What's In A Seller's Best Interest

  Late in 2016 and early 2017, real estate For Sale signs began appearing in our market with the added message "Coming Soon To Realtor.ca."  Consumers were and still are often confused not knowing what this statement implies so let's clear the air.

  Many of us visiting a movie theatre to take in a film often sit through a parade of ads highlighting upcoming films that are coming to the theatre soon.  "Coming Soon To Realtor.ca" signs have been used in markets such as Toronto and elsewhere for years and are a way in which a listing REALTOR® may choose to pre-market a property for sale before it hits the Multiple Listing Service (MLS).  Often this is done while the property's owner(s) complete some last minute preparations to list their home or condo for sale on the local MLS and this may include such tasks as interior or exterior painting, decorating, the staging of furniture, yard clean up, completing property photos and so on.  While the overall intent of using a Coming Soon To Realtor.ca sign on a property may seem legitimate the big question is, does doing so best represent a seller in exposing the property to as many potential buyers as possible thus helping to ensure they get the best sale price and terms possible?

  As REALTORS® we are governed by provincial law namely the Real estate and Business Brokers Act (REBBA 2002).  This act includes a variety of requirements pertaining to advertising none of which can be viewed as being false, misleading or deceptive.  Let me ask this question. If as a buyer you noticed a property with a For Sale sign that further said "Coming Soon To Realtor.ca," you had a potential interest in the property only to find out that it was sold and never got listed on MLS, how would you feel?  Falsely excited? Mislead? Deceived? I certainly would.

 As a licensed real estate Broker, this is not a practice that I have or would use.  First, installing a For Sale sign of any type on a property must include written consent from the seller(s).  This consent must have an effective date as well as written direction from the seller(s) as to how and when showings of the property are to be managed as well as the date on which offers will be accepted.  Too often these details are overlooked.  Too often the listing REALTOR® may just be trying to find a buyer on their own.  Again, is this in the best interest of the seller(s)?  The answer is probably no!

 The Canadian Real Estate Association (CREA) owns and manages www.realtor.ca.  The only "Coming Soon" sign allowed and or endorsed by CREA is "Coming Soon To Realtor.ca."  "Coming to MLS" is not allowed neither is just "Coming Soon" as is begs the question coming soon to what?  Some real estate boards and associations across Canada do not allow the use of such signs as part of the MLS rules and regulations, personally I think it's time to perhaps consider the same here in our market.  Seller's deserve and are entitled to the best possible service we as REALTORS® can deliver and the same applies to buyers. 

  Ultimately a property is either for sale or it's not.  Let's stop playing games and service our seller and buyer clients in the best way possible with knowledgeable, timely and forthright service that demonstrates the value that we as REALTORS® bring to the real estate transaction.  I would love to hear your opinion on this or feel free to Contact Me with any questions you may have.
        

Camera Drones - A Cool Gadget But It Comes With Potential Liabilities

  As with many things if life these days, real estate is an ever changing entity.  Shifting economic and market conditions, revised legislative requirements and the changing whims of buyers and sellers all play a role in impacting how we market and sell properties. 

  Perhaps the biggest change of all in our industry however has come from advances in technology.  One of the latest technological breakthroughs has been the use of unmanned aerial vehicles (UAV's) commonly referred to as drones.   Much the same as the GoPro camera craze that hit the market a few years ago, drones are quickly becoming the rage with photo enthusiasts looking to take their picture taking creativity to new heights and they were one of the hot gift items this past Christmas.

  Myself along with others in my office were some of the early adopters in using drone photography to market properties.  The picture on the header of this blog site was shot with a drone and the accompanying photo is a drone hovering in the yard of one of my listings.  Drones are excellent way to not only showcase a home, but they also serve to show the home's neighbourhood and surrounding area which is especially effective in a rural setting.  There is a dark side however to using drones commercially and this comes in the form of potential liabilities for property and or other damages resulting from the improper use of drones.

  If you are thinking about purchasing a drone here are some things to consider. First Transport Canada requires that any person(s) using a drone for commercial purposes such as aerial real estate photography must apply for a Special Flight Operations Certificate and these are apparently not easy to get.  Transport Canada also requires that you have a minimum of $100,000 in liability insurance which in today's world is a pittance, $1 million in liability insurance would be better.  As REALTORS® we are required by law to carry Errors and Omissions insurance and this does not cover drones.

  Even if you are thinking about getting a drone for recreational or pleasure use, don't be taken in by all the hype, online videos etc.  There is a new drone coming to market available for pre-order now by the name of Lily.  To launch the Lily drone you simply toss it into the air and it will follow you down a ski slope or trail on your dirt bike.  It sounds cool right? The only problem is, most ski resorts including our own Blue Mountain has strictly banned the use of personal drones on the property and commercially flown drones require their consent. 

  Camera drones open up a whole new world of picture and video taking possibilities. Our real estate brokerage Royal LePAGE Locations North has decided that drone photography is best left to the experts, those that adhere to all of the legislative and insurance requirements that have been established governing this new device.

New Rules for Lawyers

On March 28th, the Law Society of Upper Canada passed an amendment to their Rules of Professional Conduct that will have an impact on most real estate transactions.
Unlike REALTORS®, lawyers are no longer able to act on behalf of both parties ie: Buyer and Seller in the transfer of title for real property. Two separate lawyers will be required to represent the parties to a given transaction. It is permissable for two lawyers from the same firm to act on behalf of the parties as long as the general rules pertaining to a conflict of interest are followed. After numerous consultations with members of the bar and real estate practitioners, it was felt that in order to minimize any chances of conflict of interest, this amendment should be adopted. In specific circumstances one lawyer can act on behalf of two parties ie: when the Buyer and Seller are one in the same or where property is being transferred from one spouse to another etc.
This recent change by the Law Society begs the question, how long will it be before similar legislation is brought forth with respect to the activities of REALTORS®? Real estate agents face the same potential for a conflict of interest when selling one of their own listings, representing both the Buyer and the Seller. It is an absolute necessity that all parties are aware of, understand and consent to in writing this form of agency relationship in a real estate transaction. I suspect the day will come when as is now the case within the legal profession, two REALTORS® will be required to handle a given transaction and there will be no more of what is affectionately known as "double-ending."
Being a customer or a client are NOT one in the same. If you have any questions with respect to whom is working for whom in a real estate transaction please do not hesitate to contact the writer.

Lawyers Face Changes in The Real Estate Transaction

The Law Society of Upper Canada has recently announced changes for its members regarding the processing of real estate transactions which might be a precursor to future changes governing the activities of REALTORS® as well.
Effective March 31, 2008 amendments to the "Rules of Professional Conduct" governing the legal profession will prohibit a lawyer from acting on behalf of both a Buyer and Seller in the same real estate transaction. In instances where a lawyer is faced with two clients engaged in the same transaction, one of said clients will have to be handed-off to a second lawyer within the firm or referred to another lawyer altogether. Obviously, having one lawyer represent two parties in the same transaction poses a threat re: a conflict of interest. The same however can and has been said of REALTORS®.
In real estate, the common term describing a situation where an agent brings forth a Buyer for one of his/her own listings is Dual Agency or "double-ending. In this scenario, the agent earns both the listing and selling portions of the commission thus doubling their potential income from that sale. In many instances both Buyers and Sellers like this arrangement thinking that (a) the agent in question is the most knowledgeable about the property and (b) a better deal might be had for both parties via the elimination of a second real estate brokerage. While there is some merit to both of these points, the fact is that it takes a very special person with the utmost in integrity to effectively yet impartially represent two parties in a real estate transaction. In short, it can be a situation filled with peril if not handled with the utmost of care.
The formally recognized term describing this relationship is "Dual Agency." When acting as a Dual Agent, a REALTOR® has fiduciary duties to obey, protect and maintain the interests and confidential details of both the Buyer and Seller. The terms of such a relationship must not only be fully disclosed to the parties involved but they must also consent to such an arrangement in writing as well.
Obviously the legal profession has taken issue with their members being able to act impartially and professionally when representing two clients in the same transaction hence their decision to change the respective "Rules of Conduct." Likewise, the Ontario Real Estate Association has similar concerns and it has been rumoured for some time that REALTORS® might someday see the day of "double-ending" eliminated. Given the recent actions of the Law Society, this day may be coming sooner than later.