2M Realty has been elected president of The Durham Region Association of Realtors (DRAR). She has been a fulltime licensed salesperson since 1999, after a 23-year career as a legal assistant to lawyers specializing in real estate law. She is vicechair of the Durham Region Land Division Committee, where she has represented the City of Oshawa since 2003. She has served on the City of Oshawa’s Committee of Adjustment, Property Standards and Heritage committees. Joining Hurst on the Board of

Directors are: Ian Smith, immediate past-president; Don Rochford, Durham Centre director; Tina Sorichetti, Durham North director; Jessica Griffeth, Durham East director; Sandra O’Donohue, Durham West director; and Linda Mash and Tamie McLaughlin, directors-at-large. ■ ■ ■

WinnipegRealtors’ new president is David Powell. He becomes the 111th president of the board, which has 1,800 members. Powell says it will be a busy year. “There will be much going on with our active pursuit of finding better technological solutions for our Realtors to serve buyers and sellers more effectively in selling, buying or leasing a property… We will also be involved in the review of The Real Estate Brokers Act, the third Winnipeg real estate forum, affordable housing issues such as the land transfer tax, putting on a 2014 mayoral forum and our fourth annual Gimme Shelter event this March to raise thousands of dollars for shelter-related causes.” Powell has also been recruited to serve on CREA’s strategic plan-

ning taskforce. He is the broker/owner of Powell Property Group, an independent brokerage based in Winnipeg. The 2014 Board of Directors also includes: David MacKenzie, president-elect, Sigmar MacKenzie Real Estate Services; Stewart Elston, treasurer, Realty Executives Premiere; Richard Dettman, pastpresident, Cornerstone Properties; Susan Belanger, SDEC chair, Century 21 Bachman & Associates; Desiree Alarie, SDEC vice-chair, Re/Max Executives Realty; Ken Jones, commercial division chair, Shindico Realty; Kourosh Doustshenas, Expert Real Estate Services; Chris Dudeck, Coldwell Banker Preferred Real Estate; Donna Kirsch, Gateway Real Estate; Blair Sonnichsen, Royal LePage Dynamic Real Estate; and Val Werhun, Royal LePage Top Producers Real Estate. ■ ■ ■

The Ontario Real Estate Association (OREA) is pushing the government to have the home inspection industry in the province regulated. “For prospective buyers, the information disclosed in a home

inspection may influence their decision to buy a home,” says Phil Dorner, president of the OREA. “Professionals with this much influence should be licensed and have proper training.” Currently in Ontario, anyone can call themselves a home inspector. In October 2012, the Minister of Consumer Services committed to working with home inspection associations, consumer advocates and real estate industry representatives on mandatory qualifications for home inspectors. In August 2013, the minister asked a volunteer panel of experts to review home inspector qualifications in Ontario. The panel developed a report with 35 recommendations for the home inspection industry. “One of our main recommendations is to establish parameters for licensing the industry,” says Johnmark Roberts, the panel’s Realtor representative. The panel’s report and any public feedback the ministry receives will guide the government as it considers whether to bring forward legislation to establish qualifications for home inspectors.

Steve Morris, Founder & Chairman of EXIT Realty Corp. International is pleased to announce

Anne Squires Regional Owner for Atlantic Canada as the new

effective immediately!

Anne Squires, Regional Owner EXIT Realty Atlantic

Steve Morris, Founder & Chairman EXIT Realty Corp. International

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REM

36 REM MARCH 2014

a logo. Summit Cares has had great support from the beginning.” ■ ■ ■

Good Works R

ight At Home Realty in Toronto recently presented a donation of $57,500 to Habitat for Humanity. “This is the second year in a row our contribution has exceeded the $55,000 threshold,” says Don Kottick, president of the brokerage. “Our staff and salespeople embrace this outstanding charity from a financial perspective, but also volunteer and participate on the various builds, giving them first-hand exposure to the beneficiaries of this unique and equitable homeownership program.” ■ ■ ■

Sutton Group - Summit Realty in Mississauga, Ont. reached a milestone recently, raising more

than $100,000 for charities through its Summit Cares program. Most of the money has been raised by Realtors who donate a portion of each real estate transaction. Since 2005, Summit Cares contributions have benefited the Peel Children’s Centre, Peel Children’s Aid, Million Dollar Smiles, Kids Help Phone, Breakfast for Learning, local food banks and various other charities. Realtor Heather Sorensen is one of the founding members of Summit Cares. “This has always been a team effort,” says Heather. “It started out with a group of us bouncing ideas around about what we could do for our community. Then we came up with a plan, the name and

Ottawa sales rep Colt Charlebois of Keller Williams Ottawa Realty recently spearheaded a campaign to collect 1,000 coats and snowsuits for local charities. “It all started 20 years ago when I had received a couple of ‘onezies’ as a little guy,” says Charlebois. “My mom was on a pretty tight income after she was laid off of her job and decided to go back to university as a single parent in order to provide a better life for two of us. Fast forward to my seventh year selling real estate. I have been blessed with an abundance of opportunity… I set an ambitious goal (as Realtors love to do) of collecting 1,000 articles and began calling, emailing and posting videos of the campaign to my network of friends, clients and colleagues.” He says he didn’t even know how 1,000 outerwear would look but “it was a lot!” With the help of fellow sales

reps and Keller Williams staff as well as clients and other businesses, the coats were collected and donations are still coming in. The Ottawa Snowsuit Fund was the main beneficiary and “we also gave some to a family that had lost everything in a home fire this winter and had no insurance. (Sales rep) Kristen Foster took the lead on that one.” ■ ■ ■

Gingerbread houses with bright candy windows, gumdrop trees, sugary icicles and Santa sliding down a chimney delighted everyone who stopped by to see the Gingerbread Village at Sutton Group - ShowPlace Realty in Chilliwack, B.C. This is the third year that the office has hosted a gingerbread house contest. Visitors were invited to vote for their favourites by donation with all proceeds benefiting the Canadian Cancer Society. Earlier this winter, the team from Sutton Group – ShowPlace Realty also participated in the 19th annual Realtors Care Blanket Drive. Sales associates and staff

volunteered to sort and deliver donations dropped off by colleagues, clients, the public, corporations, retailers, community groups and schools. ■ ■ ■

Sales reps from Exit Realty Group’s Belleville and Trenton, Ont. offices participated in the second annual Dentistry from the Heart event at the Picton Dental Centre recently. The event provided free dental work to those who do not have coverage and cannot afford it. In one day, 86 people were given $23,000 worth of dental care ranging from cleanings to root canal treatments. Exit associates Heather Plane, Lisa Hatfield, Nancy Durelle and Cliff Deleon ensured the patients received care in order of arrival, assisted with the screening paperwork and made sure everyone’s spirits remained high throughout the wait. ■ ■ ■

Bill Mohan, a sales rep with Sutton Group - Realty Systems in Mississauga, Ont. recently sponsored an event to celebrate the cul-

Before Christmas, the “Wrap it up with Re/Max Blue Chip Realty” campaign in Yorkton, Sask. collected gifts for the less fortunate kids in the community. The gifts were handed out to more than 40 families, along with clothes and food hampers. The brokerage also donated more than $1,700 to the Salvation Army during its annual food drive.

In addition to an annual Garage Sale for Shelter event, many sales reps at Royal LePage Connect Realty in Toronto and Ajax, Ont. donate a portion of their commissions all year long to the Royal LePage Shelter Foundation. The firm’s motto is, “We not only sell homes, we support shelters.” Bill Mohan

Vince Carnovale and Heather Sorensen of Sutton Group – Summit Realty in Mississauga.

From left: Angela Solomis, senior director of corporate partnerships, Habitat for Humanity; Don Kottick, president and broker of record for Right At Home Realty; Ene Underwood, CEO of Habitat for Humanity; and Howard Drukarsh, VP and co-founder, Right At Home Realty.

Helping out at the Dentistry from the Heart event, from left: sales reps Nancy Durelle, Heather Plane and Lisa Hatfield. Cliff Deleon also helped out.

REM MARCH 2014 37

ture and creative talent in Toronto’s Roncesvalles neighbourhood. It featured soprano jazz saxophonist/flutist Jane Bunnett along with Cuban-Canadian pianist Hilario Durán and friends, authentic Cuban food and a screening of the documentary entitled: Embracing Voices: The Woman Behind the Music of Jane Bunnett. The venue was the Revue Cinema, a 101-year-old landmark on Roncesvalles Avenue. The family-owned theatre closed in 2006, but a grassroots community movement reopened it the following year as a non-profit venue. “With the Renew the Revue Fundraiser, we are trying to raise further funds for some upgrades so the theatre can remain a fixture in this wonderful neighbourhood,” says Mohan. “One of the dedicated volunteers asked if I could help out so they basically could pay the musicians,” he says. “I was all for it. It’s a great cause and a very enlightening evening of fascinating film, served with great Cuban food and drink…. I’ve also been a big supporter of the Revue from the start when it reopened as a non-profit theatre.” REM

Realtor donates $100,000 worth of wheelchairs

etting people into homes is important to a Realtor, but for Michele Holmes, getting them out and about is a priority too. For every home she sells, Holmes donates a wheelchair to a person in a developing country. Because of mobility issues, some of the recipients have never been out of their house before. Holmes has been donating wheelchairs since 2007, after she attended a Canadian Wheelchair Foundation presentation. “It was a good cause and we want to give back when we sell something,” she says. And give back she has. In honour of her clients, Holmes has donated more than 700 wheelchairs, worth more than $100,000. “Michele is our largest corporate donor,” says Linda Whitehead, who is in charge of strategic development for the Canadian Wheelchair Foundation, an independent

Canadian registered charity. Clients receive a picture of the wheelchair recipient, and seeing the looks on her clients’ faces when they look at those photos is rewarding, says the Realtor of 29 years. “We wanted something that we could show clients, something tangible, for a manageable contribution,” Holmes says. Each wheelchair, built to withstand rugged terrain, costs $150. Many clients who have had wheelchairs donated on their behalf have matched their Realtor’s contribution. There is no minimum donation. Holmes, who was a teacher before becoming a Realtor, started her career with Century 21 and then moved to Pemberton Homes in Sidney, B.C. She started Holmes Realty in 2009 and now she says she has one-third of the Saanich Peninsula market. “We started doing quite well and are blessed and fortunate. We

are mobile and could do want we want. We wanted to give back and have made a significant impact. It feels good,” she says. Holmes and her team also make donations to local organizations, including KidSport Greater Victoria, which helps local children who can’t afford sports equipment. They’re also involved with community fund-raising events including Canada Day and Christmas parades, and Pumpkins on the Pier, which kicks off the Toys for Tots campaign. Holmes urges everyone to get involved. “There are so many people who need things…choose anything.” It doesn’t have to be wheelchairs, she says. For more information, email Michele Holmes at michele@holmesrealty.ca or Linda Whitehead at the Canadian Wheelchair Foundation at lwhiteh e a d @ c d n w h e e l c h a i r. c a . REM – Connie Adair

Michele Holmes

38 REM MARCH 2014

SALES COACH

By Bruce Keith

adly, one of the most common reasons people sell their home is because they are getting divorced. Fifty per cent of married couples get divorced. Often the situation is somewhat acrimonious. Each of the â&#x20AC;&#x153;wounded partiesâ&#x20AC;? might want to use their own real estate sales rep. This can be a tricky situation. Often they pick a salesperson based on emotion and not logic. Itâ&#x20AC;&#x2122;s understandable, considering it is an emotional time for both sellers. In order to give them the best service, you need to start with the mentality that, â&#x20AC;&#x153;I am the better choice.â&#x20AC;? Help them see the value

It happens 50 per cent of the time in using logic and good common sense when choosing their salesperson. The best approach is to make sure that you are making your listing presentation to both parties. It may take time to set this up but itâ&#x20AC;&#x2122;s usually well worth the wait. Be sensitive to their situation and at the same time recognize that the direct approach is the right approach. You need to know where you stand. Here are some great questions you should ask: 1. Mr./Mrs. Seller, do you have more than one salesperson that you are considering? 2. How will you decide which salesperson you choose? 3. I want to help you through this tough time. Tell me, how difficult will it be for you to agree on one individual? 4. What will be the best way for me to communicate with you both, after you list with me? 5. Do you feel I can sell your home? Letâ&#x20AC;&#x2122;s get the paper work started, shall we? The key for you as a great

salesperson is to make sure that you know where you stand in the decision-making process. Donâ&#x20AC;&#x2122;t be shy. Be confident and practice asking the tough questions. They need you. Believe me, they especially need your skills now. Remember, you are the best choice! No excuses. â&#x2013; â&#x2013; â&#x2013;

Donâ&#x20AC;&#x2122;t act your age. Recent surveys indicate the average age of a first-time home buyer in North America is 32.4 years. We know the average real estate salesperson is 52.6 years of age. Thereâ&#x20AC;&#x2122;s a bit of a gap there, isnâ&#x20AC;&#x2122;t there? Forty per cent of all sales are typically to first-time homebuyers. If youâ&#x20AC;&#x2122;re not careful, there could be a costly disconnect due to the age difference. What to do about it?

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Make sure you are comfortable with your client at their level. Technology is here to help you. Use it to enhance your sales presentations. No excuses. Bruce Keith is a leading trainer for sales organizations in North America. He was-trained in the corporate world as a marketing and sales manager for 15 years. His education then moved to 25 years in the real estate industry, 10 years as a successful sales rep followed by the last 15 years as a keynote speaker, seminar leader, author and one-on-one coach. His high energy coupled with a â&#x20AC;&#x153;No Excuses Accountabilityâ&#x20AC;? approach has helped thousands increase their production significantly. He says, â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s all about Resultsâ&#x20AC;?. www.BruceKeithresults.com REM

Dear CCRA, eh?

A welcome addition to our national team

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Here is your action step. Most buyers start out on the Internet (over 93 per cent). Successful salespeople are Internet wiseâ&#x20AC;Ś are you? 1. Know what sites your buyers are searchingâ&#x20AC;Ś are your properties there? 2. Be very clear on how your leads got to you and expand on that source where possible. 3. Spend 30 to 60 minutes a day proactively engaged in some social media interplay. 4. Help your clients understand that you â&#x20AC;&#x153;get itâ&#x20AC;?. Let them see firsthand that you are using current technology to help them achieve their goals. Remember, perception is reality. You do not have to be a Steve Jobs, but you do need to be current.

By Dan St. Yves ear friends at Canada Customs and Revenue Agency: Hello again, and my sincerest wishes that you are having a wonderful 2014 so far. Just thought Iâ&#x20AC;&#x2122;d touch base, as that annual tax time deadline is in the air. This is kind of like your Christmas, isnâ&#x20AC;&#x2122;t it? Confession time â&#x20AC;&#x201C; I almost had mine done on time this year! No kidding! If my accountant wouldâ&#x20AC;&#x2122;ve worked Sunday night (after receiving my form Saturday morning), I probably wouldnâ&#x20AC;&#x2122;t be sitting down right now to send off this little note via Priority Post. Now, donâ&#x20AC;&#x2122;t panic. My return really is done, and if Canada Post doesnâ&#x20AC;&#x2122;t lose it like they did last year, you should get it any day. I should probably prepare you as well for the unusually high amount of my refund this year. Yes, refund. I thought (much like you probably did) that there

would be a typical and quite substantial amount owing until I found out about some of the deductions I qualified for, upon interpretation of your tax preparation guide. For example, my dependantsâ&#x20AC;&#x2122; claim is astonishing this year. I realized the other day that if I didnâ&#x20AC;&#x2122;t stop at Starbucks on my way to work every morning, they might have to lay off a staff member, maybe more. Without those extra staff members, their service level would suffer, business would be affected, then weâ&#x20AC;&#x2122;d all be faced with a tragic loss of business and business income tax. When you think about it, the whole darn franchise could fall into jeopardy (the state of being in trouble, not the game show) and the blood on my hands would be unbearable. These people are all dependent on me, so I have included a claim for the salaries of the entire staff at my favourite location. I also discovered that I may claim interest on different sorts of loans, so I have asked my money broker, Mr. Knuckles to investigate which of mine might qualify. This may be the one area of my return that will require amending. However, to be honest, if the Leafs,

Jets or Flames make it to the final round of the playoffs, I wonâ&#x20AC;&#x2122;t even need to include that item on my return. Hey, have I ever mentioned that my favourite Beatles song is Taxman? Well, not really ALL the lyrics, aside from the refrain. There may have been an undertone of unpleasantness towards you during the rest of the song. Talking about musical groups, if you guys took off the â&#x20AC;&#x153;Aâ&#x20AC;? at the end of your name, youâ&#x20AC;&#x2DC;d be CCR! Get it? CCR? I guess you had to grow up in the 70â&#x20AC;&#x2122;s. Anyhow, please keep an eye out for my tax return. I have flagged the items that might raise some concern among your auditors and there is no need to waste valuable money on a visit to my home. If the deductions seem unrealistic, simply fill out a number youâ&#x20AC;&#x2122;d prefer to see and weâ&#x20AC;&#x2122;ll negotiate. Or fill in a number that works and Iâ&#x20AC;&#x2122;ll get busy making arrangements with Mr. Knuckles. 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

WELCOME ROYAL L PAGE e

TERREQUITY REALTY

Year 2014

over

15,000 REALTORS ®

formerly the largest Coldwell Banker franchise in Canada.

One of 24 companies who've come to call Royal LePage home since 2012. So proud you’re all now a part of Ontario’s #1 real estate brand*.

Year 2000

7,000 REALTORS ®

royallepage.ca/joinus This is not intended as an offer to sell or a solicitation of an offer to buy, including a solicitation of any sales representatives or broker that is currently under contract. ©2014 Brookfield Real Estate Services Manager Limited. All rights reserved. Any copying, reproduction, distribution or other use of these materials is prohibited. *As of 2014, data compiled from sales roster on Franchisors' websites.

More than double the size since 2000.

40 REM MARCH 2014

Seeking opportunities in adversity

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Coming June 2014:

Our Special 25th Anniversary Issue Â&#x2122;

We are excited to announce that in June 2014, REM will celebrate its 25th anniversary with a special issue that recognizes the people and events that have shaped the real estate industry over the past 25 years, and look ahead to see whatâ&#x20AC;&#x2122;s coming in the next quarter century.

If you are interested in being a part of this special anniversary issue, contact us today at advertising@remonline.com or give us a call: 416-425-3504 ext 1.

By Chris Seepe

â&#x20AC;&#x2122;ve been surprised by the disproportionate number of Realtors Iâ&#x20AC;&#x2122;ve spoken with recently who donâ&#x20AC;&#x2122;t have as much opportunity in their sales pipeline as they had a couple of years earlier. One reason is that real estate prices remain stable but the number of transactions has dropped. Thatâ&#x20AC;&#x2122;s good news for investors and owners in an unstable world economy but that means a lot less opportunities for the same number Realtors. For example, there were 38,111 Toronto Real Estate Board (TREB) members as of September 2013 versus 34,842 in July 2012 or 27,583 in July 2008, so there were 3,270 new TREB Realtors in the last year alone and over 10,500 in the last five years or so. Thatâ&#x20AC;&#x2122;s a lot more mostly inexperienced Realtors in a slightly larger market. While real estate inventory is growing marginally, there are exponentially more buyers per available property than ever before. Investors have been flocking to real estate since the 2009 worldwide economic crisis, seeking better returns on their investments than that offered by banks, mutual funds and other traditional forms of investment. Heap on the influx of foreign investment into Canadaâ&#x20AC;&#x2122;s worldenvied stable real estate market. Many foreign investors face eroding income value from inflation and their local unstable political and/or economic climate. They willingly pay cap rates below traditional Canadian investor norms because their Canadian financial loss is still an overall gain for them back home. Add the crushing force of REITs with their insatiable, single-minded raison dâ&#x20AC;&#x2122;ĂŞtre for investment property acquisitions. PricewaterhouseCoopers recently reported that REITs accounted for 44 per cent of all

IPOs on the TSE in 2013. Mix in the onslaught of outside-industry influences, especially online services like Zoocasa and mega-technology companies such as Microsoft, Google and Bell, who have all had a lustful eye on the real estate industry for decades. Add a dollop of regulatory oversight from the Competition Bureau and anti-spamming email legislation, both having potentially enormous impacts on how Realtors conduct business. Reflect on why Quebec brokerages left CREA and then cut a new deal to come back. The current trend paints a bleak picture about the future prospects of Realtors as a profession and as a career if Canadian organized real estate doesnâ&#x20AC;&#x2122;t wake up and embrace the irresistible force of change. The Serenity Prayer, a common name for an originally untitled prayer by the American theologian Reinhold Niebuhr, is universally apropos to any kind of change and equally valid for the Canadian real estate industry: â&#x20AC;&#x153;Grant me the serenity to accept the things I cannot change, the courage to change the things I can and the wisdom to know the difference.â&#x20AC;? Yes, there are things we canâ&#x20AC;&#x2122;t change but there are so many more things that we can. Staff compensation and institutional revenue of most real estate boards, associations and regulatory agencies is geared to â&#x20AC;&#x153;more Realtors, more incomeâ&#x20AC;?â&#x20AC;&#x201D;more fees, more education courses and more exhibitors and attendees at real estate trade shows and conferences. Until theyâ&#x20AC;&#x2122;re compensated based on the quality of Realtors rather than quantity, the number of unqualified Realtors providing great disservices to the public wonâ&#x20AC;&#x2122;t abate. The last decade of history has unequivocally demonstrated this. Technology companies do â&#x20AC;&#x153;certainâ&#x20AC;? things much better than organized real estate (especially

providing MLS services), which are critical success factors for our profession and strategic for our continued existence. Real estate lawyers are increasingly more proficient, empowered by technology, to handle paperwork traditionally done by Realtors. Both are finally making headway into carving off chunks of the real estate business, reducing a Realtorâ&#x20AC;&#x2122;s value-add proposition and leaving even fewer opportunities for Realtors. Nothing can exist without order but nothing can evolve without chaos. There are ample opportunities in adversity. How would you like to be in the slide rule or mechanical typewriter business? The old industries â&#x20AC;&#x201C; oblivious, or worse, in denial â&#x20AC;&#x201C; as to what was happening around them underwent difficult crises of change and either adapted and assimilated, or went bust and disappeared. They lost their livelihood and caused all kinds of familial trauma but the overall net effect was not long-term disruption and upheaval but rather sustaining, enlarging and life-enriching modernization. Old-school organized real estate is protective, unresponsive and even hostile to embracing new business models that would engender strategic partnering. There are a lot of people outside the real estate industry who believe great changes are in store for our industry. If we donâ&#x20AC;&#x2122;t embrace those people, or more importantly, if our industry organizations donâ&#x20AC;&#x2122;t, those outsiders will do it without Realtors and their support organizations. Chris Seepe is a commercial real estate broker and broker of record at Aztech Realty in Toronto, specializing in income-generating and multiresidential investment properties, retail plazas, science and technologyrelated specialty uses and tenant mandates. (416) 525-1558 E: cseepe@aztechrealty.com W: www.aztechrealty.com REM

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42 REM MARCH 2014

Suffering from acronym overload By Don Kottick

he real estate industry is being inundated by organizations, groups and individuals promoting or announcing new certifications, accreditations or designations. Do these acronyms at the end of your name accomplish or mean anything? Does the consumer really care if you are ABR, SRES or e-PRO? Are these acronyms helping us or hurting our credibility in the big picture? In Ontario, the Real Estate Council of Ontario (RECO) recently eliminated our continuing education credits (CEU) delivered by third parties. The move disrupted many entrepreneursâ&#x20AC;&#x2122; businesses, causing them to get creative and look for new revenue sources.

The recent trend towards marketing acronyms has generated titles for going â&#x20AC;&#x153;greenâ&#x20AC;?; for servicing the senior market segment (SRES); for focusing on buyers (ABR); for being a resort and second home property specialist (RSPS); for being tech savvy (ePro); and the list goes on. We are being bombarded with acronyms and it is difficult to keep up with the volume. In some cases you can get accredited by auditing a short three-hour course, which speaks to the credibility of the initiative. Increased training and knowledge accumulation is always a good thing, but all these acronyms are creating consumer confusion and hurting our credibility. In the real estate industry in Ontario, we have the legislated three levels of registration: the salesperson, the broker, and the broker of record. It is a safe assumption that the public understands that a broker is an elevated title over a salesperson. If you want to differentiate yourself from other brokers, but are not interested in

becoming a broker of record, what are your options? You can always add more acronyms to the end of your name, but the best route is to find that one designation that serves as a differentiator. In my last article, Distinguishing yourself in the marketplace, I wrote that the Fellow of the Real Estate Institute (FRI), administered by the Real Estate Institute of Canada (REIC), is a designation that has been relatively quiet since its inception in 1995, but it is now the â&#x20AC;&#x153;Phoenix rising from the ashesâ&#x20AC;?. The FRI is focused purely on delivering professionalism, ethics and exceptional service; while being monitored and governed by the REIC. In order to attain your FRI designation, you must submit your resume for review by REIC, be interviewed personally by the local chapter president, have three recommendation letters from industry peers and have been active in the real estate business for five years minimum. You must also complete the required course curriculum, which

entails completing courses about Legal Issues in Real Estate (two days); Ethics and Business Practice (three days); Consumer Behaviour & Negotiating (three days); and three university or college level electives. And you must uphold the REIC Code of Professional Standards at all times. As an industry, if we focus and deliver on professionalism, ethics and service quality, we will attain consumer acceptance as a true â&#x20AC;&#x153;professionâ&#x20AC;?. The good news is that the number of prominent and successful salespeople who have received their FRI designation is increasing. REIC is currently undertaking initiatives to increase public awareness, while also increasing their industry profile. To be successful in real estate, training and continuing education are paramount as legislation, regulations and local nuances change on a regular basis. Without education, either stagnation sets in or an individualâ&#x20AC;&#x2122;s competence starts to erode. This current phenomenon of linking education to abbreviated

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accreditation titles creates acronym confusion for a consumer. We have been struggling for years to be recognized as a profession and earn credibility with the consumer. What is a consumer to think when they see a salespersonâ&#x20AC;&#x2122;s name followed with a string of acronyms that they donâ&#x20AC;&#x2122;t understand? If you want to differentiate yourself by exhibiting a higher level of professional and ethics, the first step is attaining your FRI. Letâ&#x20AC;&#x2122;s all work together to improve the consumer perception of this industry, which has suffered by some negative media attention and unfortunately, a few bad apples. Don Kottick, FRI, is the president and broker of record of Right At Home Realty, with six office locations and more than 2,600 salespeople and brokers. He is also a director at large for the Toronto Real Estate Board, vice-chair of the TREB Government Relations Committee and chair of TREBâ&#x20AC;&#x2122;s Condominium Committee. REM

REM MARCH 2014 43

AS I SEE IT FROM MY DESK

By Stan Albert

“E

ven Rosie DiManno from the Toronto Star takes a holiday,” said REM editor Jim Adair to me last month! I only wish that I was one-tenth as good as she is, but what the heck, I do these articles for fun! Anyway, what can I say? I was both on a vacation and somewhat forgetful of my REM deadline and I missed last month’s issue. Several readers took note and emailed me to see if I was okay. Well, dear readers, I am alive and well and enjoying my semi-retired position at my unique office in the heart of North York. I’ve been doing a lot of research into the lack of success of many of the new registrants/ agents who come into the business. My findings are not much different than a lot of readers who echoed my column several months ago: “Come into the business and make a lot of money? Yeah, right.” Here’s what I’ve found here in Ontario and maybe it’s the same across Canada. There used to be a rule of thumb that 70 per cent of the business was done by 30 per cent of the agents. Eventually through the last decade, it has evolved that about 90 per cent of all the business on MLS is done by about 10 per cent or less of the members in the Toronto area. I began my search for answers by questioning managers, brokers and new graduates who have been in the business for less than two years. Many new registrants have a feeling of entitlement. By that I mean that by choosing certain brokers, they feel that they should

Why new agents fail get leads and training. A great many brokers do train. Somehow the education/skills sets that are drilled into them at training sessions is like a band aid on a cut! They’re overwhelmed, first by the paperwork that is involved. The education seems ideal for the day, but is totally forgotten by the end of the month. Why? Mostly because the new agents are not accountable. And it’s a two-way street for a number of brokers – they don’t do their jobs to hold the new agents accountable. I’ve had numerous emails from new agents across Canada who have done only three or four deals over a two-year span. Now, c’mon, I say to many who I chatted with – how is it that you don’t use/practice the skill sets passed on to you? Most answer that they tried it for a few weeks and decided that cold calls or door knocking “wasn’t for them.” Too many agents are also coming into the business thinking that they can do it part-time. A few can and do become successful enough to cut the umbilical cord of a monthly paycheque to work at real estate full-time. I’ve personally taught various skill-sets to more than 1,000 agents over many years. I’ve seen a great number of agents succeed, but not as many as I’d like. The reasons are not much different than those I’ve mentioned. So, how can we make more of these aspiring agents excited and enthusiastic enough to devote

themselves to this business? With more agents choosing to work from home, it makes the task of enriching their education/skills problematic. Our board in Toronto, the largest in North America, has seen its membership rise to close to 40,000! And judging from past records, some 4,000 will drop out of the business this year (my estimate). Maybe the various provincial associations should publish some of the glaring facts – that this is a tough business. If the agent chooses to make it a career and not a chance to make a mortgage payment or buy a car, we will see the percentage of successful agents go up. When one gets their licence, they should embrace all that the industry has to offer. I like adjectives beginning with the latter E. If you’re new, get empowered, educated and enlightened. And then you can say, “Eureka! I’ve struck pay dirt.” But only if you get down and dirty and just do it – and don’t be embarrassed if you fall down or fail a few dozen times. I’m sure our Olympians at Sochi fell down a few times on their way to their success. Have a great spring campaign. Stan Albert, broker/manager, ABR, ASA at Re/Max Crossroads’ iRealty office in Toronto can be reached for consultation at stanalb@rogers.com. Stan is now celebrating his 44th year as an active real estate professional. REM

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The new Royal LePage Cité agency can already count on a dozen experienced real estate brokers to serve its clients, but Ms. Gammiero expects this number to increase rapidly. The agency’s brokers will work in the areas surrounding Laval, Boisbriand, Ville St-Laurent (Montreal), and Saint-Eustache. Royal LePage Cité’s offices are temporarily located at 1600 Saint-Martin Blvd. East, suite 315, Laval, QC. In a few months, the agency will move to a new strategic location, at 1805 Saint-Martin Blvd. West, in Laval. You can reach Royal LePage Cité’s team by phone at 450-975-1840 or by email at cite@royallepage.ca. Please join us in welcoming them to Royal LePage and wishing them continued success. †

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Cheng says Google Apps allows, for example, an agent to move from his mobile device to a tablet and then to a desktop, seeing all of the same information everywhere. “Our brokers and agents can use the toolset to conduct office meetings from anywhere. An agent can promote details of upcoming open houses by creating a special open house calendar to share with clients. Or, they can live chat, make a free Internet long-distance call to any-

where in Canada and the U.S. or a video call to a client to discuss the progress of an offer,” says Cheng. “Collaboration on documents is also a key component and lends to far greater productivity as documents can be shared, created and edited in real time.”

BHG launches custom software platform Market Leader, a subsidiary of Trulia that provides online marketing and technology solutions for real estate professionals, and Better Homes and Gardens Real Estate Canada have launched a customized software platform for the real estate company’s affiliated network of brokers and agents. The platform is designed to improve agent productivity and lead generation through an integrated intranet of tools and resources. “Better Homes and Gardens Real Estate Canada is a strong new partner for Market Leader and represents our first white-label independent partnership in Canada,” says Ian Morris, president of Market Leader. The web-based software enables agents to create personalized websites to market themselves and their properties. It also includes a CRM to manage their contacts and marketing tools that automate the process of building and executing marketing campaigns to engage and convert contacts into clients, the company says. Nelson Goulart, VP of Network Services, Better Homes and Gardens Real Estate Canada, says: “Because real estate is such a local business, it’s important that the resources we offer reflect the Canadian culture that our agents and their clients appreciate. This customized solution will allow our network to conduct day-to-day responsibilities more efficiently, enhance the end consumer experience and allow our affiliates to

focus more on growing their business.” For more information on Market Leader visit www.MarketLeader.com.

Ecological impact of homes introduced on Via Capitale sites Via Capitale recently published a report titled Vers une habitation durable (Towards Sustainable Housing). The report assesses the growing number of programs available in Quebec aimed at homeowners and buyers who are concerned about the ecological impact of a property they live in or are seeking to buy. To help website visitors determine a home’s ecological footprint, Via Capitale includes the Energy Rating along with other key information that can be displayed on the property’s listing page at the Via Capitale or Art by Via Capitale websites. “More and more Quebecers are becoming aware of the environmental impact of buildings and their use, so they’re looking for sustainable homes that have a much lower environmental and economical impact over their life cycle,” says Nicolas Ayotte, president and CEO of Via Capitale. “By highlighting the Energy Ratings of homes, we can better present properties that have been built and certified under programs like NOVOCLIMAT, LEED Canada for Homes, Greenglobe and Blanches, or have been renovated to meet the standards of programs like Rénoclimat or Rénovation Écohabitation.” Environmental impact is measured over the life cycle of a building, from the manufacture of the materials to construction, use by occupants, maintenance, repairs and renovations and finally the end-of-life phase. Users of the Via Capitale web platforms www.viacapital evendu.com and www.ArtVia Capitale.com can see all the factors taken into account in calculating a property’s Écohabitation Energy Rating by dragging their mouse over the rating shown on the property’s listing page. Écohabitation is the No. 1 organization promoting green homes in Quebec, the company says. REM

REM MARCH 2014 45

Trade Shows and Conferences For complete listings, visit www.remonline.com To add a listing to this calendar, email jim@remonline.com Century 21 Kickoff 2014, Awards Event and Trade Show March 4 – Toronto Congress Centre, Toronto March 12 – Hyatt Regency Montreal, Montreal Carla Ty – supplier.expo@century21.ca

March 12 – UBC @ Sage Restaurant, Vancouver March 14 – Calgary Zoo, Calgary March 25 – The Halifax Club, Halifax Rosann Copfer – Rosann.Copfer@coldwellbanker.ca

Coldwell Banker Canada Gen Blue Sales Rally & Broker Meetings March 4 – Ontario Science Centre, Toronto March 6 – National Arts Centre, Ottawa

Ontario Real Estate Association Leadership Conference March 4 - 6 Westin Harbour Castle Hotel Toronto www.orea.com

Nova Scotia Association of Realtors Annual General Meeting & Symposium March 21 – 22 Holiday Inn Harbourview Dartmouth, N.S. Christy Wentzell Johnson - 902468-5764 or cwentzell@nsar.ns.ca Realtors Association of Hamilton-Burlington Realtor Connections 2014 Trade Show Thursday, March 27 Hamilton Convention Centre Hamilton, Ont. Sheila Sferrazza – sheilas@rahb.ca CREA Annual General Meeting & Leadership Summit March 29 & 30 (March 30 tradeshow) Westin Hotel Ottawa Anik Aube - aaube@crea.cac

London St. Thomas Association of Realtors AGM & Trade Show Tuesday, April 22 London Convention Centre London, Ont. Tracy Marino – tmarino@lstar.ca

Aventure Realty Network National Meeting May 6 – 8 Calgary Bernie Vogt – bvogt@aventurerealty.ca Windsor-Essex County Association of Realtors Realtor Trade Show Wednesday, May 14 Ciociaro Club of Windsor www.windsorrealestate.com/trades how/

HomeLife International Conference April 28 – 29 Planet Hollywood Las Vegas Lori Cimerman 416-733-9966

65th FIABCI World Congress May 17 – 22 Luxembourg www.fiabci65.com

Toronto Real Estate Board Realtor Quest May 7 – 8 Toronto Congress Centre Toronto Stella Guo – sguo@trebnet.com

New Brunswick Real Estate Association AGM & Conference April 2 – 3 Delta Hotel Fredericton, N.B. Erika Smith – esmith@nbrea.ca

Compiled with the assistance of Bob Campbell at Colour Tech Marketing, www.colourtech.com

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46 REM MARCH 2014

THE PUBLISHER’S PAGE

By Heino Molls

MARKETPLACE

here are people who swear that door knocking is the best way to start a real estate career or a political campaign. I have done a lot of door knocking in my time, starting back in 1957 when I was in short pants selling apples door-to-door for my Cub Scout pack. I have since knocked on doors for my community, for charities and even at real estate offices when I was selling real estate ads for the Real Estate TV shows that I created back in 1988. Even with all that experience I still find the idea of knocking on doors something that I dread. I am ready to listen to the people today who make convincing arguments about social media, networking on the Internet and creating ads on YouTube. They say all these things make impressions on

Door knocking vs. social media people that are compelling and work for your business just as well as door knocking. I am intrigued by the YouTube example especially. When I think of the really effective messages that I have seen on YouTube, such as the Super Bowl commercials, they leave a good impression. While most of these commercials are aired on television in the American media, we occasionally see them in Canada and we are inspired by how well they work. They range from the comedic Volkswagen commercial about engineers getting wings when cars roll over 100,000 km, to the brilliant Budweiser commercial about the bond between a dog and the Budweiser horses. Of all these commercials, only a few actually speak about the product itself but rather leave the impression of a great short story with the brand name entrenched in the message. With YouTube ready as an immediate medium to carry your commercial and the availability of reasonably priced cameras and recording devices, it’s pretty easy for anyone to make their own commercial. While there are a lot of political messages on

YouTube, I am surprised there are not more creative real estate commercials out there. I’m sure Realtors will find and embrace this medium in the future. I am ready to believe this is the new cold calling. Once you have a good creative commercial crafted and produced, all you

“farming” area. I cannot deny the effectiveness of speaking to a person at their house; about their house. The personal contact and the simple message that people are important enough to make a salesperson come out and knock on their door to humbly ask for

If your technology and social networking is working for you, that’s fantastic, don’t stop. If it’s not working, try door knocking. have to do is attract customers to come online and watch it. I really want to believe this is the new door knocking of the times without actually walking in the cold and fearing what you are going to encounter behind those real doors. I am so ready to believe this and I have almost convinced myself this is all true. The problem remains that I just cannot deny the success of pulling together a good attitude and going out to knock on door after door in your marketing or

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their business remains a lasting positive message. I have to admit that even people who aren’t as smart as me have acknowledged that when it comes time to cast their ballot in an election, the candidates who came to their doors to ask for support get the more serious consideration. There are always going to be people who don’t like anyone coming up to their house and who even slam the door in the faces of people collecting for charity. I can personally say that

you are guaranteed to run into a few of those folks when you are out there. I know I did whenever I went door to door. The thing is, door knocking works every time if you really go at it with a good attitude. You have to work a number of blocks, both sides, keep a good frame of mind and be ready with a cheerful hello. I am reluctant to admit it but it works. I am no poster boy or fashionably elegant in appearance, but I am sincere and for reasons I cannot articulate exactly or explain, door knocking, as much as I dread it, has always worked for me. If your technology and social networking is working for you, that’s fantastic, don’t stop. If it’s not working, try door knocking. You have nothing to lose but a sunny afternoon and a bit of shoe leather. Heino Molls is publisher of REM. Email heino@remonline.com REM

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