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March Madness of 2017


What Did We Learn? 

1.  Never close on friday now
 
2.  Should we take conditional offers
 
3.  How do you check your taxes -- show them - how do you check square footage and lot size
 
4.  Do you know how to do an mass email for bully offers.
 
5.   When is a kitchen outdated -  prices are so high buyers have little left to pay for stainless steel appliances, hardwood floors, landscapping - that is the key to selling today
 
6.  Staging
 
7.  Open Houses - 2 Overpriced listings were double ended last week -- how should you handle a client - bb or customer service.
 
8.  Reco Insurance
 
9.  We are getting on more lists for Builder Platinum

 

 


Video: Notifying Everyone Who Showed Your Listing


This video walks you through how to send a customized email notification regarding registered offers to agents who have shown your listing. 

1. Log into the Back End Office. (call reception for your password)
2. Click the Listings Tab, select My Listings. 
3. Click the Red "Actions" button to open up a drop-down menu. 
4. Select "Notifications" at the bottom of the list. 
5. A window will pop-up where you can compose your email. 


Online Reports



Charging "entry fees" for pre-construction units
The Real Estate Council of Ontario (RECO) has become aware of a potentially unlawful practice regarding pre-construction real estate. It is being alleged that some registrants may be charging "entry fees" or "admission fees" to prospective buyers of pre-sale homes.
 
These fees supposedly give buyers access to purchase properties before they are available to the public or front-of-the-line status. Media reports have also stated that registrants have asked for cash payments and refused to issue receipts. They may also be sharing the proceeds with the developer's staff.
 
There are specific regulations regarding how registrants accept funds from consumers:
 
Full Disclosure - A document must be presented to potential buyers regarding any funds collected. The document must spell out:
  • what those funds are for;
  • how the funds are to be handled;
  • how the funds will be distributed, such as toward the deposit on a property; and
  • the conditions for the return of the funds if the consumer does not decide to make a purchase.
Under the Code of Ethics, you are obligated to treat every person you deal with in the course of a trade fairly, honestly and with integrity. And you must promote and protect the best interests of your clients. With that in mind, if a consumer pays an "entry fee" and does not purchase a unit, it is expected that the fee will be returned to the customer.
 
The buyer should also receive a receipt for any funds they provide.

Trust Accounts - All money provided by a buyer to a registrant must be forwarded to their brokerage. That money must be held in the brokerage's trust account until such time that it is to be disbursed appropriately.

Seller Permission - "Entry fees" can't be requested or accepted unless the registrant has received explicit consent of the seller of the property to do so.

It would be permissible to accept certain entry fees, only if the registrant complies with the rules listed above. If you are aware of a registrant breaching these rules, please file a complaint with RECO. If you suspect that employees of builders are improperly requesting or accepting fees without proper disclosure to buyers, you should inform Tarion, the regulator of home builders in the province.
 
Consumers have the right to know what they are paying for, and what will happen with their money. Transparency and upfront documentation are key to remaining in compliance with the regulations.
Check out RECO's Annual Report
RECO's 2016 year included many accomplishments, with a focus on improved service, the launch of an ambitious consumer outreach campaign, and key improvements to the insurance program.
 
Take a look at the Annual Report to find out more about RECO's year in review.

 

 
 

Important changes to preemptive (“bully”) offer process

 

Dear Marija,

You have a seller who originally told you to hold offers until a certain date, and you documented the seller’s direction properly 
by completing the Seller’s Direction re: Property/Offers, Form 244 
and you put appropriate comments in the REALTOR® Remarks section of the listing. 

Now your seller wants to review an offer that has come in before the offer presentation date 
- a preemptive or “bully” offer.

 

What do you do?
 

o help clarify the steps you must take if your Sellers change their minds about “no offers until”, the Board of Directors recently approved changes to the section of the MLS® Rules and Regulations (section 2.15) that address this situation. 

You must:

 

1.  Complete an Amendment to Listing Agreement and make the necessary changes to the REALTOR® Remarks field to remove the “no offers until” information UPDATE THE MLS LISTING IMMEDIATELY - REMOVE THE WORDING! 

AND
 

2.  Notify anyone who has expressed an interest in the property about the change to the offer process in writing.

An expression of interest includes 
"parties that have booked viewing appointments", 
AND THOSE that have:  viewed the property,
have informed the brokerage or the listing representative that they may be submitting an offer on the property, or 
have submitted an offer or an offer summary sheet on the property.”


 

Notification must be in writing, and that can now 
include text message or email.

No more verbals!
You can see a side-by-side comparison of the old wording and the new wording for this section of the MLS® Rules and Regulations here.

 

Why the change?

The MLS® Rules and Regulations were somewhat ambiguous about exactly who needed to be contacted if there was a pre-emptive offer. The Registrar issued a Bulletin in February that very specifically addressed this situation, and the changes to RAHB’s MLS® Rules and Regulations were patterned on the Registrar’s comments. The aim is to ensure there is a fair and transparent process in place for everyone - sellers, buyers and real estate professionals


When does this take effect?

Changes to the MLS® Rules and Regulations are NOW in effect.

 

 

Useful links