for the reco rd · 2015. 12. 15. · operations flight certificate (sofc) from transport canada...
TRANSCRIPT
RECOrdF O R T H E
PUBLISHED BY THE REAL ESTATE COUNCIL OF ONTARIO • SPRING 2015
ARE YOU PREPARED FOR CHANGES IN OFFER HANDLING?
RECO TAKES ACTION AGAINST CHEATING IN
ONLINE EDUCATION
KITEC PLUMBING AND MATERIAL FACTS
2 S P R I N G 2 0 1 5
The spring buying season is in full
swing, and it’s been a busy season
at RECO as well. The way we
communicate is changing, the
regulatory environment is changing,
and we are welcoming a new
Director to the Board.
NEW WEBSITE MAKES IT EASY TO FIND INFORECO recently launched a redesigned
website that features a fresh, bold
design. But even more importantly, it
focuses on straightforward navigation,
making it easier for you to find the
latest news and bulletins, and learn
about your education, registration and
insurance requirements.
It’s a big upgrade for consumers too—
whether it’s home inspections, deposits,
or competing offers, we’ve made it
easier for buyers and sellers to find the
information they need. And, it makes
it easier for you to share these helpful
resources with your clients.
If you haven’t taken a look yet, I
encourage you to take a few minutes
to check it out.
NEW RULES FOR HANDLING OFFERSThe coming weeks will mark an
important changes in how we
conduct real estate in Ontario. Starting
July 1, new rules for handling offers
will come into effect, as a result of
Bill 55, the Stronger Protection for
Ontario Consumers Act, 2013. If you
haven’t reviewed the fact sheet on
RECO’s website, I urge you to do so
as soon as possible.
REGISTRANTS NOMINATE THREE DIRECTORSEarlier this spring, registrants voted to
nominate three Directors to the Board.
I would like to extend a special
congratulation to Timothy Barber, who
will be joining the Board for the first
time. I would also like to congratulate
Michael Appleton and Mike Cusano on
their return to the Board. Serving on
RECO’s Board is a great honour and a
rewarding experience.
All three nominated Directors will be
formally elected at the AGM.
FAREWELLThe AGM will mark the end of my time
as a Director, and the end of my term
as Chair. I would like to extend my
deepest gratitude to my fellow
Directors for their support as we
worked together to advance the
profession. I also want to express
my thanks to the staff of RECO for
their hard work and commitment to
making RECO the best it can be.
Serving as Chair has been incredibly
rewarding, and I’m very proud of what
we have been able to accomplish. I’ve
greatly enjoyed meeting real estate
professionals across Ontario, and
learning about their unique viewpoints
and concerns. I have every confidence
that my successor will continue to
advance our profession.
By Glenda Brindle
MESSAGE FROM THE CHAIR RECO BOARD OF DIRECTORS
MESSAGE FROM THE CHAIR RECO BOARD OF DIRECTORS
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CHANGES IN OFFER HANDLING
COMING JULY 1, 2015New rules for handling offers come into
effect on July 1, 2015.
Your brokerage must create processes
and policies that comply with these
legislative changes.
RECO has prepared a detailed fact
sheet about the changes. All registrants
should review it so that they can ensure
compliance as of July 1, 2015.
Here is an outline of the changes:
• Offers must be made in writing.
Please keep in mind that a written
offer must be signed to be valid.
• A registrant cannot indicate that they
have an offer, unless they have a
written offer.
• The seller’s brokerage must keep a
record of all written offers that it
receives.
• RECO is developing a process to
confirm the number of offers that
were received for a property.
The changes stem from Bill 55, the
Stronger Protection for Ontario
Consumers Act, 2013. To review the
relevant changes, see section 35.1
of REBBA 2002 and section 19.1 of
Ontario Regulation 579/05 made
under REBBA 2002.
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Recently, RECO has received inquiries about registrants’ obligations when selling a property with Kitec plumbing, a type of pipe that is vulnerable to premature failure. This can damage the home and result in costly repairs for the homeowner. RECO encourages registrants to find out how to identify Kitec and seek expert assistance from a home inspector or plumber when necessary. Such a flaw can be considered a material fact. Here’s what you need to know about material facts.
KITEC PLUMBING AND MATERIAL FACTS By Joseph Richer, Registrar
Section 21 of the Code of Ethics says
registrants must, on behalf of clients,
take reasonable steps to determine the
material facts relating to the purchase
or sale of a property and, at the earliest
practicable opportunity, disclose the
material facts to the client.
A material fact is something that:
• could affect a “reasonable person’s
decision” to purchase or sell a
property;
• may influence what price to offer or
to list at; or
• may influence what conditions are
attached to any agreements of
purchase and sale.
RECO is often asked for a list of facts
that would be considered material. But
what is a material fact to one buyer
or seller may not factor into another
client’s decision-making process for
many different reasons, not the least
of which is the intended use of the
property.
Issues that are often considered to be
material facts include:
• The type of insulation and wiring
(knob and tube wiring, for example)
• The type of plumbing (Kitec pipes,
for example)
• A history of flooding, structural
damage or fire
• Renovations made to a property and
whether they were conducted with a
permit
• Property taxes
• Whether a property had been used
as a grow-op or for other illicit
purposes
• Any rights-of-way, allowances
or restrictions regarding use of
the property established by the
municipality, region or other
governmental agency
• Existence of nearby businesses or
facilities that may impact quality of
life (e.g., prisons, quarries, industrial
facilities, airports, rail lines, etc.)
From RECO’s perspective, a registrant’s
obligation is twofold:
1. Take reasonable steps to determine
the material facts; and
2. Promptly disclose those facts to
the client.
WORKING WITH A SELLERWhen acting as a listing representative
it is possible that the material facts may
already be known by the seller, but the
obligation to determine and disclose to
your client still exists.
For virtually all material facts, the
“reasonable steps” required for
determining those facts will go beyond
simply accepting the seller’s verbal
representations. Some research and
supporting documentation will be
necessary.
WORKING WITH A BUYERWhen working with a buyer, registrants
often have checklists or ask questions
of the buyer to determine their needs
and what type of property will best suit
them. This is the ideal time to discover
the interests and sensitivities of the
buyer and help determine what the
buyer would consider a material fact
about a specific property.
When in doubt about whether
something may constitute a material
fact to your client, err on the side of
disclosing it to them.
If you are aware of something that
could be considered a material fact to
your buyer client, you should disclose
it to them. Failing to do so can have
significant consequences – both in
terms of civil liability and under
REBBA 2002.
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As professionals, registrants are
expected to act with honesty and
integrity, and this situation is
no different.
A recent case has demonstrated
that there are consequences for
trying to evade continuing
education requirements, as the
registrant in question was fined
$2,500 after pleading guilty to a
provincial offence. Submitting a false
document to RECO’s Registrar is a
violation of the Real Estate and Business
Brokers Act, 2002 (REBBA 2002), and
RECO takes cheating very seriously.
It’s also important to note the purpose
of mandatory continuing education—
to provide valuable information that no
registrant in Ontario should be without.
RECO will continue to investigate
allegations of this nature and take
appropriate action, which could
include a provincial prosecution,
a discipline hearing or a refusal to
renew registration.
RECO’s online mandatory continuing education program has been a big success since it launched in 2013. As part of the process, registrants have to declare their identity at the end of each course. And when registrants renew, they have to sign a declaration that they have met their continuing education requirements.
CHEATING IN ONLINE EDUCATION LEADS TO REGULATORY ACTION
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Consumer Protection Ontario is an
awareness program from Ontario’s
Ministry of Government and Consumer
Services, which promotes consumer
rights and public safety in conjunction
with other public organizations such
as RECO.
HOW CAN CONSUMER PROTECTION ONTARIO HELP YOU AND YOUR CLIENTS?When you’re guiding your clients as
they buy or sell a home, consider letting
them know about Consumer Protection
Ontario to help them navigate some
of the other aspects involved in
moving and owning a home. It’s all
about knowing the right questions
to ask!
MOVING COMPANIES:Did you know that when working
with a moving company, they can’t
charge you more than 10% above the
written estimated cost unless you agree
to a new service, price, or sign a new
contract?
DOOR-TO-DOOR SALES:The Consumer Protection Act (CPA)
gives you special rights when you buy
something in your home that costs
more than $50. You have the right to
cancel a contract for any reason within
a 10 calendar-day cooling-off period,
with the exception of water heater
contracts for which you have a
cooling-off period of 20 days.
HOME RENOVATIONS:Under Ontario law, any home
renovation contract worth more than
$50 must be in writing. Be sure that
that all the details (such as the type of
materials being used) are in writing.
Be prepared to pay for any extra
materials or any work that are not
in the contract. If something isn’t
written in your contract, you may
not get it.
To learn more about your rights and the
right questions to ask when it comes
to movers, door-to-door sales, home
renovations and much more, visit
www.ontario.ca/ConsumerProtection.
GET INFORMED: MOVERS, DOOR-TO-DOOR CONTRACTS, HOME RENOVATIONS AND MORE!
Real Estate Council of Ontario
3300 Bloor Street West
Suite 1200, West Tower
Toronto, Ontario M8X 2X2
Tel: 416-207-4800
Toll-Free: 1-800-245-6910
Fax: 416-207-4820
Do you have any comments or inquires about For the RECOrd
newsletter? Please send them to: [email protected]
Disclaimer: While RECO makes every effort to ensure that the information in this publication is current and accurate, RECO does not warrant or guarantee that it will be free of errors. The information contained in this publication is not intended to cover all situations. It is general information only and users/readers are encouraged to seek their own independent advice for particular fact situations.
Using an aerial drone to take photos
or videos can provide a unique
perspective on a property that’s on the
market. However, registrants should be
aware that there are stringent rules and
regulations regarding the use of drones.
Drones, or unmanned aerial vehicles
(UAV), fall under Transport Canada
jurisdiction. If you want to operate
a drone you are required to obtain
insurance coverage and approval from
Transport Canada – a process that can
be quite lengthy.
You’ll also need to obtain a special
operations flight certificate (SOFC) from
Transport Canada before each flight.
Failure to obtain an SOFC can result in
penalties in the amount of $5,000
for an individual and $25,000 for a
corporation.
RECO does not regulate the use of
drones. Information on how to apply
to conduct a drone flight can be found
on Transport Canada’s website
(www.tc.gc.ca).
DRONESDID YOU KNOW?