Dear members,
On June 28, the Real Estate Council of British Columbia’s Independent Advisory Group (IAG) released its final report examining the regulatory framework for real estate in BC.
The IAG’s 28 recommendations cover four areas of focus: transparency and ethics; compliance and consequences; governance and structure; and licensee and public education.
It is important to note that these are only recommendations and will not come into force immediately. Most require implementation by the provincial government or the Real Estate Council. You can find a copy of the report here: www.recbc.ca/wp-content/
While the Real Estate Council has struck an Implementation Committee with David Peerless (Managing Broker, Dexter Associates, Vancouver) as Chair, the Premier announced yesterday that the provincial government would end the real estate industry’s privilege of self-regulation.
A dedicated Superintendent of Real Estate will take over the Council’s regulatory and rule-making authority to carry out the changes required to restore public confidence. This would include:
- Reconstituting the Real Estate Council with a majority of public-interest, non-industry members.
- Implementing the recommended penalties, as well as increased fines for unlicensed activity and other offences.
- Allowing for commissions from licensees engaging in misconduct to be taken back.
- Making the managing broker responsible for ensuring the owner of the brokerage does not engage in the business of the brokerage if the owner is not a licensee.
- No longer permitting licensees to offer dual agency representation.
The Superintendent will deal with the other recommendations made in the report, including the comprehensive Code of Ethics and Professional Conduct, requiring increased standards for licensees, and requiring record keeping and reporting that will help identify industry practices that may be placing consumers at risk.
You can read the Premier’s news release here: news.gov.bc.ca/11421.
There are still many questions about the IAG report and the new Superintendent of Real Estate. BCREA will be meeting with the Real Estate Council next week, as well as with Minister de Jong’s office, to seek answers and clarification.
We also issued a press release on Thursday, June 30 supporting these changes to protect consumers and reinforcing the image of REALTORS® as hard-working, dedicated professionals. The press release also included the work that has been done within the profession such as the revamp of the Applied Practice Course, the implementation of designated agency, a new PDP course and the ongoing amalgamation discussions. Clearly, working together in a single organization would be beneficial to the profession moving forward. You can read the press release here: www.bcrea.bc.ca/news-and-
If you have any questions or comments, please email us at bcrea@bcrea.bc.ca.
Sincerely,
Deanna Horn
President, British Columbia Real Estate Association
