The Real Estate Agent Boom

Toronto agent population up almost 20% in three years

Despite increased competition and a declining market more and more people want to get into the real estate business these days. The Real Estate Council of Ontario, or RECO, the regulating body for the real estate brokerage industry in Ontario, says there has been a 20 per cent overall increase in the number of registrants in Ontario since 2005. RECO is currently processing more than 400 applications for new registrations each month. In 2003, there were about 300 new applications per month processed by the industry regulator.

In 2005, Ontario had 40,665 registrants with 11,675 of those coming from Toronto (M postal codes) and 26,792, which included Toronto and Brampton, Durham, Mississauga, Oakville, Milton, Orangeville, and York. In 2007, Ontario had 49,429 registrants with 12,472 of those coming from Toronto (M postal codes) and 29,222, which included Toronto and Brampton, Mississauga, Oakville, Milton, Orangeville, plus Durham and York Regions.

As of today, the Real Estate Council of Ontario is showing 53,932 registrants on its website.

There has been a corresponding increase in membership of the Toronto Real Estate Board:

Given a GTA population of about 4 million, that means there is one real estate agent every 150 residents — men, women and children. And they all want to list your house. In fact there are probably several looking for you right now.

Source: Real Estate Council of Ontario and Toronto Real Estate Board.

February 23, 2008 in Agency Matters | Permalink | Comments (0) | TrackBack

Multiple Representation

Or Dual Agency by another name

Whether you are a home buyer or seller, it is important for you to understand the legal nature of the agency relationship you have with your agent. Your agent must act in your best interest while representing you in a real estate transaction. This gets complicated if you find yourself in a “multiple representation” situation.

What is dual agency? Basically, it means that a real estate agent is representing both the buyer and seller in a real estate transaction, which is legal in Ontario but … A real estate agent who is working as a dual agent could easily find herself in a conflict of interest by trying to represent the best interests of both parties.

So, what should you do if you find yourself in a dual agency transaction? First, insist on clear communication at all times. Second, be explicit with the agent about your needs in the transaction. Third, check with the agency’s broker of record if you have any questions or concerns.

If all the involved parties work hard toward a smooth transaction, dual agency doesn’t need to be a problem. But, it is your right and responsibility to ask questions and make sure you are not being disadvantaged. It can be a complicated situation, so if you have questions or want more information about dual agency, ask until you are satisfied.

February 5, 2008 in Agency Matters | Permalink | Comments (2) | TrackBack

Real Estate Agency ... "eh?" to "zed"

Ever wondered what the term real estate "agent" really means?

That single word - "agent" - has great significance, and does far more than just designate an individual who holds a real estate license.  The real estate brokerage business is governed by a body of law called "the law of agency". The word "agency" refers to the relationship which exists "when one person is employed to act for another".

In real estate, the most common form of agency is established when homeowners employ a real estate brokerage to act on their behalf to secure a buyer for their property. The term "act on their behalf" is important in that it refers to the brokerage's responsibility to look after the best interests of the owners. 

Once homeowners have listed their home for sale with a brokerage firm, the brokerage becomes their agent. The owners become the brokerage's client (or principal). 

The duties of the real estate agent to the sellers include:

1) loyalty 
2) obedience 
3) skill, care & diligence 
4) disclosure of information 
5) and accounting. 

These duties are said to be fiduciary in nature, meaning that there exists a trust relationship between the client (usually the sellers) and the agent (the brokerage company).

The brokerage, acting as agent, is obligated to be loyal to the best interests of the sellers, and obedient to their objectives, i.e. to perform brokerage services faithfully to the sellers' objectives. The brokerage is also required to use the highest levels of skill, and to carefully and diligently protect the sellers' real estate interests. 

The broker's duty of disclosure relates to keeping the client informed. Because the brokerage's loyalty is to the client, all brokerage representives are obligated to disclose any knowledge in his or her possession about potential buyers, their intentions, their abilities to make a purchase, and changes in the real estate market in general. They are also required to provide a complete accounting of their activities, and of the final transaction itself.

A Buyer's Agent

But change has raced through the real estate industry in the past several years including the growth of buyer’s agency. Many consumers initially resist when presented with the option of retaining a buyer’s agent and signing yet another contract. This resistance has more to do with a lack of understanding of the role of a buyer’s agent than it does with an actual dislike of the buyer’s agent concept.

Before the advent of buyer’s agency, all real estate agents owed their fiduciary responsibilities to the seller. The agent was responsible to the seller since the seller paid the commission and had signed a listing contract designating an agent to represent them in exchange for the commission. As a result of this logic, real estate agents involved in a transaction could only be devoted to the one side of the transaction – the seller’s side! This was true even when an agent had only been working with the buyer, and was responsible for writing and presenting the offer to purchase!

What did that mean to the buyer? It meant that if their agent knew proprietary information about the seller that could help the buyer in formulating their offer, the agent was not allowed to share it with the buyer. For example, let’s assume that the agent who brings the buyer knows that the seller is under great pressure to sell due to 1) a relocation, or 2) a difficult divorce or, 3) financial pressures. Although this information could be useful to the buyer in deciding what to offer, none of this information can be shared under the traditional definition of agency. Likewise, if the buyer has confided with his agent a willingness to go higher than his original offer then in the traditional agency situation the real estate agent would be obligated to share this information with his actual client, the seller.

It wasn’t until real estate buyers began to demand fair and equal representation of their interests that the concept of buyer’s agency took hold. Today you will find real estate agents who specialize in representing buyers in most major metropolitan markets and in the outlying areas as well.

Hiring a buyer’s agent does require that you sign a contract. The contract is signed prior to services being rendered. It usually identifies a time period during which the agent will work with you to find a property.

Services a buyers agent should provide:

The contract will also spell out how the buyer’s agent will be paid commission and/or fee. Some agents will require that a small retainer be paid up front with the balance of the fee being paid as a commission upon the close of the sale. This formalizes your business relationship with the agent and also commits the agent to servicing your real estate needs. Other buyer’s agents will request they be paid a commission out of the proceeds of the sale. The commission usually amounts to half of the total fee that the seller has agreed to pay their listing agent upon the close of the transaction.

Skills a buyer’s agent should possess include:

How can you locate an established buyers agent?

You can start by looking here, on the internet. Many buyers’ agents now advertise their specialty as part of their promotional efforts. The highest degree of buyer’s agency is provided by Exclusive Buyers Agents, who specialize in representing only buyers interests and thus ensure that you never become involved in a dual agency situation (where one agent is representing both buyer and seller in a transaction).

February 2, 2008 in Agency Matters | Permalink | Comments (1) | TrackBack

Perspectives on Representation

When you call an agent from an ad or a sign, you have to remember that they are working for the seller — and definitely not the buyer. You are talking to the listing agent who was hired by the sellers to list and sell their home. His or her job — and obligation — is to get as much money as possible for the seller.  This ties in with the fact that the agent has an incentive to get more. The higher the sales price, the more money the agent will make.  It may be hard to keep this in mind as you spend time with the agent and feel you know and feel comfortable with them. Even though you begin to trust that agent, never to reveal the highest price you are willing to pay, or other concessions you know you would be willing to make. Because that person represents the seller, and must relay this type of information to the seller.

The flip side of this is also true. Again because the agent is representing the seller, he or she is not allowed to divulge anything that would tip the scales in your favour; — like why the seller is selling or how low the seller will probably go regarding the selling price. Remember, the agent is bound by contract to work to get the best possible deal for the seller.

But you have another option. When you begin your search, you can start by using a buyer’s agency who is working with your best interests (and wallet) in mind. A buyer’s agent will work to negotiate the best price, ensure the property is inspected, and make sure you have all the assistance and guidance you need. Things you tell a buyer’s agent remain confidential. Using a buyer’s agent also means that you can be shown homes that are offered by new home builders or directly by owners. It might seem like using a buyer’s agency means you are going to pay more — but that’s not usually the case.

Although there are situations where agents charge an hourly fee or a flat fee for the service, in most situations they are simply working for the same commission that is paid by the seller through their listing agent. While there is still some argument that this method leaves the incentive for a higher sales price, buyer’s agencies counter by pointing out that a $10,000 savings for the buyer only amounts to a $250 difference in commission for the buyer agent. The benefit of your satisfaction with their service and the word of mouth promotion they will greatly outweigh the small loss of money.

The type of agreement you sign with a buyer’s agent will dictate how the arrangement works. A representation agreement will stipulate, specifically how the agent will be paid. You can negotiate the terms and obligations for both parties up front so both you and the agent know what to expect and are comfortable with the relationship.

If you decide to use a buyer’s agent be on the lookout for dual agency. Usually referred as ‘multiple representation’ it describes the situation where an agent or agents are working on both sides of the fence. For example, an agent with XYZ Realty may represent the seller, while another agent (or the same agent) also with XYZ Realty represents the buyer. There are obviously arguments against this arrangement because of conflicts of interest, but nonetheless, it is still a common practice. In the dual agency situation, both the buyer (you) and the seller must be made aware of the arrangement and privileged information can’t be shared unless you agree to it. Dual agency is a situation that should be avoided if at all possible.

January 30, 2008 in Agency Matters | Permalink | Comments (2) | TrackBack

The Dual Agency Dilemma

Understand the nature of your agency representation

Dual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent.

If you find yourself involved in a dual agency relationship, make sure that you completely understand how your interests are affected.

This relationship involves the following limitations:

Before receiving an offer both you and the other party to the transaction will be asked to consent in writing to this new dual agency relationship.

If you find yourself involved in a dual agency situation, make sure that you completely understand the nature of dual agency and its possible outcomes. It would be wise to contact a skilled Real Estate Lawyer for a complete explanation of dual agency representation.

January 25, 2008 in Agency Matters | Permalink | Comments (3) | TrackBack

Who pays a buyers agent?

This is a much debated question among real estate professionals. The import of the question has to do with common sense perceptions and common law conventions that "he who pays the piper calls the tune". Buyer agents take the position that the commission fee comes from "the proceeds of the transaction". Sure the seller pays his agent and the buyer doesn't but all the money actually comes from the buyer. If the buyer didn't pay there would be no transaction.

But in the most basis terms — no matter how payment is set up, the buyer walks away with the house and the seller walks away with 95% of the agreed upon purchase price.

So you decide.

January 22, 2008 in Agency Matters | Permalink | Comments (2) | TrackBack

Should You Hire A Buyer's Agent?

How's "That depends," for an answer?

A good buyer's agent can be the greatest asset you will have in navigating through the real estate marketplace, and a poor one can be a burden. So the right answer is "Yes, but only if you do your homework first and then choose carefully and wisely."

Some real estate firms have instituted a nasty habit of insisting that new customers become clients at the first meeting. If you're the customer, that means before you've had an opportunity to get acquainted with the agent or find out anything about his or her personality or work habits, you're locked in.

You could end up with a great agent, or you could get stuck with someone who lets you go do all your own looking and just shows up when its time to pass "go" and collect the money.

It's kind of like getting married when a blind date meets you at your door.

A buyer representation agreement is a legally binding contract between the buyers and the agency. Unlike a marriage, it does have an expiration date, but if you want to get out of it early, everyone has to agree.

If you're a buyer, it ties you to that agent. So if you buy through another agent, you still have to pay your buyer's agent.

Why would you do that?

If you choose the right buyer's agent, you will get far more service than you can expect from a seller's who may be showing you property.

You can expect:

In short, when you have a good buyer's agent you have a valuable ally on your side.

January 19, 2008 in Agency Matters | Permalink | Comments (0) | TrackBack

Agency matters ... really.

Most people, when they want to buy a home, are entirely focused on finding the right property in the right location and buying it for the right price. They give very little thought to esoteric concepts like agency, representation and fiduciary duties. 

A buyer once told me respecting agency, "I don't really care how many fairies can dance on the head of a pin". But agency does matter. And it will matter to you too if there are outcomes from your buying experience that negatively affects your finances or personal well-being.

Here is a primer on agency representation to consider before entering into the real estate market.

Buyer Agency

The Ontario Real Estate Association has developed a standard buyer agency agreement that brokers can use with clients. Any registered (licensed) real estate salesperson or broker in Ontario can legally act as a buyer's agent/broker. A buyer's agent/broker performs services for you that a seller's agent can't, such as showing you reasons not to buy a particular property.

A good buyer salesperson or broker will include contingencies in the contract that protect you, rather than the seller as in most standard contracts, and keep confidential any information that could hurt your bargaining position. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting. The buyer and the brokerage will enter into a signed Buyer Representation Agreement which details their relationship.

Bear in mind that the seller agent (e.g. the agent whose name is on the lawn sign) always works for the best interest of his or her seller. Agents have to tell buyers about material defects that render the property dangerous or unfit for habitation, but not necessarily all defects in a property. That's where a buyer agent comes in, being free to talk about anything that can affect the buyer's interests.

When you have decided to buy, the services of a qualified real estate professional, who will act as your buyer agent/broker, is of utmost importance. The ideal buyer's agent will have a good working knowledge of the local real estate market conditions, can advise you about current government programs that benefit consumers, provide you with insight into market trends, current market values of similar properties, add conditions and clauses in Agreement of Purchase and Sale to protect your interests, offer information about the amenities of specific neighbourhoods.

The seller usually pays a commission to the listing brokerage who then pays the appropriate portion to the buyer’s brokerage. Alternatively, the buyer’s brokerage can be paid directly by the buyer and, therefore, this amount does not form part of the sale proceeds. In most transactions, the commission to the buyer’s brokerage is paid via the listing company from the proceeds of the sale.

Seller Agency

When a real estate company is a listing agent or seller's agent, it must do what is best for the seller of a property. Seller agency establishes a relationship in which the brokerage and its salespeople represent the interests of the seller exclusively. This agreement sets out what the seller instructs the brokerage to do and what services are provided under seller agency.

Further, it provides that representatives of the seller will use their professional negotiation skills to seek qualified buyers and generally promote the listed property, while keeping information concerning the seller confidential and always acting in the seller’s best interests. The hallmarks of this relationship are good faith, full disclosure, competence, obedience, and accounting to the seller.

The seller has traditionally paid a commission directly to the brokerage. The listing brokerage then pays any brokers or salespeople within its employ and, if applicable, any co-operating brokerage involved in the transaction. The Seller signs a listing agreement with the brokerage.

Multiple Representation

Occasionally a real estate company will be the agent of both the buyer and the seller. When the same brokerage has an agency relationship with both the buyer and the seller in a real estate transaction this becomes Dual Agency, as contemplated in Common Law. Multiple representation also occurs when different salespeople represent buyer and seller, and are employed by the same brokerage, including those who work in different branch offices. The brokerage or its representatives must advise the seller and the buyer of the dual aspect of representation and must be impartial in dealing with both parties. Both buyer and seller must give their informed consent to this form of representation.

Exclusive Buyer Agency

One way around the lack of stewardship that multiple representation or dual agency implies is to use an exclusive buyer agent. Unlike traditional agents, exclusive buyer agents don’t work for listing agencies, so they avoid the risks of dual representation. Exclusive buyer agents are still paid by the seller, but they can promise to represent the buyers interests exclusively throughout the transaction.

Exclusive buyer agents are definitely in a minority ... rather rare in fact. I am not aware of any currently operating in the Greater Toronto Area. But no matter, just be sure to insist on a representation agreement that makes your agent legally bound to protect your interests. If you’re dealing with a traditional real estate firm, check the contract to see how the terms change if you choose to buy one of that company's listings.

January 17, 2008 in Agency Matters | Permalink | Comments (0) | TrackBack

What is a Real Estate Agent?

In Mark Twain's novel, A Tramp Abroad, there is a humorous reference to agency. The narrator says: "I lay abed and read and rested from my journey's fatigues the remainder of that Sunday, but I sent my agent to represent me at afternoon service, for I never allow anything to interfere with my habit of attending church twice every Sunday."

Black's Law Dictionary defines an agent as: "A person authorized by another (principal) to act for or in place of him."  While few people would authorize an agent to worship on their behalf, most retain an agent to represent them in a real estate transaction.

The concept of agency originated in Roman law and was developed in the English Common Law. In Rome, a slave, having no legal standing of his or her own, was considered to be an extension of his or her master. When a real estate agent offers to serve you, he or she is offering to be your eyes, ears and hands. In handling your transaction and seeing it through, an agent will be acting on your behalf. In order to establish an agency relationship, in Ontario, as in most provinces and states, it is necessary to sign a representation agreement. Only a person registered under the Real Estate and Business Brokers Act, 2002, may serve as a real estate agent.

An agent owes his or her principal (client) special duties which include obedience to lawful orders within the scope of the agency relationship, disclosure of all relevant information, protection of confidential information, reasonable care and diligence, accountability, and loyalty to the client's best interests to the exclusion of all other interests, including the agent's own self-interest. A real estate agency which represents both buyers and sellers must have an office policy defining how that firm will handle a transaction in which a buyer they are representing becomes interested in purchasing a property whose owner is also represented by that brokerage. In all cases, a real estate agent must disclose, in writing, whom he or she is representing so that there will be no misunderstanding.

In a particular transaction, a real estate agent may represent the seller, or the buyer. Traditionally both agents -- even the agent driving the buyer around to see houses -- represented the seller, and the buyer was unrepresented. These days, most brokerages offer buyer representation. Although there are two sides to a real estate transaction, it is not adversarial: The buyer and seller both succeed if the deal closes. When each side has professional representation, both parties are able to move forward with increased confidence. In the end, having an agent on the side of the buyer and another agent on the side of the seller is a sound practice, making for a solid transaction.

January 5, 2008 in Agency Matters | Permalink | Comments (0) | TrackBack

Slump stalls Royal LePage plan

Move into the U.S. market is put on hold

The slump in the American housing market has stalled efforts by Royal LePage Franchise Services Fund to expand to the United States, according to the company's chief executive. Actually striking a deal has proved elusive, as U.S. real estate companies continue to price themselves based on a booming housing market that no longer exists.

"To a certain degree, we got slowed down by the mess that the U.S. market found itself quite unexpectedly having to deal with. We're focused on making the right deal not just a deal," said Royal LePage President, Philip Soper. "Essentially companies [in the U.S.] have valuations in their head based on 2004 earnings and if you look at 2007 earnings, they are a small fraction of what they were."

The U.S. housing slowdown appears to be getting worse. The National Association of Realtors said yesterday it expects existing home sales to fall 6.8% from a year ago to 6.04 million units. It had previously forecast only a 5.6% decline.

Despite the slowdown, Mr. Soper said that the United States remains in LePage's long-term plans for expansion.

See Financial Post article »

August 12, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

NOW on Land Transfer Tax

Mayor Miller is now saying he underestimated the tenacity of the Toronto Real Estate Board and his opponents on council and that he ought to have communicated more forcefully with pols being lobbied by business groups.

It's a breach that council's free marketers leapt into, knowing full well that most residents lack a basic understanding of how cities work.

"We all say we're against [provincial social service] downloading," said Councillor Michael Thompson who voted for deferral during the debate on Monday, July 16. "Yet we're saying it's okay to download [more taxes] on the citizens of Toronto."

Debunking this should have been a slam dunk. Thompson chose not to mention, of course, that property taxes would have to be raised. Such increases, incidentally, put the greatest burden on those least able to pay: tenants pay more proportionately than homeowners for the services they get, a leftover from the days when they weren't allowed to vote.

And they're still disenfranchised compared to lobbyists for the Toronto Real Estate Board.

The argument that council can't implement new taxes because it "wasn't an election issue" is the height of disingenuous populist BS. I thought selecting people to keep city services running on something more than bubble gum and sarcasm was why we, you know, have elections at all.

See full story in NOW Magazine.

July 29, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

Realtor Quest Conference

Toronto Real Estate Board Members learned about going green and other timely topics at their annual REALTOR Quest conference just held at the Toronto Congress Centre.

Ontario's Chief Conservation Officer Peter Love addressed a crowd of 2,000 REALTORS at Toronto Board's General Meeting offering useful information environmental sustainability.

The conference, which was attended by more than 6,000 REALTORS in total, included Canada's largest residential real estate tradeshow and featured Canada Mortgage and Housing Corporation's Sustainable Condo exhibit.

"As REALTORS, the more we know about conservation, the better we can advise our clients on choices to save them money while helping the planet," said TREB President Dorothy Mason.

On the tradeshow's centre stage TREB Member Zdenka Volek was presented with an award for placing the one millionth listing on TorontoMLS.

"We are very proud of the fact that in the five years since TorontoMLS was launched we have helped more than 2 million families make the right move," said Mrs. Mason.

Real estate professionals are required to continuously upgrade their education to maintain their license and as such, 29 complimentary sessions were offered as part of the conference on topics such as grow houses, home staging and market forecasts.

Funds were also raised for Habitat for Humanity Toronto. In recent years, the Toronto Real Estate Board has raised funds to sponsor two Habitat for Humanity homes. A Habitat partner family made a presentation at REALTOR Quest in recognition of TREB's commitment to helping families achieve the dream of home ownership.

"REALTORS contribute to their communities by volunteering in countless ways but we also recognize that by pooling our resources for Habitat we are changing lives," said Mrs. Mason.

May 2, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

Real estate revenues up 10%

Total operating revenues reported by real estate agents, brokers, appraisers and other real estate industries increased by 10 per cent in 2005 to $9.8 billion, reports Statistics Canada. The agency says the real estate industry grew by 37 per cent during the three years up to 2005, the most recent term for which statistics are available, reflecting an increase in volume of sales and higher prices of real estate.

The growth in operating revenue of real estate agents, brokers, appraisers and other real estate activities industries was up by 20 per cent in Alberta, 17 per cent in Manitoba and 15 per cent in British Columbia. Ontario continues to account for the largest share of the industry’s earning with 50.7 per cent of total industry operating revenue, followed by British Columbia with 19.6 per cent and Quebec with 13.1 per cent.

Statistics Canada says the offices of real estate agents and brokers generated 88 per cent of the total operating revenue.

It says the high demand for real estate can be attributed largely to continuing low mortgage rates coupled with steady economic growth, which in turn has driven up the prices for real estate. The agency’s national New Housing Price Index jumped almost five per cent in 2005, more than double the rate of inflation.

See the Statistics Canada report »

April 20, 2007 in Agency Matters | Permalink | Comments (1) | TrackBack

Real Estate Forms On-line

The Working Group and Ontario Real Estate Association announce new alliance to put standard forms online

The Working Group on Lawyers and Real Estate today announced a new alliance with the Ontario Real Estate Association that gives Ontario's real estate lawyers instant online access to the standard real estate forms that are currently used for property transactions.

Under the new alliance between The Working Group and the Ontario Real Estate Association (OREA), English and French e-versions of six standard real estate transaction forms used for residential and commercial property deals in the province will now be made available online, as facilitated by LawyerDoneDeal Corp. of Toronto. Access to the forms is available at www.lawyersworkinggroup.com.

The standard forms, which can be completed and revised online, securely viewed by others involved in a transaction, printed out or saved to a desktop, include:

"The Working Group and OREA have joined forces to make these key documents available online, giving Ontario's real estate lawyers access to a faster, more efficient transaction process," said Maurizio Romanin, President of LawyerDoneDeal Corp. "With online forms, everyone involved in the property deal will now be on the same page at the same time - it's a new way to transact deals and the benefits will be obvious."

The availability of online forms will deliver immediate benefits both for real estate practitioners and the buyers and sellers that they serve, said Lou Radomsky, Outside Counsel for OREA's Standard Forms Committee.

"This is a real step forward that will let people serving the entire real estate industry work better, faster and smarter," said Radomsky. "Now, regardless of the type of deal, you'll have instant access to the forms you need to process and finalize the sale for your client. It is faster and more reliable. And with the forms now online, each can be updated or revised seamlessly to address any new issues of the day."

Ray Leclair, co-chair of The Working Group, said this latest initiative involving OREA, The Working Group and LawyerDoneDeal will ultimately result in better service for members of the public involved in real estate transactions.

"The Working Group is pleased to partner with OREA to provide Ontario's real estate lawyers with new ways to increase their efficiency and deliver better service to the Ontario public," Leclair said. "The Working Group will continue to pursue significant new ways to assist lawyers who want to give their clients the highest levels of service possible."

Details on the new alliance between The Working Group and OREA are available online at www.lawyersworkinggroup.com. Information on LDD's complete services are available at www.lawyerdonedeal.com.

April 11, 2007 in Agency Matters | Permalink | Comments (1) | TrackBack

New guys on the block

When ReMax International entered the Canadian market with one franchise in the late 1970s, it changed the face of the business. By aggressively offering agents a bigger share of commissions, the Denver, Colo.-based real estate sales company attracted more top agents, shaking up the established players and propelling the firm to the top spot in Canada in only 10 years.

Since then, despite radical changes in technology, the structure of real estate brokerages hasn't fundamentally changed.

But a tiny Toronto brokerage that started slightly more than two years ago could once again represent a sea change in the way realtors do business in the future – by putting more power and commission in the hands of agents.

The company's generous fee structure has already poached agents from other companies. And if the company continues to grow, some insiders feel it could represent the biggest threat yet to established brokers, causing a fundamental shift in the way they will have to do business.

In just two years, Right At Home Realty Inc. has grown to 595 agents, making them, they say, the fastest-growing brokerage in the GTA and the second-largest independent brokerage at the Toronto Real Estate Board.

While the real estate board doesn't make a comparisons of member agencies, the sheer size of Right At Home would certainly put it in the top 10 in the GTA. Not bad for a couple years' work.

See article in the Toronto Star »

February 25, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

New Real Estate Fraud Law in Place

In recent months, there has been increasing public concern about real estate fraud in Ontario. People are asking: how big of a problem is it? Real estate fraud has two components: mortgage fraud and title fraud.

Title fraud generally hurts individual homeowners. It often involves fraudsters using stolen identity or forged documents to transfer your home to the fraudster, securing a mortgage on the property and then disappearing with the mortgage proceeds.

The incidence of title fraud is, in fact, relatively low - about 10 cases out of 2.2 million real estate transactions per year. But even one case is too many, which is why the government took swift action to minimize the risk of real estate fraud.

The other kind and the type where most real estate fraud happens is mortgage fraud. It happens when a fraudster secures a mortgage based on false information, or acquires property and artificially increases its value through a series of sales and resales (or "value flips"). This is the most common type of real estate fraud.

The Ontario government recently passed the Consumer Protection and Service Modernization Act, 2006. As of February 1 the law:

Starting in spring of 2007:

These new measures are a significant step forward, and will provide peace of mind for homeowners who want to know that the homes they work so hard for are protected.

February 13, 2007 in Agency Matters | Permalink | Comments (1) | TrackBack

The Feds are selling real estate

Ottawa is set to sell $1.5-billion in federal buildings.
Sale is first phase of plan to lease back dozens of properties.

Ottawa is preparing to sell $1.5-billion worth of office properties across the country as part of the first phase of a plan that will see dozens of federal buildings go to the private sector with the government as a long-term tenant, sources say. Sources in Toronto and Ottawa said nine buildings are likely to go in the first phase of the sell-off, including properties in Vancouver, Toronto and Ottawa. The deal could hit the market within weeks and would be among the largest offerings of Canadian office properties.

Public Works Minister Michael Fortier refused to comment on the status of the plan, but made clear the government's real-estate portfolio is in for a shakeup. "As we speak, does the state need 372 buildings to offer its services to citizens through its employees? I think that is the most objective way of presenting the issue," he said in an interview outside the Senate chamber.

The government is expected to use a process known as a "sale-leaseback," by which it sells the buildings to the private sector and then rents them. The government is expected to use 25-year leases, sources said.

Mr. Fortier argued the government doesn't have the $4-billion needed to maintain adequately its portfolio of 6.8 million square metres of office space.

Under the planned "partnerships," sources said, the private-sector companies would renovate the buildings at their cost and make money by renting them to the government.

The government's 241,000 employees could thus work in better, more energy-efficient buildings.

"The government has not always taken care of its buildings in the same way as a traditional real-estate owner," Mr. Fortier said, pointing out that several buildings are in a "precarious" state.

The goal is "to stop the bleeding and to manage the portfolio so that in five, 10, 15 years, we are not faced with an even bigger figure [to renovate the buildings] as we are facing now," he said.

The plans still have to be approved by the Treasury Board and the cabinet, which will have to decide among a number of options being put forward by Public Works. That decisions will be made next week, but others argue that an announcement is farther away, some sources said

.

"The recommendations have been made to the government, but no decision has been made," said Jean-Luc Benoît, the director of communications for Mr. Fortier.

The process started last fall, when the government hired experts at BMO Capital Markets and RBC Capital Markets Real Estate Group to come up with recommendations for a sample of 40 federal buildings.

The study included properties such as the Lester B. Pearson building in Ottawa, the Sinclair Centre in Vancouver and an office complex in the north end of Toronto.

Individuals familiar with the 35 federal properties put their combined value at about $5-billion. They say the quality of the sites varies greatly, with some in need of vast amounts of work. The government's best sites -- the ones that will attract the most interest from investors -- will likely be included in the first phase.

Buyer interest in the properties is expected to be high, especially because they come with a guaranteed long-term government lease.

"There is a lot of money looking for a home, so it will be a well-read document," said one source who follows the real estate industry, referring to the details on the properties.

Over the past five years, interest in the Canadian real estate market has grown dramatically, helped by a huge influx of cash from domestic and foreign pension plans that like the steady income that investment in the sector provides. That buyer interest has sent the price of prime properties soaring.

The federal government has been wrestling for several years with a way to finance the badly needed repairs its property portfolio requires. For years, Public Works has tried to gain funds for such investments, but sources say it has been difficult to drum up interest in building maintenance when other issues, such as health care, have topped the political agenda.

Selling buildings and becoming a tenant is seen as a way to make maintenance someone else's problem.

February 1, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

Royal LePage challenges the AG

Auditor General Sheila Fraser rarely gets accused of getting it wrong, but a major federal contractor strongly disagrees with her latest report, which looked into the bungling of a $1-billion deal to move Canada's military, RCMP and public servants to new postings.

So does Public Works, the government's main procurement arm, which takes issue with Ms. Fraser's drubbing of the department's handling of the bidding process.

"I'm told it has happened before, but it's the first time I've seen anyone roll in, look the auditor general right in the eye and say, "No, you're wrong, we're right.' Yet that's where we are," said NDP MP David Christopherson.

"At some point, we're going to have to come to grips with this issue of the current contract." Sharon Sutherland, visiting professor at the University of Ottawa who specializes in accountability, said this unchallenged power of the auditor general has been growing since the 1970s to the point that parliamentarians have effectively surrendered their jobs as watchdogs of government spending to the unelected auditor general.

"We have two spending watchdogs, but the public accounts committee should be the top dog, the dog trainer and alpha dog to the auditor general," Ms. Sutherland said. "But, that's not case in Canada. It's the other way around." Graham Badun, president of Royal LePage Relocation Services, said Ms. Fraser and her audit team misinterpreted the bid documents, which they concluded unfairly favoured Royal LePage. He also challenged the auditor general's claims that Royal LePage, which won the contract, overcharged for a service it promised to provide for free.

"It boils down to a difference in interpretation," Mr. Badun said.

"And all we're asking for is a process to go through this. And, with respect, the auditor general's process focuses on the government side and doesn't look at the contract and the nature of commercial disputes." It's the latest complication in the handling of a contract doomed to controversy from the start. It sparked an internal Public Works investigation over allegations of conflict of interest when a key bureaucrat involved in the contract went on a Caribbean cruise with a Royal LePage executive. The contract has since been cancelled, re-tendered and then dragged through the Canadian International Trade Tribunal before a parliamentary committee turned it over to the auditor general to investigate.

Now, it's landed back in the lap of the committee to sort out.

Royal LePage's attack on the auditor general puts MPs on the public accounts committee in a highly unusual situation. The committee historically places absolute faith in the auditor general, who enjoys unparallelled credibility among MPs of all parties. Her reports are rarely challenged and the committee typically accepts the office's version of events when probing issues and recommending changes to government.

Some MPs tried to stop Royal LePage and its main contender, Envoy Relocation Services, from testifying during its hearings because the auditor general only investigates government agencies and never extends its probe to the private sector. They argue the bidders' differences should be settled in court. Envoy has already threatened to sue Public Works for an unfair bidding process.

January 14, 2007 in Agency Matters | Permalink | Comments (2) | TrackBack

Working with a Realtor®

When working with a REALTOR®, it is important to understand who the REALTOR® works for and to whom is the Broker/Agent is legally obligated? In a real estate transaction, there are different possible forms of agency relationship or representation.

1. Seller representation

When a real estate brokerage represents a seller, it must do what is best for the seller of a property. A written contract, called a listing agreement, creates an agency relationship between the seller and the brokerage and establishes seller representation. It also explains services the brokerage will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a seller may have.

A seller’s agent must tell the seller anything known about a buyer. For instance, if a seller’s agent knows a buyer is willing to offer more for a property, that information must be shared with the seller. Confidences a seller shares with a seller’s agent must be kept confidential from potential buyers and others. Although confidential information about the seller cannot be discussed, a buyer working with a seller's agent can expect fair and honest service from the seller’s agent and disclosure of pertinent information about the property.

2. Buyer representation

A real estate brokerage representing a buyer must do what is best for the buyer. A written contract, called a buyer representation agreement, creates an agency relationship between the buyer and the brokerage, and establishes buyer representation. It also explains services the brokerage will provide, establishes a fee arrangement for the REALTOR’s services and specifies what obligations a buyer may have.

Typically, buyers will be obliged to work exclusively with that brokerage for a period of time. Confidences a buyer shares with the buyer’s agent must be kept confidential. Although confidential information about the buyer cannot be disclosed, a seller working with a buyer’s agent can expect to be treated fairly and honestly.

3. Multiple representation

Occasionally a real estate brokerage will represent both the buyer and the seller. The buyer and seller must consent to this arrangement in writing. Under this multiple representation arrangement, the brokerage must do what is best for both the buyer and the seller.

Since the brokerage’s loyalty is divided between the buyer and the seller who have conflicting interests, it is absolutely essential that a multiple representation relationship be properly documented. Representation agreements specifically describe the rights and duties of everyone involved and any limitations to those rights and duties.

4. Customer service

A real estate brokerage may provide services to buyers and sellers without creating buyer or seller representation. This is called "customer service." Under this arrangement, the brokerage can provide many valuable services in a fair and honest manner. This relationship can be set out in a buyer or seller customer service agreement.

Real estate negotiations are often complex and a brokerage may be providing representation and/or customer service to more than one seller or buyer. The brokerage will disclose these relationships to each buyer and seller.

Who's working for you?

It is important that you understand who the REALTOR® is working for. For example, both the seller and the buyer may have their own agent which means they each have a REALTOR® who is representing them. Or, some buyers choose to contact the seller's agent directly. Under this arrangement the REALTOR" is representing the seller, and must do what is best for the seller, but may provide many valuable customer services to the buyer.

A REALTOR® working with a buyer may even be a "sub-agent" of the seller. Under sub-agency, both the listing brokerage and the co-operating brokerage must do what is best for the seller even though the subagent may provide many valuable customer services to the buyer.

If the brokerage represents both the seller and the buyer, this is multiple representation

Source: This information is based on a brochure "Working with a Realtor®" published by the Ontario Real Estate Association.

January 2, 2007 in Agency Matters | Permalink | Comments (0) | TrackBack

Joyeux Noel

A glossy French antiwar movie "Joyeux Noël", with melted snowflakes in its eyes, tells the true story of an improvised Christmas truce during the first year of World War I. The visually sweeping film, written and directed by Christian Carion, is the kind of feel-good, feel-sad movie with a message that invites you to bask in the glow of communal bonhomie, as enemy soldiers lay down their arms, stagger out of their trenches and sing carols together on a frigid Christmas Eve.

If this film's sentiments about the madness of war are impeccably high-minded, why then does "Joyeux Noël" seem as squishy and vague as a Hallmark greeting card declaring peace on earth?

Maybe it's because the kind of wars being fought in the 21st century involve religious, ideological and economic differences that go much deeper and feel more resistant to resolution than the European territorial disputes and power struggles that precipitated World War I.

Merry Christmas Everyone!

December 24, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

Habitat for Humanity Home

On Sunday December 17th Toronto Real Estate Board Members changed the lives of a family in need when President Dorothy Mason presented funds to Habitat for Humanity Toronto. A cheque culminating $80,000 raised by TREB and the OREA Care Foundation was presented at the site of Habitat’s most recent build: Lakeshore Village, in the Lakeshore and Islington area.

As a result of the cheque presented, TREB has raised sufficient funds to sponsor a Habitat for Humanity home. The partner family will be presented with the keys to their home at a Toronto Board event in 2007. The Toronto Board sponsored its first Habitat for Humanity Home in 2004 at McLevin Woods in Scarborough, the site of a Habitat mega-build project.

December 19, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

Incorporation for Salespeople?

After 6 months of study, the Toronto Real Estate Board has asked the Ontario Real Estate Association (OREA) and the Real Estate Council of Ontario (RECO) to lobby the province to allow salespeople and brokers the ability to incorporate in Ontario under the Real Estate and Business Brokers Act. At present, registration of a corporation is allowed only for a brokerage which must designate an individual as broker of record.

Other Ontario real estate boards have also been asked to support the Toronto Board’s position that the time has come to level the playing field and allow a practice that has been granted to many professions in Ontario.

December 14, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

Ottawa real estate market up

Ottawa home sales for 2006 have already surpassed last year's tally, the Ottawa Real Estate Board reports. "Despite slightly lower sales than last November, our members have now sold over 13,100 homes in Ottawa this year, a significant increase over 2005," says board president Ron Levine.

The average Ottawa home has sold for $256,289.

December 9, 2006 in Agency Matters | Permalink | Comments (1) | TrackBack

Press Release from Realtysellers

Realtysellers Suspends Operations Pending Resolution of MLS Issues -- Legal Action Imminent -- Extensive Damages Sought

TORONTO, Nov. 29 /CNW/ - Realtysellers (Ontario) Limited announced today that it has suspended its Canadian operations pending resolution of the Multiple Listing Service ("MLS") issues brought about by the actions of the Canadian Real Estate Association ("CREA"). CREA has been working to implement rules that would restrict Realtysellers' access to the MLS systems of local member boards.

Realtysellers previously commenced a lawsuit over similar issues with CREA which was settled in January, 2004. The result of the settlement meant that Realtysellers could continue to offer all of its services and programs. It also ensured continued access to MLS for Realtysellers without interference. At the time of settlement, CREA issued a statement confirming that Realtysellers was operating in "good standing and in compliance with the rules of MLS".

Despite this earlier settlement, CREA is again attempting to restrict access to MLS. Realtysellers is committed to pursuing all available legal options to prevent CREA from engaging in this type of activity in the future.

About Realtysellers

Based in Toronto, Ontario, Realtysellers (Ontario) Limited was providing home buyers and sellers with innovative services and programs that provided the customer with additional value through lower listing fees and buyer rebates. All of Realtysellers programs included MLS access and all listings were posted on mls.ca. Over the past six years, Realtysellers has served thousands of customers. Realtysellers was operating throughout Ontario and Nova Scotia with referral programs operating across Canada.

November 30, 2006 in Agency Matters | Permalink | Comments (2) | TrackBack

Realtysellers suspends operations

Realtysellers Ltd. has suspended its Canadian operations over a listing dispute with the Canadian Real Estate Association. The company said today the dispute is related to Multiple Listing Service, or MLS, issues brought about by the actions of the Canadian Real Estate Association, which it said "has been working to implement rules" that would restrict Realtysellers' access to the MLS systems of local member boards.

Realtysellers is a Toronto-based company that boasts of lower listing fees and buyer rebates for customers in Ontario and Nova Scotia and referral programs across the country. Realtysellers had previously launched a lawsuit over similar issues with CREA, which was settled in 2004 and stated the company could continue to offer all of its services and programs.It also ensured continued access to MLS for Realtysellers without interference.

At that time, the company said, CREA issued a statement confirming that Realtysellers was operating in "good standing and in compliance with the rules of MLS." On Wednesday, Realtysellers said it would pursue all available legal options "to prevent CREA from engaging in this type of activity in the future."

The Canadian Real Estate Association is the industry's trade association, representing more than 88,000 real estate brokers and salespeople.

November 30, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

'Home at Last'

The London and St. Thomas Association of REALTORS® has launched their first “Home at Last” affordable home ownership project. "Home at Last" is a public-private partnership made up of the Association of REALTORS®, the London Home Builders Association, the London Affordable Housing Foundation, and CMHC.

The goal of "Home at Last" is to help families currently residing in assisted housing achieve their dream of home ownership and, in so doing, to free up an assisted housing unit for a household on the London and Middlesex Housing Corporation’s waiting list. At the end of October 2006, there were 3,442 families on that waiting list.

On November 20th media and guests also met the family who will be calling the soon-to-be-renovated house at 836 Lovett Street in London as “home, sweet home”: Andrew Neilson and Vicki Schnurr and their daughters Arianna (15) and Talia (6).

"We’ve had phenomenal cooperation and support in this venture," says Mike Carson, Chair of the London and St. Thomas Association of REALTORS® Community Relations Advisory Group and that organization’s President-Elect. "The City of London came forward with a grant of $10,000 towards the project and individuals and corporations have been extraordinarily generous in their donation of both goods and services."

"Our Members will be involved in every aspect of the renovation," comments Carmine Gargarella, Chair of the London Home Builders Association’s Community Service Committee. "Their generosity and commitment to making this work is a testament to the value they place upon making our community a better place one family at a time."

The project will serve as a kind of field classroom for High School Construction students, who will be observing and, at times, assisting LHBA Members with the renovation. While onsite, students will be supervised by their teacher and qualified tradesmen and builders. The partners hope to have the renovations completed by February 14, 2007 – Valentine’s Day.

"This renovation is our pilot project," says Gargarella, "and, while we can’t predict just how many renovations we will end up doing, it is certainly our expectation and our goal to make the program ongoing and sustainable."

November 22, 2006 in Agency Matters | Permalink | Comments (1) | TrackBack

Toronto builder groups merge

The Greater Toronto Home Builders’ Association and the Urban Development Institute of Ontario have merged. Representing more than 1,500 builders, developers and related companies, GTHBA-UDI states that it "will apply its combined resources to ensure that the interests of the residential development industry are heard loud and clear on Parliament Hill, at Queen’s Park, and in city and town halls throughout the GTA."

"No industry is more affected by government regulations and policy decisions than land development and new home construction,” says Desi Auciello, head of the combined body and former president of the home builders’ association. “And few industries are more important to the local economy and the future well being of the GTA."

"Residential development in the GTA is the engine that drives the provincial economy," says Mark Tutton, former chair of the developers’ group. "Only by combining forces and raising a clear voice for the interests of the industry can we ensure it continues to thrive to the benefit of all Ontarians."

Residential construction in the GTA is responsible for more than 171,000 well paying jobs in new home construction and housing renovation, says the association. The $12 billion industry contributes billions in tax revenue to federal, provincial and municipal governments annually.

"Neither the continued success of our industry nor the abundant public benefits that flow from plentiful jobs and substantial taxes can be sustained if new home sales fall because people are forced out of the market due to additional costs," says Tutton.

GTHBA-UDI – an interim name for the new organization – is comprised of residential and non-residential land developers, home builders, professional renovation contractors, subcontractors, suppliers, service, professional and financial firms. The association says it will maintain its affiliations with the Ontario and the Canadian home builders’ associations.

November 20, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

Toronto Real Estate Board AGM

T

he Toronto Real Estate Board's Annual General Meeting had an incredible turnout of approximately 2,000 attendees on October 5th as Members gathered to get an update on TREB activity and listen to a panel of experts on real estate fraud.

The General Meeting segment of the event featured a year-in-review video from the 2005/2006 term, an analysis of financial statements from that fiscal period and an update on the Board's activity over the past three months from President Dorothy Mason.

TREB’s Chief Information Officer John DiMichele gave a presentation about the fact that Members can now access new housing inventory and commercial information through TorontoMLS as a result of a recent agreement with Teranet and RealNet. The presentation met a rousing round of applause.

Members were also polled through the use of 500 electronic transponders distributed at random throughout the room to gain feedback on TREB services and emerging issues. See Polling Results [PDF*].

Ontario Minister of Community Safety and Correctional Services Monte Kwinter, a former Commercial REALTOR?, gave the keynote address, highlighting issues such as mortgage fraud, marijuana grow houses and meth labs. See minister’s remarks [PDF*].

These topics were further covered by a “Slam the Scam” panel of experts comprised of Staff Inspector Stephen Harris from the Toronto Police Service Fraud Squad, Detective Fred Kerr from the York Regional Police Fraud Squad, Noreen Alleyne, Acting Assistant Deputy Minister, from the Ministry of Community Safety and Correctional Services and moderated by Chris Mathers, a former undercover agent with the RCMP. Members had an opportunity to ask questions of the panel throughout the discussion.

The panel discussion kicked off a series of “Slam the Scam” Continuing Education sessions on individual topics, which will be offered in the weeks ahead.

The event also received considerable media attention with journalists from the Toronto Star, the Toronto Sun and a number of Chinese media outlets taking it all in.

To check out photos of the excitement. See Details [PDF*].

October 7, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

Real Estate Representation

M

ore often then not, the keyword in the real estate industry is "sell" rather than "represent". Far too many brokers and agents appear to have an undeclared mission statement that reflects "salesmanship" rather than "representation" of Buyer or Seller.

First and foremost, ethically and legally, a real estate agent should be continuously aware of his fiduciary responsibility to the client. "Fiduciary" simply means handling funds on behalf of another. Integral to that definition is the element of trust which is as much a responsibility, as it is a privilege. Real estate breeds the most litigation of any industry, a fact that could very easily be a thing of the past if more agents would faithfully execute their fiduciary responsibility to their clients. It would reduce litigation significantly.

There is an adage in this industry that says, "20% of all agents make 80% of all sales". Is this a measure of success? Perhaps, but a better measure of success would be one that measures character and responsible representation.

September 5, 2006 in Agency Matters | Permalink | Comments (0) | TrackBack

Real Estate Acronyms

A

s with any organization, the real estate industry often relies on abbreviations and acronyms to describe a service, association or designation. Listed below are some of the more common acronyms used in the course of the board’s/association’s business. The following list is provided to help you identify specific industry designations/abbreviations.

A

AACI - Accredited Appraiser Canadian Institute - Granted by the AIC.

ACRE - Alliance for Canadian Real Estate Education

During the early 1980s an informal group of Provincial Directors of Education emerged and began to meet twice a year. In 1994, with the advent of the Agreement on Internal Trade (AIT) signed by the federal, provincial, and territorial governments, a more formal structure of ACRE was necessary. In 1994, a Work Group was established to respond to the AIT requirements and to establish minimum education standards. In January 1999, this Work Group officially became ACRE.

AEC - Association Executive Council (CREA)

AFM - Accredited Farm Manager (Granted by ASFMRA)

AI - Appraisal Institute

The Appraisal Institute is an international membership association of professional real estate appraisers, with more than 18,000 members and 99 chapters throughout the United States, Canada and abroad. Its mission is to support and advance its members as the choice for real estate solutions and uphold professional credentials, standards of professional practice and ethics consistent with the public good.

Membership is open to appraisal practitioners as well as to individuals from allied fields. Designated members may hold the MAI, SRPA or SRA membership designation. Currently, the Appraisal Institute confers one general (commercial) designation, the MAI, and one residential designation, the SRA. The associate member category is for individuals who engage in activity governed by the Uniform Standards of Professional Appraisal Practice. Affiliate membership is open to individuals who are not performing USPAP-related work but wish to be allied with the Appraisal Institute such as bankers, attorneys, and government agency representatives.

AIC - Appraisal Institute of Canada

Founded in 1938, the Appraisal Institute of Canada is the national organization of professional real estate appraisers. The Institute is dedicated to serving the public interest through continually advancing high standards for the appraisal profession by granting use of the CRA (Canadian Residential Appraiser), AACI (Accredited Appraiser Canadian Institute),and P.App (Professional Appraiser) designations.

The Institute has more than 4,500 members across Canada. Designated members provide reasoned valuations, widely respected by the courts, real estate corporations, chartered banks, trust companies, mortgage lending institutions, all levels of government and private individuals. Many users of appraisal services will only accept appraisal reports completed by individuals who have earned use of the AACI, P.App, or CRA designation.

The Institute office is located in Ottawa, with association offices in each province.

AIMA - Associate Institute of Municipal Assessors - Granted by IMA.

ALC - Accredited Land Consultant - Granted by RLI.

AMO - Accredited Management Organization

The ACCREDITED MANAGEMENT ORGANIZATION® (AMO®) designation is the only recognition given to real estate management firms. Conferred by the Institute of Real Estate Management (IREM®), achievement of AMO® status is a major step toward your firm being recognized as one of the nation's outstanding professional real estate management organizations. Becoming an AMO® can help your firm achieve both financial and professional success. Only a select group of 620 real estate management firms hold the prestigious AMO® designation, yet they manage a collective portfolio of more than $75 billion, or nearly 10 percent of the nation's real estate assets. And the demand for their services is growing.

ARELLO - Association of Real Estate License Law Officials

ARELLO is the Association of Real Estate License Law Officials, comprising the official governmental agencies and other organizations around the world that issue real estate licenses/registrations in addition to regulating real estate practice and enforcing real estate law.

ASAE - American Society of Association Executives

ASAE is the largest society of association executives in the world. Their office is located in Washington.

ASFMRA - American Society of Farm Managers & Rural Appraisers

The American Society of Farm Managers was founded on January 14, 1929, by a core of dedicated farm managers from Illinois, Iowa and Missouri who felt that farm management professionalism was critical to the future of farming. In 1936, the organization was expanded to include appraisers who specialized in determining the value of farms and other rural properties. At that time, the name was changed to the American Society of Farm Managers and Rural Appraisers (ASFMRA). The American Society includes distinct levels of membership, each with educational standards, ethical requirements, field experience, testing, and continuing education requirements. At the top is a group of highly educated, thoroughly seasoned and experienced farming and rural valuation experts who have taken years of training to earn the designations of Accredited Farm Manager (AFM),Accredited Rural Appraiser (ARA), Real Property Review Appraiser (RPRA) and Accredited Agricultural Consultant (AAC).

ASREC - American Society of Real Estate Counselors - A division of CREA.

B

BOMA - Building Owners & Managers Association

The Building Owners and Managers Association (BOMA) of Canada is the voice of the Canadian commercial real estate industry with over 2,000 members in regional associations across Canada. On behalf of the building owners, managers, developers, facilities managers, asset managers, leasing agents, brokers, and the product and service providers to over 1.9 Billion square feet of commercial real estate in Canada, BOMA Canada addresses issues of national concern, and promotes excellence in the industry through information, education advocacy and recognition.

BOMA Canada brings value to members of BOMA across Canada, by providing a strong voice for the industry which is based on strength in numbers (the combined BOMA association membership across the country), creating a critical mass and focus of resources to push for change on advocacy issues. Through our national committees and strong communications across the country, BOMA Canada facilitates the sharing of information and pooling of expertise, ideas and resources for the benefit of the local associations, individual members and the industry at large.

C

CAE - Certified Association Executive - Granted by CSAE

CAHPI - Canadian Association of Home & Property Inspectors

CAHPI is a national association, whose mission is to promote and develop the home inspection industry. CAHPI is considered the voice of Canada’s "home inspection industry".

Home inspection began as a consumer service in the 1970’s and it soon became apparent that selecting a Home Inspector was becoming as important as selecting a qualified Real Estate Professional, or even the right home. To meet this need, the association was formed in 1982. CAHI operated as the Canadian arm of the American Society of Home Inspectors until 1994, when several provincial/regional organizations formed CAHI National. In September 2002, the name of CAHI was changed to the Canadian Association of Home & Property Inspectors (CAHPI).

CCI - The Canadian Condominium Institute

The Voice of Condominium in Canada. We are a national, independent, non-profit organization dealing exclusively with condominium issues. Formed in 1982, CCI represents all participants in the condominium community. We encourage all interest groups to work together toward one common goal -- creating a successful and viable condominium community

CCIM - Certified Commercial/Investment Member

The CCIM Institute confers the CCIM designation and is an affiliate of the National Association of REALTORS® (NAR). The CCIM movement began more than 40 years ago with commercial real estate practitioners who wanted to elevate their business practices through education and networking. Then and now, education and networking remain the cornerstones of the CCIM designation and the reason for its success.

The CCIM designation was established originally by the California Association of REALTORS® in 1954 under the name Certified Property Exchanger (CPE). In 1967 it took on national significance under administration by a division of the National Association of Realtors. In 1969, the designation was renamed Certified Commercial Investment Member (CCIM). A council was established to administer the designation and in 1991 it was granted institute status as an affiliate of NAR.A Certified Commercial Investment Member (CCIM) is a recognized expert in the disciplines of commercial and investment real estate. A CCIM is an invaluable resource to the commercial real estate owner, investor, and user, and is among an elite corps of 7,500 professionals across North America who hold the CCIM designation

CICBV - Canadian Institute of Chartered Business Valuators

The CICBV is the largest professional valuation organization in Canada. The CICBV is a nonprofit professional Institute established in 1971 to promote high standards in business and securities valuation. Its Members and students are drawn from industry, accounting firms, independent valuation firms, investment dealers and government and regulatory agencies.

The Institute which was formerly known as the Canadian Business Valuators Association, was founded in 1971 by 28 valuation professionals, lead by the late Mr. George Ovens. The founders of the Association realized that introduction of taxation of capital gains in Canada would increase the general need for business valuations. Hence the birth of the CABV, dedicated to establishing an organization for the purpose of ensuring professionalism and high standards in the field of business valuations.

CIMBL - Canadian Institute of Mortgage Brokers & Lenders

CIMBL is the national organization representing Canada’s mortgage industry. With over 7,500 mortgage professionals – its membership is drawn from every province and from all industry sectors. This diversified membership enables CIMBL to bring together key players with the aim of enhancing professionalism through the enforcement of a Code of Ethics, adherence to best practices, harmonization of education standards, fraud prevention, informative publications and improved public profile.

CLO - Certified Leasing Officer Designation - REIC.

CLP - Certified in Land Planning and Development

CMA - Current Market Appraisal

CMHC - Canada Mortgage & Housing Corporation

CMHC first opened its doors on New Years Day in 1946. Then called the Central Mortgage and Housing Corporation, it was created by Parliament to help meet the housing needs of the thousands of Canadian veterans who were returning from the Second World War. In the years since that day, CMHC has undergone many changes, but one thing hasn't changed: our focus on helping improve the quality, choice and affordability of housing for all Canadians.

During the post-Depression, post-WWII years of the '40s, the Canadian housing landscape was dominated by the family bungalow. Small, more or less insulated, heated by hot-air furnaces and containing few if any appliances or other modern conveniences, these houses were spartan by today's standards but were nonetheless called home by millions of Canadians. In the '50s, a booming economy and innovations in building materials and practices led to a kind of 'Golden Age' for the housing industry. Homes grew larger, acquired full-height basements, and bathrooms and kitchens grew to make space for the abundance of new appliances that were becoming all the rage.

CMR - Certified in Marketing of Real Estate

CPM - Certified Property Manager (granted by AMO)

CRA - Certified Real Estate Appraiser (granted by AIC)

CRES - Certified Real Estate Specialist (granted by REIC)

CRB - Certified Real Estate Brokerage Manager

The Council of Real Estate Brokerage managers is a not-for-profit affiliate of the National Association of REALTORS (NAR). The Council of Real Estate Brokerage Managers (CRB Council) provides superior member benefits to enhance the productivity and profitability of its nearly 7,000 members nationwide. Since 1968, the Council has awarded the prestigious Certified Real Estate Brokerage Manager (CRB) Designation to REALTORS® who meet specific requirements and have completed advanced professional training. Our members consistently increase their level of industry knowledge, advance their earning and career potential, increase their firm’s productivity, and benefit from active involvement in our network of real estate professionals.

CRE - Counselor of Real Estate

The Counselors of Real Estate is the membership organization established exclusively for real estate advisors who provide intelligent, unbiased, and trusted advice for a client or employer. Founded in 1953, the organization serves 1,100 members worldwide, all who hold the "CRE" designation. CREs are linked to one another by their commitment to integrity, competence, community, trust, and service; and they adhere to a strict Code of Ethics and Standards of Professional Practice.

CREA - The Canadian Real Estate Association

One of Canada's largest single-industry trade associations, representing approximately 66,000 real estate brokers/agents and salespeople working through 112 real estate boards, 10 provincial associations and one territorial association.

CRF - Certified in Real Estate Finance - Granted by REIC.

CRG - Canadian Regulators Group

Each agency has a mechanism for licensing and regulating the real estate industry. There are a variety of regulation models in place including government regulation, shared responsibility between government and industry (co-regulator) and industry based regulation (self-regulation). The regulatory body is responsible for regulating vusiness practices, setting standards of conduct and protecting consumers affected by the real estate industry. This is accomplished through legislation, regulations, rules, codes of conduct and policies.

CRS - Council of Residential Specialists

Since 1977 the Council of Residential Specialists has been conferring the CRS Designation on agents who meet its stringent requirements. Currently, there are nearly 36,000 active CRS Designees.

CRS - Certified Residential Specialist

Granted by CRS. The Certified Residential Specialist (CRS) is the highest Designation awarded to sales associates in the residential sales field. The CRS Designation recognizes professional accomplishments in both experience and education.

CSAE - Canadian Society of Association Executives

On June 8, 195l, a committee of six trade association executives founded the Institute of Canadian Trade Association Executives (ICTAE) – a group of chief executives from national trade associations based in Montreal, Ottawa and Toronto. Operating from a small Ottawa-based office, the new association developed a constitution, bylaws, hired part-time staff, and began a remarkable tradition of service.

In 1953, the fledgling Institute held its first annual business meeting, approved 25 membership applications, and elected the first woman – Florence Montgomery of the Canadian Restaurant Association – to its board. Member services included a newsletter, employee referral and group insurance discounts.

The Institute changed its name to the Institute of Association Executives (IAE) in1956 and opened its doors to all individuals employed by non–profit associations. On October 18, 1962, the Institution was incorporated under federal charter and moved from Ottawa to Toronto two years later. In 1987, the association changed its name again – this time to its current title, the Canadian Society of Association Executives (CSAE).

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D&O - Directors & Omissions Professional Liability Insurance

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EA - Evaluateur Agree - Chartered Appraiser.

E&O - Errors and Omissions Professional Liability Insurance.

EO - Executive Officer

EOC - Executive Officers Council - A Council of CREA.

EVP - Executive Vice President

EXCEL - Excellence in Chief Executive Learning

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FIABCI - International Real Estate Federation

An acronym from its name in French. In its 52 years of existence FIABCI the International Real Estate Federation, has built an enviable reputation as the authentic voice of international real estate. Multi-disciplinary and truly international it has no political axe to grind and represents the interests of no one country. Because of this and its concern with generating business opportunities for its worldwide membership, its opinions are sought by international bodies like the UN and regional bodies like the EU, NAFTA and MERCOSUR. There are 50 FIABCI Chapters throughout the world and new ones are regularly being formed. Currently there are also around 100 professional associations in membership. Called Principal Members by FIABCI, they have a total membership approaching 1.5 million practitioners. FIABCI is multi lingual and multi cultural and operates in five official languages: English, French, German, Spanish and Japanese.

FRI - Fellow of the Real Estate Institute - Granted by REIC.

FRI(E) - Executive Fellow of the Real Estate Institute - Granted by RICS.

FRICS - Fellow, Royal Institution of Chartered Surveyors - Granted by RICS.

FSBO - For Sale by Owner

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IAAO - International Association of Assessing Officers

International Association of Assessing Officers was first formed as a national body in 1934 to train and educate assessment professionals, work toward a more equitable assessment system, and focus on a revision of property tax legislation as a remedy for the Depression, then at its height. In 1959, the growth of its international membership resulted in the present association nomenclature.

Today the IAAO has nearly 8,000 members in twenty-one countries around t