Putting the "Self" in "Self-Regulation"

September 30, 2011 isn't just the deadline for all Alberta real estate, mortgage brokerage and real estate appraisal professionals to renew their licensing or registration with the Real Estate Council of Alberta (RECA), it is the eve of a new strategic direction for RECA. RECA’s 2011-2016 Strategic Plan will usher in an era of greater professionalism, higher standards and a greater focus on putting the "self" back into "self-regulation."  

RECA's new strategic direction centres on five critical success factors, against which all RECA initiatives will be evaluated.

These Critical Success Factors include:

1. Advance professionalism of the industry by establishing a clear definition of self-regulation and working with industry professionals to take ownership for and understanding of self-regulation by supporting and promoting responsible and accountable professional behaviour.
2. Provide innovative, leading-edge career preparation and training; resulting in highly competent and highly valued new industry professionals.
3. Promote quality standards and continuous performance improvement by establishing a professional code of conduct, delivering ongoing professional development, conducting and ensuring transparent, timely and fair practice reviews and solutions, and providing advisory services.
4. Build awareness and appreciation for RECA’s self-regulatory value proposition and brand contribution.
5. Ensure RECA has the capacity to achieve its vision of excellence in self-regulation by providing the necessary resources, technology, policies and regulatory framework.

What does this mean for me?

With the new Real Estate Act Rules in 2006, a revised Real Estate Act in 2008, and the implementation of transaction brokerage and designated agency (also in 2008), Alberta industry members have had five years of significant changes in their industry, and though RECA's new strategic direction has a number of initiatives to improve the business of industry professionals and the concept of consumer protection, industry members shouldn't expect drastic changes in their day-to-day business practices.

RECA will be looking to Alberta industry members to be active participants in the concept of self-regulation, to be fully engaged in their industry, with their peers and consumers, and to be the standard by which all real estate, mortgage and real estate appraisal industry professionals should be measured.

To support their renewed commitment to effective self-regulation, RECA will launch a number of initiatives for industry members that will improve the strength and reputation of Alberta's real estate industry and its dedicated professionals. Among other things, these initiatives will include:

• Implementation of a Voluntary Broker Resolution Process (VBRP), which provides brokers and other industry members with the opportunity to resolve disputes with clients or customers on their own, prior to any formal investigation process being launched by RECA (the VBRP can, in some circumstances, also be suggested after an investigation has been commenced).
• Adding a practice advisor to the staff at RECA to provide confidential, practice-related advice to industry professionals;
• Launching a mentorship program for new entrants to the real estate and mortgage brokerage industry, to ensure that new industry members are competent, highly trained and ethical;
• Implementation of a certified technology program, through which RECA will highlight technological initiatives, devices and/or programs that will assist industry members in their support of self-regulation, regulatory compliance, and quality standards within the industry; and,
• Development of an online “Professional Standards Manual” for practitioners, incorporating information relevant to the practice of real estate and mortgage brokerages.

As these – and many other – new initiatives come to fruition, RECA remains committed to ongoing cooperation and communication with industry members in all sectors of practice, and with related industry associations and organizations. RECA will seek out every opportunity to meet face-to-face with industry members and invite you to contact us with your questions, concerns and suggestions. In the next five years, we will build on our industry’s already strong foundation, but it will require the dedication and support of all industry members as we work together to increase professionalism and put the “self” back in “self-regulation.”

How will you improve professionalism and self-regulation within your own business practice?

Free Beer With Home Purchase!

By now, many people in the Calgary area (and likely in other parts of the province) have read or heard news stories about the Calgary real estate associate whose seller clients are offering an incentive of $1,000 worth of beer on possession day if you purchase their home.

The Real Estate Council of Alberta (RECA) has fielded questions from industry professionals and media about whether or not this incentive is allowed under the Real Estate Act and Rules, so perhaps this is an opportune time for a reminder on what is allowed with respect to incentives.

Under section 1(1)(o) of the Real Estate Act Rules, an “incentive” is anything that is advertised, communicated or offered by a brokerage to the public or a person for the purpose of attracting business to the brokerage and includes a promise, good, service, game of chance, contest or anything else of value.

Only a brokerage can offer incentives to the public such as travel miles, gifts, contests, gift certificates, games of chance or anything else of value to attract clients to that brokerage. Incentives can be advertised or communicated in any way, including word of mouth, television, Internet advertising, websites, newspapers, flyers, brochures, radio and mail outs. There are no restrictions on how incentives can be communicated to the public except that industry members must only advertise incentives on behalf of the brokerage with which they are registered.

The bottom line is that RECA doesn’t regulate or govern sellers (or buyers, for that matter); only the industry professionals with which they work. Sellers are free to offer their own incentives in order to attract potential buyers to their property; however, anytime an industry professional wishes to offer an incentive, it must be offered by the brokerage and advertised on behalf of the brokerage. Individual brokers, associate brokers and associates are prohibited from offering their own incentives; that is, incentives whose sole purpose is to attract business to them personally.

A word of caution to industry professionals, though, if you want to suggest your seller clients try a similar marketing technique, ensure it truly is an incentive being offered by the seller – and not by you personally. That means ensuring you are not funding the cost of the incentive being offered. A seller-offered incentive should be 100 per cent paid for by the seller. And, any communication or advertising about the seller-offered incentive should be clear that it is an incentive being offered by the seller and not from the brokerage or the individual industry professional.

If you want to read more about incentives, check out RECA Information Bulletin: Incentives.

Seller incentives are not uncommon and, in fact, become more common in less robust markets. But, do they work?

Quick Renewal Stat Update

With seven business days left before the end of this year’s renewal period, more than 50 per cent of industry professionals have not been renewed yet.

The number of individuals in mortgage brokerage who are renewed is particularly low at just over 30 per cent, despite the fact that almost 80 per cent of mortgage brokerages have obtained and reported the required errors and omissions insurance coverage.

On a percentage basis, real estate appraisers and candidates are leading the renewal charge this year with just shy of 50 per cent having been renewed thus far.

Remember that if you are not renewed by the end of September 30, you are not authorized to trade in real estate, deal in mortgages or act as a real estate appraiser as of October 1. Make sure you check your licensing status on October 1 before carrying out any work that requires an authorization. To do so, visit http://www.reca.ca/, click on “Industry Members” and then click on “Search for an Industry Member” under “Featured Resources.” You can search your licensing status by your last name. If the search results show your name with anything other than a green light beside it – do not trade in real estate, deal in mortgages or act as a real estate appraiser.

If your name comes up with anything other than a green light (or doesn’t come up at all) and you are an associate or associate broker, please contact your broker. If you are a broker or real estate appraiser/candidate, you should log into the RECA Online licensing system to process your renewal, provided you have all of the required form(s) completed and commissioned by a Commissioner for Oaths. If you have difficulty doing so, you will need to contact the Real Estate Council of Alberta during regular business hours (Monday to Friday, 8:30 a.m.-5 p.m.) to look into the issue.

On a completely unrelated note, we want to take this opportunity to thank the dozens of Edmonton-area industry professionals who took the time to stop by the RECA trade show booth at the REALTORS® Association of Edmonton trade show at the Mayfield Inn yesterday. We had a steady stream of industry professionals stop by our booth; and everyone seemed to share our opinion that the show was well-run, well-attended and something to look forward to next year.

Around the World With AMBA

Roughly 325 mortgage brokerage industry professionals and over 150 exhibitors in 58 trade show booths enjoyed the annual AMBA Conference & Trade Show last week in Red Deer, Alberta. RECA was among the attendees and was once again impressed with the quality of the event organization, the program and, above all, the enthusiastic support of the industry professionals and stakeholders.

During breakfast Friday morning, Gary Siegle presented an overview of RECA’s 2011-2016 Strategic Plan. Among many other highlights, Gary spoke of RECA’s vision of creating a greater awareness of individual accountability and responsibility for professional conduct, putting the “self” back in self-regulation, and how it applies equally to the practitioner’s conduct and conduct observed in other practitioners.

George Bernard Shaw was quoted as saying, “If all economists were laid end to end, they would not reach a conclusion.” The Economic Panel consisting of Todd Hirsch from ATB Financial, Lai Sing Louie from CMHC and Katherine White from Alberta Finance and Enterprise would have given Mr. Shaw pause for reflection. The panel was well informed, articulate, entertaining and decisive. Not only that, they agreed on the mostly positive economic outlook for Alberta.

Darren Jacklin presented the Morning Business Seminar in which he provided some fresh thoughts on building business through relationships. Darren reiterated time and time again that you must show others how much you care before they will care about you.

During lunch, Warren MacDonald treated attendees to an inspirational presentation about how his life completely changed in a freak hiking accident that resulted in the loss of both legs above the knees. Warren said, “When you change the way you see the world, you change the world.” Within ten months of the double amputation, Warren had participated in a 1.2 km ocean swim race and climbed a mountain. Since then, he has successfully reached the summit of Mt. Kilimanjaro, Africa’s tallest peak. Warren continues to find opportunity in adversity and encourages others to do the same.

The theme for the afternoon trade show was “Around the World with AMBA,” during which exhibitors decorated their booths and dressed in the tradition of a specific region or country. We saw everything from kilts to lederhosen originating from Mexico to India and many other countries around the world. The trade show was a wonderful opportunity for networking and socializing.

What did you think of the 2011 AMBA Conference?

Mediation Seminars - Brokers: You're Invited!

How would you like the opportunity to become better at conflict prevention and resolution? How would you like to finely tune your mediation and negotiation skills?

Upcoming Mediation Seminars, being hosted by the Real Estate Council of Alberta (RECA) in Calgary and Edmonton, will provide brokers with many valuable conflict prevention and resolution skills.

Earlier this year, RECA made a number of improvements to its investigation process and held seminars in Edmonton and Calgary for brokers to find out more. Overwhelmingly, brokers responded favourably to the seminars and the changes themselves, and expressed a strong interest in and support for RECA complaint prevention initiatives and RECA’s new Voluntary Broker Resolution Program. RECA also heard that brokers and broker delegates wantadditional training so that they can better prevent and resolve complaints. 

To that end, RECA has two upcoming seminars planned – one in Calgary and one in Edmonton – to assist brokers and broker delegates with complaint prevention and resolution, with a particular focus on mediation and negotiation. Seminar attendees will learn how to better equip themselves to resolving conflicts, both within the new RECA processes and in life in general.

These seminars will be led by Michelle Simpson. Michelle holds a Certificate in Conflict Management and is a professional public speaker, lawyer, arbitrator and Qualified Mediator. She will share with you her insight into how people perceive conflict, how people choose to address conflict and how people can make better choices about resolving conflict.

The seminars will include information on:

• Understanding Conflict;
• Understanding the role of communication in conflict;
• Conflict-handling styles;
• Negotiation styles;
• The Diffusion Model;
• Negotiation vs. Mediation; and,
• How you can access mediators and additional training at discounted rates through the Alberta Arbitration and Mediation Society, all sponsored by RECA.

Come and have some fun! Learn something new about yourself including your own conflict-resolution style and along the way, learn how to address and better resolve conflicts at home and at work.

These free seminars are only 2.5 hours long and include a light breakfast. These seminars are only available to brokers and broker delegates with supervisory responsibilities. Space is limited to 150 participants at each seminar and registration is required. To register, please e-mail investigationadministration@reca.ca and indicate which seminar you wish to attend.

The seminar times and locations are as follows:

Calgary
Monday, October 17, 2011
Carriage House Inn
9030 Macleod Trail South, Calgary, Alberta
8:30 a.m. Breakfast
9:00 a.m. Seminar Begins
10:00 a.m. Refreshment Break

Edmonton
Thursday, October 20, 2011
Ramada Hotel & Conference Centre
11834 Kingsway NW, Edmonton, Alberta 
8:30 a.m. Breakfast
9:00 a.m. Seminar Begins
10:00 a.m. Refreshment Break